Tóm tắt luận án tiếng anh: Đô thị hóa và tác động của đô thị hóa đến phát triển kinh tế – xã hội ở thành phố Đà Nẵng.

MINISTRY OF EDUCATION AND TRAINING
HANOI NATIONAL UNIVERSITY OF EDUCATION

NGUYEN DANG THAO NGUYEN

URBANIZATION AND ITS IMPACT
ON THE SOCIO-ECONOMIC DEVELOPMENT OF
DANANG CITY

Major

: Geography

Code

: 9.31.05.01

DOCTORAL DISSERTATION IN GEOGRAPHY

HA NOI - 2022


The PhD Thesis was completed at
HANOI UNVIERSITY OF EDUCATION

Scientific Supervisors:
1. Prof.Dr. Nguyen Viet Thinh
2. Assoc.Prof.Dr. Dau Thi Hoa

Members of the Evaluation Committee:
1. Prof. Dr. Truong Quang Hai

University of Social Sciences and Humanities - Hanoi National
University
2. Assoc. Prof. Dr. Vu Dinh Hoa
Phenikaa University
3. Assoc. Prof. Dr. Duong Quynh Phuong
Thai Nguyen University of Education


INTRODUCTION
1. The urgency of the thesis
The research on urbanization has great significance both in science and in practice, because
Urbanization is a part of the socio-economic economy, it is influenced by many factors both natural
and population, economy, culture, society, and at the same time, Urbanization also affects back,
changing population, labor force, changing economic structure, infrastructure, urban space,
changing lifestyle, quality of life of the urban population, strongly affecting the socio-economic of
the city and the country.
Da Nang, from a provincial city, was separated in 1997, with small space, undeveloped
urban infrastructure, poor investment attraction ability, and lack of economic motivation.
Urbanization of the city has taken place rapidly since 2003, when the city was recognized as a class
I urban area, a city directly under the central government until now. The proportion of urban
population is high, from 79.1% in 2003 to 87.3% in 2020, ranking first in the country. Urban space
has expanded 4 times, urban economy is growing, GRDP scale in 2020 is more than 103.0 trillion
VND, and ranking 11th out of 63 provinces and cities, GRDP structure with strength is service industry (87.6%). Urbanization has spent 18 years, has its own characteristics, contain the mark of
nature and people of Quang region. With the desire to clarify the characteristics of Urbanization in
Da Nang city in the period 2003 - 2020; impact of urbanization on the socio-economic development
of the city; solutions to realize the goal of building Da Nang city set by the Politburo and the city
government, the Doctoral student chooses the topic “Urbanization and its Impact on the SocioEconomic Development of Danang City” for doctoral dissertation.
2. Objectives and aims of research
2.1. Objective
The objective of the dissertation is the theoretical basis system on Urbanization and its

impact on socio-economic development; Research on Urbanization and its impact on socioeconomic development of Da Nang city from the perspective of Socio-Economic Geography; From
there, propose solutions for Urbanization and its impact on the socio-economic development of Da
Nang by 2030.
2.2. Aims
- An overview of the theoretical basis of Urbanization and its impact on socio-economic
development applied in research on the topic in Da Nang.
- Assessing the factors affecting Urbanization and analyzing the actual situation of
Urbanization in Da Nang in the period 2003 - 2020
- Analyzing the impact of Urbanization on socio-economic development in the study area
- Proposing solutions on Urbanization and its impact on socio-economic development in Da
Nang to 2030 effectively and sustainably
3. Scope of research
3.1. Scope of content
- Focusing on the research of Urbanization in terms of: urban function; urban population;
urban economy; urban infrastructure; the expansion of urban space
- Assess the impact of Urbanization on socio-economic development from the perspective of
geography, specifically:
+ About economic: Impact of urbanization on economic growth and economic
restructuring; to the development of economic sectors associated with the sea (Industry, seaports,
tourism), transport

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+ About Society: Impact of Urbanization on labor - employment; growth of GRDP
and cultural life of people in the area
3.2. Scope of research space
- The Research on Urbanization in the administrative territory of Da Nang mainly focuses
on 6 inner city districts and some communes in Hoa Vang district.
- In addition, the research place Da Nang in the Central Vietnam key economic region and

the Central Highlands region
3.3. About the time
The research on Urbanization of Da Nang is for the period from 2003 to 2020, which is the
period when Da Nang is recognized as a grade I city, directly under the central government; The
data on the impact of Urbanization on socio-economic development are mainly taken from Da Nang
Statistical Yearbook in the period 2003 – 2020
4. Approach and research method
4.1. Approach method
The dissertation has applied 5 approach methods: systematize, territorial, synthesis,
historical perspective and sustainable development perspective.
4.2. Research methods
The dissertation has used some main research methods: method of collecting and processing
documents, method of analysis, comparison, synthesis, method of survey and sociological
investigation, method of map and geographic information systems (GIS), and expert method
5. Scientific and practical of dissertation
- Scientific significance: The thesis contributes to clarifying more theoretical and practical
issues about Urbanization and its impact on socio-economic development, selecting evaluation
criteria and urban research methods suitable to apply for Da Nang City
- Practical significance:
+ The dissertation clarifies the advantages and disadvantages of factors affecting Urbanization
in Da Nang City, analyze the reality of Urbanization in Da Nang City in the period 2003 – 2020,
Assess qualitatively the impacts of Urbanization on socio-economic development of Da Nang city
and Propose solutions with scientific basis on Urbanization and its positive and effective impacts on
the socio-economic development of Da Nang City in the future.
+ From the above results, the research can serve as a reference for the urban urbanization
practice of Da Nang city in the period 2003 - 2020 for the city's authorities in urban planning and
development in the next period.
6. Structure of dissertation
In addition to the introduction and conclusion, the research content is structured into four
chapters

Chapter 1: Scientific basis of urbanization and its impact on socio-economic development
Chapter 2. The urbanization situation in Da Nang city
Chapter 3. Impact of urbanization on socio-economic development in Da Nang city
Chapter 4. Solutions on urbanization and its impact on socio-economic development in Da
Nang

