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Socio-economic changes in Dong Anh in the innovation period
VIETNAM NATIONAL UNIVERSITY, HANOI INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES BUI HUY TOAN SOCIO-ECONOMIC CHANGES IN DONG ANH IN THE INNOVATION PERIOD SUMMARY MASTER THESIS Major: Vietnamese Studies Code: 60 31 60 Supervisor: Assoc Prof Dr Pham Hong Tung Hanoi - 2012 The work is completed at: Institute of Vietnamese Studies & Development Sciences, Vietnam National Unviersity, Hanoi Supervisor: Assoc Prof Dr Pham Hong Tung Opponent 1: Assoc Prof Dr Nguyen Ngoc Thanh Opponent 2: Dr Pham Quang Anh The Master Thesis will be presented in front of the Master Thesis Review Committee at: Institute for Vietnamese Studies & Development Sciences, Vietnam National University, Hanoi 336 Nguyen Trai, Thanh Xuan, Hanoi on 22/6/2012 For further information about the thesis you may look at: Central Library, Vietnam Natioinal Unviersity, Hanoi TRANSLATION - BẢN DỊCH TABLE OF CONTENTS INTRODUCTION 1 Reasons for the study Literature review 3 The purposes of the study 4 Object and scope 4.1 Object of the study 4.2 Scope of the study References and methods of the study Significance Structure of the thesis CHAPTER 1: DONG ANH: GENERAL REMARKS 1.1 Strengths and development resources – promoting factor for socio-economic changes in Dong Anh 1.1.1 Geographical situation 1.1.2 Topographical characteristics 1.1.3 Local climate 1.1.4 Land 1.1.5 Hydrographical characteristics 1.2 Socio-economic resources 1.2.1 Population 1.2.2 Human resources 1.3 Socio-economic development in Dong Anh District 1.3.1 Economic situation 1.3.1.1 Industry 1.3.1.2 Service -Commerce 1.3.1.3 Agriculture 1.3.2 Socio-cultural situation 1.3.2.1 Education – training 1.4 General assessment of potentials, advantages, difficulties and challenges in development process of Dong Anh 1.4.1 Advantages for socio-economic development 1.4.1.1 Strengths of the natural conditions 1.4.1.2 Advantages of socio-economic conditions 1.4.2 Difficulties and challenges CHAPTER 2: MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH SINCE 2000 TO NOW 11 2.1 Common theory of socio-economic changes in Vietnam in the innovation period 11 2.1.1 Structure of economy 11 2.1.2 Transformation of economic structure 11 2.1.3 Changes of territorial structure 11 2.1.4 Change of structure of economic components 12 2.2 Changes in structure and economic relations of Dong Anh since 2000 12 2.2.1 Changes in structure of economic sectors 12 2.2.2 Changing inside economic sectors 12 2.3 Changes in structure and social relations 13 2.3.1 Changes in scale of manufacturing facilities and the number of centralized labors by economic sectors in industry 13 2.3.2 Changes in scale of manufacturing facilities and the number of centralized labors in commerce and hospitality Error! Bookmark not defined 2.3.3 Changes in scale of manufacturing facilities and the number of centralized labors in transport 14 2.3.4 Changes in education - health, life quality of Dong Anh district in the period 2000 2009 14 CHAPTER 3: ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF DONG ANH UP TO 2020 15 3.1 Viewpoint and orientation of socioeconomic development of Dong Anh 15 3.1.1 Viewpoint of development 15 3.1.2 Orientation of development 15 3.2 Analysis based on SWOT of potentials and challenges in socioeconomic development process of Dong Anh 16 3.2.1 Strengths (favorable conditions for socioeconomic development) 17 3.2.2 Weaknesses (shortcomings in socioeconomic development) 18 3.2.3 Opportunities of socioeconomic development of Dong Anh from now to 2020 18 3.2.4 Challenges of socioeconomic development of Dong Anh from now to 2020 19 3.3 Orientation of development in economic sectors 20 3.3.1 Orientation of development in trade - service sectors 20 3.3.2 Orientation of development in industry, small scale industry and construction 21 3.3.3 Orientation of development in industry 22 3.3.4 Orientation of cultural and social development 23 3.4.1.1 Orientation of education and training development 23 3.4.1.2 Orientation of health development 23 3.4.1.3 Orientation of development in culture - information and sports 23 3.5 Solutions to socioeconomic development of Dong Anh 23 3.5.1 Training and developing human resources 23 3.5.2 Applying scientific and technical advances in production 24 3.5.3 Mobilizing and using investment capital sources effectively 24 3.5.4 Widening the market 25 3.5.5 Improving general power of economic sectors 25 CONCLUSION 26 REFERENCES Error! Bookmark not defined INTRODUCTION 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 level; 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 district Literature review 2.1 The study of the process of socio-economic change and the socio-economic changes in Vietnam in the innovation period 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 district 2.2 Studies of the socio-economics change process in Hanoi in the innovation period 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 district It is possibly said that, the studies above are valuable, but 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 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 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 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 5.2.2 The analyzed and generalized method 5.2.3 Graphical methods 5.2.4 Field method 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 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 Dong Anh: General Remarks Chapter The main socio-economic transformations in Dong Anh since 2000 to now Chapter Orientation of socio-economic development in Dong Anh CHAPTER DONG ANH: GENERAL REMARKS 1.1 Strengths and development resources – promoting factor for socio-economic changes in Dong Anh district 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 (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 