Summary of doctoral dissertation: Economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province

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Overall objective: Through assessing the status and analysis of the influential factors, the thesis proposed solutions to economic development in new rural construction towards urbanization in the town of Pho Yen, Thai Nguyen province in the following years.

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Nội dung Text: Summary of doctoral dissertation: Economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province

THAI NGUYEN UNIVERSITY UNIVERSITY OF AGRICULTURE AND FORESTRY LE VAN BAY ECONOMIC DEVELOPMENT IN NEW RURAL CONSTRUCTION TOWARDS URBANIZATION IN PHO YEN TOWN, THAI NGUYEN PROVINCE Major: Rural Development Code: 9620116 SUMMARY OF DOCTORAL DISSERTATION RURAL DEVELOPMENT THAI NGUYEN - 2021
2 The work was completed at UNIVERSITY OF AGRICULTURE AND FORESTRY – THAI NGUYEN UNIVERSITY Scientific supervisors: 1. Assoc. Prof. Dr. Duong Van Son 2. Assoc. Prof. Dr. Do Anh Tai Reviewer 1: Review 2: Review 3: The dissertation will be defended in front of the Committee at the University level held at UNIVERSITY OF FORESTRY - THAI NGUYEN UNIVERSITY At ...... time ...... date month 2021 The dissertation can be found at: National Library Thai Nguyen University Learning Resource Centre Library of Thai Nguyen University of Agriculture and Forestry
LIST OF PUBLICATIONS RELATED TO THE THESIS 1. Le Van Bay, Duong Van Son (2021), "Some solutions to develop the agricultural economy in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province", Journal of Science and Technology of Thai University Nguyen, 226 (01), p. 127-134. 2. Le Van Bay, Do Anh Tai (2021), " Promoting the development of socio- economic infrastructure for economic development in the construction of new rural areas towards urbanization in Pho Yen town, Thai Nguyen ", Journal Economic Journal of Asia - Pacific, No. 590, p. 45 - 47.
4 PREAMBLE 1. Urgency of the topic The National Target Program on New Rural Construction for the period 2010-2020 oriented economic development in new rural construction such as: building new rural areas with modern socio- economic infrastructure; appropriate economic structure and forms of production; linking agriculture with the rapid development of industry and services; attaching rural development with urban areas according to planning; the material and spiritual life of residents is increasingly improved. Pho Yen town, located in the south of Thai Nguyen province, adjacent to Hanoi capital, is a centre of industry, services, traffic connection. This makes the area play an important role in promoting the socio-economic development of the south of Thai Nguyen province. From a purely agricultural district, agricultural production is the main, up to now, the economic structure of Pho Yen has shifted towards industry- construction; services and agro-forestry. Over the years, Pho Yen Town has always encouraged local people to actively shift production and business activities, which created an emulation movement for economic development, hunger eradication and poverty alleviation. As a result, many households have boldly pioneered in getting rich with effective economic development models; actively built new rural areas. Hence, rural areas of the town have witnessed more and more changes. In addition, the issue of rural urbanization, one of the spearheads of new rural construction and rural economic development, to ensure modern infrastructure associated with the development of production, trade, and services in rural areas in Pho Yen town has not been given due attention. From the above problems, the research aims to analyse the status of rural economic development of Pho Yen, point out the advantages and limitations as well as proposed solutions, methods to improve the speed
and efficiency of economic development. Especially, the rural economy in new rural construction towards urbanization in Pho Yen is very important to help a potential town like Pho Yen breakthrough and develop rapidly. Therefore, conduction of research " Economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province " has scientific and practical significance for Pho Yen town, a young urban area with many large industrial parks, adjacent to Hanoi capital. 2. Research objective 2.1. General objective Through assessing the status and analysis of the influential factors, the thesis proposed solutions to economic development in new rural construction towards urbanization in the town of Pho Yen, Thai Nguyen province in the following years. 2.2. Specific objectives - Systematizing the theoretical and practical literature about economic development in the new rural construction towards urbanization. - Assessing the current situation and analyse factors affecting economic development in the construction of new rural areas towards urbanization in Pho Yen town, Thai Nguyen province in the period 2016 - 2020. - Proposing economic development solutions in the construction of new rural areas towards urbanization in Pho Yen town, Thai Nguyen province by 2030. 3. New contributions of the dissertation 3.1. Theoretical contributions - The thesis contributes to generalizing and modifying research on economic development in new rural construction towards urbanization. By
