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Research Projects on Industrialization and Modernization of Agriculture and Rural Areas:


INTRODUCTION

1. REASONS FOR CHOOSING THE TOPIC

Rubber is an essential raw material for many industries and products serving life from transportation, automobiles, medicine, sports, construction and personal and household items...

Vietnam is currently the third largest rubber producer and exporter in the world. With 941,300 hectares (VRA, 2019), the Vietnamese rubber industry has created jobs for more than

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400,000 rural workers and about 100,000 workers for rubber and rubber wood production and processing, not including jobs in industries and services related to the rubber industry.

In 2019, the total export turnover of the entire Vietnamese rubber industry reached 7.1 billion USD, of which the export value of rubber products was estimated at 2.4 billion USD, rubber exports were about 2.3 billion USD and rubber wood products exports were about 2.4 billion USD, contributing nearly 3% of the country's total export turnover (VRA, 2020).

Research Projects on Industrialization and Modernization of Agriculture and Rural Areas:

In recent years, the rubber industry has achieved many remarkable achievements in social security, hunger eradication, poverty reduction, new rural construction, etc., contributing positively to the process of industrialization and modernization of the country. However, the Vietnamese rubber industry is facing many difficulties and challenges in the current development trend and fierce competition in the world:

(i) The level of development of Vietnam's rubber product processing industry is low, currently there is a large gap compared to Thailand, Malaysia and Indonesia.

(ii) Vietnam's rubber export price is lower than that of other countries in the region;

(iii) Research and application of science and technology in production and industry management organization still have many limitations;

(iv) The value chain efficiency and competitiveness of the industry compared to some countries in the region are still weak;


(v) The participation of the rubber industry in the process of socio-economic development and industrialization and modernization of agriculture and rural areas is not commensurate with the potential of the rubber industry.

There have been many studies in the world and in the country on the rubber industry from many perspectives such as rubber production, rubber varieties, consumption market, competitiveness, etc., but there are very few rubber research topics based on:

(i) Theory of industry development;

(ii) Theory of rubber industry value chain;

(iii) Research the development of the rubber industry not only in the rubber production and business stage (planting, exploiting, consuming rubber latex) but also in other stages in the rubber supply chain such as processing and exporting industrial rubber products and rubber wood;

(iv) Research on the development of the rubber industry with the process of industrialization and modernization of rural agriculture.

Therefore, it is important and urgent to fully study in theory and practice the multi-faceted relationship between the development of the rubber industry and the process of rural industrialization and modernization to have comprehensive and overall solutions for the development of the rubber industry in the current situation.

Based on the above theoretical and practical significance, the author chose the topic: "Development of Vietnam's rubber industry in the process of industrialization and modernization of rural agriculture to 2030" for his doctoral thesis.

2. OVERVIEW OF RELATED RESEARCH WORKS

2.1. RESEARCH WORKS ON INDUSTRIALIZATION AND MODERNIZATION OF AGRICULTURE AND RURAL AREA:

2.1.1. Foreign studies on industrialization and modernization of agriculture and rural areas

(1) Scientific research report “ Rural Development through Rural Industrialization: Exploring the Chinese Experience” by Sanjeev Kumar, 2007 [92] on rural industrialization in China.


China's experience in dealing with poverty and improving people's living standards through the development of small-town and village enterprises (TVEs) has been widely successful and can provide useful lessons for developing countries. The author's main finding is that employment for rural people, through the development of small and medium-sized rural food processing enterprises (called TVEs by the author), has created jobs, increased income and welfare for rural people, contributed to the rapid development of the local economy and changed the face of rural areas (Sanjeev Kumar, 2007) [92].

The privatization of township and village enterprises (TVEs) has had a significant impact and influence on their contribution to rural development. In addition, China’s experience offers important lessons, especially on employment creation, geography, innovation, and the important role of local governments in developing countries, including India’s rural industrialization.

(2) The research report “ Industrialization in Malaysia: Changing role of Government and Foreign Firms” by Bethuel Kinyanjui Kinuthia , 2009 [66], a study on industrialization in Malaysia, shows that for successful industrialization, developing countries need flexibility and dynamism of the Government to facilitate the development of the private economic sector and foreign enterprises. This approach will help create much greater benefits than developing countries choosing a development orientation according to complete market or Government regulation.

