Socio-economic changes in Dong Anh in the innovation period : Luận văn ThS. Khu vực học: 60 31 60

Together with the comprehensive change of the country, Dong Anh, a suburb district in the North of Hanoi City is stepping into innovation period and created the significant changes in al

VIETNAM NATIONAL UNIVERSITY, HANOI

INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES

BUI HUY TOAN

SOCIO-ECONOMIC CHANGES

IN DONG ANH IN THE INNOVATION PERIOD

MASTER THESIS Major: Vietnamese Studies

Hanoi - 2012

VIETNAM NATIONAL UNIVERSITY, HANOI

INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES

BUI HUY TOAN

SOCIO-ECONOMIC CHANGES

IN DONG ANH IN THE INNOVATION PERIOD

MASTER THESIS Major: Vietnamese Studies

Code: 60 31 60

Supervisor: Assoc Prof Dr Pham Hong Tung

Hanoi - 2012

PROMISE

The subject: Socio-economic changes in Dong Anh in the innovation

period, is a research of major socio-economic changes in Dong Anh District in

innovation period (especially since 2000) The sources of materials used in the thesis are the secondary and the primary The sources of primary materials are quoted with clear notes to ensure objectiveness of materials and copyright This thesis is not similar to any work of socio-economic study in Dong Anh district in the previous time Argumentations and scientific conclusions as stated and the sources of materials collected in the thesis are objective and honest and completed with efforts of the author of the thesis and the orientations of the instructor

MA Student

Bui Huy Toan

I would like to express my heartfelt thanks to Dong Anh District People’s Committee and Divisions for facilitating and helping me to collect materials for my thesis!

Especially, I would like to show my deep gratitude Assoc Prof Dr Pham Hong Tung, who gave advices to and encouraged me during the research

I would like to manifest my thanks to my family, close relatives, friends and members of Vietnamese Studies MA Class of 5th, who have always encouraged and shared with me many things during study

TABLE OF CONTENTS

INTRODUCTION 5

1 Reasons for the study 5

2 Literature review 6

3 The purposes of the study 10

4 Object and scope 11

4.1 Object of the study 11

4.2 Scope of the study 11

5 References and methods of the study 11

6 Significance 13

7 Structure of the thesis 13

CHAPTER 1: DONG ANH: GENERAL REMARKS 14

1.1 Strengths and development resources – promoting factor for socio-economic changes in Dong Anh 14

1.1.1 Geographical situation 14

1.1.2 Topographical characteristics 17

1.1.3 Local climate 17

1.1.4 Land 18

1.1.5 Hydrographical characteristics 21

1.2 Socio-economic resources 22

1.2.1 Population 22

1.2.2 Human resources 23

1.3 Socio-economic development in Dong Anh District 23

1.3.1 Economic situation 23

1.3.1.1 Industry 25

1.3.1.2 Service -Commerce 27

1.3.1.3 Agriculture 27

1.3.2 Socio-cultural situation 28

1.3.2.1 Education – training 28

1.4 General assessment of potentials, advantages, difficulties and challenges in development process of Dong Anh 30

1.4.1 Advantages for socio-economic development 30

1.4.1.1 Strengths of the natural conditions 30

1.4.1.2 Advantages of socio-economic conditions 30

1.4.2 Difficulties and challenges 31

CHAPTER 2: MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH SINCE 2000 TO NOW 33

2.1 Common theory of socio-economic changes in Vietnam in the innovation period 33

2.1.1 Structure of economy 33

2.1.2 Transformation of economic structure 36

TRANSLATION - BẢN DỊCH

2.1.3 Changes of territorial structure 37

2.1.4 Change of structure of economic components 38

2.2 Changes in structure and economic relations of Dong Anh since 2000 39

2.2.1 Changes in structure of economic sectors 39

2.2.2 Changing inside economic sectors 41

2.3 Changes in structure and social relations 55

2.3.1 Changes in scale of manufacturing facilities and the number of centralized

labors by economic sectors in industry 55

2.3.2 Changes in scale of manufacturing facilities and the number of centralized labors in commerce and hospitality 57

2.3.3 Changes in scale of manufacturing facilities and the number of centralized labors in transport 59

2.3.4 Changes in education - health, life quality of Dong Anh district in the period 2000 - 2009 61

CHAPTER 3: ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF

DONG ANH UP TO 2020 67

3.1 Viewpoint and orientation of socioeconomic development of Dong Anh 67

3.1.1 Viewpoint of development 67

3.1.2 Orientation of development 68

3.2 Analysis based on SWOT of potentials and challenges in socioeconomic development process of Dong Anh 70

3.2.1 Strengths (favorable conditions for socioeconomic development) 72

3.2.2 Weaknesses (shortcomings in socioeconomic development) 74

3.2.3 Opportunities of socioeconomic development of Dong Anh from now to 2020 75

3.2.4 Challenges of socioeconomic development of Dong Anh from now to 2020 75

3.3 Orientation of development in economic sectors 77

3.3.1 Orientation of development in trade - service sectors 77

3.3.2 Orientation of development in industry, small scale industry and construction 79

3.3.3 Orientation of development in industry 81

3.3.4 Orientation of cultural and social development 83

3.4.1.1 Orientation of education and training development 83

3.4.1.2 Orientation of health development 83

3.4.1.3 Orientation of development in culture - information and sports 84

3.5 Solutions to socioeconomic development of Dong Anh 85

3.5.1 Training and developing human resources 85

3.5.2 Applying scientific and technical advances in production 86

3.5.3 Mobilizing and using investment capital sources effectively 86

3.5.4 Widening the market 88

3.5.5 Improving general power of economic sectors 89

CONCLUSION 91

REFERENCES 93

INTRODUCTION

1 Reasons for the study

With the goals up to 2020 that, our country will basically become an industrial country, our country’s industrialization and modernization process has more and more rapidly and strongly happened, but quite complicated in all cities and provinces This process has changed the socio-economic face of localities at various levels; and promoted the urbanization process The urban development

in several big cities such as: Hanoi, Ho Chi Minh City,… has impacted on not only the economy – society – environment on the field of those cities but also the surrounding districts and provinces strongly

