Socio-economic changes in Dong Anh in the innovation period

VIETNAM NATIONAL UNIVERSITY, HANOI

INSTITUTE OF VIETNAMESE STUDIES AND DEVELOPMENT SCIENCES

BUI HUY TOAN

SOCIO-ECONOMIC CHANGES
IN DONG ANH IN THE INNOVATION PERIOD

SUMMARY MASTER THESIS
Major: Vietnamese Studies
Code: 60 31 60

Supervisor: Assoc. Prof Dr. Pham Hong Tung

Hanoi - 2012


The work is completed at: Institute of Vietnamese Studies & Development
Sciences, Vietnam National Unviersity, Hanoi

Supervisor: Assoc. Prof Dr. Pham Hong Tung

Opponent 1: Assoc. Prof Dr. Nguyen Ngoc Thanh

Opponent 2: Dr. Pham Quang Anh

The Master Thesis will be presented in front of the Master Thesis Review
Committee at: Institute for Vietnamese Studies & Development Sciences,
Vietnam National University, Hanoi
336 Nguyen Trai, Thanh Xuan, Hanoi

on 22/6/2012

For further information about the thesis you may look at:
Central Library, Vietnam Natioinal Unviersity, Hanoi
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TRANSLATION - BẢN DỊCH

TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 1
1. Reasons for the study ........................................................................................................... 3
2. Literature review.................................................................................................................. 3
3. The purposes of the study .................................................................................................... 4
4. Object and scope .................................................................................................................. 4
4.1. Object of the study .......................................................................................................... 4
4.2. Scope of the study ........................................................................................................... 4
5. References and methods of the study ................................................................................. 5
6. Significance ........................................................................................................................... 5
7. Structure of the thesis .......................................................................................................... 5
CHAPTER 1: DONG ANH: GENERAL REMARKS.......................................................... 6
1.1. Strengths and development resources – promoting factor for socio-economic changes in
Dong Anh .................................................................................................................................. 6
1.1.1. Geographical situation ............................................................................................. 6
1.1.2. Topographical characteristics .................................................................................. 6
1.1.3. Local climate ............................................................................................................ 6
1.1.4. Land ......................................................................................................................... 6
1.1.5. Hydrographical characteristics ................................................................................. 6
1.2. Socio-economic resources ................................................................................................. 7
1.2.1. Population ................................................................................................................ 7

1.2.2. Human resources ...................................................................................................... 7
1.3. Socio-economic development in Dong Anh District ....................................................... 7
1.3.1. Economic situation ................................................................................................... 7
1.3.1.1. Industry ................................................................................................................. 7
1.3.1.2. Service -Commerce ............................................................................................... 8
1.3.1.3. Agriculture ............................................................................................................ 8
1.3.2. Socio-cultural situation ............................................................................................ 8
1.3.2.1. Education – training ............................................................................................. 8
1.4. General assessment of potentials, advantages, difficulties and challenges in development
process of Dong Anh ................................................................................................................ 9
1.4.1. Advantages for socio-economic development ......................................................... 9
1.4.1.1. Strengths of the natural conditions ....................................................................... 9
1.4.1.2. Advantages of socio-economic conditions ............................................................ 9
1.4.2. Difficulties and challenges ....................................................................................... 9
CHAPTER 2: MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH SINCE
2000 TO NOW ........................................................................................................................ 11
2.1. Common theory of socio-economic changes in Vietnam in the innovation period ... 11
2.1.1. Structure of economy ............................................................................................ 11
2.1.2. Transformation of economic structure ................................................................... 11
2.1.3. Changes of territorial structure .............................................................................. 11
2.1.4. Change of structure of economic components ....................................................... 12
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2.2. Changes in structure and economic relations of Dong Anh since 2000 ..................... 12
2.2.1. Changes in structure of economic sectors .............................................................. 12
2.2.2. Changing inside economic sectors ......................................................................... 12
2.3. Changes in structure and social relations ..................................................................... 13
2.3.1. Changes in scale of manufacturing facilities and the number of centralized labors by
economic sectors in industry ............................................................................................ 13

