Shifting Land Use Structure and Economic Sector Structure in the Mekong Delta


The Southern region only accounts for 3.21% but the agricultural land structure accounts for a higher proportion of 71.23%. The proportion of agricultural land used is the lowest but still contributes a larger proportion, showing that the agricultural production efficiency of the Red River Delta is higher than that of the Southeast region. Agriculture accounts for a low proportion of the total production value, proving that the Red River Delta has carried out industrialization and modernization relatively extensively, and agricultural production value has decreased at a lower level than many other regions. In the remaining regions, agricultural land accounts for over 70%, so the production value of the agricultural sector accounts for a higher proportion. However, compared to the Southeast region, a region that strongly develops non-agricultural sectors quite similarly, the Red River Delta region, although having a lower proportion of agricultural land, contributes to production value more than 2 times higher. Compared to the Mekong Delta, the largest rice granary of the country, the Red River Delta has shifted its economic structure towards industry and trade and services faster and stronger, reflected in the much lower proportion of agricultural production value and agricultural land use. With 1% of the proportion of natural land used by the Red River Delta, the economic structure contributes 0.16% of the production value while this figure in the Southeast region is only 0.05%, the national average is 0.18%. It can be concluded that although the land use productivity in the agricultural sector of the Red River Delta is lower than the national average, it is still more than 3 times higher than that of the Southeast region. Therefore, the opportunity cost of converting land use from agricultural land to non-agricultural land in the Red River Delta is higher than that in the Southeast region.

With industrial production accounting for 57.58% of total production, the Red River Delta is the region with the second highest proportion of industrial production in total production, after the Southeast region. The industrial land area of ​​the region also accounts for a high proportion, second only to the Southeast region. Apart from the above two regions, in other regions, the proportion of industrial land accounts for less than 1%. Except for the Southeast region, the industrial proportion of the Red River Delta is only slightly higher than other regions, but the proportion of industrial land used by the region is many times larger, proving that the efficiency of land use in industry in the Red River Delta is not high. The industrial production of the Southeast region accounts for 70.84% ​​of total production but only uses 2.63% of the region's area, showing that the land use of the Southeast region's industry is more effective than that of the Red River Delta. The proportion of industrial production value of the Red River Delta is equivalent to the proportion of the whole country, but the proportion of industrial land area of ​​the whole country only accounts for 0.62% of the total area. The productivity of industrial land use in the Red River Delta is with 1% of the area contributing 27% to the proportion of production value while this figure in the Southeast region is 27% and in the Mekong Delta region is 64%. With such proportion of industrial land area used, the production value that the industry should have contributed to the region should have been


even higher. This figure further confirms that the efficiency of industrial land use in the Red River Delta is not high, not commensurate with the used area.

Regarding trade and services, the Red River Delta also has a trade and services production value accounting for a large proportion of the economy, with 30.88% in 2010. The proportion of trade and services land area is also among the highest with 0.65% of land area, much higher than other regions. This shows that the trade and services industry of the region has developed relatively widely with different fields. However, compared to the whole country, the trade and services production value ratio is 30.88% but only uses 0.08% of land area. This shows that the efficiency of using trade and services land in the Red River Delta region, which has just developed, is not high. With the same contribution of the trade and services industry to the total production value, the Northern Midlands and Mountains and the Mekong Delta only use about 0.09 - 0.1% of the area.

In terms of the entire economy in the Red River Delta compared to other regions, the agricultural sector of the Red River Delta is the sector with higher land use efficiency than other sectors; the industrial sector is less efficient in land use than other sectors, with a lot of wasted land; the commercial and service sector is also less efficient in land use than other regions in the country.

If we compare the correlation between the proportion of production value and the proportion of land used for economic sectors of the Red River Delta region with the national average as well as consider the structure of production value and land use structure of each region, we can see that although the efficiency of agricultural land use is higher than that of the Southeast region (a region with similar conditions), the proportion of land in the Red River Delta region converted to industrial production and trade and service business is higher than the average level and it is possible to increase the land use efficiency of these sectors to increase the proportion of production value of industrial and trade and service sectors without increasing land area.

2.2.1.2 Shifting land use structure and economic sector structure in the Red River Delta region

During the period 2004 - 2010, the socio-economic situation of the Red River Delta had clear changes, the economic structure in general, the agricultural and rural economic structure in particular, was shifting towards industrialization and modernization.