Together with the comprehensive change of the country, Dong Anh, a suburb district in the North of Hanoi City is stepping into innovation period and created the significant changes in all aspects However, nowadays, to foster the comprehensive development process, take full advantage of its socio-economic potentials, Dong Anh district should form and perform a long-term strategy for its sustainable development by itself Therefore, to explain the socio-economic changes in the district, not only figures are taken to prove those changes in two different periods but also we will find out the other reasons, which control those changes, and then take solutions to promote and adjust the socio-economic development in Dong Anh District With the goals, we selected the subject

“Socio-economic changes in Dong Anh in the innovation period” for research

and expected to find out the major characteristics of the process, which changed structure and operating-mechanism of the economy in Dong Anh; showed and analyzed the major changes in the social structure and relationship in Dong Anh Not only figures are taken to prove changes in two different periods but also from that we will find out the reasons, which control those changes, and then take solutions to foster and adjust the socio-economic development in

Dong Anh On that basis, we hope that we will contribute our effort into the socio-economic development in Dong Anh

According to Encyclopedic Dictionary: the social change is “a concept,

which mentions changes in specific conditions and operating methods, or in a specific structure of a group, a specific social organization, or even in the whole specific society The social change is in various levels in individual aspects of the society, and created evolutionary-based changes It can appear on all aspects

of the society and gradually change the society In a certain period, it will create great advances, deep changes, substance transformation from this status to another one (urgent transformation, revolution) The revolution is the most peremptory time of the social change”

In the social changes in Vietnam after more than 20 years of innovation,

Prof Dr Hoang Chi Bao (Central Theoretical Council) said that, “Until the present, (2008), Vietnam has innovated for 20 years, more than one-fifth of the century In this time, there have been many changes in the aspects of the society

in Vietnam such as the social change or change in the social side, the social aspect in the overall society.” [3]

In Changes in the socio-economic structure in Vietnam in the period of

1986-2000, Prof Dr Nguyen Dinh Le focused on the following issues: The Party’s

innovation opinions and socio-economic orientations in the five-year plans

(1986-1990, 1991-1995, 1996-2000); Impacts of the international background

on innovation task in Vietnam; changes of structure in investments, gross products, national expenditure; growth and density changes in the economic sectors, change of structure in sectors….; changing labor forces in the society; growth of economic sectors; changing class-social structure; income and living standards of the people; the gap between rich and poor; the significant achievements and matters in question in the industrialization and modernization career [17]

In Changes in the cultivated land structure and the agricultural economics in

Red River Delta in the innovation period (by surveys in several villages and communes) Prof.Dr Nguyen Van Khanh emphasized on the following issues:

changes in the rural areas in Red River Delta in view of the cultivated land and agricultural economics in the innovation period; impacts of policies of agricultural innovation on the socio-economic situation in several villages and communes in Red River Delta … [12]

Regarding the interactive relationship between the economic changes and the social changes, according to Marxist theory of production mode, “Change and development process of the society is dependent to mode of production The history of the social changes and development is the history of changes and development of mode of production” It can be seen that, studies are in this view identical in the same point and affirmed that a group or a system of social aspects – social problems – social policies and social security system has strong ties and connection with the social changes In this system, it is seen that: Any changed thing is the social change, or social matters have the dialectical relationship with the economic matters The social changes is firstly expressed through the social problems, which are directly questioned in the daily life together with demands and interests of the human (Individuals, groups, genders,

ages, generations, communities and so forth) or the social consequences arisen from economics and political impacts, operations

Generally, the studies are not only unified in the facts, the main social structure, which is directly resulted from the socio-economic structure but also

on refers to the socio-economic changes, the author emphasizes on the structural changes and impacts of socio-economic policies on the socio-economic changes

in the whole country or in a quietly large area This is the theoretically reliable fulcrum for our application into the study of socio-economic changes of a particular field – Dong Anh

2.2 Studies of the socio-economics change process in Hanoi in the innovation period

Dang Duy Loi, the author of Hanoi geography and Le Thong in the book of

Geography of provinces and cities in Vietnam have quite fully implemented the

studies of the social-economic aspects of provinces, cities in general and Hanoi

in particular; and summarized the basic socio-economic changes in Hanoi in recent years (especially after the innovation period) However, the authors mostly approach to it in the geographical view Therefore, analyzing those changes will take not only development sources but face with difficulties, not deeply explains in various aspects

In the socio-economic changes in the edge of Hanoi in the urbanization

process, the author Nguyen Huu Minh and his colleague noted that:

“Urbanization process has created the strong changes in life of the people in the rural area, especially in edge of the city It is possibly considered that the edge

of Hanoi is the buffer zone for transition from rural to urban form and clearly reflects impacts of the urbanization process in the rural areas.” [23]

Or Do Thuc, the author of rural area of Hanoi on innovation way, the

statistics journal, No 2, 1997 also referred to the major changes in the rural

areas of Hanoi in recent years in all careers and sections as well as in transition period of the rural area …

In the volume of Influences of the natural conditions on Hanoi Capital

development and planning, the summary record of Thang Long – Hanoi

Management and Development Seminar, KX09, Hanoi Publisher 2008, Prof.Dr Truong Quang Hai, the chairman Tran Thanh Ha, Assoc Prof Dr Vu Van Phai clearly pointed out the characteristics of the nature and its influences on the socio-economic development of Hanoi Capital, especially on planning development strategies of the capital in the future

