Table 2.3.1. Economic structure shift of Thua Thien Hue province from 2000 to 2008
50.00%
40.00%
Industry, construction Agriculture
Service
30.00%
20.00%
10.00%
0.00%
2000 2005 2008
Source:
1. Report on the Master Plan for Socio-Economic Development of Thua Thien Hue to 2020, Hue 2008.
2. Report on the implementation of socio-economic tasks of Thua Thien Hue province in 2008, directions and tasks in 2009, Hue 2009.
Second, the development of rural industry in Thua Thien Hue has contributed to promoting the industrialization and modernization of rural agriculture in the province.
The development of rural industry has increased the production industries rapidly, especially the restoration and development of traditional craft villages along with the emergence and introduction of new craft villages from other localities into Thua Thien Hue province, increasing the number of rural industries, diversifying products, meeting the production and living needs of the people.
The development of rural industry has mobilized large capital for production, expanded the market, created jobs and income for a large number of rural workers. Currently, rural industrial establishments have created over 28 thousand jobs with an average income of 685,000 VND/person/month.
Third, the development of rural industry in Thua Thien Hue has promoted the development of social culture in rural areas. That development has increased income, improved material and spiritual life in rural areas. It has had a positive impact on the development of health care and education for rural children.
Fourth, the development of rural industry in Thua Thien Hue has contributed to promoting the process of rural urbanization. The investment in rural socio-economic infrastructure has been expanded, creating momentum for rural economic development, contributing to narrowing the development gap between rural and urban areas.
* Some limitations that need to be overcome in the development process of rural industry in Thua Thien Hue
Besides the achievements, Thua Thien Hue rural industry still has some of the following limitations:
Firstly, the development of rural industry in Thua Thien Hue is still slow. The scale of rural industry in Thua Thien Hue province is still small, so its impact on the process of economic restructuring is still weak. Therefore, it is necessary to expand the scale of production and improve labor productivity so that rural industry can truly be the driving force contributing to the restructuring of the rural economy in a more effective direction.
Some difficulties of production facilities are shown in Table 2.3.1 as follows:
after:
Table 2.3.1. Some difficulties of rural industrial production establishments in Thua Thien Hue
Unit: %
STT
Hard | Food processing industry group | Material manufacturing industry group construction materials | Consumer goods manufacturing industry, handicraft | Average | |
1 | Lack of capital | 75.0 | 45.5 | 67.5 | 62.7 |
2 | Lack of factories | 60.5 | 38.5 | 75.0 | 58.2 |
3 | Lack of reasoning ability | 80.0 | 78.2 | 76.5 | 78.2 |
4 | Lack of technology equipment | 40.0 | 50.0 | 34.0 | 41.3 |
5 | Lack of market for products | 25.5 | 15.5 | 20.8 | 20.6 |
6 | Lack of environmental treatment equipment | 66.0 | 40.0 | 90.0 | 65.3 |
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Source: Compiled from survey data
Second, the industries in rural industry are still weak. Small production capital, backward production technology, low labor skills, low product quality, slow design improvement, limited management skills, etc. have reduced the competitiveness of rural industrial products. This weakness is an obstacle that slows down the industrialization and modernization process of agriculture and rural areas in Thua Thien Hue province.
Third, the income of laborers in rural industry in Thua Thien Hue is still low, so the improvement of material and spiritual life for people in rural areas is still limited. Access to medical and educational services as well as cultural activities of people in rural areas still face many difficulties.
Fourth, the development of rural industry in Thua Thien Hue lacks sustainability. Due to the instability of the market, many rural industrial establishments have to produce at a moderate level. In addition, late planning, backward technology, and environmental pollution are the difficulties that create this instability.
It can be said that Thua Thien Hue rural industry is falling into a state of confusion as follows:
Underdeveloped rural industry
Late planning work
Small business capital
Outdated production techniques
Narrow market
The vicious circle of rural industry in Thua Thien Hue
Four factors: late planning, small production and business capital, outdated production technology, and narrow market make Thua Thien Hue's rural industry develop slowly. To develop Thua Thien Hue's rural industry, there needs to be a push to break this vicious circle.