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Chapter 1
SCIENTIFIC BASIS OF URBANIZATION AND ITS IMPACT ON SOCIO-ECONOMIC
DEVELOPMENT
1.1. Overview of research related to the topic
1.1.1. Research situation in the world and Vietnam
- Research direction on Urbanization
The dissertation has approached the document system to present concepts and terms related
to Urbanization. The concepts of Urban Region, Urbanization, the characteristics and complexity of
Urbanization and the parallel relationship between Urbanization, Industrialization, population,
economy, culture and society are mentioned very early in the works "General Theory of
Urbanization" by Cerda in 1867, by Michael Spence, by SSRC in the 1960s, Brian.T. Berry in 1976
and the authors' research in the last decades of the twentieth century and the beginning of the
twenty-first century such as Harold Carter's "Research on Urban Geography" in 1985, Alan
Rabinowitz, David Drakakis in 2000, Michael Spence, Pierre Laborde in 2020. The dissertation
also accesses documents on Urbanization of Vietnamese authors, typically the works "Vietnamese
Urban Region" volume 1, 2 by Dam Trung Phuong (1995), the work "Ethnology - Urban Region
and urbanization” by Mac Duong 2002 and many other authors; Dissertation also approached the
literature on factors affecting the urbanization process, notably the studies presented and discussed
during the XXIII International Congress of Geography in Moscow (1976), researching the factors
affecting Urbanization from a geographical perspective
Regarding the evaluation criteria of Urbanization, the dissertation approached the evaluation

documents of the United Nations on assessing urban population use; N.G.Fian uses two criteria:
population and territorial space; The set of criteria of the UN Organization - Habitat provides 5
criteria with 23 indicators; Li – Yin Shen offers 4 criteria with 127 indicators and many other
evaluations by Wang Yeu, Vichit Lorchirachoonkul. The dissertation also approached the research
works of Dam Trung Phuong, Do Thi Minh Duc, Nguyen Huu Doan on determining criteria to
evaluate Urbanization. Especially in the work "Evaluation of Urbanization in Vietnam - Technical
Assistance Report" of the World Bank, 5 transformations in Urbanization were used to evaluate
- Research direction on the impact of Urbanization
In this research direction, in the world and in Vietnam, the dissertation approaches many
documents assessing the impact of urbanization on the economy, culture, society, environment, and
people from different angles. The research showing the general theory is of David Drakakis - Smith,
he thinks that the demographic factors Socio-economic - environmental are the key factors affecting
Urbanization in any country in the world. The interaction between these factors will determine the
sustainability or not of a city; each different angle has many research authors; from the perspective
of Urbanization affecting the population, there are documents of David E. Bloom; Michael
Timberlake and Alan Rabinowitz; James. H. Spener; From the perspective of urbanization on
economic impact, there are many studies by organizations such as UNESCO, UNDP, WB, ADB
with the aim of clarifying the links between globalization and Urbanization and many individual
studies. According to the authors: Michael Spence, Nhieu Hoi Lam, the authors believe that
urbanization is the driving force to change the economic structure, the labor structure in the
direction of increasing the proportion in Regions II and III, sharply decreasing in Region I, leading
to rapid urban economic growth, the emergence of urban economy; Urbanization's impact on
society, notably the United Nations document "Population, urbanization and quality of life" (1994),

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refers to the positive impacts of Urbanization such as job creation, people's income growth, living
standards, culture, fertility and family Scale, affecting the whole rural area. In addition to the
positive side, some authors also mentioned the negative side of Urbanization such as David

Drakakis in "Third World Cities", Michael Pacione, Brian JL Berry said Urbanization in "third
world" countries facing a series of problems such as overcrowding, lack of housing, unemployment,
lack of clean water, environmental pollution, widening gap between rich and poor, increasing social
evils. The dissertation also has access to documents in Vietnam such as Dao Hoang Tuan, Do Thi
Thanh Hoa, Vu Que Huong, Pham Thi Xuan Tho that research on the impact of Population
Urbanization and Migration; The direction to study the impact of Urbanization in terms of
geography inludes Le Thong, Nguyen Minh Tue, Do Thi Minh Duc
1.1.2. Researches on Urbanization in Da Nang
In fact, there are not many researches on Urbanization and its impact on Socio-economic in
Da Nang. the document "History of Da Nang City" by Duong Trung Quoc et al. (2001) refers to the
place name and the formation of Da Nang city in historical periods; document "Da Nang
Achievements and Prospects", by Nguyen Duc Hung (2015) and some research works related to
Urbanization and its impact on economic aspects - society of Da Nang such as the study of urban
lifestyle construction in the process of Urbanization in Da Nang, by Pham Hao et al (2006);
research on employment for farmers whose land is acquired in the process of Industrialization and
Urbanization in Da Nang by Nguyen Dung Anh (2014); study on the influence of FDI investment
on sustainable urbanization in Da Nang by Nguyen Thi Thoa (2014); study on the impact of
immigrants on socio-economic development in Da Nang by Nguyen Nu Doan Vy (2018); In
addition, there are articles on Urbanization in Da Nang published in journals and websites of the
authors talking about the achievements and limitations of Urbanization in Da Nang, orientations,
planning and development solutions in the future
1.1.3. Application of general research to the topic
- Research contents that can be inherited
On the basis of reference to published researches of authors in many different fields, it
allows the author to inherit some important contents such as the theoretical and practical basis of
Urbanization and the criteria assessment of Urbanization; Impact of Urbanization on Socioeconomic and criteria for assessing the impact of Urbanization on Socio-economic
- Topics that need further research
Through the analysis of published researches, the author finds that, although the author have
mentioned aspects of the research object in Dissertation, there are still some contents that need to be
further studied and elucidated: Factors affecting Urbanization and the status of Urbanization in Da

Nang; Impact of Urbanization on Socio-Economic Development in Da Nang; Orientations and
Urbanization solutions and its impact on socio-economic development in the period to 2030
1.2. Theoretical basis of Urbanization and its impact on socio-economic development
1.2.1. Urbanization problems
1.2.1.1. Concepts of Urban Region and Urbanization
- Urban Region is "an urban region is an region with a high density of population living and
mainly operating in the non-agricultural economic sector, as a political, administrative, economic,
cultural or professional center that play a role in promoting the socio-economic development of a
country or a territory or a locality
- Urbanization is a socio-economic process whose manifestation is the rapid increase in the
number and Scale of urban settlements, the concentration of people in large and extremely large

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cities as well as widespread popularity of urban lifestyles in the entire network of settlements
1.2.1.2. Features of urbanization
Urbanization has four basic characteristics: Urbanization is social and historical;
Urbanization is associated with the process of Industrialization; Urbanization is an inevitable and
global process; Urbanization is a complex, regular and interwoven process of socio-economic,
cultural, environmental and spatial issues.
1.2.1.3. Factors affecting urbanization
The dissertation analyses three groups of factors in depth: (1) Geographical location and
territory; (2) Natural conditions and natural resources; (3) Socio-economic factors (history of
territory formation, population and labor, level of development of economic, science and
technology, context of integration and globalization, sources of FDI capital and policy institutions. )
1.2.1.4. Criteria for assessing urbanization
The dissertation inherits the Urbanization evaluation criteria system in previous documents
and studies and based on the fact that the study area has selected 5 groups of evaluation criteria
suitable for the process of Urbanization in Da Nang, including: (1) Urban functions; (2) Urban