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 1.1.3 Local climate Dong Anh’s climate is similar to Hanoi City’s that is tropical, humid and monsoon climate Annually average temperature in Dong Anh is 25 0C, the hottest months are June and July, the highest average temperature is 37,5 0C 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 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 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 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 A network of rivers, lakes and lagoons in the district: Rivers are in the boundary between the south and the north of the district 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 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) 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 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 This region is distributed in area of approximately 70 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 of the completed stage I and 77 of the completed stage II 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 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% 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 1.3.2.2 Health, population and family-planning Currently, there are 208 health stations including commune-level health stations, precinct-level health stations, hospitals and private surgeries with 886 2.1.4 Change of structure of economic components In the overall economy, structure of economic components is the proportionbased correlation of economic components attending sectors, fields of components of economy 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; Collective economy plays an important role and in many forms of organization on basis of voluntary, equal, democratic participation and mutual interests The structural transformation of economic components is to change contribution rate of production value of the components in the overall economy 2.2 Changes in structure and economic relations of Dong Anh since 2000 2.2.1 Changes in structure of economic sectors In ten recent years, Dong Anh district’s economy has reached many changes Total revenue of the whole economy has increased more than 300 times (from VND153,967 million in 2000 to VND48,948,012 million in 2008), development order can be arranged as follows: commerce- service-transportation, industryconstructional sector and agriculture 2.2.2 Changing inside economic sectors Overall, annual growth rate of industry is more than 10% However, considering the internal structure of the industry, industrial groups at lower levels, there is over-time change of value and contribution rates 2.2.2.1 Changing economic structure in industry In the studies of production value and number of production facilities in the industrial economic sectors in the period 2000 - 2009 showed that, number of production facilities, number of employees and production value of industrial groups has very large change Groups of sectors with the highest production value are food processing, producing beverages, clothing, leather, fur; processing wood, bamboo products; products from metals, beds , cabinets, furniture These sectors have huge consumer market, not only in the country but also for export However, it is easy to see that production sectors require high technologies and high qualification, which is very little During this period, total number of agricultural facilities increased from 2,104 (in 2000) to 3,520 (in 2009), increased 1,416 (equaling to 16.7% of increase in the period), especially the general economic components reached the fastest growth ratio: more than 252 facilities (23.9%), followed by the individual components: 1154 (15.5%) facilities Meanwhile the private components increased not much: 10 facilities; the collective economic sector did not increase in number of facilities The total value of industrial production in the district in the period 2000 - 2009 increased VND1,228,166 million (increasing more than 70 times), especially the general economic components with increase of more than VND 913,346 million ( increasing more than 113 times), followed by the individual components with increase of VND149,945 million (twice) The growth above is due to the competitive nature of the economic sectors in the market economy and the policies of the Party 12 and the State as well as Dong Anh District Those are capital, legal policies and identification of role of the economic components in the market economy 2.2.2.2 Economic changes in agro-forestry and aquiculture In recent years, agro- forestry – aquiculture economics has a profound transformation in of cultivated area, water surface area for aquaculture and production value Currently the agriculture structure has strongly changed to gradually reducing land area for rice cultivation, annual crops, perennial crops and increasing surface water area used for the agriculture 2.2.2.3 Economic changes in commercial sector – services – hotels and restaurants Currently, number of households and persons attending the commercial sector – service – hotel and restaurants increase fast In 2000, the whole district had 3477 households and 4209 persons working in the commercial sector – service – hotels and restaurants, until 2010 number of households and labors has increased up to 8291 and 12487, respectively, approximately 2.5 times including communes with the largest growth ratio Nam Hong, Uy No, Kim No… 2.3 Changes in structure and social relations The change in economic structure will inevitably lead to social changes On the contrary, social change is a driving force for the economic change This is a dialectic relationship of the issue in question Identifying such change, we choose the following sections: 2.3.1 Changes in scale of manufacturing facilities and the number of centralized labors by economic sectors in industry In the