New Factors Affecting the Economic Structure Shift of Vinh Phuc Province

3.3.2.2. Causes of limitations

The above problems all have the common cause of not having a reasonable investment and development policy to implement and need the coordination of many relevant agencies under the general direction of the province.

Planning work is still slow, planning quality is not high; planning adjustment, supplementation and updating are not timely; Management capacity and planning implementation are still weak. Investment preparation is slow. The system of mechanisms and policies on agriculture, farmers and rural areas is not synchronous and still has many problems.

Staffing, investment in facilities, equipment, and operating costs for the agricultural sector have not met professional tasks.

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The organization of the agricultural and rural management apparatus is still in the process of completion, but there are still many shortcomings and low operational efficiency, especially at the district and commune levels. The number of cadres is lacking and weak in both professional expertise and state management.

Awareness of producers and consumers about agricultural and forestry food safety

- Aquaculture is still limited; in some places, local authorities have not paid due attention; the state management apparatus for food safety and hygiene in agriculture, forestry and fisheries at all levels is still thin, conditions, means and operating costs are still limited; the supervisory role of state management agencies at all levels and of the community on food safety and hygiene has not been promoted; the system of legal documents on food safety and hygiene is still lacking, not synchronous, and there are overlaps in the division of functions and tasks between agencies and units...

In addition, there are also some objective reasons such as:

Impact of the global financial crisis (inflation, deflation, abnormal price fluctuations, high unemployment rate...).

Agricultural production is a special production sector with high risks due to the direct impact of natural conditions (especially in the context of global climate change, in which our country is warned to be one of the most seriously and severely affected countries); natural disasters and epidemics on crops and livestock are always latent and at risk of outbreak...

Some policies on import and export of agricultural products of the Government have caused fluctuations in the market and consumer psychology, which have significantly affected domestic agricultural production.

Accumulation from within the province's economy is still low, and the efficiency of investment capital use is not high.

Chapter 4

VIEWPOINTS, ORIENTATIONS AND SOLUTIONS TO PROMOTE ECONOMIC STRUCTURE TRANSFORMATION IN VINH PHUC PROVINCE IN THE PERIOD 2015 - 2020, VISION 2030

4.1. NEW FACTORS AFFECTING THE ECONOMIC STRUCTURE TRANSFORMATION OF VINH PHUC PROVINCE

4.1.1. New context of the country and its influence

Looking at the overall domestic context, Vinh Phuc and other provinces and cities have quite a few basic advantages:

First of all, it is the political and social stability, the new policy of the Communist Party of Vietnam is suitable for the development trend of the times. The State carries out macro-economic regulation relatively effectively.

In nearly 30 years of renovation, the whole country has made efforts to promote industrialization and modernization, in which economic restructuring is one of the focuses. The structure of the economic sector has undergone significant changes. All economic regions have developed. Our country has both built an independent and self-reliant economy and integrated more deeply into the regional and world economy. Important foundations of the economy have been and are being actively built such as energy, materials, mechanics, economic-social infrastructure, technical facilities, etc. The economy is being restructured, economic growth is relatively fast and tends to be stable, the structure of the economic sector has had positive changes in the direction of industrialization and modernization.

The market economic institution is continuing to be innovated and synchronously formed. The socialist-oriented market mechanism replaces the centralized planning mechanism, the market principle, and economic accounting replace the subsidy principle in allocating human resources, regulating economic relations and production and business activities. Types of markets are being

formation and development; labor market, financial - monetary market, real estate market, stock market...

The legal system serving economic activities is being supplemented and improved: Enterprise Law, Tax Law, Land Law.

Foreign economic relations continue to be consolidated and expanded, demonstrated by Vietnam's active integration into regional and world economic organizations; joining the WTO, actively participating in the formation of the ASEAN free trade area, promoting relations with major economies such as Japan, China, the US, the EU, etc. The open-door economic policy has created conditions to mobilize external resources such as: Science and technology, capital, knowledge, market, etc. combined with domestic resources to promote the domestic economy towards export growth.

Vietnam has many resources, including comparative advantages that serve as the basis for planning industry structure strategies, ensuring rapid growth, transforming industry structure towards industrialization, modernization, and opening up to international and regional economic integration such as: Regarding prospects, Vietnam has conditions to expand and stabilize the market, attracting large investment sources.

However, our country is also facing major challenges:

- The competitiveness of economic sectors, products and services of Vietnamese enterprises is still limited.

- The legal system and mechanisms and policies are not really strict; the capacity to reform institutions towards trade and investment liberalization is a big difficulty.

- Low quality of resources is an obstacle to attracting foreign investment or receiving projects using high technology.

- The organization and implementation of the State's economic development policies are still limited, failing to promote initiative and creativity; ...

4.1.2. New economic starting point of Vinh Phuc province

- In recent years, Vinh Phuc's economy has always grown at a high rate. The economic structure of the whole province is based on continuing to promote the development of industry - construction, services and agriculture - forestry; gradually shifting towards services - industry, construction and agriculture - forestry in the 20s of the 21st century; In the future, Vinh Phuc will grow even stronger and will become an industrial province.