6 systematizing and generalizing, the thesis determined the contents, built, analysed, and evaluated the indicators of rural economic development in Pho Yen town. - The thesis systematized the main studies related to rural economic development as well as in the construction of new rural areas towards urbanization. These studies accumulated certain relevant contents for Vietnamese researchers and agencies to refer to. - The thesis clarified the factors affecting economic development in new rural construction of areas towards urbanization. 3.2. Practical contributions - Based on the theoretical framework built on economic development in new rural construction towards urbanization, the thesis analysed the current situation, clarified the achievements and limitations of economic development in new rural construction towards urbanization in Pho Yen town from 2016 to 2020 and pointed out causes of those limitations; thereby, proposing viewpoints and solutions to promote the development of new rural economic construction towards urbanization in Pho Yen in the future. - The thesis pointed out the main factors affecting economic development in the construction of new rural areas towards urbanization in Pho Yen town. This is a premise to focus on improving the efficiency of rural economic development here. - The research results of the thesis are the basis for the management at local government as a reference to promote economic development in the new rural construction towards urbanization. At the same time, it is used as a reference for learning, teaching and scientific research at universities and research institutes throughout the country. 4. Structure of the thesis In addition to the introduction and conclusion, the thesis is structured into four chapters as follows:
Chapter 1. LITERATURE REVIEW 1.1. Theoretical basis of economic development in the new rural construction towards urbanization 1.1.1. Rural area and rural development 1.1.1.1. Rural concept According to the provisions of Clause 1, Article 3 of Decree 57/2018/ND-CP on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas, the concept of a rural area is specified as follows: Rural area is an administrative boundary area excluding wards of towns, districts and cities”. 1.1.1.2. Rural development Rural development in Vietnam can be generalized into three stages as follows: The period 1945-1975: the country was still divided by war, the starting point of the economy and agriculture was very low. Period 1975 - 1986: the country carried out the construction of a self-sufficient economy, completely closed off from the world economy. From 1986 to the present: The 6th National Congress of the Communist Party of Vietnam in December 1986 opened a new page in the construction and development of a completely new Vietnam- a modern and developed country. 1.1.2 . New rural construction 1.1.2.1. New rural area It can be seen that the views of Vietnamese researchers on the new rural area are quite consistent when they all think that the new rural area is a rural area with socio-economic development, a clean and beautiful civilized village, sustainable production, the people's material and spiritual life improved, people's intellectual level increased, national culture preserved and developed, security maintained. 1.1. 2. 2 New rural construction a. Basic views and contents in new rural construction
8 New rural construction is the process of transforming and creating new values for rural areas in terms of political security, economy, culture, and modern production methods. A new rural area is the transformation of the rural face based on preserving and promoting progressive values and achievements, building new values in line with the trend of the ages, meeting established criteria suggest. b. Participants in new rural construction Building a new rural area is the process of building an economic, political, cultural, social and rural environment in order to improve the quality of life of rural people, develop harmoniously, and shorten the gap between urban and rural areas. The construction process with the subject is rural people and with the active support of the State and other organizations. In which, the main subjects participating in the construction of new rural areas include: (1) People; (2) State; (3) Enterprises; (4) Other organizations. 1.1.3 . Economic development Conceptually, economic development is the process of growing up and improving all aspects of the economy. It includes economic growth and completeness in terms of economic structure, institutions, and quality of life. 1.1.4 . Economic development in new rural construction towards urbanization 1.1.4.1. Concept Economic development in new rural construction towards urbanization is to build modern agriculture associated with the development of industry, cottage industry and rural services; shifting economic structure, labor structure into a positive direction; science and technology is a breakthrough in the economic development of new rural construction, contributing to restructuring the rural economy towards sustainability; diversify forms of production organization, develop modern socio-economic infrastructure in service of rural economic development; forming industrial-service clusters,