period 2000 - 2009, total number of industrial labor facilities kept increasing, by 1.6 times (1426 facilities) whereas labor force was increased by more than times (15,131 labors) It can be easily seen through the above table that individual and mixed economic sectors attract the most labors However, recently, individual economic sector has tended to decrease in terms of the number of manufacturing facilities and labor force in proportion to mixed sector The most equally increased sector is the mixed sector This proves the flexibility of the people in economic activity to keep pace with the present social background 2.3.2 Changes in scale of manufacturing facilities and the number of centralized labors in commerce and hospitality Manufacturing scale, number of centralized labors in commerce and hospitality tend to shift from the State economic sector to non-State economic sector Over the past 10 years, the number of households and labors in the State economic sector has been reduced from households with 652 labors down to household with 15 labors whereas the non-State economic sector has been increased quickly both in the number of households and in the number of labors In 2000, the whole district had 13 households with 109 labors but in 2010, there were 703 households with 7968 labors, increasing by more than 100 times In the State economic sector, mixed economic sector saw the strongest increase from households to 673 households and from 95 labors to 7655 labors 13 2.3.3 Changes in scale of manufacturing facilities and the number of centralized labors in transport In the transport industry, there is a strong shift from collective and individual economic sectors to mixed economic sector Over the past 10 years, collective and individual economic sectors have increased by about - times only whereas mixed economic sector has been increased by over 70 times In 2000, there was no business household in the mixed form but in 2010, there were 76 households with 1566 labors 2.3.4 Changes in education - health, life quality of Dong Anh district in the period 2000 - 2009 In education, national education system always receives investment for development The number of schools, classes, teachers and students increases quickly In 2010, there were 28 kindergartens, increasing by kindergartens from that of 2000, 736 teachers, over 19 thousand students, doubling that in 2000; 29 primary schools, increasing by primary schools and 999 teachers and more than 50 thousand students As such, pre-school and primary school education branch has been attentively invested and expanded infrastructure whereas secondary schools and continuing education classes have not been increased over the past 10 years, reflecting the saturated trend in demand However, in the coming time, there should be forecast to work out school network plan at upper level to prepare well for the lower levels of education Health sector also saw a strong development Nowadays, the people’s life is enhanced; the demand for healthcare is increased, thus leading to vigorous change in the number of healthcare facilities Hospitals, communal and ward medical stations are not increased in terms of quantity but the number of private healthcare facilities was increased threefold from 66 facilities in 2000 to 182 facilities in 2010 Such private clinic system has basically met the increased demand of the people in the locality, thereby somehow reducing pressure for the hospitals A big change in the cultural life of the people in Dong Anh district is the prevalence of urban lifestyle in the urbanization process 14 CHAPTER ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF DONG ANH UP TO 2020 3.1 Viewpoint and orientation of socioeconomic development of Dong Anh 3.1.1 Viewpoint of development In the socioeconomic development master plan of Dong Anh district to 2010 of the People’s Committee of Dong Anh district, the fortification of comprehensive socioeconomic development of the district must be based on the following viewpoints: First, the district should bring into full play its role as the Northern economic development driving force of Hanoi city, create landscape and green belt to protect ecological environment for civilized and modern capital Second, the district needs to take advantage of opportunity and chance to promote socioeconomic development of Dong Anh district at high, comprehensive and sustainable level in the direction of industrialization and modernization Third, Dong Anh should create a favorable environment and condition for economic sectors to develop Bring into full play all resources, especially bring into full play and optimize all internal resources, attract external resources at maximum to focus on socioeconomic development of the district Forth, it is necessary for the district to combine economic development with social advance and equity development requirements of the district to 2020 Next, socioeconomic development of Dong Anh district is in accordance with the development strategy and master plan of Hanoi Capital with expanded administrative boundary and in the context of international economic integration Expanded Hanoi (incorporating Ha Tay province, Me Linh district - Vinh Phuc and communes of Luong Son district - Hoa Binh) with area of about 3,350 km2 and over 6.5 million people will develop quickly to deserve a Capital of a wealthy and powerful country in the future Finally, the district ought to grasp the viewpoint of the Communist Party of Vietnam thoroughly: economic development is the key task, Party establishment is the core task; investment in building rural infrastructure in an urban and modern manner and enhanced urban management and construction in the district are the regular and important task; cultural development is the spiritual background of the society; maintenance of political security, social order and safety; non-stop enhancement