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Economic restructuring of Nam Dinh province - 2


In addition to the introduction, conclusion, and list of references, the thesis is structured into 3 chapters and 7 sections:

Chapter 1. Theoretical and practical basis for economic restructuring of an agricultural province

Chapter 2: Current status of economic restructuring in Nam Dinh province

Determined.

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Chapter 3: Directions and solutions to promote basic transformation

Economic structure of Nam Dinh province

Economic restructuring of Nam Dinh province - 2


Chapter 1‌‌

THEORETICAL AND PRACTICAL BASIS OF ECONOMIC STRUCTURE TRANSFORMATION OF AN AGRICULTURAL PROVINCE


1.1. Some general theoretical issues on economic sector structure transformation

1.1.1. Economic structure

Up to now, many authors have mentioned the concept of "economic structure". To analyze this concept, we first need to clarify the concept of "structure". Structure is a concept used to indicate the internal organization of a system, expressing the unity of dialectical relationships between its parts. Structure specifies the relationship between parts and the whole, manifests as an attribute of phenomena and changes with the change of phenomena.

The national economy is a unified entity with many components, these components have a close relationship with each other, and interact with each other. These components are constantly moving and changing, creating changes and development of the national economy. So it can be understood that " the structure of the national economy is the totality of the relationships in quality and quantity between the components in a certain period of time and under certain socio-economic conditions" [1, p.18].

The structure of the national economy includes the following basic types: economic sector structure, economic region structure and economic component structure. The above-mentioned types of structure are closely related and interact with each other in the national economy. Of which, the economic sector structure is the most important, it most clearly reflects the level of development of the national economy.

The economic sector structure is formed on the basis of social division of labor and production specialization. The economic sector structure is a combination of proportionally correlated sectors, expressing the relationship between those sectors in the


national economy [14, p.245]. The economic sector structure has many components, there are many ways to classify the economic sector structure into different components. The use of which classification method is entirely based on the research purpose. In this thesis, the author uses the classification method based on the division of social labor: On the basis of the general division of labor, the economy is divided into large sectors (level I sectors): industry, agriculture, services. Based on the specific division of labor, each large sector can be divided into sub-sectors (level II sectors): in agriculture there is cultivation, animal husbandry...; in industry there is heavy industry, light industry...; In services, there are trade services, tourism, transportation, insurance... Based on the individual division of labor, under the sub-sectors there are sub-sectors (level III sectors), for example: in agriculture there are rice cultivation, vegetable cultivation, fruit tree cultivation, timber tree cultivation... The analysis focuses on both the number of sectors, the proportional relationship between sectors, the position and role of each sector in the economy, and the interactive relationships between sectors in development.

The industry structure of the national economy is not in a static state but is always moving and developing under the influence of objective and subjective factors.

1.1.2. Shifting the economic structure in general

1.1.2.1. Concept of economic restructuring

Economic structural transformation has been discussed by many authors with different related concepts: "economic structural transformation", "economic structural transformation". In general, the concepts are unified in defining: Economic structural transformation is the movement and development of sectors that change their positions, proportional correlations and relationships, interactions between them over time and space, under the influence of certain domestic and international socio-economic factors [11, p.15]. Economic structural transformation at the macro level is a process in which the


The industrial, agricultural, and service sectors themselves and their sub-sectors move and develop, leading to changes in the relative proportions between previously formed sectors, as well as their relatively stable relationships.

Economic restructuring is a purposeful, oriented change from one state to another, more reasonable and effective state based on the theory and practice of the country in each period.

The process of economic restructuring is the process of building a reasonable economic structure. For Vietnam, a developing country, economic restructuring is a core content of the industrialization and modernization process. The basic direction of the national economic restructuring is to gradually increase the proportion of industry and services, reduce the proportion of agriculture in GDP and focus on exports. At the same time, the proportion of rural labor and population will decrease, urban labor and population will increase. Science and technology are increasingly applied to the economy, production areas with high labor productivity and high added value will have a higher growth rate and gradually replace production and business areas with low labor productivity and added value.

The restructuring of the national economy is the result of the restructuring of the components of the economy. The restructuring of the economic structure of the provinces is part of the general restructuring of the whole country, and at the same time, the speed of the restructuring of the provinces will contribute to affecting the overall economic restructuring speed of the whole country.

1.1.2.2. Factors affecting the economic structure shift of a country in general

The process of economic restructuring of a country is influenced by the following basic factors: natural resources, human resources, capital, scientific and technological potential, and the economic management role of the state.


Identifying the factors affecting the process of economic restructuring is very important. This is the basis for understanding the causes of the achievements of the economic restructuring process and the shortcomings in this process. This is also the basis for identifying the directions and solutions to promote the process of economic restructuring.

Natural resources:

Natural resources are resources bestowed by nature including scale, land quality, terrain, climate, water resources, geographical location, minerals, etc.