2.3.2. Issues arising in the process of rural industrial development in Thua Thien Hue province in the current period
Through analyzing the current situation as well as the achievements and limitations mentioned above, we can see some issues for the development of rural industry in Thua Thien Hue in the coming time as follows:
* About development planning
Currently, development planning is underway, but the implementation process is relatively slow. Therefore, in the coming time, it is necessary to speed up the implementation of industrial development planning in general and rural industry in particular, especially speeding up the process of completing infrastructure in industrial clusters of craft villages, promoting investment, creating conditions for rural industry to develop.
* On resources for rural industrial development
Resources for the development of rural industry in Thua Thien Hue include human resources, capital, and technology. Currently, these resources are limited and have not yet exploited their development potential. In the coming time, it is necessary to increase these resources for rural industry.
The labor force for rural industry is quite abundant in quantity, but the quality is still limited in terms of professional skills, management level as well as the ability to adapt to the market mechanism, so it is necessary to improve the labor force's technical level as well as discipline and management for rural industry.
Production capital is also a limitation of Thua Thien Hue rural industry. In the coming time, it is necessary to attract investment capital from many domestic and foreign sources to innovate technology, improve production capacity, expand scale, and create momentum for the development of rural industry.
Production technology is also a limiting factor of Thua Thien Hue rural industry. Outdated production technology has increased production costs.
production, reduced labor productivity, difficulty in improving design and packaging make it difficult for products to penetrate and find a firm foothold in the market. In the coming time, increasing investment and improving production technology is the core issue for sustainable development of rural industry.
* About the market
The market is an indispensable factor in the production process. Currently, the market of Thua Thien Hue rural industry is still limited in both aspects: raw material market and product market. It is necessary to expand the market to neighboring areas.
The current raw material market is about 25% short of demand, the planned raw material areas cannot meet the demand, especially in the manufacturing and food processing industries, consumer goods production, and handicrafts. In the near future, it is necessary to build a stable raw material area to meet the needs of rural industrial development.
The market for rural industrial products is still very limited. Products are mainly consumed locally, it is difficult to bring them to the outside market and face competition right in the locality. Therefore, it is necessary to improve the competitiveness of rural industrial establishments, expand the product consumption market to other provinces. Some handicraft products with the characteristics of Hue continue to be maintained and expanded to the international market.
* About the ecological environment
Ecological environment is an important factor to evaluate the socio-economic efficiency of the production process. Currently, the ecological environment in rural industrial production facilities in Thua Thien Hue is in a state of quite heavy pollution. Therefore, in the coming time, it is necessary to invest in more equipment, improve the production environment, and limit pollution.
In summary, in recent years, Thua Thien Hue rural industry has had quite a development, but that development is still limited in many aspects and
unstable. To ensure the development of rural industry in the coming time, it is necessary to have appropriate directions and solutions to stimulate the potential of local resources to promote the stable and sustainable development of rural industry.
Chapter 3
VIEWPOINTS, ORIENTATIONS AND BASIC SOLUTIONS FOR DEVELOPING RURAL INDUSTRY IN THUA THIEN HUE PROVINCE
IN THE COMING TIME
3.1. Socio-economic context and its impact on rural industrial development in Thua Thien Hue province
In the current period, the development of rural industry in Thua Thien Hue province is affected by the following socio-economic context:
Firstly, the development of Thua Thien Hue rural industry takes place in the context of Vietnam's economy integrating more deeply and fully with the world economy. This is an opportunity to attract investment from outside as well as expand the market for products for production facilities in rural industry, especially high-end handicrafts. However, since the end of 2007, the global economy has fallen into recession, causing difficulties for the economy in general and rural industry in particular.
Second, Thua Thien Hue is located in the East-West Economic Corridor, EWEC, connecting central Vietnam with Laos, Myanmar, and Thailand, which will promote economic development and integration between the countries in this corridor and Thua Thien Hue. This economic corridor was officially opened on December 20, 2006, creating opportunities for countries in this region in particular as well as other countries to attract many investors in production and business, and socio-economic development. This is an opportunity for Thua Thien Hue to attract more investment in general and investment in rural industry in particular to promote rural development.
Third, Thua Thien Hue is a region with many craft villages with 69 traditional craft villages located on the heritage road that UNESCO is interested in investing in.