of material and spiritual life of the people 3.1.2 Orientation of development Dong Anh district should continue comprehensive and uniform renovation, exploit all potentials, resources to strengthen industrialization, modernization and urbanization, create requisite for sustainable socioeconomic development, maintain political security, social order and safety, keep increasing material and spiritual life of the people, coordinate with the capital to go ahead of the whole country years in the industrialization and modernization 15 The district should intensify urbanization and formulate urban areas, industrial centers, trading and service centers; build Dong Anh into a big socioeconomic center as the development driving force in the North of the Capital by 2020 In economic development, the district must always pay attention to developing and taking initiative in international integration together with other districts to make the Capital really one of the leading cities in the industrialization and modernization cause Fortify economic growth and structural shift in the direction of industry service trade - agriculture, enhance efficiency and competitiveness of the enterprises and economic facilities in the district, maintain and expand domestic and foreign markets The district should focus on accomplishing socialist-oriented market economic mechanism, uniformly developing markets and market supporting institutions, enhancing transparency, equality and democracy and openness of the economy in accordance with international commitments Boosting socialization, enhancing cooperation and association among enterprises, divisions, economic sectors, creating new development investment wave in the district The economic development of the district must go together with urban development planning and be associated with preserving and improving ecological environment landscape, bringing into full play local historic and cultural tradition, enhancing material and spiritual life of all walks of life in the district It is important for the district to give priority to developing infrastructure ahead of time in order to build basic technical material infrastructure for formulating new Hanoi in the North of the Red River in the direction of building a civilized and modern Capital in 2020 3.2 Analysis based on SWOT of potentials and challenges in socioeconomic development process of Dong Anh district SWOT analysis model is a very useful tool for grasping and making decisions in all situations for any organization As an abbreviation of words Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T), SWOT provides a tool for analyzing strategy, reviewing and evaluating position, orientation of a unit or a business project SWOT is suitable for working and analysis in groups, used to make socioeconomic plan, establish strategy, evaluate competitors, marketing, develop product and service, etc SWOT analysis is aimed at obtaining a quick overview of a certain situation at a certain time and in a certain location This should not be understood as an evaluation method because it fails to work out solution or option or compare opinions and create related decision In the project planning and establishment process, SWOT analysis is used in the first phase and the second phase in identifying the issue and the demand, collecting and analyzing data Some issues may have been identified but the use of SWOT analysis remains important to consider further identification of the issue The result of SWOT analysis may go further than the list of Strengths, Weaknesses, Opportunities and Threats After interpreting, collecting and analyzing 16 items, SWOT analysis will lead to a list of priorities Moreover, SWOT analysis will orientate conditions of a strategic planning process O/S Take advantage of opportunities to promote strengths O Opportunities O/W Grasp opportunities to overcome weaknesses S W Strengths Weaknesses SWOT S/T Take advantage of strengths to minimize threats W/T T Reduce weaknesses to prevent threats Threats Figure 3.2 Expanded SWOT analysis model Through carefully studying Dong Anh situation, we dare to adopt SWOT model to evaluate strengths, weaknesses, opportunities as well as threats of Dong Anh as follows: 3.2.1 Strengths (favorable conditions for socioeconomic development) 3.2.1.1 Politics and policie Dong Anh, together with Hanoi and the whole country, now prepares to enter a new phase, the period 2011 - 2020 This is the period of intensified industrialization and modernization to make Vietnam an industrial country in 2020 Hanoi space has been expanded after incorporating Ha Tay province, Me Linh district (Vinh Phuc) and communes of Hoa Binh province under the Resolution No 15/2008/NQ-QH12 by the National Assembly Hanoi now covers about 3,300 km2 and has around 6.5 million people These are especially favorable conditions for the Capital development Furthermore, the policies adopted by the National Party Congress, Hanoi Party Committee and realization ability of Dong Anh district Party Committee are favorable conditions for Dong Anh to attract investment projects and big economic programs in the coming time 3.2.1.2 Socioeconomic development resources Geographical position of Dong Anh is favorable for the district to cooperate and exchange with other districts of Hanoi capital and the Northern provinces in economic development Land fund of Dong Anh remains considerable, which is the leading advantage of the district in the urbanization and comprehensive socioeconomic development in the district 17 Labor force is relatively abundant and enthusiastic, which is a favorable factor for Dong Anh to attract investment and development of business lines, fortify economic structural shift in the direction of industrialization and modernization Road, railway and waterway traffic system of Dong Anh is quite favorable with national roads, expressways in the