– Solid economic foundation, creating momentum for socio-economic development in the whole region with high competitiveness;

– Maintain fast and stable growth rate;

– The average annual income will ensure social security conditions.

4.2. VIEWPOINTS, ORIENTATIONS AND SOLUTIONS TO PROMOTE ECONOMIC STRUCTURE TRANSFORMATION IN VINH PHUC PROVINCE

4.2.1. Some basic viewpoints and directions

* Opinion

Based on the domestic and international context and the practical conditions of the province, the process of economic restructuring of the province must thoroughly grasp the following viewpoints:

Firstly , the transformation of the economic sector structure must ensure socio-political stability and sustainable development. The sectoral structure changes in quality based on deeper and faster technological innovation to increase social labor productivity, improve growth quality, and improve socio-economic efficiency. Promote the effective application of imported technologies, quickly move into modern technology in key sectors and fields to create a leap in technology, in sectoral structure, and create speed.

high growth, increased added value, especially for key service products. Economic restructuring also aims to meet the urgent needs of job creation, improving people's lives, eliminating hunger and reducing poverty, and fighting backwardness.

Second, shifting the economic structure towards an export-oriented growth model. The strategy of rapid and sustainable growth, with export growth as the main driving force, is both an objective requirement and feasible in our country. If Bac Giang wants rapid growth, it is necessary to direct the country's economic activities towards the goal of export growth and restructure the economy towards export. Because export-oriented growth is essentially implementing a shortened industrialization and modernization model, aiming to develop the economy quickly and effectively, escape backwardness, shorten the path to a modern economy and proactively integrate into the international and regional economy.

Third, shifting the economic structure based on effectively exploiting comparative advantages and improving competitiveness in the domestic and foreign markets. Vinh Phuc is currently assessed as a province with advantages in terms of a large, cheap labor force, favorable geographical location, etc. The shifting of the economic structure in Vinh Phuc needs to be based on these advantages to mobilize external resources in terms of capital, science and technology, management experience, and building content capacity to improve the competitiveness of products, industries, and the entire provincial economy. At the same time, Vinh Phuc needs to have strategies to promote intellectual potential, gradually moving towards being proactive in science and technology, production and business management, keeping up with the general development trend of the country and the world.

Fourth, the economic restructuring must aim to create more jobs and increase income for workers. General goal

is to improve and enhance the lives of the people, first of all the workers. Vinh Phuc is a densely populated province with a young population structure and great pressure on employment, so job creation is a fierce challenge for the province in the coming time. Job creation is also a decisive factor in promoting the human factor, stabilizing and developing the economy, making society healthy, meeting the legitimate aspirations and urgent demands of all classes of people.

Developing a variety of industries, including developing labor-intensive industries, is a major direction in the process of restructuring industries in the province. Developing a labor-intensive economic structure is associated with developing industrial and service centers throughout the province. However, in general, labor-intensive industries are not highly technological, making it difficult to move the economy towards a knowledge-based economy. To resolve this contradiction, the process of restructuring the economic sector must also focus on using high-quality labor resources, by developing highly competitive industries to effectively integrate into the economy.

Fifth , develop sustainable tourism and services , in line with the overall strategy for service development in Vietnam until 2020; the key economic region of the North, the Red River Delta; in line with the overall socio-economic development plan of the province, the general urban construction plan of Vinh Phuc and the development plan of the industry and sectors. Develop services and tourism in a civilized, modern direction, integrating with the international region, preserving and promoting national cultural identity, ensuring national defense, security, and protecting the ecological environment.

Create a breakthrough in developing service industries, on the basis of maximizing the potential and advantages of each industry and each locality, focusing on

Strongly develop tourism services, making tourism a key economic sector of the province, prioritizing the development of service sectors that bring high added value, directly serving the production sector; service sectors that benefit the public and society; valuing and encouraging the development of other types of services.

Sixth, diversify investment resources for service and tourism development, especially capital sources. In particular, state budget capital prioritizes investment in building technical infrastructure connecting with service and tourism areas; large and important projects, creating highlights for the province, on the basis of focused and key investments for each stage. Socialize investment capital sources to develop public and social services and other types of services.

Above are some key viewpoints that need to be thoroughly understood in the process of industrialization, modernization and economic restructuring of Vinh Phuc province under current conditions.

* Direction

Over the past 30 years, especially since the re-establishment of the province, based on the Party's guidelines and policies, the State's policies and laws, Vinh Phuc province has creatively applied them to local conditions, proposed many comprehensive policies, directions and mechanisms in all fields, creating the premise and promoting industrialization and modernization, making the process of economic restructuring more effective. In the coming period, Vinh Phuc needs to implement the following basic directions.

Firstly , planning and investing in the construction of essential technical infrastructure must be one step ahead; rapidly and strongly developing industry so that industry is the foundation of the economy and increases budget revenue; developing agriculture and rural areas and improving people's lives is a particularly important task.

Second , it is necessary to focus on industrial development and consider industry as the foundation to create high economic growth and stimulate economic activities.

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