In September 2005, the Politburo discussed and decided on important issues on socio-economic development of the Red River Delta (RD) until 2010 and orientations.


to 2020. On March 6, 2006, the Government and the Central Economic Committee coordinated to thoroughly grasp the Resolution and approved the Government's Action Program to implement this Resolution. According to the guiding viewpoint and socio-economic development target of the Red River Delta region until 2010, the average annual GDP growth rate is 11 - 12% (of which industry - construction increases by 14.3 - 15.3%; services 10 - 11%; agriculture, forestry and fishery 3.5 - 4%); the GDP proportion reaches about 23 - 24% compared to the national GDP in 2010 and 26 - 27% in 2020. By 2010, industry - construction accounts for 42%, services 48%, agriculture 10% of the total GDP. Contributing significantly to ensuring national food security{61}.

With the set goals in developing economic sectors, the proportion of land use area for economic sectors will certainly have to change to meet the land use needs of economic sectors.

For the agricultural sector, the proportion of the sector's production value in 2005 was 11.26% and the proportion of land used was 64.48%. To achieve the goal of reducing the production value to 10% by 2010, a reduction of about 1.26%, the proportion of land used for agriculture should also be reduced to over 10%. However, due to the very different efficiency of agricultural land use in different locations, the reduced agricultural land area is mainly in locations with low productivity, low product quality and low efficiency. For the industrial sector, according to the socio-economic development target, to reduce the production value of the sector from 59.19% in 2005 to 42% in 2010. This is only a relative reduction in proportion, while the absolute scale is still increasing but the rate of increase is gradually slowing down. Because there is no target of rapid increase in scale, the direction set out is not to increase the area to develop more industrial parks and small-scale industries, but only to rely on the existing infrastructure, restructure the industrial and small-scale industries to increase production efficiency as well as the efficiency of industrial land use. The commercial sector with the target of increasing the proportion of production value in the economy from 29.55% in 2005 to 48% in 2010, the commercial sector is the sector that needs the most investment, especially the area of ​​land for shopping centers, commercial centers, markets, shopping areas to meet the development needs of this sector.

In fact, in the period 2004 - 2010, the structure and growth of production value and land use area of ​​economic sectors were as follows:


Table 2.5: Structure and growth of production value and land use area of ​​economic sectors in the Red River Delta

Unit: %


Branch

Target

2004

2005

2006

2007

2008

2009

2010


GTSX ratio

12.97

11.26

9.83

9.07

10.31

9.76

9.89


Farming

Land ratio

64.8

64.76

64.64

64.13

63.52

63.33

63.16

career

GTSX growth rate

-

1.47

3.62

3.09

5.53

0.53

4.99


DT reduction rate

-

0.02

-0.19

-0.71

-0.35

-0.28

-0.28


GTSX ratio

57.57

59.19

59.57

60.99

58.75

58.77

57.58


Labour

Land ratio

1.45

1.56

1.71

1.99

2.22

2.36

2.37

career

GTSX growth rate

-

19.91

21.80

22.20

15.89

9.22

15.78


DT growth rate

-

7.38

10.20

16.38

12.10

6.38

0.50


GTSX ratio

29.46

29.55

30.6

29.94

30.95

31.47

32.53


Land ratio

0.38

0.42

0.47

0.57

0.65

0.65

0.65

TMDV










GTSX growth rate

-

16.94

23.69

15.38

22.47

10.24

16.18


DT growth rate

-

9.32

12.49

20.73

15.19

0

0

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Shifting Land Use Structure and Economic Sector Structure in the Mekong Delta

Source: Compiled and calculated from statistical yearbook and statistical data, land inventory from 2004 - 2010

Compared with the target set in the Resolution on socio-economic development of the region, the average growth rate of all economic sectors has achieved the set target. However, in the proportion of production value, only the proportion of agriculture sector has reached the set target with the proportion of production value accounting for 9.89%, the target of developing industry and trade and services of the region has not achieved the set target in that industry still accounts for a relatively high proportion, in 2010, the proportion of production value of industry sector was 57.58%, higher than the set target of 42% and trade and services sector was 57.58%, higher than the set target of 42%, and trade and services sector was 57.58%, higher than the set target of 9.89 ...


low with the proportion of GTSX accounting for 32.53% of the total GTSX, lower than the target figure of 48%. This is also a problem for land allocation for manufacturing industries. With the proportion of GTSX of the industrial sector reaching 57.58%, 15.58% higher than the target, the economic structure of the region is in a state of heavy industrial development. Although in the socio-economic development plan for the period 2005 - 2010, the proportion of the industrial sector gradually decreased, the industrial sector did not increase in scale and breadth, but in reality, the process of converting land from agriculture to industrial development still took place quite strongly, increasing the proportion of industrial land area from 1.45% to 2.37%. The trade and service industry is an industry with a target of rapid growth, so the land area for trade and service business development in this period also increased, bringing the proportion of land area increased from 0.38% in 2005 to 0.65% in 2010, nearly doubling within 5 years. However, promoting the effectiveness of land areas converted to trade and service business requires a long time, so although the proportion of land area for trade and service in the Red River Delta region by 2010 reached a fairly high proportion, the proportion of production value of the trade and service industry in 2010 only reached 32.53%, lower than the socio-economic development target by nearly 10%.