district Dong Anh is close to Noi Bai international airport, the biggest airway junction in the Northern Vietnam, the international exchange gateway of the Capital and the country These are great favorable conditions for comprehensive and uniform development of economic, cultural and social fields of the district Thousand-year cultural tradition, revolutionary historical depth and traditional identities are still preserved and promoted, which is a great driving force for the sustainable development of Dong Anh in the coming years Potentials of goods and service market of the district are quite big, especially in the context of developing socialist-oriented market economy and international economic integration This is a motive force in attracting investment and promoting production and business activities in the district 3.2.2 Weaknesses (shortcomings in socioeconomic development) 3.2.2.1 Politics and policies In this regard, we are facing fierce challenges The world and regional political and economic situation develops complicatedly; financial crisis and global economic depression exert strong and direct influence on the socioeconomic situation of Vietnam and Hanoi, making the national economic growth decrease On the other hand, policies adopted by the Party are applied at national level Their feasibility depends on the realization ability of Hanoi city Through comparing the resolutions adopted by the Party Committee Congress of Dong Anh with those adopted by the Party Committee Congress of Hanoi city and with the Central Party Committee Congress, it can be seen that there are many inconsistencies in carrying out the contents and action plans This is also a weakness 3.2.2.2 Socioeconomic development resources Intrinsic factors in the economy such as economic structure, investment structure, labor structure and competitiveness show many weaknesses that inhibit quick and sustainable development in the coming time The weather is increasingly severe, unfavorable Many epidemic outbreaks affect agricultural production and the people’s life Flood: Every year, from June to September, the water in the Red river system rises high, causing flood to the dyke areas Even, in some years, it breaks the dyke and results in catastrophe for a vast area, failure of crops and big damage in people and property The urbanization and industrialization process is now impairing quality of water, air and soil environment in Dong Anh and Hanoi city 3.2.3 Opportunities of socioeconomic development of Dong Anh district from now to 2020 3.2.3.1 Politics and policies 18 Hanoi in general and Dong Anh in particular have political guarantee of the Party, the State and the Central Government for the industrialization and modernization In particular, as the Capital, Hanoi has many special priorities from socioeconomic development policies of the Party and the State 3.2.3.2 Opportunities of economic development Vietnam has jointed the World Trade Organization (WTO) and integrated more deeply into the global economy, which provides us with great opportunities for development promotion Priority policies for the Capital make Hanoi in general and Dong Anh in particular a potential and attractive investment environment for domestic and foreign partners Construction investment and development projects will be more and more in the coming years 3.2.4 Challenges of socioeconomic development of Dong Anh district from now to 2020 3.2.3.1 Politics and policies As the Capital, anything wrong in Hanoi will have very strong spreading influence (much higher than other provinces) Therefore, Hanoi leadership and people should be prudent at maximum in dealing with political issues This is a difficulty for renovation because the nature of renovation needs breakthrough, reckless and risk-taking steps 3.2.3.2 Socioeconomic challenges Besides, urgent and difficult issues of the quick urbanization in the district, especially in the suburban like Dong Anh; the lack of uniformity, low qualification of the capital market economy, weaknesses of science - technology, human resources, etc.; inadequacies in the State economic management as per the market mechanism, urban, cultural - social management are main challenges for the development in the coming time Labor force of Dong Anh is fairly crowded but its quality is low, slow to adapt to the market mechanism and meet the requirement of the new sector and production and business fields This weakness may make Dong Anh lose its advantage in attracting domestic and foreign investors, especially big investors Although the urbanization has just been started in Dong Anh, due to lack of planning orientations and slow solution of resulting issues, it is faced with many complicated social issues, especially unemployment, social evils due to reclamation of agricultural land This is a great challenge for Dong Anh in the urbanization in the coming years and if not solved, it will eradicate achievements of the development Infrastructure system in Dong Anh district remains asynchronous and weak In the district, there is almost no urban technical infrastructure Infrastructure condition in rural residential areas is quite backward and shows inadequacies in the urbanization Capital source in the district is quite limited The economic is not yet developed strongly, the number of enterprises in the district remains little (there is one enterprise per 200 people in the district and one enterprise per 80 people on average in the city), thus the accumulation is low 19 SWOT analysis results combined with the local socioeconomic development orientations are the basis for us to work out specific orientations, taking into consideration feasible conditions and work out general solutions for socioeconomic development of Dong Anh district in a scientific manner 3.3 Orientation of development in economic sectors 3.3.1 Orientation of development in trade - service