2.3.2. Changes in scale of manufacturing facilities and the number of centralized labors in
commerce and hospitality ................................................. Error! Bookmark not defined.
2.3.3. Changes in scale of manufacturing facilities and the number of centralized labors in
transport ........................................................................................................................... 14
2.3.4. Changes in education - health, life quality of Dong Anh district in the period 2000 2009.................................................................................................................................. 14
CHAPTER 3: ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF DONG
ANH UP TO 2020 ................................................................................................................... 15
3.1. Viewpoint and orientation of socioeconomic development of Dong Anh .................. 15
3.1.1. Viewpoint of development ..................................................................................... 15
3.1.2. Orientation of development ................................................................................... 15
3.2. Analysis based on SWOT of potentials and challenges in socioeconomic development
process of Dong Anh .............................................................................................................. 16
3.2.1. Strengths (favorable conditions for socioeconomic development) ........................ 17
3.2.2. Weaknesses (shortcomings in socioeconomic development) ................................ 18
3.2.3. Opportunities of socioeconomic development of Dong Anh from now to 2020 ... 18
3.2.4. Challenges of socioeconomic development of Dong Anh from now to 2020 ....... 19
3.3. Orientation of development in economic sectors ......................................................... 20
3.3.1. Orientation of development in trade - service sectors............................................ 20
3.3.2. Orientation of development in industry, small scale industry and construction .... 21
3.3.3. Orientation of development in industry ................................................................. 22
3.3.4. Orientation of cultural and social development ..................................................... 23
3.4.1.1. Orientation of education and training development ........................................... 23
3.4.1.2. Orientation of health development ...................................................................... 23
3.4.1.3. Orientation of development in culture - information and sports ........................ 23
3.5. Solutions to socioeconomic development of Dong Anh................................................ 23
3.5.1. Training and developing human resources ............................................................ 23
3.5.2. Applying scientific and technical advances in production..................................... 24
3.5.3. Mobilizing and using investment capital sources effectively ................................ 24
3.5.4. Widening the market .............................................................................................. 25
3.5.5. Improving general power of economic sectors ...................................................... 25

CONCLUSION....................................................................................................................... 26
REFERENCES ........................................................................ Error! Bookmark not defined.

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INTRODUCTION
1. Reasons for the study
With the goals up to 2020 that, our country will basically become an industrial
country, our country’s industrialization and modernization process has more and
more rapidly and strongly happened, but quite complicated in all cities and provinces.
This process has changed the socio-economic face of localities at various level; and
promoted the urbanization process. The urban development in several big cities such
as: Hanoi, Ho Chi Minh City,… has impacted on not only the economy – society –
environment on the field of those cities but also the surrounding districts and
provinces strongly.
Together with the comprehensive change of the country, Dong Anh, a suburb
district in the North of Hanoi City is stepping into innovation period and created the
significant changes in all aspects. However, nowadays, to foster the comprehensive
development process, take full advantage of its socio-economic potentials, Dong Anh
district should form and perform a long-term strategy for its sustainable development
by itself. Therefore, to explain the socio-economic changes in the district, not only
figures are taken to prove those changes in two different periods but also we will find
out the other reasons, which control those changes, and then take solutions to
promote and adjust the socio-economic development in Dong Anh District. With the
goals, we selected the subject “Socio-economic changes in Dong Anh in the
innovation period” for research and expected to find out the major characteristics of
the process, which changed structure and operating-mechanism of the economy in
Dong Anh; showed and analyzed the major changes in the social structure and
relationship in Dong Anh. Not only figures are taken to prove changes in two