This paper examines the role of government and foreign companies in the process of industrialisation in Malaysia. Economists have differing views on the role of government in industrialisation. Some believe that the developing world is rife with market failures and that the only way poor countries can escape the poverty trap is through heavy government intervention. Others reject this view, arguing that economic failure results from too much government intervention and that the market should lead the way.


economy. The reality has been different from both perspectives. From an agricultural and commodity-dependent country in the sixties, Malaysia has become an export-oriented economy driven by knowledge-based and capital-intensive industries. The market economy combined with flexible government policies that have maintained an efficient business environment have transformed the country into a dynamic, highly competitive manufacturing and export nation.

The government flexibly facilitates the development of economic sectors, especially the private sector and foreign investment. This approach has produced greater benefits than if developing countries had adopted a purely market- or government-based development trajectory.

(3) The scientific article “ Rural Industrialisation : Challenges and Proposition” by K. Sundar and T. Srinivasan, 2009 [84] studied rural industrialization, showing that in India, the growth of food production has decreased to 1.2% from 1990 to 2007, lower than the average annual population growth rate of 1.9%. The labor force participating in various economic sectors in rural areas is rapidly migrating to urban areas, causing high pollution, increasing land prices, high population density, etc. and there have been recommendations on strategies to promote rural industrialization to overcome the worsening situation in urban areas as follows: It is necessary to develop a comprehensive rural industrial policy to address the various problems and challenges faced by rural enterprises. Reservation of certain industrial activities should be made for rural industries. Labour intensive industries should be protected in rural areas. Separate labour codes should be provided for unorganised informal workers. Unorganised informal workers should be converted into organised workers through self-help mechanism. Rural industries should be redefined for support and priority from the Government and financial institutions. Role of the Central and State Governments in promotion of rural industries should be delineated. Financial institutions


of different types can continue to support industries and small businesses as part of their social obligations.

2.1.2. Domestic research projects on industrialization and modernization of agriculture and rural areas

Research on industrialization and modernization of agriculture and rural areas in Vietnam is a topic that many groups and scientists have researched.

(1) The book " Industrialization and modernization of agriculture and rural areas from theory to practice in Vietnam today" by Pham Ngoc Dung, 2011 [37] mentioned the important role of industrialization and modernization of agriculture and rural areas in the process of industrialization and modernization of the country, revealing theoretical and practical issues of industrialization and modernization of agriculture and rural areas in sustainable development. The socio-economic situation in rural areas of our country in the process of industrialization and modernization of agriculture and rural areas today as well as the causes of urgent economic and social problems have been specifically analyzed by the author. From there, in order to build a large-scale, efficient and sustainable commodity agriculture, reasonable and highly practical solutions have been proposed in the direction of focusing on the application of advanced scientific and technological achievements to achieve high productivity, quality and competitiveness, meeting domestic and export needs; Building rural areas with increasingly modern economic and social infrastructure on the basis of a reasonable economic structure and suitable production relations.

(2) The book " Industrialization and modernization of Vietnam's economy in the context of the fourth industrial revolution" by Dr. Pham Thuyen , 2019 [38]

The current development status of sectors and fields of the Vietnamese economy has been revealed in the process of industrialization and modernization of the country since the renovation until now: the trend of increasing the proportion and value of industry and services, reducing the proportion and value of agriculture is reflected in the shift in the structure of economic sectors and the proportion of labor. Urbanization is taking place quite rapidly. There is a significant improvement in human development. Besides, there are still some limitations in the achievements in economic terms.

- society in the process of industrialization and modernization, such as many irrationalities in the structure of economic sectors in the urbanization process, in the development speed and scale of the economy


economy. These shortcomings and limitations stem from the following main causes: not yet originating from the country's reality and international context, cognitive thinking, lacking scientific and practical basis; still being influenced by the centralized planning model on industrialization and modernization of the economy; showing signs of not keeping up with the requirements of socio-economic development of the country and international economic integration in operating market economic institutions; the requirement to improve the quality of human resources and apply scientific and technological advances in the industrialization and modernization process is still low; meeting the needs of accelerating industrialization, modernization and socio-economic development of the country also stems from the incomplete transport infrastructure system.

