Purpose of study: To provide scientific foundation for planning and adjusting strategies, plans and policies of Lai Chau Province’s socio-economic development; To contribute to defining new and modern development methods for Lai Chau Province, which is basing on HRQ and technology with the orientation of sustainable development.
Trang 11. The necessity of the thesis topic
In the national or local level, human resources quality (HRQ) is always the decisive factor for socioeconomic development, for the assurance of income and enhancement of living standard for citizens
Lai Chau is a northern mountainous province with particular socioeconomic conditions and facing much more difficulties than other localities in the country. For the rapid development, Lai Chau should change their ways of socioeconomic development,
in which the main orientation is basing on HRQ and technology. This is a big and difficult development problem for Lai Chau when their HRQ is of low quality. Education level of Lai Chau province human resources (HR) is much lower than that of the whole country and of other northern mountainous provinces. Proportion of literate over15 population only accounts for 60%, in which literacy rate in rural areas is much lower than that in urban areas. Over15 population who has never gone to school makes
up ¼ HR of this age. Trained over15 HR of Lai Chau is only 11%. HR without technical and qualification level accounts for 90%. In addition, HR has been facing many problems to be solved on knowledge, skills and physical strength as well as quality and working behaviours. HRQ of the province is more and more lagged behind compared with HRQ of nearby localities and with the average level of the whole country
Confronted with that situation, the enhancement of Lai Chau HRQ is urgent to meet the requirement of the province’s socioeconomic development Therefore, studying to find out sciencebased solutions for the enhancement of Lai Chau HRQ plays an important role in the next period as well as in the long term
From the above reasons, I, a research student chose the topic “Human Resources Quality in SocioEconomic Development of Lai Chau Province” to be the thesis topic, specialty of Economic Management
2. Purpose and meaning of the study of thesis topic
Purpose of study: To provide scientific foundation for planning and adjusting strategies, plans and policies of Lai Chau Province’s socioeconomic development; To contribute to defining new and modern development methods for Lai Chau Province, which is basing on HRQ and technology with the orientation of sustainable development
Trang 2Theoretical meaning: To contribute to building, completing HRQ analyzing and assessing methods as well as HRQ enhancement methods in socioeconomic development of the provincial locality;
Practical meaning: Through the correct assessment of HRQ in socioeconomic development of Lai Chau Province and proposal of HRQ enhancement methods to meet the requirements of rapid and sustainable development of Lai Chau Province in the next period, this thesis will make contribution to the implementation of strategic breakthrough for HR development, to the socioeconomic rapid and sustainable development of Vietnam in general and Lai Chau Province in particular
3. Structure of the thesis
Apart from introduction, conclusion, appendix and references, the content of this thesis includes 4 chapters
CHAPTER 1: OVERVIEW OF RESEARCH ON HUMAN RESOURCES QUALITY IN SOCIOECONOMIC DEVELOPMENT1.1 Overview of research published inside and outside the country on HRQ in socioeconomic development
1.1.1 Overview of research in foreign countries on HRQ in socioeconomic development
* Studies on human factor and role of high quality human in economic growth:
Adam Smith (1776), “Wealth of Nations” indicates that capital accumulation is the decisive factor to produce material wealth. “Theory of skilled working” by Leontief (1953, 1956) interprets that skilled workers and human capital are the cause for the formation of structure and distribution of international commerce for industrial goods. Robert M. Solow (1956) gives his opinions that technical improvement determines economic growth. D. B. Keesing (1966) claims that experts working in an industrial country are the most important production factor, but the expertness cannot be achieved in the short time
“Theory of human capital” by T. W. Schultz, O. S. Becker, R. Ebald, Win asserts that through the investment in security, society and education, technical skills of human resources can be increased, HRQ can be enhanced, which makes ordinary HR become “human capital”, in order to directly or indirectly promote production growth, produce “increasing income”, remove effects of “decreasing income” and limits of
Trang 3capital and labour (ordinary) factors to ensure the longterm economic growth. Lucas (1986) reckons that a country has to focus on the development of production with the limited but HRadvantaged capital to increase economic growth rate. Romo (1989) analyzes and demonstrates the effect of knowledge about professionalization and human capital accumulation on economic growth, and these two factors can produce
“increasing income”, be “the maintenance for permanent motivation of economic growth”. Scot (1991) emphasizes the effect of capital investment on economic growth because the origin of technical improvement and human capital accumulation, knowledge accumulation is capital investment, which means capital investment determines technical progress, thereby make determination to economic growth
* Studies on relations of HRQ with socioeconomic sustainable development and HRQ enhancement method: Altinok (2007) shows positive effects of education quality
and HRQ on economic growth; at the same time implies that HRQ is first determined