different periods but also from that we will find out the reasons, which control those
changes, and then take solutions to foster and adjust the socio-economic
development in Dong Anh. On that basis, we hope that we will contribute our effort
into the socio-economic development in Dong Anh district.
2. Literature review
2.1. The study of the process of socio-economic change and the socio-economic
changes in Vietnam in the innovation period
Generally, the studies are not only unified in the facts, the main social
structure, which is directly resulted from the socio-economic structure but also on
refers to the socio-economic changes, the author emphasizes on the structural
changes and impacts of socio-economic policies on the socio-economic changes in
the whole country or in a quietly large area. This is the theoretically reliable fulcrum
for our application into the study of socio-economic changes of a particular field –
Dong Anh district.
2.2. Studies of the socio-economics change process in Hanoi in the innovation
period
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From the studies above, it is possibly seen that the socio-economic activities of
Hanoi has been quite comprehensively paid attention to study. However, most of
them focused on changes of occupations, income structure and living standard; of
residential houses, infrastructure and environment (especially housing and land
matters, food sources, waste treatment and so forth)..
2.3. Studies on Dong Anh district
It is possibly said that, the studies above are valuable, but do not emphasize on
the socio-economic changes. Because this work contains a huge quantity of
questions, the socio-economic problems in Dong Anh are just in level of actual
situation survey, not further analyzed to take development orientations for the future.
Therefore, we applied SWOT analysis to assess strengths, weaknesses, chances as

well as risks in the socio-economic aspect in Dong Anh comprehensively and then
proposed solutions to foster growth of Dong Anh in next years. This is the new study.
We succeeded assessments of the socio-economic changes above and regarded
them as the theoretical premises. However, for a specific field – Dong Anh, until the
present, no study has successfully analyzed the socio-economic changes. All previous
studies identified only resources for socio-economic development in Dong Anh. The
socio-economic changes in Dong Anh, especially after innovation period, have not
been considered as a specific and systematical question. We bravely make and
answer the question of the socio-economic changes in Dong Anh in the innovation
period (the context selected since 2000). After, we will analyze and propose
reference methods for planning a socio-economic development strategy in Dong Anh.
3. The purposes of the study
The results of the thesis will clarify the socio-economic changes in Dong Anh
since 2000, especially show the basic characteristics of the transition process in the
point of view of structure and operating mechanism of the economy in Dong Anh;
take and analyze the basic changes in structure and social relationship in Dong Anh.
Thence, we will propose orientations and effective solutions to uphold the
strengths and minimize the negative problems in the district as well as focus on the
sustainable development strategy.
To achieve this goal, the thesis will complete the main duties as follows:
- Systemizing socio-economic changes, clarifying related concepts.
- Surveying, collecting related figures as required.
- Analyzing, explaining the major socio-economic changes, achievements and
restrictions in Dong Anh District.
- Taking orientations, forecasting several socio-economic changes in the next
time, and proposing feasible solutions.
4. Object and scope
4.1. Object of the study
The object of the study is the socio-economic change in Dong Anh District,
Hanoi City since 2000, especially changes in structure and operating mechanism of

the economy; the major changes in structure and social relationship in Dong Anh.
4.2. Scope of the study
Location: Dong Anh District, Hanoi City.
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Time: Focusing on the 2000-present period.
5. References and methods of the study
5.1. References
- Reports and summary data of the locality.
- Materials collected from the fact-finding tour (quá trình điền dã).
- Succeeding several related achievements from the previous works.
These materials are used for comparisons, references to increase accuracy and
reliability of the results of the study.
5.2. Methods
5.2.1. Statistical method
5.2.2. The analyzed and generalized method
5.2.3. Graphical methods
5.2.4. Field method
6. Significance
- Scientific significance: the thesis contains a new awareness of a process of
socio-economic change in rural area in Vietnam in general and in rural area in the
North Vietnam as well as in Hanoi in particular from a specific field - Dong Anh
District.
- Practical significance: From the reasons as above, the results of the thesis
offer the scientific recommendations to promote industrialization –modernization and
sustainable development process in Dong Anh District.
7. Structure of the thesis
Besides the introduction, the conclusion, the appendix and the list of reference
documents, the contents of the study include three chapters as follows:

Chapter 1. Dong Anh: General Remarks.
Chapter 2. The main socio-economic transformations in Dong Anh since
2000 to now
Chapter 3. Orientation of socio-economic development in Dong Anh

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CHAPTER 1
DONG ANH: GENERAL REMARKS
1.1. Strengths and development resources – promoting factor for socio-economic
changes in Dong Anh district
1.1.1. Geographical situation
Dong Anh is a suburb district in the Northern gateway of Hanoi Capital. It has
the natural area of 18,230 ha (182.3 km2). Its natural boundaries with other districts
of Hanoi are Red River, Duong River in the south of the district, which is the border
between Dong Anh and inner Hanoi, and Ca Lo River in the north of the district – the
border between Dong Anh and Soc Son district.
1.1.2. Topographical characteristics
Generally, Dong Anh topography is relatively flat and slopes gently from the
west north to the east south. The district’s communes in the west north including Bac
Hong, Nam Hong, Nguyen Khe have relatively high topography. The south-east
communes including Van Ha, Lien Ha, Duc Tu, Co Loa, Mai Lam have relatively
low topography, and mostly cultivation land area has in low and hollowed
topography, and regularly flooded. The highest position is 14m and the lowest
position is 3.5m, average height of 8m compared with sea level.
1.1.3. Local climate
Dong Anh’s climate is similar to Hanoi City’s that is tropical, humid and
monsoon climate..
Annually average temperature in Dong Anh is 25 0C, the hottest months are

June and July, the highest average temperature is 37,5 0C in July, Two coldest months
are January and February, and average temperature of January is 130C.
Average humidity in Dong Anh district is 84%. It is seldom changed in months
of a year and regularly fluctuates in range of 80 - 87%. Number of rainy days is 144
days at the annually average rainfall of 1600 mm - 1800 mm.
1.1.4. Land
Total natural land area of Dong Anh is 18,230 ha, including a part of Red
River, Duong River and the alluvial land. The land on the river banks is rich of
alluvial, but land in interior fields is less fertile, 70% of it is infertile soil.
Average land area in Dong Anh Town is 212 m2/household. Average
agricultural land area per a labor is 0.051 ha. This is the lower rate compared with the
average rate of Red River Delta. Land area and for inhabitants including land for
gardens and service works in hamlets and villages 1940 ha, average land area for
living activities in the rural area is 364 m2/household. A quite large area in the district
is used for military purposes including defense facilities, training facilities of the
army.
1.1.5. Hydrographical characteristics
Rains are the main water supplies for productions and daily activities of the
people in the field of Dong Anh. Annual average rainfall is 1,600 – 1,800 mm.
annually, rainfall is unsteadily distributed. Rainy season is from May to October,
equaling to 85% of total rainfall of the whole year. In this season, overflowing is in
all communes in a hollow.
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A network of rivers, lakes and lagoons in the district: Rivers are in the
boundary between the south and the north of the district.
Ground-water. Besides surface water sources; Dong Anh has water fielding
stratums with high content. Ground-water plays an important role in water supply for
productions and daily activities of the people in the district. Ground-water in Dong

Anh is always added, provided from the huge water source of Red River.
1.2. Socio-economic resources
1.2.1. Population
Total population in the field of Dong Anh District was 350,541 persons,
equaling to 4.7% of the population of Hanoi Capital. Dong Anh district has the
largest quantity of population compared with the external districts and is in the third
position to total districts in Hanoi (behind Dong Da district and Hai Ba Trung
district).
1.2.2. Human resources
Total persons at working at in Dong Anh District is 203,505, equaling to over
51% total population (2010). The full number of human resources is the most
important one for socio-economic planning and development in Dong Anh District in
the next time.
Labour ratio working in economic sectors is 98% total human resource in the
field of Dong Anh District in the stage of 2006 - 2009. Basically, Dong Anh district
has successfully mobilized a labour force into production and business activities in
the field in the last time.
Not only quantity but also quality of human resources in Dong Anh district has
been considerably improved in recent years.
1.3. Socio-economic development in Dong Anh District
1.3.1. Economic situation
Dong Anh is a suburb district of Hanoi City and in recent years, Dong Anh
district’s the economy has gained the positive changes. Its economic structured
moved in according to industrialization and modernization orientation; annual
average economic growth ratio is nearly 10%. Life of the population has been
continuously improved; the aspects of the society have shown their economic
achievements.
1.3.1.1. Industry
Dong Anh’s industries are subject to topography of each region. It is
concentration into the industrial zones. The first industrial zones have been formed