population; (3) Urban economy; (4) Urban infrastructure; (5) The expansion of urban space.
1.2.2. The impact of urbanization on socio-economic development
1.2.2.1. Positive effects
Urbanization promotes economic growth mainly by increasing labor productivity and
shifting the economic structure towards the trend from agriculture to industry and services;
Urbanization creates modern and synchronous infrastructure development; Urbanization promotes
attraction of domestic and foreign investment capital; Urbanization creates a large consumption
market, stimulating the development of manufacturing industries attracting a qualified workforce,
creating jobs for workers, improving incomes and living standards, medical conditions, health care,
better education in rural areas, popularizing lifestyles civilized city
1.2.2.2. Negative effects
To a certain extent, Urbanization creates disparities in economic development between
urban and rural areas; urban infrastructure is overloaded; reduce the rate of rural labor; causing
pressure on employment/unemployment and housing problems, social evils; creating a disparity
between rich and poor
1.2.2.3. Criteria for assessing the impact of urbanization on socio-economic development
The criteria that the author chooses to assess the impact of Urbanization on the socioeconomic development of Da Nang, include: (1) Criteria to assess the impact of Urbanization on the
economy (Speed of development and economic restructuring; The development of key economic
sectors associated with the sea such as industry, seaports, tourism; Development of transport
infrastructure); (2) Criteria for assessing the impact of urbanization on society (Labor/employment;
GRDP growth/person; People's living standards)
1.3. Practical basis for urbanization
The dissertation focuses on analyzing and evaluating the reality of Vietnam's urbanization in
the period 2003 - 2020 on the following aspects: assessment of the actual situation of urbanization,
achievements and limitations, characteristics of urbanization in Vietnam. The dissertation also
approaches the practical experiences of Urbanization in two cities at the same level as Da Nang, Hai
Phong and Can Tho, to draw lessons learned when researching Urbanization and its impact to the
Socio-Economics in Da Nang

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Chapter 2
THE URBANIZATION SITUATION IN DA NANG CITY
2.1. Factors affecting Urbanization in Da Nang
2.1.1. Geographical location and territory of Da Nang (Da Nang Administrative map)
Da Nang city has a natural land area: 1,284.73 km2, Da Nang has 6 urban districts and 1
district, with 56 administrative units at ward and commune level.
Da Nang is the largest coastal city in the Central Viet Nam region, with a very favorable
geographical position: Located in the middle of the country, like a bridge connecting two big cities
Hanoi and Ho Chi Minh City; As the gateway to the sea of the Central Highlands; In the center of
the Central Vietnam key economic region; Located at the eastern gate of the East-West Economic
Corridor; Located at the entrance of the world's natural and cultural heritage.
With this special geographical location, it creating favorable conditions for economic, cultural,
scientific and technical exchanges and cooperation and attracting investment with localities in the
country, in the region and internationally, has an impact and accelerate the urbanization process
2.1.2. Natural conditions and natural resources
2.1.2.1. Terrain and land
- Terrain: Da Nang has a relatively diverse topography, the cross-section from East to West
with different types of terrain: the sea and the East coast about 30 km long, the shoals and
underground depressions, along the shore, there are many beaches , nice view; coastal plain is low
and flat land favorable for agriculture and construction of industrial, service, military facilities and
functional areas of the city; The mountainous terrain occupies a large area in the West, where many
watershed forests are concentrated and is significant for the protection of the ecological
environment of the city.
- Land: the current status of land use from 2003 to 2020 of Da Nang City according to the
trend of decreasing agricultural land area, increasing non-agricultural land area, by 2020,
agricultural land area will account for 6.66%, non-agricultural land area will account for 43 .42%,
forestry land area accounts for 48.8%, unused land is very little, only 1.1%, this is a limitation for
Urbanization.

2.1.2.2. Climate and water Resources
Da Nang locates in the monsoon sub-equatorial climate zone, the temperature is high
and low volatility, the average temperature is about 25.6oC, the highest temperature in the months of
June, August and August is from 28-30oC. The lowest temperature in December, 1 and 2 is from 18
to 23oC. The average air humidity is 83.4%. The rainfall of Da Nang is high with the average
2,505mm/year, the rainfall is very distinct by seasons: the rainy season is from August to December,
the average rainfall is 161.4mm/month; The dry season is from January to July, the smallest is in the
months of February, April, about 23-40mm/month. Da Nang is a place heavily affected by natural
disasters such as wind storms, tides, tsunamis and strongly affected by climate change. Basically, Da
Nang's climate is still favorable for the process of urbanization and socio-economic development
The territory of Da Nang includes land and sea; the city's water resources are quite rich in
both underground and surface water. Total flow is about 12.3 billion m3/year, but unevenly
distributed (rainy season accounts for 65-80%, dry season accounts for only 20-35%). Da Nang has
two main rivers, the Han River and the Cu De River, but the city's water supply is mainly taken from
the Vu Gia River, which flows through the Yen River to the Cau Do River
2.1.2.3. Marine resources
- Da Nang has a coastline of about 30 km, a sea area of over 15,000 km2, forecasted seafood
reserves is about 1,136,000 tons, Da Nang is an important fishing ground of the Central Viet Nam

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region, exploiting from 150,000 to 200,000 tons seafood/year
- Da Nang Bay has an area of 116 km2, 46 km in circumference, with an average depth of
10 - 17m, is a closed bay very convenient for port construction, large ships with a tonnage of up to
50,000 tons are able to easy access to the bay. The location is convenient for transporting goods to
domestic ports, Southeast Asia and Asia - Pacific
- The sea and coast of Danang are blessed with many beautiful beaches, good beaches, the
most notably is My Khe, Non Nuoc, Bac My An, Xuan Thieu, Lang Van, Tien Sa, Bai But beaches.

... that creates for Da Nang to have outstanding advantages in marine tourism, strongly impact on
Urbanization, in urban planning and design with tourism function.
2.1.2.4. Forest resources
Geological conditions, topography and climate make Da Nang quite rich biodiversity.
Currently, Da Nang has a forest area of about 67,148 ha, mainly concentrated in the west and
northwest of the city, including 3 types of forests: special-use forests, protection forests and
production forests. Forest coverage rate is 49.6%, timber reserve is about 3 million m³. The city's
forests are concentrated in 3 unique nature reserves, Ba Na nature reserve, Son Tra nature reserve
and Nam Hai Van cultural and historical area. The city's forests have special significance in
protecting the ecological environment, improving the quality of the urban environment and the
value of tourism development. (Map of natural factors)
2.1.3. Socioeconomic
2.1.3.1. History of Da Nang urban formation
Da Nang is a city with a long history, associated with the history of the nation's expansion
and also with the history of the Land of Quang. Right from the Sa Huynh - Cham Pa period,
economic activities besides agriculture and fishery, trade by sea were also active; By the Nguyen
Dynasty, Da Nang was already a commercial port, an important military port, the largest in the
Central region; During the French colonial period, Da Nang officially became a port city and over
the period of the Republic of Vietnam continued to be built and developed to become the second
largest city in the South.
Since the country's unification, Da Nang became an urban center of Quang Nam - Da Nang
province, in 1997, Da Nang was officially recognized as a city directly under the central
government and in 2003 Da Nang was recognized as a Grade 1 urban center directly under the
central government. This is a great motivation to promote the process of Urbanization and
development with the goal of becoming a big city in Vietnam.
2.1.3.2. Population – labor force
- Population: is a factor that directly affects Urbanization and the socio-economic
development of the city. Da Nang's population in 2020 will reach 1,169,480 people (an increase of
1.54 times compared to 2003), accounting for nearly 1.2% of the country's population, ranking 38th
out of 63 provinces and ranking 5/5 centrally-run cities.