From the studies above, it is possibly seen that the socio-economic activities

of Hanoi has been quite comprehensively paid attention to study However, most

of them focused on changes of occupations, income structure and living standard; of residential houses, infrastructure and environment (especially housing and land matters, food sources, waste treatment and so forth)

2.3 Studies on Dong Anh

In the master planning of socio-economic development in Dong Anh until

2020, Dong Anh People’s Committee referred to the following main contents:

Potentials and development resources of Dong Anh District; The actual situation

of socio-economic development in the district in recent years; the contents of the master planning of socio-economic development in Dong Anh district in the period of 2001-2010; solutions for the master planning in Dong Anh District and proposals

In the book Dong Anh and Thang Long – Hanoi Thousand- Year Civilization

of Dong Anh district Party Committee – People’s Council – People’s Committee, a long-term development process of the district was mentioned This work discussed about the administrative, geographical matters and the historic- cultural values of Dong Anh; establishment and defense history of the country;

and Dong Anh and innovation task, attached with development orientation of

Dong Anh [38]

And in History of Dong Anh District Party Committee, Dong Anh District

Party Committee generally introduced to Dong Anh district since 1945 The book focused on the actual situation of socio-economic development, especially showed recourses and illustratable figures to the actual socio-economic situation

of the district

It is possibly said that, the studies above are valuable, but do not emphasize

on the socio-economic changes Because this work contains a huge quantity of questions, the socio-economic problems in Dong Anh are just in level of actual situation survey, not further analyzed to take development orientations for the future Therefore, we applied SWOT analysis to assess strengths, weaknesses, chances as well as risks in the socio-economic aspect in Dong Anh comprehensively and then proposed solutions to foster growth of Dong Anh in next years This is the new study

We succeeded assessments of the socio-economic changes above and regarded them as the theoretical premises However, for a specific field – Dong Anh, until the present, no study has successfully analyzed the socio-economic changes All previous studies identified only resources for socio-economic development in Dong Anh The socio-economic changes in Dong Anh, especially after innovation period, have not been considered as a specific and

systematical question We bravely make and answer the question of the

socio-economic changes in Dong Anh in the innovation period (the context selected

since 2000) After, we will analyze and propose reference methods for planning

a socio-economic development strategy in Dong Anh

3 The purposes of the study

The results of the thesis will clarify the socio-economic changes in Dong Anh since 2000, especially show the basic characteristics of the transition

process in the point of view of structure and operating mechanism of the economy in Dong Anh; take and analyze the basic changes in structure and social relationship in Dong Anh

Thence, we will propose orientations and effective solutions to uphold the strengths and minimize the negative problems in the district as well as focus on the sustainable development strategy

To achieve this goal, the thesis will complete the main duties as follows:

- Systemizing socio-economic changes, clarifying related concepts

- Surveying, collecting related figures as required

- Analyzing, explaining the major socio-economic changes, achievements and restrictions in Dong Anh District

- Taking orientations, forecasting several socio-economic changes in the next time, and proposing feasible solutions

4 Object and scope

4.1 Object of the study

The object of the study is the socio-economic change in Dong Anh District, Hanoi City since 2000, especially changes in structure and operating mechanism

of the economy; the major changes in structure and social relationship in Dong Anh

4.2 Scope of the study

Location: Dong Anh District, Hanoi City

Time: Focusing on the 2000-present period

5 References and methods of the study

5.1 References

- Reports and summary data of the locality

- Materials collected from the fact-finding tour (quá trình điền dã)

- Succeeding several related achievements from the previous works

These materials are used for comparisons, references to increase accuracy and reliability of the results of the study

5.2 Methods

5.2.1 Statistical method

The statistical figures, which are provided by General Statistics Office of Vietnam, Hanoi Statistical Office and so forth, are used and analyzed in the thesis These statistical figures are considered as the basis to evaluate the socio-economic changes in Dong Anh District

5.2.2 The analyzed and generalized method

Information from the collected materials are classified and analyzed for comparison, reference so as to clarify the socio-economic changes in Dong Anh District

5.2.3 Graphical methods

This method is applied in a certain limit To prove and clarify phenomenon

of socio-economic changes, the mutual impacts of factors, not only relative and absolute figures are used but also a system of maps and graphics should be paid attention Graphical and mapping method is a specific one of the graphical science Therefore, the object of the study will be more visually and comprehensively concretized using this method

5.2.4 Field method

This is a necessary method used to determine reliability of collected materials and figures We implemented a field survey in several areas to directly observe the socio-economic changes By information collected and the field surveys, we re-affirmed reliability of the available figures and judges

6 Significance

- Scientific significance: the thesis contains a new awareness of a process of socio-economic change in rural area in Vietnam in general and in rural area in the North Vietnam as well as in Hanoi in particular from a specific field - Dong Anh District

- Practical significance: From the reasons as above, the results of the thesis offer the scientific recommendations to promote industrialization –modernization and sustainable development process in Dong Anh District

7 Structure of the thesis

Besides the introduction, the conclusion, the appendix and the list of reference documents, the contents of the study include three chapters as follows:

Chapter 1 Dong Anh: General Remarks

Chapter 2 The main socio-economic transformations in Dong Anh since

2000 to now

Chapter 3 Orientation of socio-economic development in Dong Anh

CHAPTER 1 DONG ANH: GENERAL REMARKS

1.1 Strengths and development resources – promoting factor for economic changes in Dong Anh district

socio-1.1.1 Geographical situation

Dong Anh is a suburb district in the Northern gateway of Hanoi Capital It has the natural area of 18,230 ha (182.3 km2) Its natural boundaries with other districts of Hanoi are Red River, Duong River in the south of the district, which

is the border between Dong Anh and inner Hanoi, and Ca Lo River in the north

of the district – the border between Dong Anh and Soc Son district The administrative border of Dong Anh district is determined as follows:

+ In the north: Next to Soc Son District, Hanoi

+ In the south: Next to Tu Liem, Tay Ho district and Long Bien district, Hanoi

+ In the east north: close to Yen Phong District and Tu Son District, Bac Ninh Province; in the east south, close to Gia Lam District, Hanoi

+ In the West: bordering Me Linh District, Hanoi

Dong Anh area is quite large compared with suburb districts in Hanoi, and stands on the seventh position after the districts Ba Vì, Soc Son, Chuong My,

My Duc, Thach That, Ung Hoa

With the quite large natural area, lying in the north of Red River and close to inner Hanoi, Dong Anh plays a strategic and important role in urban development orientation of Hanoi Capital with the advantages as follows:

- Strategic traffic location: Dong Anh is the gateway, which connects traffic

activities of Hanoi and the Northern provinces At the present, two railways are

running through the field of Dong Anh: railways connecting the center of Hanoi and Thai Nguyen and Lao Cai; highway connecting the center of Hanoi to the international airport Noi Bai – the gateway for commercial exchanges with the world; highway and roads to the Northern provinces Its advantageous position for traffic activities is the strength for the comprehensive social, economic and cultural development in the district in the future

- Strategic position for urban development: With orientation of urban

development along to two Red River banks, Dong Anh and Long Bien district will become the strategic positions for urban development of Hanoi Capital in the next years With the advantage of quite large land fund, big urban projects will be implemented to form a main urbanized field – Dong Anh in Hanoi in the future

- Extremely important position for socio-economic development: With its

strategic position as above and big potentials, Dong Anh will become a main district for attracting investments and economic development Those will be the advantageous conditions for Dong Anh’s socio-economic development

In the history, Dong Anh is for twice times selected as the capital of the country (An Duong Vuong Period and Ngo Quyen period) Currently, Dong Anh is one of the focuses in the urban development strategy of Hanoi in the early XXI center That is pride and also to assert the extremely important position of Dong Anh in Hanoi and the whole country

DONG ANH DISTRICT AND HANOI CITY

Studied territory

1.1.2 Topographical characteristics

Generally, Dong Anh topography is relatively flat and slopes gently from the west north to the east south The district’s communes in the west north including Bac Hong, Nam Hong, Nguyen Khe have relatively high topography The south-east communes including Van Ha, Lien Ha, Duc Tu, Co Loa, Mai Lam have relatively low topography, and mostly cultivation land area has in low and hollowed topography, and regularly flooded The highest position is 14m and the lowest position is 3.5m, average height of 8m compared with sea level

The topographical characteristics of the district should be paid attention to determine structure of plants and animals, the specializing area or build industrial zones, processing areas and so forth The eastern and east south areas

of the district are potential for agricultural, urban and ecological development; for the northern and west-north area of the district, it is possible to develop the concentrated large-scale industrial zones; for the west and the center of the district, large area for green trees and the agricultural area have formed a green belt for present-day inner Hanoi, moved towards the sustainable urban development, which is harmonious with the environment

Annually average temperature in Dong Anh is 250C, the hottest months are June and July, the highest average temperature is 37,50C in July, Two coldest months are January and February, and average temperature of January is 130C

Average humidity in Dong Anh district is 84% It is seldom changed in months of a year and regularly fluctuates in range of 80 - 87%

Number of rainy days is 144 days at the annually average rainfall of 1600

mm - 1800 mm The rainy season (from May to October) reaches 85% of the whole-year rainfall The large rains appear in August at the average rainfall of

300 - 350 mm In the beginning months of the winter, it is few rainy but the end half of the rainy season, it is drizzly and wet In the winter, it is bound by the northeastern monsoons

In short, Dong Anh’s climate is advantageous to agricultural production, especially kinds of crop plants such as food, flowers, vegetables and crops and fruit-trees However, storms, floods in the summer and the northeastern monsoons in the winter also cause certain impacts on production and life of the people

1.1.4 Land

Total natural land area of Dong Anh is 18,230 ha, including a part of Red River, Duong River and the alluvial land The land on the river banks is rich of alluvial, but land in interior fields is less fertile, 70% of it is infertile soil

Average land area in Dong Anh Town is 212 m2/household Average agricultural land area per a labor is 0.051 ha This is the lower rate compared with the average rate of Red River Delta Land area and for inhabitants including land for gardens and service works in hamlets and villages 1940 ha, average land area for living activities in the rural area is 364 m2/household A quite large area in the district is used for military purposes including defense facilities, training facilities of the army

Agro-forestry land can be divided into the main kinds as follows:

- Annually raised alluvial land area is 790.8 ha in edge of Red River, Duong

River and 272.2 ha in edge of Ca Lo River The identical characteristics of this

kind of land is thick, its soil texture are slight, content of mud and nutritive substance is relatively high, its structure is soft, holding water and fertilizer well

- Annually alluvial land area does not increase and is 5117.5 ha and mostly

on the inner dyke This kind of land is expanded on the old alluvial land Characteristics of this kind of land are average topsoil, its soil texture is slight and its content of nutrition is up to average

- 355 ha of waterlogged alluvial land is distributed in the middle terrain in

communes including Viet Hung, Lien Ha, Van Ha, Duc Tu, Thuy Lam, This kind of land is mostly acid soil to very acid soil and water logging time is too long