by education quality, the leading factor to ensure sustainable growth and socioeconomic sustainable development of each country. Changzheng Z. Kong Jin (2010) indicates that equality in education is in positive relationship with economic growth quality, in which equality in education is measured with Gini indicator in education and economic growth quality is measured by TFP Malolm Gillis with collective authors (1987), considers the development of labour force market, labour policies and labour attraction via industrialization are ways to enhance HRQ initiatively, actively and in the long term. Khan, Mohsin (2005) concludes that: A country with higher education level and better health status has higher growth of per capita average income;
he gives recommendation on policies that the government should invest more in education to increase human capital, enhance HRQ, therein has higher and more sustainable economic growth rate. Zorlu Sengucel (2009) interprets the particularly important role of solving the problem of HR management in the 21st century, which is solving the relationship between employees and organization, training of individuals and HR management organization Nygel Finch (2013) generalizes green growth strategy proposed by APEC 2013 leaders, in which creativity is considered the main motivation of the growth
1.1.2 Overview of research inside the country on HRQ in socioeconomic development
* Studies on HRQ and HRQ measuring criteria: In this scope, HRQ is studied with two points of view. The first one is that HRQ is understood a process from input
Trang 4Vu Dinh Hoe, Doan Minh Huan (2005), Tran Xuan Cau (2012)…
* Studies on effects of HRQ on socioeconomic development, competitive capacity
of the nation and provincial locality: Strong effects of HRQ on economic growth,
employment and residents’ living standard are asserted in studies by Truong Minh Duc (2011), Le Thi Thuy (2012), Tran Xuan Cau (2012), VCCI (2008), Truong Thi Thuy Hang (2012), Nguyen Thi Nguyet (2008)…
* Studies on factors affecting HRQ, HR development to meet the requirements of regional and local socioeconomic development: Factors decisively affect HRQ such
as education and training, labour and employment policies, population, socioeconomic condition, gender equality. Studies of this direction involves those by Bui Van Binh (2009), Le Duy Binh and other authors (2009), Le Thi Hong Diep (2009), Le Thi Thuy (2012), Doan Hung and other authors (2010), Nguyen Thi Giang Huong (2013). Another study direction is the effect of development of regional connection and HR demand on socioeconomic development of the region and provincial locality, those in this direction include: Nguyen Van Huan and his coworkers (2012), Bui Thi Thanh (2008), Nguyen The Phong (2010), Nguyen Hoai Bao (2009), Tran Thanh (2012), Nguyen Giac Tri (2015),…
1.1.3 Problems of the thesis topic not having been studied and solved by published projects
Studies mentioned above (section 1.1.1) have not mentioned or deeply solved some important problems of the thesis topic, such as:
Not clearly defining and interpreting components of HRQ; system of criteria and targets for the evaluation of HRQ in the provincial locality; position, role of HRQ and enhancement of HRQ in socioeconomic development of the provincial locality; effect
of socioeconomic development on quality and enhancement of HRQ in the provincial locality; HRQ enhancement methods, contents in governmental management to HRQ enhancement in the provincial locality
Not deeply studying and assessing real situation of HRQ and not proposing synchronous solutions for HRQ enhancement to serve the demand of socioeconomic development of Lai Chau Province; not solving the problems of what should be done
Trang 5by the State and local authority, and how HRQ can be enhanced to meet the requirements of socioeconomic development in Lai Chau Province…
1.1.4 Problems focused to be studied and solved by the thesis
Building theoretical frame for the analysis and assessment of HRQ, HRQ enhancement methods, HRQ affecting factors and role of HRQ enhancement in socioeconomic development in the provincial locality
Defining particulars in HR and economy – society of Lai Chau Province; objectively assessing real situation of HRQ, restrictions and their reasons to suggest solutions of high practical meaning in HRQ enhancement to meet the requirements of socioeconomic development of Lai Chau
Concentrating on the interpretation of problems on and role of the State and Lai Chau authority Province in HRQ enhancement to meet the requirements of the province’s socioeconomic development
1.2 The thesis’s direction for the solving of study problems
1.2.1 Aims of the research
* General aims: To clarify scientific basis for HRQ and suggest solutions for the enhancement of HRQ to meet the requirements of socioeconomic development in Lai Chau Province in the next period
* Specific aims: (1) To clearly define reasoning basis for HRQ in socioeconomic development and factors affecting HRQ in the provincial locality; (2) To objectively assess real situation of Lai Chau HRQ, clearly determine strong and weak points and basic reasons affecting HRQ of Lai Chau Province; (3) To recommend main solutions
to enhance HRQ of Lai Chau Province to meet the targets of socioeconomic development of the province
1.2.2 Research questions
The thesis focuses on answering 6 main research questions: (1) What are the main components of HRQ?; (2) What indicators, criteria and targets is HRQ reflected, measured and assessed by?; (3) What is the role of HRQ in the provincial locality’s socioeconomic development?; (4) What is the real situation of Lai Chau Province HRQ?; (5) What are the requirements for HRQ of the province to be met for Lai Chau’s socioeconomic development in the next period?; (6) What are methods and solutions to be used and implemented to enhance HRQ to meet the requirements of Lai Chau Province’s socioeconomic development?