since 1970 – 1980 on the highway No. 3. This region is distributed in area of
approximately 70 ha and currently 22 enterprises are in the mechanical industry,
constructional materials… Before, most of this region included the State enterprises,
which are currently capitalized. The industrial facilities in this region had a quite
large area, low constructional density, not-high land use coefficient and scattered (not
as per the model of concentrated industrial zones). Industries in this region are
assessed that they have not been highly polluted. According to the planning of the
city, a part of this region will be used for the industrial facilities, which are moved
from the inner city.
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North Thang Long Industrial Park on Kim Chung commune, Vong La, Hai Boi
is associated to invest by Sumitoro Corporation (Japan) and Dong Anh Mechanical
Company. Total area of the industrial park is 295ha. This is the biggest concentrated
industrial park in present-day in Hanoi with 121 ha of the completed stage I and 77
ha of the completed stage II.
Besides, in the field of Dong Anh District, a concentrated small scale zone is
implemented in Lien Ha and Van Ha Commune.
Lien Ha and Van Ha are two communes with the strongest villages in Dong
Anh, including Lien Ha, which is developing industrial wood career (Painted wood)
and Van Ha, which is developing carpentry, carving, fine arts and household wooden
products. Potential of two trade village is very large.
Now, in the field of the district, there are about 1,600 enterprises (mostly joint
stock companies and limited companies) and more than 13 000 business individuals.
1.3.1.2. Service - Commerce
In recent years, trading and services have, in the field of the district, well
developed. Goods and services have been more and more diversified in kind, pattern
and met demand of the population in the district. However, distribution system in the
field of Dong Anh District has not developed as in other districts, especially

compared with districts in the city. Dong Anh has not built up a modern distribution
system including supervisors, convenience store... Now, there is only one commercial
center in the district, which is combination of residential buildings and general
businesses at Dong Anh town. Distribution system in the field of the district is for
businesses and modern goods exchanges on basis of a network of markets distributed
in communes and town.
1.3.1.3. Agriculture
In spite of decreased cultivation areas, unfavorable conditions of the weather in
recent years, kinds of harmful insects, epidemic diseases of livestock and poultry dịch
are possibly spread; annually agricultural production has continuously developed and
reached the good growth rate. Average agro-forestry and aquatic production value is
continuously increasing approximately over 3% in the stage of 2006 - 2009. In 2009,
in the agricultural structure of the district, breeding density is 59.8%, density of
cultivation is 40.2%.
1.3.2. Socio-cultural situation
1.3.2.1. Education – training
Nowadays, in the field of Dong Anh District, there are 83 educational facilities
from kindergartens to secondary schools including 28 kindergartens, 29 primary
schools, 25 secondary schools and 01 complementary school, total 2795 teachers to
57,935 pupils at levels. This is the main force of educational carreer in Dong Anh
District, which forms the basis for qualified personnel training in the localities so as
to hasten industrialization and modernization.
1.3.2.2. Health, population and family-planning
Currently, there are 208 health stations including commune-level health
stations, precinct-level health stations, hospitals and private surgeries with 886
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doctors and medical officers. With the material facilities and teams of officers as
mentioned above, the basic demand of the people’s health care is met.