sectors 3.3.1.1 Viewpoint of development The district must diversify and enhance quality of service products, pay attention to developing high quality services Build Dong Anh into a new city, a high quality trade, financial, tourist and service center in the North of the capital Consolidate and develop after-sale goods and service distribution and circulation system Build some customs clearance depots, ports and coach stations in the district Further invest in modernizing material facilities, diversify types, enhance quality of tourist products Fortify export supporting services and boost service export; give priority to developing rural agricultural development services 3.3.1.2 Orientation of development * Market system plan in the district Develop market network in the district to meet the demand for sale, purchase and daily life of the people, ensure each commune/town has at least one local market to serve life activities, not to mention junction markets and specialized markets Review market system in the district Organize the implementation of the market management model transformation project so that by the end of 2010, markets in the district would be transformed from the market management unit to the enterprise or co-operative operation Make new plan for some local markets in the areas without market to serve the people Together with planning market system, it is necessary to be determined in removing temporary markets in the residential area that affect the traffic order and safety, landscape and environmental sanitation * Plan for trade centers, supermarkets and self-service retail shops This is a modern trade type that become more commonly in the urban area In the future, when the urbanization rate in Dong Anh is strong and new urban areas are built, the development of trade centers, supermarkets and self-service retail shops is of great necessity Develop trade centers, supermarkets and self-service retail shops firstly in new urban areas, centralized residential areas and district center * Plan for high grade service sectors: Finance, banking, insurance, consultancy and logistics Develop services: Finance and banking in new urban areas in order to build Dong Anh into a financial and banking center in the North of the Capital Attract and develop branches and transaction offices of the banks in the district central areas and in centralized residential areas to formulate high-density financial and banking system when the Northern Red River Urban Area Plan is carried out Develop logistics centers in the district 20 * Plan for recreation areas Focus on improving and upgrading Cau Doi Park into a big recreation area in the district Make new plan for some recreation areas, parks in new urban areas in the district * Plan for tourist development Develop hotel and restaurant system in new urban areas and the district central areas Focus on refurnishing and upgrading historic sites to serve the demand of the tourists Strictly combine craft villages with tourist services, upgrade the infrastructure system to create attractive tourist craft villages 3.3.2 Orientation of development in industry, small scale industry and construction 3.3.2.1 Viewpoint of development Selectively develop items of goods, groups of industrial products with modern technology and environmental friendliness Pay attention to groups of products with trademark and prestige in electric equipment - electronic equipment - information technology and communication equipment, mechanical equipment, food processing, high grade garment and textile, create favorable conditions for the development of pharmaceutical chemical industry, high quality materials Support in development to modernize technology, expand scope of producing and exporting some small scale industrial products with market potential (wood processing, wood furniture, high grade handicrafts, etc.) Basically complete occupancy of the centralized industrial parks; expand North Thang Long industrial park; continue building some new industrial parks by the domestic investment Develop small and medium-sized industrial clusters in accordance with the plan to provide production plan to the enterprises 3.3.2.2 Orientation of development in industry, small scale industry and construction * Orientation of development: - Develop industry as the key sector that creates highly added value and makes the most contribution to the economic structure of Dong Anh district - Enhance industrial production efficiency, enhance the adoptability of modern technology into production and enhance competitiveness of industrial products in Dong Anh district both in domestic market and for export * Selection of key industrial products: - Mechanical products: laminated steel, nail, mechanical products in means of transport, lock, mechanical products for life activities - Electric equipment: transformer, voltage stabilizer, electric wire, etc - Assembled electronic products: printing machine, monitor and computer accessories, etc - Beverage and processed food: confectionery, meat, milk, cattle feed - High class wood furniture, handicrafts; furniture, wood carving, wall painting and painted wood furniture - Textile, garment and leather * Industrial distribution in the district: - Continue expanding the old Dong Anh industrial park 21 - Occupy North Thang Long industrial park - Expand in the second phase Nguyen Khe small and medium-sized industrial cluster - Build Co Loa and Dong Hoi industrial parks - Build craft industrial cluster in Van Ha and Lien Ha communes - Reorganize production in craft villages: Van Noi rattan and bamboo, Viet Hung pork pies, Xuan Can, Hai Boi, Co Loa noodle and Vong La toufu, etc 3.3.3 Orientation of development in industry 3.3.3.1 Viewpoint of development Develop agriculture in the direction of ecological urban agriculture and clean agriculture Accelerate the intra-agricultural structure