- In each district administrative unit, the fluctuations in size and population growth rate are
different: the two central districts of Thanh Khe and Hai Chau always account for a large proportion
and grow rapidly in the first stage; from 2006 to 2010, the periphery and suburban areas have rapid
population growth rate; From 2010 to 2020, the growth rate in the central area begins to slow down.
The growth rate is higher in resettlement areas, new urban areas, and areas near industrial zones.
The highest is Lien Chieu district with 7.4%/year, followed by Cam Le, Ngu Hanh Son (mainly
increased by mechanization).
- Labor force
Along with population growth, the city's working labor force increased rapidly, in 2003 there were

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355.8 thousand people, of which working laborers were 337.4 thousand people, by 2020, this force
will increase to 586.2 thousand people in which the labor force is working is 534.5 thousand people,
an increase of 1.6 times. With that increase, it creates an abundant labor source, capable of meeting
the labor demand for economic sectors, especially Industry and Services, which is a condition to
promote investment and development.
2.1.3.3. Economic development level
Along with population growth, the city's working labor force increased rapidly, in 2003
there were 355.8 thousand people, of which the working labors were 337.4 thousand people, by
2020 this will increase to 586.2 thousand people. There are 534.5 thousand people currently
working, an increase of 1.6 times. With that increase, creating an abundant labor source, capable of
meeting the labor demand for economic sectors, especially industry and service, is a condition to
promote investment development.
2.1.3.4. Science and technology
Science and technology have a strong impact on Urbanization, especially the 4.0 revolution.
Revolution 4.0 affects Urbanization in all aspects such as management and control of Urbanization
and all activities such as urban transport, industry, service, social activities, and at the same time

towards development Modern smart city development.
In 2014, the city approved the project "Smarter city", deployed many smart applications and
utilities in the digital environment, forming digital data and sharing data with each other; deploying
Open Data Portal to provide data and publicize information to people and businesses. Specifically,
it has piloted smart applications in a number of specialized fields such as: in smart administration,
deploying the Mini IOC centralized monitoring system and 6 smart city services.
2.1.3.5. Globalization and attracting foreign direct investment
- Globalization creates the cross-border circulation of capital, labor and goods flows, and
markets, promotes the development of countries, and also creates strong competition in
development. Da Nang has had many strategic solutions to strengthen development cooperation in
fields such as industry, Hi-Tech, Information technology, tourism ....., creating many key products
to participate into regional and global markets. Da Nang's commodity competitiveness is always
highly appreciated by partners.
- The city actively reformed administration, has many policies to attract FDI capital,
creating great resources for socio-economic development and promoting urbanization. As of 2020,
cumulative valid FDI projects are 884 projects, with a total registered capital of 3,598.2 million
USD. The sectors attracting the strongest FDI capital are the processing and manufacturing
industry, accounting for 49.9%, the real estate business accounting for 19.8%, the accommodation
and catering services accounting for 10.4%. Countries with large FDI capital are Singapore
accounted for 28.2%, Japan accounted for 21.3%, the United States accounted for 14.7%
2.1.3.6. Institutions and policies
The important legal documents directing the Urbanization and Socio-economic development
of Da Nang City are: Resolution No. 33/QD-TW (2003) on the construction and development of Da
Nang City in the period of industrialization and modernization of the country; According to the
Prime Minister's decision to establish CFEZ (2004), Da Nang City is identified as a city that plays
the role of a growth nucleus, creating a driving force to promote development for Central Vietnam
key economic region and the Central Highlands region; Resolution No. 43 - NQ/TW (2019) of the
Politburo on construction and development of Da Nang City to 2030 with a vision to 2045. This is
the legal key to accelerate the process of Urbanization, turning Da Nang City into a civilized and
modern city of the whole country

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In addition to favorable natural, socio-economic conditions, Da Nang also has difficulties
and limitations affecting the process of Urbanization. Da Nang is an area frequently affected by
natural disasters, storms and floods with strong devastation, greatly affecting the city's
infrastructure, material and technical facilities and socio-economic development; The natural land
area is not large, the unused land area is still small, thus limiting the development of urban space;
The source of high-quality, young, dynamic and creative labor has not yet been strongly attracted at
domestic and abroad to work and live. (Map of socio-economic factors)
2.2. Status of Urbanization in Da Nang
Over 17 years of urbanization, Da Nang has achieved many important achievements
reflected in a number of evaluation criteria: urban function, population Scale, economy and urban
space expansion.
2.2.1. Urban function
In 2003, Da Nang was recognized as a grade I urban center directly under the Central Government,
Da Nang city really transformed rapidly, performing its function as a general city: as a major
economic center of the country in tourism, Industry, banking and financial services; cultural,
physical training and sport center, education and training center, center of Science, Technology and
Industry of the Central Viet Nam region - Central Highlands; is an important transport and
telecommunications hub in the region, nationally and internationally; is an area holding an
important strategic position in terms of national defense and security in the South Central region,
Central Highlands and the whole country
2.2.2. Urban population Scale
2.2.2.1. Urban population Scale in the period 2003 - 2020
a. Population Scale
- Population increased 1.6 times after 18 years. Average annual increase of 20.2 thousand
people, the period 2003 - 2010 the growth rate is 2.62%/year, the growth in the period 2010 - 2020

is 2.54%.
- The population growth of Da Nang city is due to natural increase and mechanical increase,
in which the rate of natural increase is small, averaging from 1.15 to 1.25%/year. However, the
population of the city is still growing rapidly due to the high rate of mechanical increase compared
to other cities in the country and the highest compared to the central provinces, reaching an average
of 1.0%/year. There are three main reasons for the high number of immigrants to Da Nang City in
recent years: (1) due to economic purposes; (2) due to better living conditions; (3) Da Nang has the
fastest urbanization process in the country, which has changed the face of the city, attracting
domestic and foreign investors. Moreover, policies and procedures on immigration and residential
land are also more open. All reasons create the attraction of people from neighboring provinces,
most are the Central Coast and Central Highlands provinces
This shows a positive side in attracting quality labor force, meeting the needs of economic
development and Urbanization, but it also puts a lot of pressure on job creation, housing and other
social problems.
b. Urban population Scale
Da Nang city is an urban area with an urban population and a high percentage of urban
population, in 2003 the urban population rate was 79.1%, from 2003 to 2020, the process of rapid
urbanization, urban space expanded, economic structure changed, diversified non-agricultural
service activities, urban population increased from 591.0 thousand people (2003) to 1020.4
thousand people (2020) 87.3%, ranked first in the country. Urban economy shifted from agriculture
to industry and service, new districts were established, communes were merged into districts,

