Assessing the Financial Situation of Rural Industrial Development in the Suburban Area of Hanoi

Reinforce kindergartens, primary schools, secondary schools and high schools, and health stations. Most communes have communal post offices, sports grounds, and village cultural houses where people meet. People's lives are increasingly improved.

Communication has basically met the growing needs of craft villages, creating conditions for them to find markets and consume products. The whole city has reached 26 telephones/100 people. 100% of suburban communes have telephones. Craft villages have developed 100% of households with landlines such as Van Phuc commune (Ha Dong), Bat Trang (Gia Lam), La Phu, Duong Lieu (Hoai Duc), Chuyen My, Phu Tuc (Phu Xuyen), Ninh So, Thang Loi, Van Diem, Quat Dong (Thuong Tin), Phung Xa, Huu Bang (Thach That), ... Some traditional craft villages such as Bat Trang ceramic village, Van Phuc silk weaving village, ... have thousands of establishments and production households using the internet for commercial transactions and promoting the products of the craft villages.

3.3. ASSESSMENT OF THE FINANCIAL STATUS FOR RURAL INDUSTRY DEVELOPMENT IN THE SUBURBAN AREAS OF HANOI

3.3.1. Results achieved

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- Leadership, direction and implementation must be serious and active: Based on Decree 45/2012/QD-CP dated May 21, 2012 of the Government on industrial promotion; Decree 134/2004/ND-CP dated June 9, 2004 of the Government on encouraging rural industrial development; Decree 66/2006/ND-CP dated July 7, 2006 on developing rural industries; Decision 1697/QD-UBND dated April 9, 2011 of the Hanoi People's Committee on approving the local industrial promotion program for the period 2011 - 2015; Program 02-CTr/TU of the City Party Committee and Resolution 03/2010/NQ-HDND of the City People's Council and the City People's Committee have issued and approved projects and plans for new rural construction, and piloted new rural models in 19 communes.

Tasks and solutions are implemented synchronously such as: Issuing mechanisms and policies to encourage rural industrial development, mobilizing resources

Investing in rural infrastructure, applying science and technology, and making rural industrial development and new rural construction key tasks.

Party committees, authorities, the Fatherland Front and mass organizations from the City to the grassroots, organizations and enterprises have actively participated, the people have responded with consensus, and the face of the countryside has changed a lot. The work of building new rural areas has been focused on and implemented synchronously and actively and has come into life, contributing to concretizing the Party and State's policies and guidelines on agriculture, rural areas and farmers, on "joining hands to build new rural areas". This is one of the outstanding results of the City in implementing the Resolution of the City Party Congress.

- The work of establishing and approving planning projects has been directed with attention. The City's industrial planning until 2020, with a vision to 2030, and the planning for the development of occupations and craft villages in Hanoi until 2020, with a vision to 2030 have been approved. The work of establishing and approving new rural commune planning, mobilizing farmers to consolidate land, exchange plots, build intra-field roads, renovate village roads, etc. has been carried out on a large scale and achieved good results. The average income per capita in rural areas increased from 12 million VND/person/year (2009) to 21 million VND/person/year (2012).

- Diversify mobilized capital sources, including integration of national target programs, capital supporting the City's target programs, direct budget support capital, capital mobilized from agencies, enterprises and voluntary contributions from the people for rural industrial development and new rural construction. According to the statistics compiled by the Hanoi Department of Industry and Trade, the budget for industrial promotion investment in the period 2008 - 2012 was 65 billion 377 million VND; according to the statistics compiled by the Hanoi Department of Agriculture and Rural Development, the budget for new rural investment in the whole City by the end of 2012 was 13,089 billion 534 million VND; in which: City budget is 4,450 billion 958 million VND (accounting for 34%), district budget is 6,664 billion 751 million VND (accounting for 51%), commune budget is 318 billion 059 million VND (accounting for 2.4%), people contribute 646 billion 600 million VND

(accounting for 4.9%), other sources are 1,009 billion 167 million VND (accounting for 7.7%), not including the value of thousands of square meters of land and tens of thousands of working days that people contributed and donated.