- 3154.9 ha of grey exhausted soil is distributed in Nam Hong commune,

Bac Hong commune, Van Noi commune, Uy No commune, Tien Duong commune, Xuan Non commune and so forth This kind of land has a low topsoil; its soil texture is soft; its structure is incoherent; its weak ability of fertilizer and water keeping; it is acid and poor of nutrition

- 298.6 ha of brown-yellow soil are distributed in the high terrain It is poor

of nutrition and its soil texture is average

With the new conditions of economic development, its general orientation of land use is to reduce agricultural density, increase land fund for traffic activities, industrial sectors and cities Therefore, it is necessary to thoroughly research the status of soil for a proper planning and use

Table 1.1 Land use distribution in the whole Dong Anh District

No Kind of land Area (ha) Ratio of soil seizure (%)

1.1 Cultivated area of annual crops 9.366 51,36

1.3 Land for ponds, lakes and

4.1 Rivers, lakes, and channels 1.559 8,55

Source: Dong Anh District Statistic Office, 2010

1.1.5 Hydrographical characteristics

Rains are the main water supplies for productions and daily activities of the

people in the field of Dong Anh Annual average rainfall is 1,600 – 1,800 mm annually, rainfall is unsteadily distributed Rainy season is from May to October, equaling to 85% of total rainfall of the whole year In this season, overflowing is

in all communes in a hollow

Drizzling rains are the individual phenomenon of this area Although they do not supply water, they increase humidity of land and air Drizzling rains always appear in the spring, especially in February and March For agricultural land, drizzling rains are proper for plants’ growth and facilitate insects’ and moulds’ development

A network of rivers, lakes and lagoons in the district: Rivers are in the

boundary between the south and the north of the district

Red River is along to its boundary from Dai Mach Commune to Xuan Canh Commune The river has a length of 16 km and separated Dong Anh District, and Tay Ho District and Tu Liem District This river plays an important role for Red River Delta in general and Dong Anh in particular

Duong River is merged with Red River, flows across the South of the district, which borders Dong Anh and Gia Lam Both of these rivers are water supplies for agricultural production and form a quite large band of alluvial land for short-term agricultural production However, in the rainy season, water level of two rivers is regularly changed, flooded out and then impacts on productions and daily activities Therefore, it is necessary to pay attention to the status of dykes

Ca Lo River flows along to its northern boundary That segment of the river

is 9 km in long With small but stable water discharge, the river provides an inconsiderable quantity of alluviums but is the main water supply for irrigation

in the northern and eastern communes of the district

Thiep River is in the district, which sources from Tien Phong Commune (Me Linh, Vinh Phuc), flows over 10 communes into the field of Dong Anh and to Ngu Huyen Khe river

Besides a system of rivers, Dong Anh also has Van Tri lagoon – a large lagoon with area of 130 ha, its average water level of 6 m, the highest level of 8.5 m, the lowest level of 5 m, connecting with Thiep River, and playing an important role in water balance

Ground-water Besides surface water sources; Dong Anh has water fielding

stratums with high content Ground-water plays an important role in water supply for productions and daily activities of the people in the district Ground-water in Dong Anh is always added, provided from the huge water source of Red River

1.2 Socio-economic resources

1.2.1 Population

In 2010, total population in the field of Dong Anh District was 350,541

persons, equaling to 4.7% of the population of Hanoi Capital Dong Anh district has the largest quantity of population compared with the external districts and is

in the third position to total districts in Hanoi (behind Dong Da district and Hai

Ba Trung district)

It is possibly said that, the large scale of population as mentioned above is the main resource for Dong Anh District’s development However, if the natural growth rate of population is not controlled, it will be a big obstruct for its development For the reason, controlling the natural growth rate of population is the main task in the next time

Since 2006, in Dong Anh district, the mechanical growth rate of population has been rapidly increased In recent years, the mechanical growth rate of population has been higher than the natural growth rate of population It means

that urbanization process in the district begins to speed up It also means that, it

is necessary to take proper solutions and policies in the next time so that urbanization process of the district will not spontaneously happen and cause the unrecoverable consequences in the next time

1.2.2 Human resources

Total persons at working at in Dong Anh District is 203,505, equaling to over 51% total population (2010) The full number of human resources is the most important one for socio-economic planning and development in Dong Anh District in the next time

Labour ratio working in economic sectors is 98% total human resource in the field of Dong Anh District in the stage of 2006 - 2009 Basically, Dong Anh district has successfully mobilized a labour force into production and business activities in the field in the last time

Not only quantity but also quality of human resources in Dong Anh district has been considerably improved in recent years

1.3 Socio-economic development in Dong Anh district

1.3.1 Economic situation

Dong Anh is a suburb district of Hanoi City and in recent years, Dong Anh district’s the economy has gained the positive changes Its economic structured moved in according to industrialization and modernization orientation; annual average economic growth ratio is nearly 10% Life of the population has been continuously improved; the aspects of the society have shown their economic achievements The overall picture of Dong Anh economy is expressed in the following table:

Table 1.2 Several main socio-economic criterions of Dong Anh district

in 2005 and 2010

3 Ratio of general production

+ Rate of pupils with two

classes/day in primary schools 75,0-80,0 100,0 + Rate of pupils with two

classes/day in secondary schools 30,0-35,0 90,0-95,0

+ Rate of malnourished children % 15,0 10,0

+ Average production value per

capita

VND million/person 13,27 18,0 + Average production value of the

agriculture and services per ha of

cultivation land

VND million/ha 57,3 75,0

Source: Dong Anh Statistic Office, 2010 1.3.1.1 Industry

Dong Anh’s industries are subject to topography of each region It is concentration into the industrial zones The first industrial zones have been formed since 1970 – 1980 on the highway No 3 This region is distributed in area of approximately 70 ha and currently 22 enterprises are in the mechanical industry, constructional materials… Before, most of this region included the State enterprises, which are currently capitalized The industrial facilities in this region had a quite large area, low constructional density, not-high land use coefficient and scattered (not as per the model of concentrated industrial zones) Industries in this region are assessed that they have not been highly polluted According to the planning of the city, a part of this region will be used for the industrial facilities, which are moved from the inner city