9


economic activities were also transferred to industry and services, so the proportion of urban
population in districts are all 100%.
2.2.2.2. Labor force
- Due to the rapid population growth and urbanization process, the labor force of Da Nang
City also increased rapidly. The proportion of laborers working in economic sectors compared to

the total number of employees is increasing, in 2003 - 2005 accounting for 75%, from 2010 this
figure has increased to 95%, by 2020 due to the influence of the During the Covid-19 pandemic, the
percentage of employees working decreased to 91.2%. This shows that the city has paid attention to
creating jobs for workers, reducing the rate of unemployed and unemployed workers.
- Regarding the structure of urban and rural labor: due to the strong development of industry
and service activities, many laborers have been attracted to urban areas, accounting for a high
proportion, accounting for 73.4% of the total labor in 2003, by 2020, accounting for 84.5%, rural
labor will decrease from 26.6 to 15.5%.
- Regarding the structure of labor by economic sector: the economic structure by industry
group has rapidly shifted from agriculture to service and industry, leading to a shift in labor structure
from agriculture to service and industry. In 2003, the labor rate in agriculture was 30.2%, in industry
was 31.8%, in service was 38%. By 2020, the index will be: 3.3%, respectively; 28.4%; 68.3%.
The increase in the labor force and labor restructuring in recent years in Da Nang City is the
result of the rapid urbanization process, in line with the socio-economic development process.
2.2.3. Urban economy
2.2.3.1. GRDP Scale
From 2003 to 2020, the city's GRDP scale continuously increased and reached VND
101,233.0 billion, an increase of 20.5 times compared to 2003. In which, the two industriesconstruction and services increased rapidly that accounted for a large proportion. The agriculture,
forestry and fishery accounted for a small proportion and gradually decreased. This proportion is
consistent with the economic restructuring of the city. Some economic indicators of Da Nang are
shown in the following table:
Table 2.8. Scale of GRDP of the city in the period 2003 – 2020
Content
ĐV
2000/2003
2005
2010
2015
2020
1. GRDP (Price of

commodities)
Billion
4946,9
11690,8
28902,0
63189,0
101233,0
- Compared to the VND
whole country
22/63
18/63
11/63
- Compared to 5
centrally-run cities
5/5
5/5
4/5
2. GRDP Structure
%
100
100
100
100
100
- Agriculture,
7,8
5,1
3,8
2,0
2,2

forestry, fishery
- Industry
41,3
50,2
42,0
30,8
22,3
- Construction
50,9
43,2
51,6
56,4
65,1
- Service
1,5
2,6
10,8
10,4
- Taxation
3. GRDP
Billion
3390,2
6236,3
28902,0
49381,0
63907,0
(Price 2010)
VND (Price SS-94) (Price SS-94)
4. Growth speed
%

9,9
13,8
11,6
8,64
-9,7
Source: Statistical Yearbook of Vietnam and Da Nang City by years [16]

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In the structure of GRDP, the proportion of agriculture, forestry and fishery is the 2nd
lowest in 63 provinces (after Ho Chi Minh City) and the service sector is the 3rd highest in 63
provinces (behind Hanoi and Ho Chi Minh). Regarding the growth rate, it is always at a high level,
especially in 2020 due to the heavy influence of the Covid-19 pandemic, Da Nang is one of the five
provinces having negative growth rates
2.2.3.2. Structure of the economic sector
In the period of 2003-2010, Da Nang chose a breakthrough direction to prioritize industrial
development, implemented in parallel with the process of Urbanization, the economic structure
shows Industry - Service - Agriculture; Concentrated industrial parks were formed, increasing the
number from 2 to 6 Industrial parks, developing high-value industries, products with great demand
in international and regional markets such as electronics, manufacturing components for
automobiles, aviation, aerospace, textiles, garments, etc. The proportion of industry increased from
26% in 1997 to 32.7% in 2010.
In the period from 2010 to 2020, in order to exploit the strengths of resources and seek
sustainable economic development, Da Nang chooses an environmentally friendly, modern
economic development model, taking the service industry as a spearhead, prioritizing capital
investment for services (the proportion of investment capital accounts for more than 60%/year of
the total investment capital in the area); The economic structure began to shift to Services - Industry
- Agriculture, the proportion of the service industry increased rapidly
2.2.4. Urban infrastructure

2.2.4.1. Transportation system
- Road system: The process of urbanization focuses on expanding, upgrading and
modernizing existing streets; planning to open many new streets to the city center, to tourist areas;
to renovate and upgrade rural transport routes, creating the city's road network with changes in
quantity and quality. By 2020, 6 urban districts have had 2000 roads with a total length of
1,303,574 km, connecting the two banks of the Han River with 9 large and modern bridges, 90% of
rural traffic routes have been concreted. Road traffic is synchronously connected to facilitate socioeconomic development, especially for tourism, service and industry.
- Waterway traffic system, focusing on 2 types: for river transport, it is most importantly
serving tourism on the Han and Cu De rivers. For sea transport, it implements the planning of 3 port
clusters from 10 small ports. Tien Sa port cluster is invested, upgraded and gradually changed its
function from a cargo port to a tourist port; building a new Lien Chieu port cluster with the function
of transporting goods and providing logistics services; Tho Quang port cluster, with the function of
port and fishery service.
- Air traffic system: Da Nang International Airport is one of the five major international
airports of the country. The airport has been renovated, upgraded and modernized. By 2020, there
will be 2 terminals (domestic station and international station). Da Nang International Airport is
rated 4E and C according to IATA standards, ensuring the capacity to receive over 260 flights, with
more than 40,000 domestic and international passengers passing through each day. Da Nang
International Airport becomes the nucleus of development, connecting urban service chains,
creating a new development driving force for urbanism and urbanization.
- Railway transport system: Da Nang station is one of the major stations in the North - South
railway line. Infrastructure and technical facilities of Da Nang station are well invested and
equipped. To ensure urban traffic, Da Nang station will be relocated out of the center, the new

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station is located on the northwest traffic axis of the city, creating a modern and synchronous
transport system, contributing to the construction of a civilized, clean and airy city.
2.2.4.2. Electric supplying system

The city's electricity network is constantly being improved and upgraded to be more and
more synchronous and modern to meet the city's living, production and development needs. The
electricity supply to the city is quite stable, meeting the production and consumption needs of the
people and tourists.
2.2.4.3. Water supply, drainage and wastewater treatment systems
- The city's water supply network has covered the inner city districts; the remaining districts
have pipelines along the main axes. The percentage of population with clean water supply in the
inner city districts is over 98%, the average water consumption of the city people reaches 128
liters/person/day..
- Regarding the water drainage and wastewater treatment system, the city plans to build a
combination of two types of common drainage system and a separate wastewater drainage system
leading to the treatment station. By 2020, Da Nang has 6 wastewater treatment stations, with a total
capacity of 316,000 m3/day, basically ensure urban environmental sanitation.
2.2.4.4. Postal/telecommunication system
Infrastructure for information technology has been invested and developed. By 2020, there
have been 60 satellite stations, forming a free wifi network throughout the city, 9 transmission
routes within the province, 3 microwave routes, wireless networks and 430 hotspots in central areas,
tourist attractions, and public areas. The telecommunications network is Modern and stable,
meeting the information transmission and communication needs of residents and visitors 430
hotspots.
The smart city project has put into operation the "Public Service Information Center",
providing information and answering questions about public administrative services for
organizations and individuals.
2.2.4.5. Health and education system
- The education network is focused on investment, by 2020, the city has: 192 primary
schools, 57 secondary high schools, 24 high schools, ensuring nearly 200,000 students from
primary to high school can go to school. Construction works ensure that 97.0% of primary school
students have 2 lessons per day; About higher education, the city has 15 colleges and 12
universities, with nearly 120,000 college and university students. The city has built a shared
database and an education data communication portal, connecting school management software.

