Applying some statistical methods to study the situation of income distribution in enterprises in the Vietnamese industrial sector - 23

1/ Create an investment and business environment;

2/ Innovate and perfect the national financial and monetary policy system;

3/ Correctly resolve the relationship between accumulation and consumption, between capital accumulation and concentration, and investment in industrial development;

4/ Reforming wage policy.

- Micro solutions:

1/ Financial transparency and statistics, business accounting;

2/ Increase production and business efficiency and investment efficiency for labor; 3/ Build a mechanism for dialogue, negotiation and agreement on wages.

Vietnam needs to have policies to create an investment environment and shift the focus of the economy to high productivity and fast-growing sectors such as industry and services, especially mining, processing and financial and credit services. Further development of the private sector to compete and grow alongside the public sector is crucial to creating jobs, reducing poverty and contributing to a more equitable distribution of the benefits of economic growth.

Financial sector reform is also needed to channel capital more quickly to the most productive enterprises. State asset management also needs to be strengthened so that state capital is used efficiently and transparently.

To integrate more deeply into the world economy, Vietnam must promote the development of policies to encourage industrial development in a way that ensures stability, transparency, predictability and is consistent with WTO requirements as well as international practices.

CONCLUDE

1. To fully determine the income levels of subjects in a market economy, it is necessary to study basic theoretical issues on income and income distribution, on that basis find out the causes of wealth and poverty and measures to overcome the gap between rich and poor, and implement a more equitable income distribution.

2. Enterprises accept the competition of the market economy, accept labor as a commodity and accept the unfair distribution of income according to the laws of the market economy. However, in a socialist-oriented market economy, the State with its right to manage the economy can have appropriate economic and social policies to limit the level of income disparity and labor exploitation to ensure and maintain fairness in the three types of interests of the three subjects: workers, enterprises and the State.

3. The research object in the thesis is the distribution of income generated in enterprises and mainly the first distribution. Income generated in enterprises is distributed into three large items: income of workers from enterprises, general income of enterprises and income of the State from enterprises. The distribution regime represents the combination of three types of interests: interests of workers, collective interests of enterprises and general interests of the whole society. When the above interests have a high level of unity, it creates unity of will and action, increasing the motivation for development. When the above interests lack unity, are violated, it causes loss of will and action, reducing the motivation for development.

4. In order to fully reflect the income distribution situation in enterprises, it is necessary to continue to improve the system of statistical indicators on income.

and income distribution, and at the same time collect information according to statistical indicators to meet the needs of research, monitoring and evaluation of income distribution in enterprises in our country.

5. Based on the application of statistical disaggregation methods, time series analysis methods, index methods, correlation regression methods... and using data from a number of recent statistical surveys, the thesis analyzes the situation of income distribution in industrial enterprises in our country in recent years.

6. Statistics from 2000-2005 show that the number of industrial enterprises in our country has increased rapidly in recent years, but the scale is generally small and medium, and production capacity is still limited. Although the number of mining industrial enterprises is not large, they have a rapid growth rate in quantity. Processing industrial enterprises have developed rapidly in quantity and account for a large proportion, but they employ few workers, use little capital, and have a scattered production scale. Enterprises producing and distributing electricity, gas and water account for the lowest proportion in quantity but have the highest average number of workers and average capital per enterprise in the entire industry. Although the number of profitable production and business enterprises has increased, the number of loss-making enterprises still accounts for a significant proportion.

7. The research results show that although there was growth in the 3 years 2001 - 2003, the rate of added value calculated according to the average production value of an industrial enterprise tended to decrease (from 25% to 23.3%). This can be explained because the economic transformation process is still continuing. The restructuring of state-owned enterprises is contributing to changing the ability to mobilize resources of the economy. Production of enterprises in general is still heavily assembling, not proactive in raw material sources as well as consumption markets. Production costs, including costs

Intermediary value is still high. Therefore, although the production value is large and growing, the newly added value is small; and often the growth rate of added value is lower than the growth rate of production value. This can be a challenge for enterprises on how to attract more domestic and foreign investment to promote production, reduce production costs, and increase the added value of enterprises.

8. The calculation results also show that the net income of enterprises usually accounts for the largest proportion, followed by the income of workers and then the income of the State. However, if we consider each level I industry separately, we can see that the net income of mining enterprises accounts for a much lower proportion than the income of workers, while the income proportion of enterprises in the processing industry and enterprises in the production and distribution of electricity, gas and water is 1.5 to 2 times larger than the initial income proportion of workers. The reason may be that the investment capital in mining is not much, mainly using human power to exploit nature; meanwhile, the investment capital in production of the processing industry and production and distribution of electricity, gas and water is 2 to 3 times larger than the investment capital in mining production.

9. The analysis results show that: State-owned enterprises have the highest contribution rate to the state budget, while non-state-owned enterprises have the lowest contribution rate. The net income ratio of foreign-invested enterprises and non-state-owned enterprises is very high while that of state-owned enterprises is low. The reason can be explained by the fact that for non-state-owned enterprises and foreign-invested enterprises, the business owner is the one who invests in production, so he leaves more for the enterprise.

10. Wages of workers in the state sector are generally higher than those in the non-state and foreign-invested sectors in the least skilled occupations. Conversely, wages in the non-state and foreign-invested sectors tend to be higher than those in the state sector.