North Thang Long Industrial Park on Kim Chung commune, Vong La, Hai Boi is associated to invest by Sumitoro Corporation (Japan) and Dong Anh

Mechanical Company Total area of the industrial park is 295ha This is the biggest concentrated industrial park in present-day in Hanoi with 121 ha of the completed stage I and 77 ha of the completed stage II

North Thang Long Industrial Park has a complete infrastructure with a system of water supplies, electric supplies and communication, a traffic system easily connecting to the harbor and international airport

North Thang Long Industrial Park is a concentrated industrial zone, which is efficiently operating and attracting many labors in Dong Anh District In the stage I and II, fill-up rate of infrastructure-on-land is 100% The stage III has been under completion of the technical infrastructure

Dong Anh small and medium industrial zones with total area of 96 ha in the field of Nguyen Khe commune This is one of 49 small and medium industrial zones/clusters in the field of preset-day Hanoi Fill-up rate of the park is currently over 20%

Besides, in the field of Dong Anh District, a concentrated small scale zone is implemented in Lien Ha and Van Ha Commune

Lien Ha and Van Ha are two communes with the strongest villages in Dong Anh, including Lien Ha, which is developing industrial wood career (Painted wood) and Van Ha, which is developing carpentry, carving, fine arts and household wooden products Potential of two trade village is very large

Moreover, Duc Tu is a developing trade village of metal (iron scissors); Vong La, Co Loa: food processing and noodle-making; Van Noi, Dong Hoi: weaving career, household commodities made from bamboos; Bac Hong, Uy No with garment industry

Now, in the field of the district, there are about 1,600 enterprises (mostly joint stock companies and limited companies) and more than 13 000 business individuals

1.3.1.2 Service -Commerce

In recent years, trading and services have, in the field of the district, well developed Goods and services have been more and more diversified in kind, pattern and met demand of the population in the district However, distribution system in the field of Dong Anh District has not developed as in other districts, especially compared with districts in the city Dong Anh has not built up a modern distribution system including supervisors, convenience store Now, there is only one commercial center in the district, which is combination of residential buildings and general businesses at Dong Anh town Distribution system in the field of the district is for businesses and modern goods exchanges

on basis of a network of markets distributed in communes and town

1.3.1.3 Agriculture

In spite of decreased cultivation areas, unfavorable conditions of the weather

in recent years, kinds of harmful insects, epidemic diseases of livestock and poultry dịch are possibly spread; annually agricultural production has continuously developed and reached the good growth rate Average agro-forestry and aquatic production value is continuously increasing approximately over 3% in the stage of 2006 - 2009 In 2009, in the agricultural structure of the district, breeding density is 59.8%, density of cultivation is 40.2%

In recent years, one of the positive orientations of Dong Anh’ agricultural sector in the stage of 2006 - 2009 is the process that focuses on and hasten change of crop-structure in direction of producing commercial plants with high economic values, applying scientific and technical advances in agriculture, formed area of specific crops such as safe vegetation area, flower area, area of specific rice, area of corn and so forth at total area of approximately 25%

Dong Anh has become an address of providing safe vegetables, fresh vegetables hybrid catfish, which are selected by many population In recent

years, those products have been rapidly increased At the present, there are total 97.670 pigs and total 12.610 cows

In the field of Dong Anh District, there are 277 farms including 133 approved farms Many models of economic farms have shown their high economic efficiency (average revenue of a farm is VND250 million that has solve 1000 labors/year) The district has made and approved planning of crop structure changes in 23 communes

1.3.2 Socio-cultural situation

1.3.2.1 Education – training

Nowadays, in the field of Dong Anh District, there are 83 educational facilities from kindergartens to secondary schools including 28 kindergartens, 29 primary schools, 25 secondary schools and 01 complementary school, total 2795 teachers to 57,935 pupils at levels This is the main force of educational carreer

in Dong Anh District, which forms the basis for qualified personnel training in the localities so as to hasten industrialization and modernization

In recent years, entrance ratio at levels in Dong Anh District has increased compared with the plan; education quality of all population is kept stable and goal quality of education has been raised In the stage of 2008 – 2009, graduation rate was 98.7% (including 65.1% of them as good and excellent pupils); 74/105 city-level excellent occupational certificates In 2010, in the whole district, total 23 schools were satisfactory Management quality has had many positive changes Teams of teachers in the sector have basically completed and been stable

Education socialization has been strengthened and schools have done their duties of advice to the locality well, mobilized resources in the society for investments into education such as supports for building material facilities,

purchasing equipment and so forth, and that will form a better teaching context

in schools

1.3.2.2 Health, population and family-planning

In the last years, Dong Anh District has always strengthened management and raised efficiency of examination and treatment for the people in the local health stations; actively monitored and prevented the harmful epidemic diseases from spreading in the field of the district

Currently, there are 208 health stations including commune-level health stations, precinct-level health stations, hospitals and private surgeries with 886 doctors and medical officers With the material facilities and teams of officers as mentioned above, the basic demand of the people’s health care is met

Population and family-planning works have reached many positive changes such as reducing the rate of third birth, focusing on economic development and good care conditions for children The achievements as mentioned above are partially owing to policies of family planning of the district and impacts of urbanizations on birth psychology of couples Only in 2009, total newborns was