Trang 6Research subject: is the reasoning and practical problems on HRQ and methods
of HRQ enhancement in Lai Chau Province’s socioeconomic development
Research limited scope:
(1) In content: Concentrating on the interpretation and determination of
theoretical frame for the analysis and evaluation of HRQ, methods for HRQ enhancement; Applying this theoretical frame in assessing real situation of Lai Chau HRQ and proposing methods for HRQ enhancement to meet the requirements of Lai
Chau’s socioeconomic development; (2) In research space: HR in Lai Chau Province, experience in HRQ enhancement of Da Nang and Ha Giang Provinces; (3) In time:
Analyzing and assessing real situation of Lai Chau HRQ in the period of 20082013; Defining directions and measures to enhance HRQ of Lai Chau Province until 2020, vision to 2025
1.2.4 Methodology and research method
* Way to approach the problem of HRQ is in the “changing” state in the level of
a provincial locality, in the relationship with socioeconomic development of this locality. The performance of solving problem relating to HRQ enhancement of Lai Chau Province in the “open” system with the region and the whole country is made by the way of market economy and international integration
Economic growth of the locality
Social labour productivity Employment and unemployment of workers
Residents’ living standard
Trang 7The collection of secondary information is mainly from scientific works which have been published, from Statistics of Lai Chau Province, General Statistics Office and VCCI. The collection of primary information is carried out by surveying 3 groups
of subjects in Lai Chau, which are Employees, Enterprises and State Civil Servants; Time of survey is Quarter IV/2013; The number of surveys collected is 832; the model used is Exploratory Factor Analysis (EFA) to process the results of survey, to give a conclusion about HRQ of Lai Chau Province and to give suggestions about policies and solutions.
* Research methods are mainly analysis, demonstration, statistics, comparison
and summarization. At the same time, interpolation and extrapolation are used to study and recommend some main measures to enhance HRQ in Lai Chau Province and to petition for conditions to implement the solutions
CHAPTER 2: REASONING BASIS FOR HUMAN RESOURCES QUALITY
IN SOCIOECONOMIC DEVELOPMENT OF THE PROVINCIAL
LOCALITY 2.1 Human resources quality and role of human resources quality in socio
economic development of the provincial locality
2.1.1 Human resources quality and components of human resources quality in the provincial locality
In this thesis, HR of a locality, a region or a nation are considered population of working age and population over working age with working ability, capacity to take part in production activities of a nation, a region or a locality both in quantity and quality HRQ is quality of human resources, representing the relationship of components of HR nature, shown through criteria of HR structure, knowledge level, skills, physical strength, attitude and behaviour of human resources – those are factors
to ensure economic growth, increase in labour productivity, assurance of employment, income and people’s living standard.
Roles of human resources quality to socioeconomic development of the provincial locality include: (1) human resources quality creates competitive advantage
in development; (2) Human resources quality is the factor to ensure the sustainability
of economic growth; (3) Human resources quality determines the size of human capital
Trang 8and creates increasing income; (4) Human resources quality creates motivation for economic sustainable development; (5) Human resources quality creates competitive advantage and moving competitive capacity of each locality and enterprise.
2.1.2 Criteria, reflecting indicators and methods to evaluate HRQ in socioeconomic development of the provincial locality
2.1.3 Effects of HRQ on socioeconomic development of the provincial locality
The thesis defines effects of HRQ on socioeconomic development of the
provincial locality in 6 following main aspects: (1) Effects of HRQ on the locality’s
Trang 9economic growth; (2) Effects of HRQ on the production value increase of economic sectors; (3) Effects of HRQ on social labour productivity; (4) Effects of HRQ on employment, unemployment of workers in the locality; (5) Effects of HRQ on income; (6) Effects of HRQ on poverty status.
2.1.4 Role, meaning of human resources quality enhancement in socioeconomic development of the provincial locality
First: To enhance HRQ is a basic way to improve economic growth speed and quality of the locality
Second: To enhance HRQ is one of main ways to strengthen competitive capacity of the locality
Third: To enhance HRQ is the main method to solve problems relating to employment and income of workers in the locality
Fourth: To enhance HRQ is to increase infinite properties which can be exploited for socioeconomic development in the condition of the limitation of other sources
Fifth: To enhance HRQ in rural areas has the deciding meaning to socio economic development of backward localities in mountainous provinces.