export processing zones, eco-tourism areas, modern socio-economic infrastructure, developing urban and rural areas. 1.1.4.2. Characteristics of economic development in new rural construction towards urbanization 1.1. 4 .3. The role of economic development in new rural construction towards urbanization 1.1. 4 .4. Basic contents of economic development in new rural construction towards urbanization (1)Planning economic development in new rural construction towards urbanization (2) Increasing economic - social infrastructure in new rural construction towards urbanization (3) Economic development and production organization for economic development in new rural construction towards urbanization 1.1.4.5. Factors affecting economic development in new rural construction towards urbanization The following factors affecting economic development in new rural the construction towards urbanization that need to be analyzed and interpreted are: (1) Natural conditions; (2) Infrastructure; (3) Science and technology; (4) Human resources; (5) Cooperation in production; (6) The association between enterprises and farmers, production households; (7) The development of industrial zones and urban areas; (8) Capital support from the State; (9) Policy for the rural economic development of the State. 1.2. Overview of international and domestic research published about economic development in new rural construction towards urbanization 1.2.1. Overview of research on rural development 1.2.2. Overview of research on economic development in new rural construction towards urbanization 1.2.3. Experience in some localities in the country 1.2.3.1. Dong Trieu town, Quang Ninh province 1.2.3.2. Vinh Loc district, Thanh Hoa province 1.2.3.3. Nam Dinh province 1.2.3.4. Lessons learned in economic development in new rural construction in localities
10 Through studying some experiences in rural economic development associated with new rural construction, it can be seen that the coordination role of local authorities and people is very important. The experiences drawn come from the learning and practical conditions of implementing rural economic development associated with new rural construction. In order to contribute to rural economic development, in addition to new rural construction, in the coming time, it is necessary to focus on the following solutions: Firstly, carry out effectively the propaganda, education to create a high unity of awareness within the Party and residents in communes about the views, contents, methods, mechanisms and policy of the State on new rural construction so that each citizen can understand it clearly, and actively participate with high consensus, joint effort and self- discipline. Secondly, pay attention to train, foster, increase qualifications and knowledge on new rural construction for staff at all levels, especially officials who directly guide implementation at grassroots levels like communes, villages and hamlets Thirdly, each locality must base on its characteristics, advantages and urgent requirements of the local people to promote broad democracy, listen to the people's opinions, and have proactive, creative methods, prioritize necessary contents to implement first, focus on investment, mobilize resources in general, create joint ventures with businesses, assign implementation to organizations in the political system suitably and flexibly to the specific conditions and characteristics of each commune. Fourthly, emphasize directing the work of ensuring food security, food hygiene and safety and protecting the ecological environment. Fifthly, diversify the mobilization of resources for new rural construction. When implementation of the program is initialized, partial support from the central budget is necessary to create momentum, confidence for the local people, create a foundation to attract resources for implementation, integrate the targeted programs in the area; mobilize capital from enterprises through the forms of investment attraction, joint venture, association and especially increase credit capital for households,