6280, reducing 61 compared with that ratio of the previous year; rate of birth

reduced 0.61‰ that exceeded the target of the previous year Communication

and reproductive health care, family planning were synchronously and regularly implemented in 23 communes and towns as follows: 1614 turns of communication using broadcasting system, more than 4537 turns of propaganda and movement at households The overall survey of population is completed in accordance with the schedule The solutions as mentioned above have created a change in long-term awareness of family planning and reproductive health care

of the people that will contribute into raising health of the new generation and reduce population pressure, employment and residential houses during urbanization process in Dong Anh District

1.4 General assessment of potentials, advantages, difficulties and challenges

in development process of Dong Anh district

As stated in the analysis and assessments above, it is possibly seen that, socio-economic development process in the next years in Dong Anh District is quite advantageous but face with many difficulties and challenges to implement the development objectives

1.4.1 Advantages for socio-economic development

1.4.1.1 Strengths of the natural conditions

- Dong Anh has the advantageous position for economic cooperation and exchange with other districts of Hanoi Capital and the Northern provinces

- Land fund is the first advantage of Dong Anh district in urbanization process and the comprehensive socio-economic development in the field of the district so as to successfully implement the general objective of the city: to be ahead of the whole country for 5 years of industrialization and modernization

1.4.1.2 Advantages of socio-economic conditions

- Human resource is quite plentiful; enthusiasm is an important factor for Dong Anh’s attracting investments, developing careers, hastening movement of economic structure in direction of industrialization and modernization

- Road, railway, and waterway system in Dong Anh district is near to national highways, major highways in the area Dong Anh district is adjacent to Noi Bai international airport – the largest air terminal in the north, the gateway

of the city and country That is the main advantage to develop comprehensively and synchronously economic, cultural and social fields of the district

- The cultural tradition of thousands of years, depth of the history of communist movement and its unique values have been maintained and upheld This is the great driving force for sustainable development of Dong Anh district

- Potential of goods and service markets of the district is quite large,

especially in the condition that Socialist-oriented market economy and the

international economic integration are focused on This is the factor that plays

an important role in attracting investments, promoting productions and business

in the field of the district

- The policies, which are set down in the Orientation Master Plan for Urban Development by the Central and the City, have facilitated the district to develop

in the industrialization and modernization direction

1.4.2 Difficulties and challenges

- Socio-economic situation is weak and not proper to its potentials that created a low starting-point in industrialization – modernization process and breakthroughs are difficultly reached

- Labor force of Dong Anh is quite large but in small quality, slowly adapts

to market mechanism, and does not meet requirements of the new sectors and business fields This drawback may reduce Dong Anh district’s advantages in attracting domestic and foreign investment, especially big investors

- The economic growth and urbanization process, which has been spontaneously formed in the past time, is making the important questions to Dong Anh District Economic growth is the result of production increase, but increase in production activities, especially in trade villages, without controls has made the ecological environment seriously polluted, influenced to quality of life of the people and the socio-economic sustainable development in these areas

Urbanization process has been just started in Dong Anh; because there is no planning orientation, arisen problems are slowly solved; it is facing with many complex social problems, especially unemployment, social evils after agricultural land is revoked This is a big challenge for Dong Anh in the

urbanization process in the next years If it is not addressed, it will curtail achievements of development process

- A infrastructure system in the field of Dong Anh district has not been consistent and poor Infrastructure conditions in rural residential areas are very outdated and clearly show inadequacies in the urbanization process In addition, North Thang Long – Noi Bai route and other routes in the field of the district have downgraded or overloaded Its internal traffic activities have been separated that cause certain obstacles in connection of towns This inadequacy

of infrastructure system cause major difficulties for attracting investments and development in the district

- Source of capital of the district is very limited Its economy has not developed, number of enterprises in the field is little (approximately 200 residents/1 enterprise – averagely 80 residents/an enterprise in the whole city), its accumulation is low To make socio-economic development plans to the year

of 2020, Dong Anh district should be based on the external capital sources, especially foreign investments It can be regarded as a quite big challenge Because if it is depend on the external factors, it is difficult for it to be active in its development process And if the external factors are changed, its objectives for development are difficultly reached

Generally, many difficulties and challenges are being posed in development process of Dong Anh district in the next years that require the proper solutions for its development objectives

CHAPTER 2 MAIN SOCIO-ECONOMIC TRANSFORMATION

IN DONG ANH DISTRICT SINCE 2000 TO NOW

2.1 Common theory of socio-economic changes in Vietnam in the innovation period

2.1.1 Structure of economy

Structure of the national economy is the whole relationship of quality and

quantity in components for a certain time, space and socio-economic conditions [28]

In the scope of this thesis, structure of the economy is reflected from the point

of view of structure of the economy and structure of economic components

Each economic component plays an important role in that structure and the

correlate of this structure is shown in structure of economy In the

macroeconomic aspect, major kinds of structure of economy including structure

of territory, structure of the economy, and structure in production relationship

of the economy are considered “a frame” of the economy

Structure of economy includes all sectors of the national economy It is

merged in accordance with a proper relationship of quantity, shows relationships amongst sectors and reflects growth of the economy

During process of economic development of a country, economic subjects always act according to the actual economic efficiency In a certain level, the State’s development planning will impact on structure of investments However, finally, the results are shown through its structure in all aspects Its structure of economy always changes more proper That change is movement of structure of

economy In general, movement of structure of economy of a country regularly depends on several external and internal factors

The internal factors are as follows:

- Advantages of the nature of the country allow developing certain proper production sector; population scale of a country; qualification o human resource; the economic and cultural conditions of the country