shift Plan for stabilizing agricultural production areas, establish the combined model of residential area - craft village - ecological and cultural resort, and formulate the city green belt Develop clean agriculture with high technology; expand application of modern technology, biotechnology into clean agricultural production, focus on producing crop seedling and animal breed with high quality and highly economic value, reduce rice and food crop growing area, increase area for flowers, bonsai and medicinal herbs; develop high quality and safe husbandry and aquaculture Support in building technical infrastructure for some craft villages with development potential Diversify sources of investment to build rural agricultural infrastructure modernly Consolidate, improve the dyke system in the district 3.3.3.2 Orientation of development - It is necessary for the district to accelerate the shift in rural economic structure, intra-agricultural economic structure in the direction of reducing food crop area, increasing area for flowers, bonsai, vegetable and foodstuff crops (gradually popularizing clean vegetable and fruit trees); fortify husbandry with focus on ox for food, lean pig, chicken, goose, duck, fish and shrimp The objective is to develop goods agriculture in order to provide fresh food within the city and export - Develop agriculture in association with developing new rural areas, building clean agriculture and agriculture in urban * Selection of key agricultural products: - Clean vegetable: bean, kohlrabi, cabbage, cauliflower, tomato and mustard green are planted centrally in Van Noi, Nam Hong, Bac Hong, Tien Duong and Nguyen Khe communes - Fruit trees: litchi, longan, mango, custard-apple, sapote are planted centrally in Viet Hung, Uy No, Tien Duong and Xuan Non communes - Specialty rice: special non-glutinous rice and special glutinous rice are planted centrally in Thuy Lam, Lien Ha, Duc Tu and Mai Lam communes - Food ox, lean pig, chicken, duck and goose: in the short term, encourage breeding at household scale and create favorable conditions for breeding at larger scale - Seafood: fish and shrimp are developed based on the strength of big rivers such as the Red River, Duong River, Ca Lo River and lakes, ponds in the district 22 * Agricultural production by territory: - Eastern communes: Thuy Lam, Lien Ha, Van Ha, Duc Tu and Viet Hung These communes have future stability for agricultural production Main agricultural products of the region to be developed include specialty rice, seafood and poultry - District central area: Nguyen Khe, Xuan Non, Tien Duong, Uy No and Dong Anh town This region has centralized development in industry and services Main agricultural products of the region to be developed include clean vegetable, food ox and lean pig - Urbanized region: Nam Hong, Bac Hong, Tam Xa, Kim No, Van Noi, Dong Hoi, Mai Lam, Co Loa, Dai Mach, Xuan Canh, Kim Chung, Vinh Ngoc, Hai Boi and Vong La This region will be strongly urbanized and become urban area when the plan for the urban area in the North of the Red River is carried out Main agricultural products of the region to be developed include clean vegetable, fruit, flower and bonsai, food ox and lean pig 3.3.4 Orientation of cultural and social development 3.4.1.1 Orientation of education and training development Train and retrain high quality human resources in order to gradually enhance the labor force with good qualifications This is a requisite for the development of industries with high scientific and technological content The district must work out specific plan for training labors classified by economic sectors 3.4.1.2 Orientation of health development Dong Anh district should focus on solving some issues as follows: - Invest in upgrading and expanding the District Health Center to more than 300 beds - Solidify and enhance material facilities and equipment for communal/town medical stations Ensure communal/town medical stations have doctors and clinics to meet the demand for medical examination and treatment of the people due to increased population in the coming years - Boost private medical and pharmaceutical activities in the district center and in each hamlet - Encourage medical staff to work at grassroots level to enhance communal healthcare Do initial healthcare work well - Enhance private medical and pharmaceutical service management, combine professional management with administrative management 3.4.1.3 Orientation of development in culture - information and sports * Build a cultural institutional system: * Improve cultural and spiritual life and civilized, elegant and modern Hanoian 3.5 Solutions to socioeconomic development of Dong Anh district 3.5.1 Training and developing human resources Developing human resources with sufficient quantity and quality for the socioeconomic development during the planning period of Dong Anh district to 2020 23 includes two important contents, namely training local human resources and attracting intelligence, labors with high qualifications to the district development 3.5.2 Applying scientific and technical advances in production Paying attention to acquiring and applying scientific - technical advances in all fields of economic and life activities should be grasped thoroughly at all levels from district to commune Give priority to transferring and acquiring new scientific and technological advances: firstly for key products or breakthrough steps Specifically: applying technological advances in producing vegetable, flower, seedling, breeding, high class wood furniture Source of acquiring and transferring technology: pay attention to the available source in the city (universities, research institutes) Besides, it is necessary to take notice of new abroad technologies to be transferred and applied in production and service fields in the district Work out stable and public mechanism and policy in order to