cooperative groups and cooperatives to borrow for production development. 1.2.4. The issues have not been solved in the research Pho Yen is a town with many characteristics of rural areas in the northern mountainous region, but it is also full of potential for rural economic development in the direction of urbanization, but it still lacks effective solutions to develop the agricultural economy sustainably. Therefore, the thesis selected Pho Yen town as the research object, implementing different analytical investigation methods to measure the current situation and development potential of the locality. From there, possible solutions to be applied to the local rural economic development in the construction of new rural areas in the direction of urbanization are proposed. Chapter 2. RESEARCH CONTENTS AND METHODS 2.1. Object and scope of the study 2.1.1. Research object The object of the study is the rural economic development in Pho Yen in the process of new rural construction towards urbanization. The objects of the survey are farming households, cooperatives/cooperative groups, and agricultural enterprises. Total samples and method of selecting survey sample Pho Yen town consists of 18 communes/wards. Since the study mainly focuses on economic development in rural areas, it will focus more on rural areas including communes in the town. In addition, the thesis also uses semi-structured interview methods, in-depth interviews with staff in the Coordination Office of New Rural Construction, the Economic Office, the Sub-Department of Statistics of the town, etc. 2.1.2. Research scope
12 - Scope of time: Primary survey data was carried out in 2019. Secondary data was collected continuously in the years from 2016 to 2020, proposed orientation and solutions for the period up to 2030. - Scope of space: The thesis is carried out in the whole area of Pho Yen town (Thai Nguyen province). The survey was conducted in 3 communes (Thuan Thanh, Dac Son and Phuc Thuan) representing 3 different sub-regions of Pho Yen town. - Scope of content: The research topic focuses on economic criteria in new rural construction and associated with urbanization criteria. 2.2. Research content 2.2.1. Overview of theoretical and practical issues of economic development in new rural construction towards urbanization 2.2.2. Status of economic development in new rural construction towards urbanization in Pho Yen town 2.2.3. Factors affecting economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province 2.2.4. Perspectives and solutions for economic development in new rural construction in Pho Yen town, Thai Nguyen province 2.3. Research Methods 2.3.1. Research framework
Research Objective Economic development in new rural construction towards I. Literature review II. Characteristics of study area III. Status of the research topic 1. Status of planning 2. Status of 3. Status of economic Land use planning for socioeconomic- development and production, environment production. socioeconomic- infrastructure; environment transportation, irrigation, - Income, rate of poverty, infrastructure, electricity, rural rate of employment, developing new resident commercial; information production organization, areas and communication economic restructuring, economic growth, IV. Natural conditions The development of Rural economic Infl industrial and urban development uen Science and areas policy of the State cin Techonogy g Infrastructure Human resource The link between fact enterprises, farmers, ors Collaboration in Capital support and households production of the State Solutions to economic development in new rural construction towards urbanization Figure 2.1. Research framework of the thesis
14 2.3.2 Research approaches 2.3.2.1. System approach 2.3.2.2. Macro and micro approach 2.3.3. Research process In this thesis, the research process was carried out through 6 steps, as follows: (1) Step 1: Identify the research problem; (2) Step 2: Determine the research objectives; (3) Step 3: Conduct qualitative research; (4) Step 4: Conduct a study on the current status of economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen province; (5) Step 5: Conduct research on influencing factors; (6) Step 6: Provide a solution to the research problem 2.3.4. Methods of information collection Chapter 3. RESEARCH RESULTS AND DISCUSSION 3.1. Characteristics of the study area 3.2. Status of economic development in new rural construction towards urbanization in Pho Yen town, Thai Nguyen 3.2.1. Status of planning for new rural construction towards urbanization Rural development planning is considered as a master plan on the living space of all living things including humans, animals, and plants. The objective of the plan is to meet the continuous growth of people's living standards and sustainable development. Therefore, together with economic, socio-cultural development, it is the issue of environmental protection, biodiversity protection, natural landscape preservation, protection, and regeneration of resources to serve the long-term benefits of future generations.