1.4. General assessment of potentials, advantages, difficulties and challenges in
development process of Dong Anh district
1.4.1. Advantages for socio-economic development
1.4.1.1. Strengths of the natural conditions
- Dong Anh has the advantageous position for economic cooperation and
exchange with other districts of Hanoi Capital and the Northern provinces.
- Land fund is the first advantage of Dong Anh district in urbanization process
and the comprehensive socio-economic development in the field of the district so as
to successfully implement the general objective of the city: to be ahead of the whole
country for 5 years of industrialization and modernization
1.4.1.2. Advantages of socio-economic conditions
- Human resource is quite plentiful; enthusiasm is an important factor for Dong
Anh’s attracting investments, developing careers, hastening movement of economic
structure in direction of industrialization and modernization.
- Road, railway, and waterway system in Dong Anh district is near to national
highways, major highways in the area. Dong Anh district is adjacent to Noi Bai
international airport – the largest air terminal in the north, the gateway of the city and
country. That is the main advantage to develop comprehensively and synchronously
economic, cultural and social fields of the district.
- The cultural tradition of thousands of years, depth of the history of
communist movement and its unique values have been maintained and upheld. This is
the great driving force for sustainable development of Dong Anh district.
- Potential of goods and service markets of the district is quite large, especially
in the condition that Socialist-oriented market economy and the international
economic integration are focused on. This is the factor that plays an important role in
attracting investments, promoting productions and business in the field of the district.
- The policies, which are set down in the Orientation Master Plan for Urban
Development by the Central and the City, have facilitated the district to develop in
the industrialization and modernization direction..
1.4.2. Difficulties and challenges

- Socio-economic situation is weak and not proper to its potentials that created
a low starting-point in industrialization – modernization process and breakthroughs
are difficultly reached.
- Labor force of Dong Anh is quite large but in small quality, slowly adapts to
market mechanism, and does not meet requirements of the new sectors and business
fields. This drawback may reduce Dong Anh district’s advantages in attracting
domestic and foreign investment, especially big investors.
- The economic growth and urbanization process, which has been
spontaneously formed in the past time, is making the important questions to Dong
Anh District.
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- A infrastructure system in the field of Dong Anh district has not been
consistent and poor.
- Source of capital of the district is very limited.
Generally, many difficulties and challenges are being posed in development
process of Dong Anh district in the next years that require the proper solutions for its
development objectives.

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CHAPTER 2
MAIN SOCIO-ECONOMIC TRANSFORMATION IN DONG ANH
DISTRICT SINCE 2000 TO NOW
2.1. Common theory of socio-economic changes in Vietnam in innovation period
2.1.1. Structure of economy
Structure of the national economy is the whole relationship of quality and
quantity in components for a certain time, space and socio-economic conditions.

In the scope of this thesis, structure of the economy is reflected from the point of
view of structure of the economy and structure of economic components.
Each economic component plays an important role in that structure and the
correlate of this structure is shown in structure of economy. In the macroeconomic
aspect, major kinds of structure of economy including structure of territory, structure
of the economy, and structure in production relationship of the economy are
considered “a frame” of the economy.
Structure of economy includes all sectors of the national economy. It is merged
in accordance with a proper relationship of quantity, shows relationships amongst
sectors and reflects growth of the economy.
In general, movement of structure of economy of a country regularly depends
on several external and internal factors.
2.1.2. Transformation of economic structure
To investigate structure of an economy, main matter of that structure is the
structural change of economic sectors, change of the economic components and
structure of territory of that overall structure, at various stages the positions of
economic sectors have been changed to meet the conditions and general trend of
historical development. That process is called the structural change of an economy.
The structural change of economy is a socio-economic reformation process for
the purposes of proper profesionalization, technical equipment, modern technologies
and thereby creating high and effective productivity in jobs and promoting the
economy. The structural change of economy is an unavoidable and objective factor,
and a gradually development process based on close combination of subjective
conditions, socio-economic and natural advantages of the country, the region, and
units, and possibility of investment, cooperation or joint ventures in manufacturing,
service and consumption of products with other countries and regions and various
economic units.
2.1.3. Changes of territorial structure
If changes of a structure are viewed only according to the economic sectors, it
will be lack of one space direction – change of territorial structure.