- The network of medical facilities has been built to ensure that the quantity and quality of
care and protection of people's health are significantly improved. By 2020, 100% of wards and
communes will have national standard medical stations. Currently, the whole city has 86 medical
facilities (including 24 hospitals), with 7,680 hospital beds, reaching 79.0 beds/10,000 people, there
are 20.3 doctors/10,000 people
2.2.5. Urban space expansion
- Before 2003 Da Nang was a small town, with a population of less than 600,000 people, the
inner city only consisted of 3 districts (Hai Chau, Thanh Khe and District 3, with an area of about
5,600 ha, with an urban population of 591,000 people (accounting for 79.1%). The urban area is
small, infrastructure is inadequate, especially traffic, there are 100 roads, narrow streets, many areas
are still dirt roads; There is only one waterway ferry station, one road bridge and one railway bridge
on both sides of the Han River; electricity, water, and public services are lacking, sanitation is
limited, and life is poor. People's lives are still difficult; resources have not been exploited, coastal

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but coastal cities are only poor fishing villages, self-sufficient, self-sufficient economy, the city
turns its back on the sea, lacks development motivation.
(Map of urbanization in Da Nang in 2003)
- From 2003 to 2020, Da Nang City focuses on re-planning the entire urban space, planning
land use, identifying urban areas in need of embellishment, new urban areas, promulgating and
popularizing policies on compensation, clearance, etc. After the reconstruction and urban
construction, remarkable results have been obtained:
(1) Creating a synchronous and relatively modern infrastructure system, especially the
expanded and more modern street traffic. The whole city has 2,000 roads, with a total length of
1,300km, connecting the East - West banks of the Han River with 9 unique bridges crossing, the
landscape and urban environment have changed profoundly
(2) New urban areas are formed and planned in the direction of modern urban areas; The
entire coastal area has been covered with projects for tourism development, along the coast are wide

roads, beautiful landscapes are completed.
(3) Urban space is expanded to nearly 21,300 hectares, which is more than 4 times higher
than the old urban area. Urban areas are expanded in priority directions such as West - Northwest;
South – Southeast and Southwest
(4) Identifying functional areas and expansion directions for the following areas: central
urban area; tourist, commercial urban area and eastern coastal seaport; West - Northwest Hi-tech
Urban Area; ecological urban area, culture, sport and preservation of historical relics in the South Southwest.
(Map of urbanization of Da Nang city in 2020 and Map of urban functional areas)
Chapter 3
IMPACT OF URBANIZATION ON SOCIO-ECONOMIC DEVELOPMENT OF DA NANG
CITY
3.1. Impact of Urbanization on Socio-Economic Development of Da Nang City
3.1.1. Economic growth rate and restructuring
3.1.1.1. Economic growth rate
- Urbanization and economic growth have a close relationship, Urbanization promotes
economic growth, and economic growth is a decisive factor for Urbanization. In the period 2003 2020, GRDP increased by an average of 10% per year, although the growth rate varies from year to
year. Particularly in 2020 due to the influence of the Covid-19 pandemic, Da Nang city has a
negative growth rate (-9.8%). However, the scale of GRDP is still high in the country: in 2010 it
ranked 22/63 provinces, by 2020 it ranked 17/63 provinces.
- Urbanization affects the growth rate of economic sectors: Industry - Construction and
Services have high and continuous growth rates, due to exploitation of natural and socio-economic
advantages. , the Agriculture - Forestry - Fisheries sector has a low growth rate and gradually
decreases. In 2020, due to the impact of the Covid-19 pandemic, the growth rates of all industries
decreased, leading to a negative value of the GRDP growth rate of the whole city.
3.1.1.2. Economic restructuring
a. GRDP restructuring by economic sectors
Urbanization has successfully promoted economic restructuring in both breadth and depth.
The trend of economic restructuring of the city towards a modern and sustainable direction is
service - industry - agriculture, in line with the basic advantages of the city's resources and in line
with the general trend of the urbanization process in countries around the world and Vietnam. In

2003, the proportion of the AFF sector was 6.4%, the Industry-Construction sector was 45.6%, the
service sector was 43.2%. By 2020, the respective indexes of the above industry groups will be: 2.2.

13




%; 21.1%; 66.5%. The driving force of this shift is due to the fast and strong urbanization process,
creating a driving force to promote the development of the tourism and commercial service
industry.
b. GRDP restructuring by economic sectors
In recent years, the city's structure by economic sectors has also changed markedly between the
state sector and the non-state sector. The proportion of the state economic sector decreased rapidly,
from 58.5% (2003) to 23.9% (2020), while the proportion of the non-state sector increased rapidly,
from 23.9% to 56.0% , the foreign-invested sector also started to grow slowly from 7.4% to 9.9% in
2020. This shift proves that Urbanization has affected the wider participation of non-State economy
sector.
3.1.2. Urbanization affects the key economic sectors of Da Nang
3.1.2.1. Urbanization affects the development of tourism industry
a. Urbanization creates technical infrastructure and urban landscape for tourism
- The process of urbanization fundamentally changes the infrastructure of the city, creating a
fairly synchronous and modern infrastructure system such as road, automobile, railway, waterway,
and road, aviation traffic systems connecting destinations and tourist areas in the city and
connecting with tourist centers of neighboring provinces, creating favorable conditions for Da Nang
tourism to attract domestic and foreign tourists (in 2019, welcomed 8.7 million visitors, of which
nearly 5.2 million domestic tourists; more than 3.5 million international visitors) total revenue
reached 8.7 trillion VND. In 2020, due to the Covid-19 pandemic, all indexes decreased by only
half of 2019.
- Urbanization has created highlights on infrastructure and landscape for city tourism. Da