- The policy system on developing occupations and craft villages has been further improved, creating conditions for Ministries, Branches, Central Government, and City to come to localities to better direct the development of occupations. Policies to support occupations and craft villages (roads, electricity, water, etc.) have been invested in and implemented synchronously by all levels and establishments, so that craft villages have been developed. From 2005 to 2010, the total support budget from the State, Hanoi City, districts, and enterprises was 79 billion 556 million VND; of which 41 billion 85 million VND was supported by the City's industrial promotion and national industrial promotion, implemented in all industrial promotion programs.

- The policy of encouraging the solid construction of village roads, alleys, and construction of canals within the fields has been actively implemented, initially achieving some results. The basic internal irrigation system has been achieved, and internal traffic has increased by 34% compared to 2009. With the policy of the State supporting 100% of the cost of purchasing materials, people discuss and do it themselves, the work of mobilizing people to contribute working days and donate land to build village roads and alleys has become a festival, the number of kilometers of solidified village roads and alleys has increased by 13% compared to 2009.

- Farmers' lives have been gradually improved and enhanced, and the average income per capita in rural areas has been increasing. There are basically no dilapidated houses in rural areas, the proportion of households with solid and spacious houses is increasing, the poverty rate is decreasing; the proportion of rural people using clean water is increasing; the proportion of factories that meet regulations, ensure environmental hygiene, and are separated from residential areas is increasing; the proportion of trained workers is increasing rapidly; medical work and health care for farmers have made much progress; the quality of medical examination and treatment has been improved; especially the lives of farmers in craft villages and industrial clusters in suburban areas have been gradually improved.

3.3.2. Existing limitations

- The implementation of the Government's Decree and guiding documents of the Ministries, Branches and Cities on rural industry and new rural construction is still slow compared to the set goals and plans. The propaganda work is not deep, the awareness of a part of cadres, party members and people about rural industry and new rural construction is not comprehensive; some localities pay too much attention to investing in economic and technical infrastructure, not paying attention to widely implementing the movement "all people unite to build a cultural life", vocational training and development, rural industry development, implementing village conventions and covenants. The mobilization of local resources, promoting the role of the people and local authorities in rural industrial development is not really clear.

- Capital for rural industrial development is still lacking, not guaranteed according to the planned capital structure for total capital; credit capital, capital mobilized from people and enterprises is low, mainly from the State budget. Access to loans from credit institutions is still limited and difficult due to the mechanism of procedures, mortgage assets, investment project efficiency... while capital mobilization and capital mobilization from the Central Government and other economic sectors are limited. Some households and enterprises in craft villages have not voluntarily fulfilled their tax obligations to the State.

- The policies and guidelines of the Central Ministries and Branches are still lacking in synchronization and overlap between sectors. The City's support and incentive mechanisms on trade finance, technological innovation, trademark registration, and talent attraction are not yet specific. Human resources and high qualifications for craft villages have not met development requirements. Raw materials for production are still difficult, traditional crafts are scarce in raw materials (rattan, bamboo, sedge, wood...) over 80% from other provinces and imported from abroad. Production space is narrow, moving households and businesses to small-scale industrial production clusters is very difficult due to lack of capital. Infrastructure in most craft villages has not been upgraded or renovated for a long time, which has limited the development of crafts and craft villages.

- Rural infrastructure (transportation, irrigation, electricity) is still difficult in some places, especially in areas far from the center. Planning, planning management, construction management, and land in rural areas are still weak in many places. Rural environmental sanitation in some places has not received regular attention, especially in craft villages and industrial clusters.

- The life and income of a part of farmers in remote areas, purely agricultural, especially in craft villages, traditional handicraft clusters are unstable, many workers are still unemployed, the economy is very difficult.

- The quality of health and education services in some localities has not met the people's needs. The rate of rural people using clean water is still low, not reaching the set plan.

- The rate of poor and re-poor households is high. Training and job creation for farmers, especially farmers in areas where land has been reclaimed or agricultural land use purposes have been converted, have not met the requirements, especially the transfer of traditional skills and learning of traditional skills.

