Economic structure of the Northern key region from the perspective of sustainable development

Regarding the economic, social and environmental aspects of economic restructuring, the author proposes three main groups of indicators and implementation methods.

Despite the remarkable achievements in economic development in recent times, the economic restructuring of our country has not really ensured sustainability. Therefore, the task is to find ways to satisfactorily resolve this issue. By deciding to establish a number of key economic zones, considering them as the driving force and premise for the development of other regions and the whole country, Vietnam has shown its strong determination in applying the model of focused investment development in certain territories, within a specified period of time. However, those key economic zones can only play a driving role on the condition that the economic restructuring of those territories ensures economic, social and environmental sustainability.

Chapter 2

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CURRENT STATUS OF ECONOMIC STRUCTURAL TRANSFORMATION OF THE NORTHERN KEY ECONOMIC REGION FROM THE PERSPECTIVE OF SUSTAINABLE DEVELOPMENT

2.1. OVERVIEW OF THE POSITION, ROLE, POTENTIAL AND STRENGTHS OF THE NORTHERN KEY ECONOMIC REGION

2.1.1. Position, role

The Central Highlands Economic Zone has an important position and role in politics, economy, society, foreign affairs, security, and national defense of the whole country and receives special attention from the Party and the State. The natural area of the whole region is 15,289 km2 , accounting for 4.6% of the natural area of the whole country. (Map 2.1). [22].

The region has a long history of development, is rich and represents the cultural traditions, society and customs of the Vietnamese people, the cradle of the wet rice culture of the Vietnamese people and the first Van Lang country. In the region is the ancient capital Thang Long, now the capital Hanoi, nearly 1,000 years old, the political center, representative of culture - society, leading in science - technology and economy of the whole country. [22].

Located in the arc of the East Sea - South China Sea, Sea of Japan, with a land border with China, the region has the most important geo-economic and political position and potential to expand international exchanges in economics, trade, culture and foreign affairs of Vietnam in the Northern region and the Gulf of Tonkin with countries in the Northeast Asia region, this is both a large market area and has countries with developed economies. [22].

The capital Hanoi is the hub of domestic and international road, rail and air traffic, the coastal area of Hai Phong - Quang Ninh is the coastal economic corridor with the largest gateway port cluster to the sea in the North, the area is also where most of the important industrial and service establishments of the Northern region are concentrated; the urban system is widely developed. This is the core area, the driving force for development.

The socio-economic, urbanization and industrialization of the entire Red River Delta region, the Northern midland and mountainous region, and the North Central region have a strong spillover effect on the development process nationwide. [8].

2.1.2. Potential, strengths and conditions affecting ensuring economic restructuring from the perspective of sustainable development

2.1.2.1. Human resources

The most outstanding strength of the region is human resources, especially the team of scientists, culturalists, teachers and doctors who are the leading in the country in terms of scale and qualifications, which have the effect of promoting the development of research and development services in science - technology, education - training, medical and high-quality health care domestically and in the region.

The population in 2005 was about 13.6 million people, equal to 16.3% of the country's population with a population growth rate of 1.25% in the period 2001 - 2005. The urban population of the region increased significantly, from 3,386.6 thousand people in 2000 (accounting for 85.55% of the urban population of the Red River Delta and 18% of the urban population of the country) to 4,325.274 thousand people in 2005 (accounting for 86.57% of the urban population of the Red River Delta and 19.1% of the urban population of the country). In the period 2001 - 2005, the urban population of the region increased by an average of 174 thousand people per year. [9].

The labor force of the region in 2005 was about 7.48 million workers (accounting for 55.4% of the total population of the region). Of the total 2.45 million skilled workers, about 61% of the skilled workers were technical workers with degrees or higher, of which 661.3 thousand workers with college degrees or higher (accounting for 27%); 465.3 thousand workers with secondary vocational degrees (accounting for 19%) and 367.4 thousand workers with technical degrees (accounting for 14%). This rate in large cities is very high, such as: Hanoi 77.1%, Vinh Phuc 65%, Quang Ninh 72.8%, Hai Duong 55%... [22]. The young and skilled labor force has been and is being considered as a basic input factor of the production and business process, promoting the economic restructuring of the region.

2.1.2.2. Accumulation of cultural and humanistic tourism resources

The 4,000-year history of building and defending the country of the Vietnamese people mainly took place in the Red River Delta, including the Northern Key Economic Zone. The development of the Red River Delta, according to geologists, 6,000 years ago, the coastline passed through Chuong My, Hanoi, Chi Linh and Dong Trieu. 2,500 years ago, the coastline passed through Ninh Binh, Phu Ly, Hung Yen, Song Luoc, Hai Phong. To have a delta with a rice civilization, the Red River Delta was exploited from the Phung Nguyen period, 4,000 years ago because Phung Nguyen sites were found in Vinh Phu, Bac Ninh, Ha Tay, Hanoi and Hai Phong. However, there is also an opinion that the real exploitation of the Red River Delta probably began later in the Dong Son period (3,000 years ago), from the time of An Duong Vuong because Co Loa, the capital of Au Lac, was located on the ancient alluvial coast of the midlands overlooking the swampy area of the delta. [8].