Nang is the buffer zone of 3 world heritage areas: Hue, Hoi An and My Son. Total revenue reached
8.7 trillion VND. In 2020, due to the Covid-19 pandemic, all indexes decreased by only half of
2019
b. Urbanization creates favorable conditions to attract many investment projects for Da
Nang tourism
Urbanization has contributed to attracting many investment projects for the construction of
technical infrastructure for tourism. In the period 2003 - 2020, many key projects have been
completed and put into operation, greatly affecting tourism development. The most typical projects
are:
- Investment projects in construction of technical infrastructure for tourism such as
construction project of Ba Na Hills tourist area, Asia Park project, Than Tai hot spring park project,
Mikazuki Da Nang water park project
- Projects to build golf courses: such as the BRG Danang Golf Course project, the Ba Na
Hills golf course project
- Investment projects in the construction of accommodation and hotel facilities: a series of
projects by domestic and foreign investors investing in the hotel sector such as: Large corporations
such as Muong Thanh Group, French Hotel Group, AccorHotels, Latecomer Marriott,
InterContinental Hotel Group of the UK Empire Group, Ascott Limited of Singapore, and Hilton
Worldwide of the US
This investment attraction has made the economic structure of the tourism industry both
increase in quantity and change in quality, and change the face and enhance the competitiveness of
tourism. in attractive, friendly, safe destinations.
c. Urbanization affects the planning and formation of tourist areas of the city
The formation of urban functional zones has facilitated and promoted the planning of tourist
spots, resorts and tourist routes:

14


- East Coast and Northwest Coastal Tourist Areas: The East coast has famous beautiful

beaches such as My Khe, Bac My An, etc. The Northwest coast has beaches such as Thanh Binh,
Xuan Thieu, and Nam O. Unique tourism products in these areas are swimming, sea sports,
sightseeing and shopping
- Son Tra peninsula tourist area: this is a nature reserve, around the peninsula there are many
famous beautiful beaches such as Tien Sa, Bai But, Bai Rang, Bai Nam, ... so tourism develops with
typical tourism products are high-class beach resorts, culinary culture and eco-tourism
- Northwest tourist area: Ba Na - Nui Chua is a prominent tourist area, located at an altitude
of 1489m, an average temperature of 18oC, is a national nature reserve, Ba Na Hills has become a
tourist area. Da Nang is famous for its diverse and unique products such as resort, eco-tourism,
sightseeing, entertainment, and European and Asian cuisine
- Ngu Hanh Son tourist area, this is a famous scenic spot with the complex of Marble
Mountains, Non Nuoc beach and stone handicraft village. Tourism products to visit Non Nuoc
scenic spots and handicraft stone villages; resort, swimming, sea sports; spiritual tourism,...
3.1.2.2. Urbanization affects the development of seaports
a. Impact on planning and construction of seaport technical infrastructure
Since 2003, the city has implemented planning, rearranged port clusters, built seaport
technical infrastructure so that Da Nang becomes the largest and most modern seaport city in the
Central Vietnam Region - Central Highlands; increase capacity of cargo ships to 50,000 DWT,
container ships of 2,500 Teus, passenger ships to 75,000 GRT; to build a synchronous port transport
system that can be connected between roads and ports. Thanks to the process of urbanization and
modern urban planning, the city has planned into 3 seaport clusters from 10 small ports, upgraded to
a large and modern scale.
- Tien Sa port cluster: has been expanded, upgraded and modernized. The port has
successfully built a quality management system according to ISO 9001 – 2000, improving service
quality for customers. Since 2016, the port has been upgraded to become a "green port" to meet the
increasing demands of the market
Lien Chieu port cluster: is a small, specialized port, associated with Hoa Khanh and Lien
Chieu industrial zones. After completing the investment to expand this port cluster, it will take on
two main functions: loading and unloading general cargo, container cargo and logistics services in
the country, Southeast Asia and Asia - Pacific.

- Tho Quang port cluster: is a fishing port associated with Tho Quang boats, including a
fishing port, a wholesale seafood market and an anchorage area to avoid storms, ensuring safety
when sailing, and promoting the development of fisheries.
b. Urbanization affects the formation and functional transformation of port clusters
Urbanization has impacted the functional transformation of port clusters
- Tien Sa Port is transformed from a cargo port into a tourist port. This is a breakthrough in
exploiting the strengths of tourism and seaports. Tien Sa Port has a beautiful landscape, located
close to Hoi An and My Son tourist areas of Quang Nam. The process of urbanization has built a
convenient transportation system from the port to tourist areas and resorts. The port has built a
passenger terminal, has a wharf for cruise ships, improved the quality of services, and closely
coordinated with customs, police, port authorities and border guards to ensure the safety of
passengers. Although it has not become a specialized port for tourism, it has also attracted many
domestic and foreign cruise ships to dock
- Lien Chieu Port: undertakes the function of transporting goods and providing logistics
services. The city is investing in building infrastructure, technical facilities, warehousing systems
and technological equipment, aiming to strongly develop seaport logistics services, exploiting the

15


potential of the post-Western Highlands, Laos, and Thailand, through the East-West Economic
Corridor brings high value
3.1.2.3. Urbanization affects industrial development
a. Urbanization has a strong impact on the planning of concentrated industrial zones
((hereinafter referred to as Industrial Zone)
- Before 2003, Da Nang City's Industry was not developed; there were 2 Industrial Parks in
the whole city. Immediately after becoming a grade I city directly under the central government, the
city focused on accelerating the process of industrialization. Urbanization in this period strongly
influenced the planning and construction of industrial zones. The city determines the space for
industrial zones located in the northwest and southwest of the city. The construction of

infrastructure, technical facilities for industrial zones is done quickly
- By 2020, Da Nang has planned and built 6 large concentrated industrial parks, 1 High-tech
Zone with an area of 970.50 ha put into operation and 1 concentrated information technology zone
located in a convenient location.
+ The industrial zones include: Da Nang Industrial Park, Hoa Khanh Industrial Park, Lien
Chieu Industrial Park, Da Nang Seafood Service Industrial Park, Hoa Cam Industrial Park,
Expanded Hoa Khanh Industrial Park, Da Nang Hi-tech Zone, Da nang It Park. Industrial parks
have a complete and synchronous system of infrastructure and technical facilities according to the
standards
+ The Information Technology Park is designed and built according to the "Silicon Valley"
model of the United States, is one of the best Information Technology Centers in Asia, providing
quality services and human resources, high quality and best IT products for the world.
b. Urbanization affects structural changes within industry
Urbanization has had a strong impact on the economic restructuring towards technology and
modernization. The city focuses on industrial development but does not conflict with tourism,
focusing on technological innovation, developing clean industry, building ecological technology
zones, ensuring sustainable development. Accordingly, the structure of the industry within the
industry has changed in the direction of: strengthening the development of industries with
competitive advantages, high technology content and added value such as Industry - High
technology, Industry Electronics - Informatics, auto parts, aerospace, etc. To reduce the proportion
of industries that rely on resource exploitation, industries that are at risk of causing environmental
pollution such as metallurgy, cement production…
The change in structure within the industry is in line with the general trend in the world, and
to catch up with the trend of the 4.0 revolution, towards the goal of sustainable development for
urban areas..
3.1.2.4. Urbanization affects transport infrastructure
a. Urbanization affects the planning of major transport hubs of the city
Urban transport development is a fundamental factor determining the future development of
the city, the urbanization process of Da Nang has implemented the planning of traffic hubs,
motorways, railways, waterways and roads, airline.