- Additionally, demand of each society, each market in every stage will be development and production basis, which satisfies not only quantity but also quality of goods, and causes changes of position, density of sectors in the economy

- Objectives, strategies, planning of economic growth of each national economy significantly impact on change of economic structure Because the economic structure contains objectivity, historical and social factor, social policies of the State can indirectly impact a part of structure of economy through development and investment orientations, encouragement or restriction policies for careers so as to ensure balance of the economy in accordance with the objectives as set out in each certain stage

- Finally, qualification of domestic production forces will allow the quick or slow change of structure of the economy and how it is effective

Besides the factors with internal impacts, main factors with external impacts

on transformation of structure of economy will contain:

- The political, economic, social trends in the region and in the world The political, economic and social changes of a country or several countries, especially big country will strongly impact on streams of exchanged goods and then on attracting investments, technological transfer… that require countries to adjust their strategy of economic growth, structure of economy to ensure their national interests and development under the general moves of world market

- Nowadays, globalization trend of the world economy is very strongly impacting on structural change of the economy in different countries, because division of labor is deeply and widely taking place in the world opportunities of large markets are open in globalization process of international economy that allows countries to exploit strengths of each other to exchange resources, capital, technology, goods and services effectively and so forth That process is compulsory It facilitates countries to implement the structural change of the economy in line with division of labor on a world scale

- Achievements of scientific and technical revolutions, particularly information technology create breakthroughs and great strides in all production fields, which have contributed into accelerating structural change of the economy of countries because timely and rapid communication will help to adjust productions and businesses more reasonably and their production structure will be changed in line with the markets and interests of each country

Under the general effect of these factors above, the economic sectors (generally including three main sectors: agriculture, forestry and aquiculture - also known as agriculture, industry and construction - also known as industry; and services) have been unevenly developed, created different ratios in structure

of economy of the country However, the notable point is that, any State pays their attention to determine to which orientation their country's economy should follow to maximize their interest and strive to achieve the highly effective structure of economy Therefore, by the practice, in most of countries currently select the model of their structural change of the economy in the orientation promoting exports to uphold all advantages of the country, engage in division of labor on the whole world scale, to take all opportunities to create deeper and larger trend of globalizing economy

To follow the strategy of an open economy, the effectively international integration, the structural change of the economy plays an important role

Because domestic production must be changed so that not only potentials, advantages of the country can be used but also proper products are made in accordance with the demand of the international market In the general context that, division of labour has more deeply happened, completion of exporting countries is becoming more strictly, and the local authority wants to develop productions of the country in accordance with a general strategy, selecting a proper and highly effectively structure of economy is very important However, nowadays, the next export-oriented industrialization countries should not use the previous models Because under impacts of new factors, the comparative traditional advantages are not appropriated as before they were, the structural change of the eonomy of the subsequent countries should be considered again to build up a structure of a modern, balanced, active, rapidly growing and more sustainable economy

2.1.2 Transformation of economic structure

To investigate structure of an economy, main matter of that structure is the structural change of economic sectors, change of the economic components and structure of territory of that overall structure, at various stages the positions of economic sectors have been changed to meet the conditions and general trend of historical development That process is called the structural change of an economy

The structural change of economy is a socio-economic reformation process

for the purposes of proper professionalization, technical equipment, modern technologies and thereby creating high and effective productivity in jobs and promoting the economy The structural change of economy is an unavoidable and objective factor, and a gradually development process based on close combination of subjective conditions, socio-economic and natural advantages of the country, the region, and units, and possibility of investment, cooperation or

joint ventures in manufacturing, service and consumption of products with other countries and regions and various economic units

In Vietnam, the structural change of economy plays an important role in socio-economic innovation career The previous improper structural change of economy was mostly self-sufficiency Structure of industrialized and modernized economy is closely connected to technological innovation and reorganization of production The short term orientation is that agricultural industrializing and modernizing is changed into the agricultural - industrial - service structure in rural areas; comprehensive development of agriculture, forestry and aquiculture associated with agro-forestry and aquiculture processing; developing industries and exporting and consumer goods production; expanding businesses, tourism, services; boosting foreign relations

of the economy; building and reforming infrastructures; selectively building several important heavy industrial facilities Implementing economic development policies many components including State economy, cooperatives, individuals, small holders, and private sectors is a long-term and strategic issue State takes policies and measures to create incentives and an advantageous environment so as to develop economic components in various types and appropriate sizes

2.1.3 Changes of territorial structure

If changes of a structure are viewed only according to the economic sectors,

it will be lack of one space direction – change of territorial structure

Structural change of territory is known as the proportion-based change of regions in a country scope and spontaneously or self-consciously arranged [28]

In each period, various territories will have individual advantages, and according to their development policies, value of economic production in each region in the same territory will have a change That change is objective, but, if

there is any irrationality, right policies can be gradually changed in the positive way

2.1.4 Change of structure of economic components

In the overall economy, structure of economic components is the based correlation of economic components attending sectors, fields of components of economy [33]

proportion-In our country, economic components have been determined as an important role in each component:

- The State's economy plays a main role and a driving force for economic growth These economic components embrace key economic sectors associated with managing resources of the country, with security and national defense and other important fields

- Collective economy plays an important role and in many forms of organization on basis of voluntary, equal, democratic participation and mutual interests

- Economic individuals, small holders with enormous potential also play a critical and long-term role for socio-economic development of our country After innovation period, these economic components are facilitated to develop faster and have reached a high density

- Private capitalist economy has had certain contributions to the economy through resources of capital, technique, technologies, management and market

- State capitalist economy has huge potentials in form of joint venture between the State and capitalism in the country and abroad

- Foreign-invested economy has, in recent years, been significantly developed, aimed at producing goods and services for exports, high technology and building infrastructure