The way of life, village structure, social management methods... of the regions in Vietnam mostly originate from the Red River Delta. The region concentrates nearly half of the historical, tangible and intangible cultural relics ranked by the State in the whole country. Many provinces and cities have a very high density of relics such as Hanoi (38 relics/100 km 2 ), Ha Tay and Bac Ninh (15 relics/100 km 2 ). In addition, in the region there are also many traditional festivals, labor customs and practices, and festive activities of the residents of the Red River Delta. [22]. This is also a very typical feature of

The Central Economic Zone has outstanding significance in the context of opening and integration.

In addition to the above-mentioned human factors, the region has diverse, rich and unique eco-tourism resources to create favorable conditions for strong development of the tourism economy; including full ecological landscapes of plains, mountains, forests, coasts and islands, in which in many places it is possible to build ecological relics, beach resorts, resorts and entertainment areas of national and international stature such as Ha Long Bay, Bai Tu Long, Van Don, Cat Ba, Do Son, Ba Vi, Suoi Hai, Tam Dao. [22].

2.1.2.3. Natural resources

The natural resources in the region are quite rich and diverse. Therefore, the region has favorable conditions for the development of many industries, especially those requiring highly skilled labor. In addition, with a tropical monsoon climate, with four seasons: spring, summer, autumn, and winter, and deeply influenced by the Gulf of Tonkin [17], the region can promote the development of ecological agriculture and intensive agriculture, including food crops, foodstuffs and fruit trees, especially winter crop production, which can ensure food security; the region also has many favorable conditions for tourism and entertainment. (Map 2.2).

(i) Land resources: The plains account for the majority of the natural area of the entire region. Of the total area of the region, by 2005, 58.31% was used for agricultural purposes; 25.20% for non-agricultural purposes; the remaining 16.49% was unused land, rivers, streams and rocky mountains. The average natural land area of the entire region is 0.115 ha/person, equal to 28% of the national average. [17]. Agricultural land is mainly for rice cultivation and forestry. In recent years, there has been a trend of rural residents moving from villages with land for growing fruit trees and perennial trees to places along national highways; the area of industrial and urban works has increased sharply. The construction and organization of land use planning have not ensured sustainable development of the entire region. The area of unused land is still quite large (252,148 hectares, accounting for 16.49% of the natural land area). (Map 2.3).

(ii) Water resources: Water resources in the region are quite abundant, which can meet the needs of industrial, agricultural, service development and people's lives very well. The exploitation and use of water resources to meet the socio-economic development goals and environmental protection of the whole region depends mainly on the water resources of the Red - Thai Binh river basin. Groundwater resources are quite abundant in Hanoi, Ha Tay, Vinh Phuc, but limited in Hai Phong, Quang Ninh. Currently, the quality of water resources is at risk of decline due to increasing pollution, environmental degradation and indiscriminate exploitation; some areas are affected by salinity such as in Hai Duong, Hung Yen, Ha Tay provinces. [17].

(iii) Mineral resources and geological characteristics: Mineral resources in the region are quite rich and diverse, but unevenly distributed, including coal, iron, manganese, titanium, copper, nickel, tin, gold, rare earth, apatite, graphite, limestone, clay, kaolin, of which coal accounts for nearly 90%, manganese 42%, titanium 64%, kaolin 49% of the country's industrial mining reserves. Limestone landscape areas are valuable for tourism development and ecological conservation such as Ha Long Bay, Bai Tu Long, My Duc; some mountainous landscapes combined with historical relics such as Soc Son, Con Son, Yen Tu. However, this issue has not been investigated, discovered and has not been managed and planned for reasonable and effective exploitation. Except for mountainous areas, most of the Red River Delta area has weak soil, which has a negative impact on the construction of works. [17].

(iv) Forest resources and biodiversity: The forest resources of the region are quite rich, including protective forests, special-use forests and production forests. Some natural forests have great economic and ecological value and high biodiversity, such as Ba Vi National Park, Huong Pagoda forest (Ha Tay); Cat Ba 9 National Park (Hai Phong); Bai Tu Long National Park (Quang Ninh), Tam Dao National Park (Vinh Phuc); Chi Linh mountain area (Hai Duong) (Table 2.2, Appendix), Yen Tu Nature Reserve (Quang Ninh) 10. In the region, there is also a coastal lagoon ecosystem, a type of semi-natural water body, often located in high and mid-tide areas, where mangrove vegetation develops (very few lagoons are located in low-tide areas due to strong water dynamics, making the construction and protection of dykes and sluices difficult). (Table 2.3, Appendix). Mangrove vegetation in lagoons is poorly developed. The area has rich aquatic resources and can strongly develop the seafood processing industry. Exploitation and sustainable use

9 Cat Ba Archipelago was officially recognized as a world biosphere reserve by the United Nations Educational, Scientific and Cultural Organization (UNESCO) on December 19, 2004. Currently, the number of terrestrial higher plant species is over 1,041 species, about 1/10 of the number of vascular plant species identified in Vietnam (Table 2.1, Appendix). This place has all groups of organisms from low to high levels, in about more than

2,300 species, including 20 species of higher plants and 25 rare animal species listed in the Vietnam Red Book.