Structural change of territory is known as the proportion-based change of
regions in a country scope and spontaneously or self-consciously arranged.
In each period, various territories will have individual advantages, and
according to their development policies, value of economic production in each region
in the same territory will have a change. That change is objective, but, if there is any
irrationality, right policies can be gradually changed in the positive way.
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2.1.4. Change of structure of economic components
In the overall economy, structure of economic components is the proportionbased correlation of economic components attending sectors, fields of components of
economy.
In our country, economic components have been determined as an important
role in each component. The State's economy plays a main role and a driving force
for economic growth; Collective economy plays an important role and in many forms
of organization on basis of voluntary, equal, democratic participation and mutual
interests.
The structural transformation of economic components is to change
contribution rate of production value of the components in the overall economy.
2.2. Changes in structure and economic relations of Dong Anh since 2000
2.2.1. Changes in structure of economic sectors
In ten recent years, Dong Anh district’s economy has reached many changes.
Total revenue of the whole economy has increased more than 300 times (from
VND153,967 million in 2000 to VND48,948,012 million in 2008), development
order can be arranged as follows: commerce- service-transportation, industryconstructional sector and agriculture.
2.2.2. Changing inside economic sectors
Overall, annual growth rate of industry is more than 10%. However,
considering the internal structure of the industry, industrial groups at lower levels,
there is over-time change of value and contribution rates
2.2.2.1. Changing economic structure in industry

In the studies of production value and number of production facilities in the
industrial economic sectors in the period 2000 - 2009 showed that, number of
production facilities, number of employees and production value of industrial groups
has very large change. Groups of sectors with the highest production value are food
processing, producing beverages, clothing, leather, fur; processing wood, bamboo
products; products from metals, beds , cabinets, furniture. These sectors have huge
consumer market, not only in the country but also for export. However, it is easy to
see that production sectors require high technologies and high qualification, which is
very little.
During this period, total number of agricultural facilities increased from 2,104
(in 2000) to 3,520 (in 2009), increased 1,416 (equaling to 16.7% of increase in the
period), especially the general economic components reached the fastest growth ratio:
more than 252 facilities (23.9%), followed by the individual components: 1154
(15.5%) facilities. Meanwhile the private components increased not much: 10
facilities; the collective economic sector did not increase in number of facilities.
The total value of industrial production in the district in the period 2000 - 2009
increased VND1,228,166 million (increasing more than 70 times), especially the
general economic components with increase of more than VND 913,346 million (
increasing more than 113 times), followed by the individual components with
increase of VND149,945 million (twice). The growth above is due to the competitive
nature of the economic sectors in the market economy and the policies of the Party
12


and the State as well as Dong Anh District. Those are capital, legal policies and
identification of role of the economic components in the market economy.
2.2.2.2. Economic changes in agro-forestry and aquiculture
In recent years, agro- forestry – aquiculture economics has a profound
transformation in of cultivated area, water surface area for aquaculture and
production value. Currently the agriculture structure has strongly changed to