Trang 10Tradition and culture have effects on ideas and habits of workers; those ideas and habits affect their attitudes and behaviours towards the society and work. Therefore, tradition and culture also have effects on HRQ development
2.2.3 Science – technology factor
Science and technology affects HRQ in two aspects: (1) Development of science and technology helps human approach many kinds of modern machines, force workers operating these systems to have specific qualifications and to be methodically trained
to be able to operate them; thus motivates human resources quality enhancement; (2) Development of science and technology will reduce the quantity of workers, create pressure of competition, which forces workers to improve their working quality
2.2.4 Natural conditions
Localities in remote areas, regions of ethnic minorities or localities with regular natural disasters such as earthquake, storms, flood… will face difficulties in attracting workers of high quality. On the contrary, localities in deltas with convenient traffic will have more advantages in this aspect
2.2.5 Factors of human resources themselves
Each person is a biologicalsocial entity, in which the biological aspect is the premise, basis for the social one to develop. HRQ is evaluated by means of basic criteria such as qualification, attitudes and physical strength of HR. Physical strength
of workers is indicated in their physical and spiritual health. Physical health is shown
in the ability to apply their muscles in working
2.3 Methods to enhance HRQ of the provincial locality
(1). Build and develop labour market and local talent market in a market of labour force. The region and the whole country need to unite and gradually integrate the labour force market of the world
(2). The State and the local authority have to be always active and play the orienting role, manage, regulate and promote HR development, HRQ enhancement in the locality, especially proposing policies to attract and make use of HR of high quality
(3) Promote and effectively use the local human resources, attract human resources from other localities in the country as well as from other countries to develop the local HR development and HRQ enhancement
Trang 11(4). Expand and strengthen connection among groups, areas (state, enterprises, nonbusiness units, social communities) in the province, in the region, with other regions and other countries to develop and enhance HRQ of the provincial locality.
(5) Improve HR management capacity, especially HRQ management in all levels (mediumscopic and macroscopic) in the province
(6). Establish, maintain and adjust population structure and HR structure in the provincial locality to be suitable for the demand and socioeconomic development level of the locality in each period
(7). Rapidly develop education and training institution network, health and health care system in the province is a basic way to enhance population quality and HRQ in the long run
(8) Create employment, raise income and living standard of people in the province, create material conditions for HR improvement in the locality
2.4 Experience of some localities in the country in human resources quality enhancement in socioeconomic development and lessons for Lai Chau Province
2.4.1 Experience of some localities in the country in HRQ enhancement in socio economic development
* Experience of Da Nang City in choosing methods to enhance HRQ
First: Planning HR development in the locality to be the basis for solutions to enhance HRQ in the locality. Second: Developing health and health care to bring up and create a premise for gradual HRQ enhancement Third: Planning and implementing effectively the policy of attracting and using HR of high quality. Fourth:
Expanding investment and supporting the training of qualification and technical level for workers; Taking priority of training special human groups
Trang 12To actively implement, encourage and support education and vocational training institutions as well as worker using institutions; (6) To build and implement training programs to enhance worker capacity.
CHAPTER 3: REAL SITUATION OF HUMAN RESOURCES QUALITY IN SOCIOECONOMIC DEVELOPMENT OF LAI CHAU PROVINCE
3.1 Overview of real situation of factors affecting human resources and real situation of using human resources in Lai Chau Province
3.1.1 Real situation and characteristics of factors affecting HR of Lai Chau Province
(1). Natural conditions of Lai Chau affecting human resources of the province
Lai Chau is a mountainous province in the national border, in the North West of Vietnam, has 265kilometer border with China. Lai Chau’s topography is mainly high mountains, high slope and strongly separated, which causes many difficulties in socioeconomic development. Climate in this province is really severe with hoarfrost in the winter, which is disadvantageous for agricultural production and social welfare
(2) Socioeconomic characteristics of Lai Chau affecting HR of the province
The population of this province until 2014 was 431 thousand people, population density was over 47 people/ km2, with 20 ethnic groups (Thai ethnic group 35.19%; Mong 21.18%; Kinh 12.69%; Dao 11.85%; Ha Nhi 5.12%; others 13.29%). Lai Chau currently has 108/108 communes, wards and towns with national grid; 96/96 communes with roads for cars to the commune center; 93% communes with roads for cars to run all year round;
In the past 10 years, economic growth rate (GDP) of the province was over 10%/year. Economic structure had an active transformation (in 2014: agricultural, forest and aquatic products 24.51%; construction industry 22.95%; service 46.96%). Per capita income was 16.27 million dong/year (means 1/3 the average of the whole country). Labour productivity was only 1/3 compared with that of the whole country; average unemployment rate was about 0.36% the population of working age
In 2013, Lai Chau had 246.4 thousand employees working in all sectors of the province; 638 enterprises (until 31/12/2013), attracting 14,039 workers; 132 cooperatives, attracting 1,550 workers; 9,034 nonagricultural technical institutions, attracting 13,390 workers; 139 kindergartens, attracting 2,174 teachers; 292 schools,