10 Yen Tu Nature Reserve has the largest evergreen forest area in the Northeast of Vietnam; it is home to many rare species of animals and plants: 42 reptiles (accounting for 16.1% of the total number of reptiles in Vietnam), 23 amphibians (accounting for 21.7%), 161 birds (accounting for 19.4%), and 48 mammals (accounting for 20%).

Sustaining forest resources and biodiversity in the region is a crucial condition to ensure sustainable development of the whole region. [25].

2.1.2.4. Technical infrastructure conditions

The region has a better economic and social infrastructure network than other regions, creating a premise to attract foreign investment, develop the economy and promote exchanges with other regions in the country and other countries.

(i) Transport, telecommunications and irrigation infrastructure [8], [9], [13], [14], [22]: Many important transport projects have been completed in the past 5 years, such as the renovation and upgrading of national highways 1, 18, 10, 2B, 38, 39, 183, 12B, 21, 21B and 23; the construction of Lang - Hoa Lac road, completing phase I to grade I standards; the construction of new bridges Binh, Trieu Duong, Tan De, Tien Cuu, Yen Lenh, Thanh Tri, Bai Chay, etc.

The railway lines: Hanoi-Hai Phong, Hanoi-Lang Son, Hanoi-Thai Nguyen and Hanoi-Vinh have been upgraded to shorten transport time and ensure train safety. However, the railway system still has many gauges that hinder the organization of inter-line transport; most of the railway lines that have not been re-licensed are single-line, with very limited capacity, operating speed only reaching 30-40 km/h; the scale of the stations is small, lacking large-scale hub stations of regional significance.

The region has important seaports and is convenient for maritime traffic. The total capacity through the ports reaches 18 - 19 million tons per year. Hai Phong and Cai Lan ports are continuing to be invested in upgrading and expanding their capacity to meet the demand for maritime cargo transportation for the Northern region. With a coastline of nearly 300 km, there are a number of bays and estuaries that can build more deep-water seaports, develop large-tonnage shipbuilding industrial zones, develop economic zones, coastal and island tourism.

The density of the river and canal network is large, but the exploitation capacity is limited due to relying only on natural conditions and due to the lack of investment in dredging and modernizing the navigation buoy system. The river port system exists, but the infrastructure is still too rudimentary, with no investment in upgrading wharves, access roads and modernizing loading and unloading technology at river ports.

Although Noi Bai International Airport has completed the first phase of upgrading and is preparing for the second phase of expansion; Cat Bi Airport has also been partially renovated; but the airports in the region are small in scale, have low technical standards, and have not yet met the transportation needs in the process of industrialization, modernization and international integration of the country.

The telecommunications, radio and television systems have continued to be built and developed rapidly in recent times, basically meeting the needs of socio-economic development and ensuring security and national defense.

The KTTDBB region occupies the leading position in terms of irrigated area compared to other regions in the country. In addition, the region has also built a system of stations to serve the agricultural development of the whole region as well as the whole country.

(ii) Environmental technical infrastructure [9], [22], [25], [32]: The clean water supply system in urban areas has been significantly developed (the amount of clean water accounts for 38% of the total clean water supply in the country, the proportion of urban residents using tap water reaches over 90%). The supply of clean water in rural areas has increased rapidly. However, it only ensures about 58.4% of the urban population, the water loss rate is very high at 45%; the water supply for urban and industrial areas has not been planned and exploited in a reasonable and balanced manner. The urban drainage and sanitation network has not been properly organized and completed, leading to flooding and environmental pollution (still patchy and unsynchronized (Hanoi only reaches 60%); low collection rate of 60  70% (in Hanoi alone 95%), domestic, industrial and medical wastewater is almost not treated to meet hygiene standards, most small urban areas do not have drainage systems). Most of the rivers in urban areas are heavily polluted (typically Nhue, To Lich, Kim Nguu, Lu, Set rivers, etc.); drainage into rivers, lakes, etc. is not treated and not well controlled, causing pollution to many residential areas.

Technical infrastructure for waste classification, collection, transportation and treatment has not been planned and has not been approached with new technology. The locations of cemeteries are not distributed reasonably, hardly ensuring isolation distance from urban areas and residential areas. Network

Economic structure of the Northern key region from the perspective of sustainable development - 11

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