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Rural industrial development in Thua Thien Hue province - 1




HANOI NATIONAL UNIVERSITY

CENTER FOR TRAINING AND DEVELOPMENT OF POLITICAL THEORY LECTURERS

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Rural industrial development in Thua Thien Hue province - 1

LE VAN SON


MASTER'S THESIS


Topic

RURAL INDUSTRY DEVELOPMENT IN THUA THIEN HUE PROVINCE


Major in Political Economy Code: 60.31.10


Hanoi, 2009




HANOI NATIONAL UNIVERSITY

CENTER FOR TRAINING AND DEVELOPMENT OF POLITICAL THEORY LECTURERS

----- -----


LE VAN SON


MASTER'S THESIS


Topic

RURAL INDUSTRY DEVELOPMENT IN THUA THIEN HUE PROVINCE


Major in Political Economy Code: 60.31.10


Hanoi, 2009


HANOI NATIONAL UNIVERSITY

CENTER FOR TRAINING AND DEVELOPMENT OF POLITICAL THEORY LECTURERS

----- -----


LE VAN SON


MASTER'S THESIS


Topic

RURAL INDUSTRY DEVELOPMENT IN THUA THIEN HUE PROVINCE


Major in Political Economy Code: 60.31.10


Scientific instructor: Associate Professor, Dr. Pham Van Dung


Hanoi, 2009


INTRODUCTION


1. Reason for choosing the topic

Rural areas are large and densely populated, but the lives of the majority of people still face many difficulties. The industrialization and modernization of rural agriculture is an essential task of our country today. It contributes to the economic restructuring, creates many new jobs, increases income for workers, improves the material and spiritual life of rural residents, and at the same time creates important premises for the process of economic development, socio-political stability and building a new cultural life in rural areas.

Rural industrial development is one of the basic tasks of industrialization and modernization of rural agriculture. Nowadays, rural industrial development is an issue that not only attracts the attention of Vietnam but is also considered important by many developing countries. This proves that rural industrial development has an important position in the process of socio-economic development.

Vietnam is an agricultural country with more than 70% of the population living in rural areas, the agricultural labor force accounts for about 70% of the total labor force but only generates 20.8% of GDP. The idle farming time accounts for 21%/year, nearly 8 million workers are unemployed. The gap between the rich and the poor in rural and urban areas is increasing, in 1996 it was 2.71 times, in 2001 it was 3.45 times, and in 2005 it was 5 times. Although the number of workers is large, the value of rural industrial production only accounts for 22.35% of the value of industrial production.[31, p.1]

Developing rural industry will contribute to mobilizing the potential of resources in economic sectors, mobilizing and effectively using domestic and foreign resources in the economic growth process. It also has a strong impact on the process of economic restructuring, redistributing social labor in a modern direction, promoting the economy.


Rural goods develop strongly, improving and enhancing people's lives.

Thua Thien Hue is a province in the Central Central region, located on National Highway 1A, which is a favorable condition for economic exchange, industrial and service development. This is an area with quite harsh natural conditions, not favorable for agricultural development. The terrain is strongly fragmented, uneven, and the small area of ​​agricultural land makes agriculture very difficult. Moreover, in the summer the weather is often hot and dry, lacking water for agricultural production, however, in the fall it often rains a lot, causing floods and damage to crops and livestock, especially in low-lying and coastal areas.

Meanwhile, Thua Thien Hue has quite favorable conditions for factors for rural industrial development such as abundant resources, many types of minerals suitable for industrial development such as mining industry, construction industry; forests and raw material areas suitable for the development of agricultural and forestry processing industry and some other handicraft industries; a coastline of more than 120 km with large fishing grounds and the Tam Giang - Cau Hai lagoon system, the largest lagoon system in Southeast Asia, which is a favorable condition for fishing, aquaculture and seafood processing.