This causes a brain drain from the state sector to the non-state sector and the foreign-invested sector, leading to a decrease in the quality of jobs in the state sector.

11. In high-growth areas such as the foreign-invested sector, growth will be accompanied by increasing income inequality. To meet the interests of the working class, the Government must promote rapid economic growth in both the public and non-public sectors, creating new jobs with higher wages, while maintaining a fairer income distribution to contribute to social progress.

12. To increase net added value (the source of income), enterprises need to increase labor productivity as well as increase the number of employees in the enterprise. Furthermore, enterprises that want to increase their own net income need to increase the profit margin calculated on the first income of employees as well as increase the income of employees.

13. Capital and labor actually increase the added value of enterprises. However, the efficiency of capital and labor use differs between types of enterprises. Enterprises with foreign investment have gradually reached the limit of efficiency in using production factors (capital and labor), while state-owned and non-state-owned enterprises have not yet exploited this efficiency well.

14. The analysis also shows that increasing the number of employees of enterprises almost reduces tax payments and capital is the only factor considered to generate revenue for the State. The analysis confirms that using more employees almost has no impact on the interests of state-owned enterprises and foreign-invested enterprises. However, for non-state enterprises, increasing the number of employees increases the interests of business owners.

15. Based on scientific theoretical foundations and practical income distribution

Based on the trends in income distribution in industrial enterprises in recent years, the thesis has proposed a number of solutions to improve the income distribution regime in enterprises as follows:

First, Vietnam needs to have policies to create an investment environment and shift the focus of the economy to high-productivity and fast-growing sectors in the industrial and service sectors, especially mining, processing, and financial and credit services. Further development of the private sector to compete and grow alongside the public sector is crucial to creating jobs, reducing poverty, and contributing to a more equitable distribution of the benefits of economic growth.

Second, it is necessary to innovate and perfect the national financial and monetary policy system in order to reasonably mobilize and effectively distribute all resources. In financial policy, taxes must play a leading role for the State to implement the requirements of macro management and regulation of all production and business activities of all economic sectors, in order to improve operational efficiency, contributing to the implementation of major balances in the national economy. Reform of the banking system needs to be supplemented by strengthening capital markets, because this is the main mechanism to bring resources to the most effective businesses.

Third, properly resolve the relationship between accumulation and consumption, between accumulation and concentration of capital for investment in industrial development. The process of implementing solutions for accumulation and concentration of capital requires comprehensive calculations on: Government investment policy, capital supply capacity, and growth capacity of capital sources on the basis of properly resolving the relationship between accumulation and consumption, between accumulation and concentration.

Fourth, continue to improve wage and salary policies; fight against egalitarianism and unreasonable and unjust incomes. Ensure income for

Workers can reproduce their labor, closely linking wages and salaries with productivity, quality and efficiency.

And to integrate more deeply into the world economy, Vietnam must promote the development of policies to encourage industrial development in a way that ensures stability, transparency, predictability and is consistent with WTO requirements as well as international practices.

16. In summary, the thesis has scientifically systematized the concepts of income and income distribution, the principles of income distribution of subjects in the market economy, clarified the inevitability of inequality in income distribution and the role of the State in regulation to ensure social justice. The thesis has used statistical tools to analyze the factors that generate income, as a basis for analyzing and dividing benefits among the three subjects: the State, enterprises and workers in a more effective way. The thesis has made certain contributions not only of theoretical significance, but also of practical significance to the completion of the first income distribution regime in industrial enterprises in our country. However, the thesis has not had the conditions to deeply analyze the issue of income redistribution, as well as analyze the influence of factors on the relationship in income distribution.

LIST OF AUTHOR'S WORKS

Number

TT

Name of topic/project chaired or participated in	Main agency project maintenance	Year Real Estate
1	Building a national information network project on labor and employment. Ministry-level project (CB 2001.04.03) - Secretary. Decision No. 464/2000/QD-LDTBXH dated May 3, 2000 on Research project funding management	Center for Information - Labor and Social Statistics Ministry of Labor, Invalids and Social Affairs	2001
2	Research on wage costs in newly created value of some major economic sectors. Ministry-level topic (CB 2003-01- 06). Collaborator.	Institute of Labor Science and Social Affairs, Ministry of Labor Labor, Invalids and Social Affairs	2003
3	The issue of income distribution in different types of enterprises in the socialist-oriented market economy in Vietnam. The sub-topic belongs to the state-level topic. (KX.01.01). Topic participants.	National Economics University	2003
4	Initial assessment of civil society in Vietnam. CIVICUS CSI-SAT project. CSI-SAT Vietnam Evaluation Team Member Male.	Institute for Development Studies (VIDS)	2005
5	Completing the statistical reporting regime of the labor - war invalids and social affairs sector at all levels. Ministry-level project (CB 2006.03-03) - Director. Decision on the allocation of scientific research projects No. 111/QD - LDTBXH dated January 23, 2006 and No. 504/QD - LDTBXH dated April 5, 2006 on the establishment of the Management Board Ministry level scientific research topic 2006.	Department of Planning and Finance, Ministry of Labor, Invalids and Social Affairs	2006

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