3.2.2. Status of socio-economic infrastructure 3.2.2.1. Transportation infrastructure In table 3.1, the transport infrastructure system in Pho Yen, especially in the rural areas of the town, met the travel and transport needs of residents as well as agricultural production and export enterprises. According to the standards of advanced new rural areas or model new rural areas, the transport system here can partly meet the requirements. However, in the process of urbanization in rural Pho Yen, the ratio of traffic land to construction land or the density of roads, as well as the area of traffic land per population in rural areas is still very low. 3.2.2.2. Irrigation infrastructure In table 3.2, the provision of irrigation systems for production and daily life of people, enterprises-cooperatives reached a certain level of completion. However, with enterprises' assessment on water sources for production and people's assessment on domestic water sources, the local irrigation system still needs to be improved, especially in the rural areas of the town. Among the criteria for new rural construction according to advanced new rural and model new rural criteria, the system of active irrigation rates must be above 80% and must meet the requirements of residents. Therefore, the irrigation infrastructure system still needs to be improved. In addition, according to actual statistics of the Coordination Office of the National Target Program on New Rural Development in Thai Nguyen Province, in terms of clean water supply, in 2020, Pho Yen town had about 95% of the rural population have access to hygienic drinking water. With such a situation, the irrigation system, especially the supply of clean water to Pho Yen town, has not met the standards of urbanization, with the requirement that clean water must be provided to 100% of the population with 110 -125 litres/person/day. 3.2.2.3. Electrical infrastructure In table 3.3, although the power system can provide 100% for enterprises - cooperatives and people in the town in daily life and
16 production, the efficiency and continuity in power supply has not been achieved. The survey also showed that quite lots of households in rural areas said that power outages during peak times occurred frequently, resulting in a certain impact on efficiency in production and daily life. The results showed that although the rural area of Pho Yen town can fully meet the advanced new rural and model new rural criteria, and even meet the urbanization criteria of power supply, the quality and continuity of power transmission, especially for rural areas of Pho Yen town, still need to be improved. 3.2.2.4. Rural commercial infrastructure According to the actual survey results in table 3.4 on rural commercial infrastructure in Pho Yen town, generally both officials, enterprises - cooperatives and people have a good assessment on the convenience of market information search, the ease and convenience in trading products as well as technical production materials, the rural market system is also assessed complete, convenient, low, and less fluctuated in price and in line with the general market price. In which, people gave the highest rating to rural commercial infrastructure, with the highest score about the adequacy and convenience of the rural market system in Pho Yen (4.52/5 points), the rest of the other infrastructure factors all scored above 4.3. There are only 2 issues that were not really appreciated by enterprises-agricultural cooperatives and officials, which is the ease of finding market information (rated 3.77/5 points by managers, at the lowest level in the entire assessment on the rural commercial system by the respondents) and product prices (enterprises rated at 3.95/5 points). In addition, the standard deviation for the survey data of agricultural enterprises-cooperatives is the largest compared to the other two objects. This proves that enterprises-cooperatives have more conflicting problems about the commercial system here, especially the support in commercial activities of enterprises. In which, the largest standard deviation lies in the ease of trading agricultural products (1,129). This reflects enterprises have performed quite smoothly, but many
enterprises are still confused or limited in purchasing raw agricultural products as well as selling their products to the market. 3.2.2.5. Information and communication infrastructure According to the actual data in table 3.5, it can be seen that the criteria in the development of information and communication infrastructure of the town have reached a high level and developed strongly in recent years, especially, for the following criteria: communes have postal service points, telecommunications, internet services, radio stations, and the mobile coverage rate reached 100% since 2015. Other criteria all exceed the average level of the whole country, such as the number of internet users reaching 75% of the population (compared to 70% of the whole country); the number of mobile users reaching 84% (compared to 70% of the population using mobile subscriptions of the whole country). Especially, the application of information technology in management and administration in communes of Pho Yen town reached 100%. The development of information and communication infrastructure of Pho Yen town will have an important impact on the operation of the socio-economic infrastructure system of Pho Yen town, especially ensuring a stronger development of the agricultural production system. Therefore, in addition to deploying basic information and communication infrastructure, the local government needs to apply more strongly information technology in carrying out administrative procedures, creating favourable conditions for people and businesses in daily activities and procedures related to production and business activities. 3.2.3. Status of economic development and production organization 3.2.3.1. People's income