In the period 2004 - 2010, the Red River Delta had a relatively high and stable economic growth rate, reflected in the comprehensive increase in the scale of production value for all economic sectors. The total production value in 2010 reached 367,218,238 billion VND. In 2010, compared to 2004, it increased by more than 213,542,363 billion VND. The average growth rate of the proportion of production value reached 15.67%/year. In the total production value increase, the agricultural sector contributed only 8.8% with an average growth rate of 3.64%/year (comparative price 1994), the industrial sector contributed the most at 57.6%, the trade and service sector contributed 33.6%. Therefore, this is also the reason to explain why although the production value of the agricultural sector increased in scale, its proportion in the total production value still decreased.

Agriculture sector: in the whole region, the proportion of agricultural land in 2010 accounted for 63.16% of total land area, mainly concentrated in the provinces of Ha Tay (old), Nam Dinh, Thai Binh and Hai Duong.

According to the trend of economic restructuring, the proportion of agricultural production value is decreasing in the total production value of the region. In the period of 2004 - 2010, the proportion of agricultural production value decreased by 3.08%. Corresponding to the decrease in the proportion of production value, the proportion of agricultural land area also decreased in CCSDĐ. In the period of 2004 - 2010, the proportion of agricultural land area decreased by 3.64%. Although the proportion of production value and land area is decreasing, the agricultural sector still grows at a positive level in the economic growth rate. The rate of increase in proportion


The average annual growth rate of agricultural production value reached 3.2% in the period 2005 - 2010. Although the production value increased, the agricultural land area gradually decreased. The production value still increased while the area decreased, proving that the agricultural production efficiency of the region was still increasing steadily. In the region, some relatively good products appeared such as high-quality rice, exported pork, clean vegetables, frozen shrimp. The rice productivity in the Red River Delta in 2010 was 58.9 quintals/ha, the highest compared to other regions in the country. This figure in the Mekong Delta was 54.3 quintals/ha. Compared to 2004 and 2010, the proportion of agricultural production value decreased by 3.08% while the proportion of agricultural land area decreased by 1.64%. Thus, every 1% decrease in the proportion of land area reduces the proportion of production value by 1.64% while on average 1% of the proportion of agricultural land area of ​​the region in 2010 only contributed 0.156% of the proportion of production value. This shows that the part of agricultural land area reduced for conversion to other purposes is still in locations favorable for agricultural production, reducing a proportion of production value higher than the average level of the whole region and this also reflects that the management and use of land in the region has not been done well, not really converting bad land locations, unfavorable for agricultural production to other purposes.

Industry: is the industry with the highest proportion of the region's GDP among the three economic sectors. The industry has a relatively stable proportion over the years, with the industrial GDP proportion in 2010 being 57.58% of the total GDP. The industrial GDP proportion is gradually decreasing, giving way to the commercial and service sector's GDP proportion, showing that the economic shift from agriculture to industry has gradually shifted to agriculture - trade and service, however, this shift is still slow compared to the set target. The industrial land area proportion of the region also increased in the period 2004 - 2010, from 1.45% to 2.37% of the total natural area of ​​the region. The increase in the proportion of industrial production value reached 17.47%/year in the period 2004 - 2010. The comparison between 2004 and 2010 shows that the proportion of production value increased insignificantly (from 57.57% to 57.58%) but the proportion of industrial land use increased by 63%. This shows that, although following the right direction of industrialization and modernization, the trend of shifting from agricultural land to non-agricultural land is taking place strongly but the efficiency of the shift is not high, not contributing much to economic development. Land use area increased but the proportion of production value hardly increased in the period 2004 - 2010. Therefore, the continued conversion from agricultural land to industrial land needs to be considered more carefully so that this conversion process really brings efficiency to the economy.