The economic structure of a country is deeply influenced by the resources that nature bestows. The scale, quality of land, terrain, climate, and water resources are natural conditions for different types of agricultural production. Mineral reserves and types are natural conditions for the development of mining industries. Favorable geographical location, landscape, environment, etc. are the basis for the development of transportation and tourism services, etc. In short, natural resources are an important natural basis for forming the economic structure of economies around the world.

Natural resources are comparative advantages, the basis for promoting a number of manufacturing industries, in order to create export products, earn foreign currency, provide capital for the economy, import modern machinery and technology, and promote the process of economic restructuring towards industrialization and modernization.

However, according to the general rule of economic restructuring, economic sectors based on natural conditions, especially agriculture and mining industry, tend to gradually decrease in proportion in the entire national economy. Therefore, natural resources are only the initial basis for the restructuring of the sector. When science and technology develop, it is necessary to


There must be a shift, actively applying science and technology to maximize the potential of natural resources.

So the first group of factors has a strong influence on the natural tendency of the production structure of an economy. In many cases, they create what economists call absolute advantage in the international division of labor of economies. However, to promote the economic restructuring towards industrialization and modernization, it is necessary to focus on upgrading science and technology.

- technology and engineering to shift from providing raw products to products of the processing industry.

Human resources:

Human resources have long been considered a decisive factor in the production process. At certain times, the allocation of human resources is very important in shaping the structure of the economy.

Human resources are considered in terms of: human resource scale, human resource quality and human resource change trends.

The scale of human resources is the number of labor forces in society, expressed in the number of people of working age, capable and willing to work. The scale of human resources is one of the important factors contributing to the formation of the economic structure. In order for production and business activities to be carried out effectively, at a certain level of science and technology, an appropriate labor force is needed. If the scale of human resources is too small compared to the requirements of the economy, it will hinder development, and labor may have to be imported. In such economies, there will be an economic structure with economic sectors that use little labor. On the contrary, if the scale of human resources is too large, "labor surplus", an economic structure with the ability to fully employ labor will be formed, with economic sectors that use a lot of labor being given priority for development. Nowadays, with the development of foreign economic relations, the scale of human resources is too small compared to the requirements of the economy.


Human resources depend not only on the domestic population but also on international migration and labor mobility.

The quality of human resources is reflected in the qualities of health, moral qualities (diligence, diligence, love of work, responsibility for work, self-respect, labor discipline, etc.), professional skills, labor skills and knowledge (including professional knowledge and other social knowledge). The quality of human resources has a great influence on the transformation of economic structure. The higher the quality of human resources, the more favorable conditions for industries and fields requiring trained and highly skilled workers to develop. Among the factors that make up the quality of human resources, professional skills, labor skills and knowledge play a particularly important role in the process of economic restructuring towards industrialization and modernization. This component of human resources quality is the product of the education and training process. This is also the reason why many economists believe that investment in education and training is not only an investment for social development but also an investment for production and business development.

The changing trend of human resources is the change in quantity and quality of human resources, this change is not always suitable for the requirements of the economy. In developed countries, the trend of population aging is taking place strongly, while in developing countries, the population growth rate is high, but the level of human resources is not high. In each country, there must be measures to adjust the trend of demographic change to suit the development.

Vietnam has a fairly abundant human resource, in our 85 million population there are more than 40 million workers. The characteristics of Vietnamese people are diligence, intelligence, creativity, and receptivity to new knowledge... However, the rate of trained workers in our country is still low, not meeting the requirements of the economy and labor export, especially workers in industries and fields with


high level of technology and engineering. This is a major issue that needs to be solved to promote the economic structure to shift towards modernity.

Investment capital

The scale of investment capital is always a factor that directly affects the process of economic restructuring. Capital for building infrastructure, developing science and technology, developing education, investing in production in economic sectors... helps the economic structure shift towards industrialization and modernization. However, for developing and underdeveloped countries, internal accumulation from the economy is very low, the small amount of investment capital is a barrier to the process of economic restructuring towards modernization.

Capital resources for the process of economic restructuring are mobilized not only domestically but also from abroad. In the context of low internal accumulation in the economy, foreign investment capital flows are a strong driving force, creating a big "push", accelerating the process of economic restructuring.

So to accelerate the process of economic restructuring, it is necessary to mobilize maximum domestic capital sources and at the same time take measures to attract investment capital from outside.

Scientific and technological potential and infrastructure

This factor plays a particularly important role in the economic restructuring. The economic structure can only rapidly shift towards modernity when the economy has a certain scientific and technological potential and is capable of absorbing new scientific and technological achievements in the world.

Infrastructure also plays an important role in economic restructuring. If we want industry and services to develop, we must first have modern and synchronous infrastructure. The experience of most provinces with rapid restructuring

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