18 Table 3.6. Survey results of households’ income in rural Pho Yen area The average Standard value deviation Number of people/household 4.19 1.68 Average household’s income/year 235.43 294.21 (million VND) Average income from farming 58.39 115.14 households/year (million VND) (Source: Survey) According to the results of the actual survey on the income of rural households in Pho Yen town, the disparity in income between households is quite high, with a standard deviation of up to 294.21 so the variation of CV0 is 1.25. There are households with income only about 10 million dong/year, but there are households with income up to 1,500 million dong/year. With an average of 235 million VND/household/year, the per capita income in rural area of Pho Yen town is about 55 million VND/person/year. This level is higher than the statistics of the Vietnam Farmers' Union, but the error is still acceptable. The above average income showed the economic development in the rural area of Pho Yen town has increased people's income. 3.2.3.2. Percentage of poor households By the end of 2020, Pho Yen town has 856 poor households (accounting for 2.43%), decreasing 471 households compared to 2019 and 2295 households compared to 2015. The average reduction rate of poor households from 2015-2020 is 1.4%/year. With the poverty rate by region, the number in urban and rural areas in 2020 is 98 households (accounting for 1.1%) and 758 households (with a rate of 3.2%), respectively. The rate of poor households is lower than the requirements for new rural communes
as well as the requirements for the second-class urbanization at the rate of less than 6%. This result is due to the poverty reduction policies implemented synchronously in the town, in accordance with the needs and actual conditions of each poor region and poor households, contributing to creating motivation for the poor to develop economy. The town has also reviewed and classified poor households according to their causes to propose suitable support solutions to actual conditions. 3.2.3.3. Percentage of employed people By 2020, among a total of 75,700 people in the working age in the town, there are about 74,600 people having regular jobs (over 98%). Of which, over 13,000 people work in the fields of agriculture, forestry, and fishery. The rate of employed workers also increases gradually according to the process of new rural construction in Pho Yen town. The employment rate of the town can fully meet both the advanced new rural and the model new rural criteria (greater than 90%), so the economic development in rural construction has partly increased jobs for rural people. In addition, with the implementation of the project on vocational training and job creation for rural workers in the 2016-2020 period in Pho Yen town, on average, the town provided vocational training for 1,000 students each year and created jobs for 3,316 employees. The rate of trained workers reached over 75%. Strengthening the review and investigation of labour supply-demand; promoting linkages with enterprises in vocational training and recruiting laborers to work at enterprises, etc. are also solutions that the local government initially implemented to create higher qualified human resources for the town. Regarding labour in economic groups, although the population size in rural area of Pho Yen town is relatively high compared to urban population. The fact shows that the number of employed workers in the
20 agriculture, forestry and fishery industries are lower than workers in industry and construction sectors, and mainly elderly workers, including workers who are over working age. Among 130,000 people of working age in the town, over 120,000 people have regular jobs (accounting for over 92 percent). This situation tends to increase, posing many challenges not only to employees but also creating pressure on the labour market, and becoming a burden on social security. This is one of the most urgent problems for the labour market of Pho Yen town as well as a heavy loss to rural economic activities here. Labour in Pho Yen town also has a shift from agriculture to non- agriculture during the town's new rural construction, labour in the agricultural sector had an average decrease from 1,696 employees/year in the period of 2015 and 2020. In the non-agricultural sector (industry, construction, and services), the proportion of employees increased from 59.7% in 2015 to 72.2% in 2020. This shift is one of the factors demonstrating the ongoing urbanization process in Pho Yen town. 3.2.3.4. Status of production organization a) The economic status of agricultural households From table 3.7, it can be seen that, from 2015 to now, along with the process of new rural construction and urbanization trend in Pho Yen, the percentage of agricultural households decreased over the years, from 55.32% in 2015 to 51.49% in 2020 with an average reduction rate of 0.77%/year. This is also consistent with the trend of increasing local industrial activity. In addition, the number of households producing and doing business in rural areas decreased relatively due to the rapid urbanization and development of the local industrial sector. The household structure has changed positively in the direction of a rapid decrease in the proportion of households in agriculture, forestry, and fishery. In table 3.8, according to the statistical results of Pho Yen town's Statistical Office, the whole town by 2020 had 52.12% of farming households, 0.05% of forestry households, and 0.02% aquaculture households, and 47.81% of non-agricultural households. However, the