The structure of GTSX has had a positive shift with some areas outperforming other regions such as automobile assembly, software industry, cement and steel production... Rural industry has developed strongly, especially traditional craft villages. Currently, the whole region has over 500 craft villages, accounting for nearly 1/3 of the total number of craft villages in the country. Some craft villages have developed very quickly thanks to the stable output of products such as Van Phuc silk, Phu Vinh bamboo and rattan weaving, Vong green rice, Dong Ho painting village. Some craft villages that were once in decline are now reviving themselves such as Phu Lang pottery with the brand name Gom Nhung. Bat Trang pottery is still maintained thanks to trade and tourism activities.

Regarding the development of industrial parks, in recent years, the Red River Delta has achieved positive results in planning, construction and attracting investment in industrial parks. In 2008 and 2009, the provinces and cities of the Red River Delta established 9 more industrial parks with a total natural land area of ​​about 2,400 hectares and the industrial land area that can be leased reached over 1,500 hectares. The number and area of ​​industrial parks increased relatively stably each year at 4-5 industrial parks and 1,200-1,500 hectares each year. By the end of 2009, the Red River Delta had 61 industrial parks established with a total natural land area of ​​over 13,800 hectares, including

9,400 hectares of industrial land available for lease. Compared to the whole country, the Red River Delta accounts for 26% of the number of industrial parks and 23% of the natural land area of ​​industrial parks {57}. In the period of 2010 - 2011, due to the economic recession, the general decrease in investment and the establishment of a number of new industrial parks, the occupancy rate of industrial land of industrial parks decreased compared to previous years. However, the occupancy rate is still maintained stable for operating industrial parks. The total leased land area of ​​operating industrial parks reaches nearly 4,000 hectares, accounting for about 65% of the total industrial land area available for lease. There are 2 areas that are basically full: Sai Dong B area (phase 1) and Bac Thang Long Industrial Park. Besides some industrial parks that have basically used up all the available industrial land area for lease such as Thang Long, Nomura, Tien Son, Que Vo I, Dong Van I, Hoa Xa, some newly established industrial parks have also achieved positive initial results in attracting investment such as Yen Phong I, VSIP Bac Ninh, Phu Nghia, Dong Van II.

However, besides the achievements in the development of industrial zones in the region, the Red River Delta is also facing difficulties caused by the massive development of industrial zones.

Trade and Service Industry: This industry is in a strong growth trend in the Red River Delta. The proportion of the trade and service industry's production value increased at a relatively stable rate from 29.47% in 2004 to 32.53% in 2010. Corresponding to the economic proportion, the proportion of land


The commercial service sector was also quite stable in the period 2004 - 2010, increasing from 0.38% in 2004 to 0.65% in 2010. The average increase in the proportion of production value in the period 2004 - 2010 reached 17.49%, higher than that of the industrial sector. The commercial service land area increased in the period 2004 - 2008 and was stable in 2009 and 2010. The comparison between 2004 and 2010 shows that the proportion of production value in the commercial service sector of the region only increased by 3.07% but the proportion of commercial service land area increased by 0.27%. Thus, every 1% increase in the proportion of the production value of the trade and service industry uses an additional 0.09% of the land area of ​​the trade and service industry, while in 2010, on average 1% of the production value of the trade and service industry used only 0.02% of the land area of ​​the trade and service industry. Therefore, it can be said that the efficiency of increased land use of the trade and service industry is not high, the newly increased land area has not been effectively exploited, contributing to the economy as much as the old land area of ​​the trade and service industry.

Transport services have been expanded and diversified in terms of transport methods, the volume of passengers transported in 2009 was 661800000 people and the volume of goods transported in 2009 was 240234.1 thousand tons. In terms of passenger volume and cargo volume, the Red River Delta region accounts for over 30% of the total volume of the country.

Basically, banking and telecommunications services have reached the level of modernization of the region, modern payment methods have been developed such as electronic card payment, internet banking, etc. The density of telephone and internet subscribers is constantly increasing. Tourism services are invested and developed in all provinces, including famous places such as Huong Pagoda, Tam Dao, Do Son, etc. Tourism development has created jobs, increased income and restored traditional culture, created some landscapes, restored historical and cultural relics, etc. Services supporting production, economy and serving people's lives such as banking, insurance, securities, etc. have developed.

The trend of economic restructuring in the Red River Delta region follows the inevitable trend of the industrialization and modernization of agriculture and rural areas. The proportion of agricultural production value accounts for a low proportion and is gradually decreasing in the economic structure. The proportion of industrial and commercial service production value accounts for 90.11% of the total production value. The economic structure gradually shifts, adapting to the socialist-oriented market mechanism. The structure of agricultural production sectors increases in scale but decreases in proportion in the total production value, the structure of non-agricultural production value increases sharply and accounts for the main proportion in the total production value of the economy. Although the proportion

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