- For road traffic: Urbanization has carried out relocation and re-planning of Northern bus
stations, new construction of Southern bus stations; associated with large and reputable transport
units, providing nearly 100 bus routes to all provinces across the country and even to Laos;
implementation of planning and construction of overpasses and underground tunnels, typically Hoa
Cam overpass at Hoa Cam intersection, Hue bypass at Hue intersection, avoiding traffic jams and
creating points Highlights and unique features for Da Nang city.

16


- For waterway traffic: for river traffic, mainly on the Han River in the city center and Cu
De River in the Northwest, serving domestic tourism; For sea traffic, it has been planned and built
into three large port clusters: Tien Sa cargo port is being invested to gradually transform into a
tourist port function; Lien Chieu port is a port for transporting goods and logistics services; Tho
Quang port is a fishing and seafood service port, aiming to exploit the advantages of the sea.
- Da Nang International Airport - the main and important traffic hub of air traffic, to meet
the needs of urban development, in 2016, the domestic terminal was renovated and upgraded, and
the international terminal was built and put into operation in 2017. Da Nang International Airport
has become a modern, beautiful airport urban, promoting the youthful, dynamic and creative image
of Da Nang City to the world
b. Urbanization affects the construction of transport infrastructure connecting the region
and the suburbs
Da Nang has been identified as a driving force for socio-economic development of the
Central Vietnam and Central Highlands key economic region, so in the process of Urbanization, Da
Nang attaches great importance to " Development of transport infrastructure on creating a driving
force for diffusion", build systems of railways, highways, waterways, and airways connecting each
other, connecting in the region, connecting with the national and international transport system.
- Traffic is planned and connected along two main axes, the North - South axis connecting
with all the provinces and cities in the Central Coast region of the North and the South; the EastWest axis, connecting with the Central Highlands provinces and from here, can connect with
countries in the region to attract raw materials and goods from the regions and neighboring

countries such as the Central Highlands, Laos, and the Northeast. Thailand, Myanmar, ... through
the road system, seaport and air route
3.2. Impact of Urbanization on social issues in Da Nang
3.2.1. Impact on urban employment issues
3.2.1.1. Urbanization impacts the city's labor force
Urbanization affects the quantity and quality of labor employed in the economy. The
economic structure has shifted towards the direction of industry and service development, attracting
laborers from rural areas and suburbs, from other provinces, making the number of workers increase
continuously in the period from 2003 to 2020, from 2003 to 2020. 355.8 thousand People (2003) to
534.4 thousand people (2020); The structure of the labor force working between the nonagricultural and non-agricultural sectors has also changed markedly: in 2003, the proportion of
workers in the non-agricultural sector accounted for 79.1%, the agricultural sector accounted for
20.9%, until 2003. By 2020, the non-agricultural group will increase to 94.7%, the agricultural
group to only 5.3%. The main economic activities in urban areas are industry and service, so the
proportion of workers in these two industries will increase from 79.1% in 2003 to 89.8% in 2020.
The quality of labor has also increased to meet the requirements of urban economic sectors,
reflected in the increasing proportion of trained and professionally qualified, trained workers
account for 22.7%, by 2020 it will increase to 44.0%, of which 22.8% have university and
postgraduate degrees, 8.7% college degrees, and 6.0% intermediate level and 6.6% elementary
level, this rate is quite high compared to the national average. Da Nang city has many preferential
policies to attract qualified labor force from outside such as the policy of providing residential land
and housing for people with PhD degrees, creating favorable conditions for qualified workers
immigrated
The change in quantity and quality of labor clearly shows the impact of Urbanization on
labor in Da Nang City. However, the labor restructuring also creates an imbalance in labor
structure, labor shortage in rural areas, pressure on job creation and a number of social problems in
the city.

17

3.2.1.1. Urbanization affects job creation for labors
The process of urbanization is taking place at a fast pace, non-agricultural economic sectors
are developing strongly, labor demand and job creation are always urgent issues that need attention.
The city has set a goal of "3 yes" and has issued a project to create jobs for people of working age
such as: organizing a periodic job fair to create a bridge between jobs and people; developing
service industries such as tourism, commerce, industry, etc., on average, each year, creating new
jobs for about 3.9 thousand workers, the unemployment rate gradually decreased, in 2019 it was
only 3.5% . However, by 2020, due to the Covid-19 pandemic, enterprises will face difficulties, the
demand for labor will decrease significantly, the underemployment and unemployment rate will
increase to 9.4%.
3.2.2. Urbanization impacts on growth of GRDP per capita and people's living standards
3.2.2.1. Impact on growth of per capita income
Urbanization is an important factor contributing to the monthly growth of the State Budget.
Due to the improvement of social labor productivity of economic sectors, the city's monthly
unemployment rate increased rapidly, from an average of 1.0 million VND/month/person (2003) to
5.3 million VND/month/person, ranked 6th out of 63 provinces and 3rd/5th in centrally run cities.
3.2.2.2. Impact on people's lives
- Urbanization and urban development in a sustainable way to improve people's living
standards. Da Nang city has implemented many programs such as: “5 no, 3 yes, 4 safe” The scale of
GRDP in 2020 increased more than 11 times compared to 2003, the average GRDP/person
increased..
- Urbanization has had a strong impact not only on economic activities but also on society
and people's lives. By 2020, there will be no poor households according to the old standards, the
poverty rate according to the city's multi-dimensional approach will be reduced to 2.04%; the social
security programs are implemented effectively, workers have houses, students have dormitories; the
care and protection of people's health is concerned 100% of wards and communes meet national
standards of health, 98.9% of children under 1 year old are fully vaccinated; health insurance
coverage rate reaches 99%; education and training are taken care of, 56/56 wards and communes
meet the standards of universalization of secondary education; strongly apply Science, Technology
and Information Industry in education; essential conditions for life are ensured, the percentage of

households using clean water accounts for 99.5%, 100% of households have access to electricity;
cultural life is enhanced, urban civilization
3.2.2.3. Urbanization has a positive impact on the lives of people located in urban
embellishment and resettlement areas
- Living conditions of households in urban embellishment areas: Living conditions of
households after urban refurbishment are compared with living conditions before refurbishment: out
of 8 criteria on living conditions, 4 criteria includes infrastructure, landscape, environment, and
comfortable, over 90% of households think it's better; 4 criteria of housing, business, employment,
and income conditions, more than 80% of households think that it has not changed, there is no
worse criterion.
- Living conditions of households that have to be relocated to resettlement areas: The living
conditions of households after coming to the resettlement area compared with the living conditions
of the old place, showing: 4 criteria on housing conditions, infrastructure, social environment,
landscape, on 60% of households consider it better; criteria on employment, income and working

18