encourage the application of new scientific and technological advances for priority fields 3.5.3 Mobilizing and using investment capital sources effectively * Budget capital - Investment source from the city budget is estimated at about 30 - 35% of total demand for investment in the district - District budget for development investment In the period 2011 - 2020, income from taxes and fees in the district will increase sharply and may be spent partly on development investment in the district - Income from auctioning land use right This capital source is of budget type and the direction of remarkable mobilization for development investment that Dong Anh has a lot of potentials * Investment from enterprises and from the public - For the capital sources of the enterprise: accelerate the formulation and occupancy of small and medium-sized industrial parks, craft village industrial clusters to attract the enterprises within the city or from other places - For the public capital source: + Mobilize equity capital in various forms of business in all fields such as economy, trade and service + Issue bonds for the works executed by the city + Invest in transforming vocation for the objects with big cash flows from compensation for land acquisition + Expand BOT and BT investment forms * Investment credit and other funds * Capital source from association with external parties To attract the capital from association with external parties, backed by the city, the district should take initiative in creating mechanisms at permissible level to promote diversified cooperation forms with the enterprises of the Central government and the City For example: cooperate with universities and research institutes to formulate high quality seedling production area to provide to the markets of other provinces; associate in investing and building trade and service centers in the district 24 For attracting association with foreign enterprises and other provinces, it is possible to allow foreign investors to associate with domestic investors to build partial urban works of the works invested in ecological resorts and craft village resorts 3.5.4 Widening the market To widen the market for existing products for export, the district should provide appropriate supports to product promotion and introduction activities such as: displaying products with advertisement information at hotels, tourist points with many incoming international tourists; supporting unique or high quality products in participating in domestic and foreign trade fairs; establishing close and regular relationship with domestic or international trade promotion organizations; exploiting and bringing into full play the relationship with overseas Vietnamese or expatriates to seek partnership For domestic market, it is necessary to bring into full play the traffic advantage between the district and other provinces to enhance product exchange, develop trade and service sector of the district Quickly formulate and promote market network in the district; well organize agents and outlets within the city, especially for such agricultural products as clean vegetable, flower and bonsai 3.5.5 Improving general power of economic sectors The district must encourage economic sectors, domestic and foreign enterprises, organizations and entrepreneurs to invest in developing and enhancing production and business efficiency in all fields under the laws The district must focus on establishing mechanisms and policies to promote liberating production force and social resources, concurrently ensuring equal and highly competitive business environment Mechanisms and policies of the district must be in accordance with the general State regulations, creating legal framework while stimulating economic sectors to participate in 25 CONCLUSION 1.1 Studying socioeconomic changes of a district within 10 years is relatively suitable in terms of time Such period is sufficient to reflect basic socioeconomic laws Associated with the selected location as Dong Anh - we have relied on the statistics, summary reports over the past 10 years (from 2000) This period is long enough to evaluate the socioeconomic movement and change, especially from 2000 up to now, Dong Anh has gained many important changes due to the remarkable planning and investment from the State and domestic and foreign enterprises In particular, with adequate investment attraction policies, Dong Anh is like a potential and promising land for the enterprises 1.2 Upon studying socioeconomic changes of an economy, it is necessary to access from various angles Within this thesis, we have studied in some specific sections in economic and social fields These are not yet comprehensive but have reflected basic and outstanding changes of Dong Anh district The separation of such sections is just relative and clear for thinking In fact, they are interactive and dialectical Economic changes will make social structure change and vice versa 1.3 Based on the evaluation as per SWOT model, a very useful analysis model for grasping and making decisions in all situations for any object, we have evaluated comprehensively strengths, weaknesses, opportunities and threats in socioeconomic development of Dong Anh From analyzing as per the above model associated with present viewpoint of development of Dong Anh, we propose specific and relatively comprehensive solutions to economic development of Dong Anh These may not be optimal options for next development steps of Dong Anh but may be regarded as references based on analyzing a change process of the past 10 years 26 ... effort into the socio-economic development in Dong Anh district Literature review 2.1 The study of the process of socio-economic change and the socio-economic changes in Vietnam in the innovation period. .. 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,... 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