Historically, Thua Thien Hue, with the provincial capital of Hue city, which was once chosen by the Nguyen Dynasty as the capital, has attracted a large number of skilled craftsmen from other places in the country to serve the needs of building the royal palace, producing products for the royal family, mandarins, etc., as well as to come to do business and make a living. This is the basic factor for the formation of many traditional craft guilds and craft villages and their development to the suburbs as well as other areas in rural Thua Thien Hue. On the basis of these traditional craft villages, it is possible to mobilize the available resources of the craft villages such as technology and production experience as well as


skilled craftsmen to promote the development of rural industry. Therefore, the development of rural industry in Thua Thien Hue province is a necessary issue today to take advantage of local advantages and promote socio-economic development. Therefore, "Developing rural industry in Thua Thien Hue province" was chosen as the topic of this master's thesis.

2. Research situation

Rural industry is a new concept that has been studied since the 1950s, but in reality, rural industry has been formed as an independent economic entity with different development processes associated with agricultural and rural development for a long time.

In Vietnam, rural industry has been of interest to many scientists. Many research works and articles on rural industry have been published in many different approaches. Up to now, some research works on rural industry are as follows:

State-level project KX. 08-07 "Orientation and technology transfer to promote rural industrial development" chaired by Nguyen Van Huong (1992-1993) and Dang Ngoc Dinh (1994-1995).

Associate doctoral thesis of Vu Thi Thoa (1999): "Developing rural industry in the Red River Delta towards industrialization and modernization in our country today"; doctoral thesis of Ha Van Anh (2000): "Developing rural industry in the suburbs of Ho Chi Minh City"; master's thesis of Nguyen Thanh Hung (2005): "Developing rural industry in Phu Vang district, Thua Thien Hue province".

There are also a number of topics closely related to this issue such as:

Associate PhD thesis "Development of small-scale handicraft industry in the multi-sector commodity economy in urban Vietnam today" by Nguyen Huu Luc (1996); topic "Development of traditional craft villages in rural Vietnam in the process of industrialization and modernization" by Tran Minh Yen


(2003), “Developing the market for small-scale handicraft villages in the Red River Delta” chaired by Associate Professor, Dr. Tran Van Chu (2003-2004), “Some issues on preserving and developing traditional craft villages in Thua Thien Hue” by Nguyen Van Phat (2002).

In the above research works, although the authors have different approaches to rural industry, they have reached a consensus when referring to the following basic issues:

- Rural industry is a part of the rural economy within the general industrial structure of the whole country.

- Rural industry plays an important role in the socio-economic development in rural areas. Rural economic development is an inevitable issue in the process of industrialization and modernization of agriculture and rural areas.

- Summarize some experiences in developing rural industry in some countries and localities and propose basic solutions to develop rural industry for each specific region. However, there has been no research work mentioning rural industry in a specific area in Thua Thien Hue province, so this thesis continues to systematically research rural industry in Thua Thien Hue province as a basis for building directions and some solutions to develop rural industry in the following years.

3. Research purpose and tasks

The purpose of the thesis : from the theoretical and practical foundations of rural industrial development to clarify the current status of rural industrial development in Thua Thien Hue in the past time, pointing out the main achievements and limitations of that process, the thesis proposes directions and some basic solutions to contribute to accelerating the process of rural industrial development in Thua Thien Hue province in the following years.


Thesis tasks:

- Systematically summarize the theory of rural industry and its role in the process of socio-economic development in rural areas.

- Present some rural industrial development models of countries, regions in the world and some localities that can be applied to rural industrial development in Thua Thien Hue province.

- Analyze the current situation and propose some basic and feasible solutions to develop rural industry in Thua Thien Hue province in the coming years.

4. Research object and scope

Research object: from the perspective of political economy, the thesis focuses on studying economic relations and State policies affecting the development of rural industry.

Research scope:

- Small and medium-sized industrial production activities and handicraft establishments in various forms of production and business organization are existing and developing in rural areas in the province.

- The thesis only focuses on studying the development of rural industry in Thua Thien Hue province from 2000 to present.

5. Research methods

The methodology used for the study is dialectical materialism and historical materialism. On the basis of inheriting the rational elements of published research works, the author of the thesis builds a theoretical and practical basis for rural industrial development and uses it to analyze the current situation and propose solutions for rural industrial development in Thua Thien Hue in the coming time.

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