3.3.3. Causes of existing limitations

3.3.3.1. Objective causes

- In the suburban area of Hanoi after the merger, the number of commune-level administrative units, craft villages, and industrial clusters in rural areas is very large, with inadequate and unsynchronized infrastructure, requiring huge investment resources to develop the city's socio-economy, especially paying attention to investment in developing rural industry in suburban areas.

- The socio-economic development of localities and the development of IT in regions are uneven. The educational level, income, material and spiritual life of people in suburban and rural areas are still very different from those in inner-city areas.

- Mechanisms and policies in some areas are still backward, creating an environment to attract investors is still slow; especially tax and credit policies are still not effective.

suitable to the reality and development of localities, focusing on developing rural industry in suburban areas of the City.

- The impact of prices, market factors, natural disasters and epidemics on rural industrial production, mobilizing resources for investment in rural industrial development in suburban areas of the City.

3.3.3.2. Subjective causes

- The capacity of the staff, especially the grassroots management staff with knowledge of the rural industry sector, in many places has not met the requirements of the task. A number of staff have low responsibility; low prestige, affecting the work of mobilizing people to build new rural areas and develop rural industry in the locality.

- Information and propaganda work, raising awareness about the purpose, meaning, motto, and methods in mobilizing investment resources for rural industrial development and new rural construction are not very effective, leading to a large number of cadres, party members, and people still having a sluggish mindset, relying on the State, not promoting local internal strength and mobilizing local resources for rural industrial development and new rural construction.

- Forecasting work is still weak, not fully anticipating the complex developments of the situation and the difficulties and challenges, so the construction of a number of tasks, goals and solutions is not appropriate. The capacity to apply and concretize, especially in some aspects, is still limited. There is not enough focus on leadership and direction to solve a number of key issues and key areas, especially in the field of rural industry. Internal coordination between departments, branches and between departments, branches and localities in a number of areas to develop rural industry is still not tight and synchronous. A number of administrative procedures related to land, planning, mortgage loans... are still barriers slowing down the progress of rural industry development.

Chapter 3 Summary

From the study of the potential and financial status of rural industrial development in the suburban areas of Hanoi city in the past, we can initially see the strengths, weaknesses, and shortcomings in its development process.

In terms of potential: The suburban area of Hanoi is one of the areas with a large number of craft villages and is prominent with many traditional craft villages and talented artisans. Based on many traditional industries, localities have expanded exports, created jobs, and increased income for workers. The development of rural industry is one of the important means to bring scientific and technological advances into agricultural production and the daily life of farmers.

Traditional craft villages have been changing the rural industrial sector and the face of the countryside. A new civilized countryside is being formed from the development of LNTT. The infrastructure system (electricity, roads, schools, stations) of localities is being built spaciously, in which there is a significant contribution from traditional craft villages.

The Party and State's policy of innovation and open door policy has made traditional craft villages in the region become dynamic. In particular, the issuance of financial policies and mechanisms in mobilizing and using it to develop rural industry, support the development of occupations and craft villages has created conditions for the face of the countryside to be increasingly renewed, production and business to be effective, rapid accumulation, gradually capturing domestic and foreign markets. However, that development is still spontaneous in extremely difficult conditions. Traditional craft villages have not chosen a suitable production and business model, have not been properly evaluated and cared for. Therefore, over the past decades, rural industrial development has remained in the general situation of:

- Underdeveloped market, including input and output markets.

- Outdated technology, most production facilities still use traditional machinery technology discarded by state-owned and urban enterprises.

- Poorly developed infrastructure, not synchronous, not suitable for modern equipment and technology.

- Low labor skills, workers are only trained for a short time, no basic training conditions.

- Lack of capital, leading to patchwork and asynchronous technology, low investment level.

- Support from the State and local authorities in terms of capital, infrastructure investment, environmental sanitation, etc. is still limited.

Therefore, rural industrial development is an important and strategic issue in the cause of industrialization and modernization in our country as well as in the suburban areas of Hanoi. Therefore, it is necessary to have financial directions and solutions to promote the development of rural industry in the suburban areas of Hanoi. It is important to evaluate the role of finance in the development of rural industry in the process of industrialization and modernization of the capital and the country, for the goal of a rich people, a strong country, a fair and civilized society.

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