(3) The scientific article “ Industrialization and modernization of agriculture and rural areas and issues arising in the current period” , Nguyen Van Giau, 2015 [34] shows that after more than 30 years of innovation since the 6th Party Congress (December 1986), the country's economy has achieved many successes. However, besides the achievements, the process of industrialization and modernization of agriculture and rural areas has also given rise to many complicated problems that slow down the progress of industrialization and modernization of agriculture and rural areas as follows:

Investment resources for agriculture, farmers and rural areas have not met the demand. The quality of planning is not really reasonable, there is a lack of connection and unity between types of planning, and there is not a close connection with implementation resources.

Research and investment funding for the application of science and technology in agricultural production are still limited.

Policies for agricultural development and environmental pollution resolution are not yet consistent and comprehensive.

The implementation of the closed production, trade, processing and distribution chain model, the linkage model in agriculture... All these issues together with institutions, policies and laws in the agricultural sector need to be reviewed and improved to accelerate the process of modernization and industrialization of agriculture and rural areas. Some proposed solutions

(4) Scientific article " The role of agricultural and rural industrialization in the current socio-economic development of our country" . Nguyen Thi Phuong Thao, 2016 [35] believes that in order for the industrialization process, rural agriculture must develop.


To promote its role in the country's socio-economy, in the coming time, there need to be some of the following solutions:

Firstly, the State needs to further promote its leading role and have a number of mechanisms and policies to promote non-agricultural economic activities in rural areas.

Second, the State needs to invest more in developing rural infrastructure, increasing the application of science and technology in agricultural production, processing and product consumption to promote the natural strengths of each locality, satisfying the increasingly strict requirements of the domestic and international markets.

Third, the State needs to have policies to further improve the quality of human resources and effectively resolve social issues arising during the development process.

Fourth, the State needs to have policies to strengthen the protection and improvement of the rural environment, towards sustainable development.

2.2. RESEARCH WORKS ON RUBBER INDUSTRY IN THE PROCESS OF INDUSTRIALIZATION AND MODERNIZATION OF AGRICULTURE AND RURAL AREA

2.2.1. Foreign studies on the rubber industry in the process of industrialization and modernization of agriculture and rural areas

1) Goldthorpe's PhD thesis, 2009 “ Resource – Based Industrialization in Peninsular Malaysia: A case study of the Rubber Products Manufacturing Industry” [73]

The author collected data from the Internet from websites, trade directories published by the Malaysian Rubber Authority and the Malaysian Rubber Products Manufacturers Association and from a survey of 340 manufacturing companies in the rubber sector. The results of the study showed that the Malaysian rubber processing industry is a typical example of an industry based on an agricultural resource. The contribution of the rubber manufacturing industry accounted for 13 percent of export earnings in 2008 according to government statistics. This shows that the production of rubber goods has played an important role in the program.


Malaysia’s industrialization and economic development. The Malaysian rubber industry is highly diversified in terms of ownership, enterprise size, and export turnover. The majority of local companies (about 80%) are small and medium-sized enterprises owned by Chinese private investors, with only a few owned by Malay and Indian private investors, or controlled by listed companies. The remaining 20% ​​of the rubber industry consists of companies with foreign capital participation as subsidiaries of foreign companies or joint ventures with Malaysian companies. Goldthorpe argues that over the past century, a series of technological discoveries have led to the rapid growth of the rubber processing industry worldwide, such as the production of tires, engineering components, gloves and medical products. The production of rubber products has played an important part in the transformation of Malaysia from a commodity-based economy to an industrial economy based on the effects of the Government's flexible industrialization promotion policies.

(2) Research report “ Can Cooperatives Improve the Incomes of Rubber Smallholders in Thailand? A Case Study in Chumphon Province ” by Angthong Suttipong and Fujita Koichi, 2017. [61]

This study assessed the impact of rubber cooperatives on the processing and marketing of rubber on the economic welfare of rubber producers in Thailand in 2017 in Pathio District, Chumphon Province. The results showed that the profit per unit area of ​​rai (rai = 0.16 ha) obtained from rubber production by members was significantly higher than that of non-members. The main reason for this is that cooperatives can provide rubber at a higher price than the selling price of private enterprises because cooperatives produce higher quality smoked rubber sheets than the private sector. Therefore, cooperatives can buy unsmoked rubber sheets from cooperative members at a higher price than the purchase price of private companies from non-member rubber producers. Regression analysis showed that cooperative members' profits per rai (= 0.16 ha) were 1,407 baht higher than those of non-member rubber producers.

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