gradually reducing land area for rice cultivation, annual crops, perennial crops and
increasing surface water area used for the agriculture.
2.2.2.3. Economic changes in commercial sector – services – hotels and restaurants
Currently, number of households and persons attending the commercial sector
– service – hotel and restaurants increase fast. In 2000, the whole district had 3477
households and 4209 persons working in the commercial sector – service – hotels and
restaurants, until 2010 number of households and labors has increased up to 8291 and
12487, respectively, approximately 2.5 times including communes with the largest
growth ratio Nam Hong, Uy No, Kim No… ..
2.3. Changes in structure and social relations
The change in economic structure will inevitably lead to social changes. On the
contrary, social change is a driving force for the economic change. This is a dialectic
relationship of the issue in question. Identifying such change, we choose the
following sections:
2.3.1. Changes in scale of manufacturing facilities and the number of centralized
labors by economic sectors in industry
In the period 2000 - 2009, total number of industrial labor facilities kept
increasing, by 1.6 times (1426 facilities) whereas labor force was increased by more
than 4 times (15,131 labors).
It can be easily seen through the above table that individual and mixed
economic sectors attract the most labors. However, recently, individual economic
sector has tended to decrease in terms of the number of manufacturing facilities and
labor force in proportion to mixed sector. The most equally increased sector is the
mixed sector. This proves the flexibility of the people in economic activity to keep
pace with the present social background.
2.3.2. Changes in scale of manufacturing facilities and the number of centralized
labors in commerce and hospitality
Manufacturing scale, number of centralized labors in commerce and hospitality
tend to shift from the State economic sector to non-State economic sector. Over the
past 10 years, the number of households and labors in the State economic sector has

been reduced from 4 households with 652 labors down to 1 household with 15 labors
whereas the non-State economic sector has been increased quickly both in the
number of households and in the number of labors. In 2000, the whole district had 13
households with 109 labors but in 2010, there were 703 households with 7968 labors,
increasing by more than 100 times. In the State economic sector, mixed economic
sector saw the strongest increase from 6 households to 673 households and from 95
labors to 7655 labors.
13


2.3.3. Changes in scale of manufacturing facilities and the number of centralized
labors in transport
In the transport industry, there is a strong shift from collective and individual
economic sectors to mixed economic sector. Over the past 10 years, collective and
individual economic sectors have increased by about 3 - 4 times only whereas mixed
economic sector has been increased by over 70 times. In 2000, there was no business
household in the mixed form but in 2010, there were 76 households with 1566 labors.
2.3.4. Changes in education - health, life quality of Dong Anh district in the period
2000 - 2009
In education, national education system always receives investment for
development. The number of schools, classes, teachers and students increases
quickly. In 2010, there were 28 kindergartens, increasing by 4 kindergartens from
that of 2000, 736 teachers, over 19 thousand students, doubling that in 2000; 29
primary schools, increasing by 3 primary schools and 999 teachers and more than 50
thousand students. As such, pre-school and primary school education branch has been
attentively invested and expanded infrastructure whereas secondary schools and
continuing education classes have not been increased over the past 10 years,
reflecting the saturated trend in demand. However, in the coming time, there should
be forecast to work out school network plan at upper level to prepare well for the
lower levels of education.

Health sector also saw a strong development. Nowadays, the people’s life is
enhanced; the demand for healthcare is increased, thus leading to vigorous change in
the number of healthcare facilities. Hospitals, communal and ward medical stations
are not increased in terms of quantity but the number of private healthcare facilities
was increased threefold from 66 facilities in 2000 to 182 facilities in 2010. Such
private clinic system has basically met the increased demand of the people in the
locality, thereby somehow reducing pressure for the hospitals.
A big change in the cultural life of the people in Dong Anh district is the
prevalence of urban lifestyle in the urbanization process.

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CHAPTER 3
ORIENTATION OF SOCIOECONOMIC DEVELOPMENT OF DONG ANH
UP TO 2020
3.1. Viewpoint and orientation of socioeconomic development of Dong Anh
3.1.1. Viewpoint of development
In the socioeconomic development master plan of Dong Anh district to 2010
of the People’s Committee of Dong Anh district, the fortification of comprehensive
socioeconomic development of the district must be based on the following
viewpoints:
First, the district should bring into full play its role as the Northern economic
development driving force of Hanoi city, create landscape and green belt to protect
ecological environment for civilized and modern capital.
Second, the district needs to take advantage of opportunity and chance to
promote socioeconomic development of Dong Anh district at high, comprehensive
and sustainable level in the direction of industrialization and modernization.
Third, Dong Anh should create a favorable environment and condition for
economic sectors to develop. Bring into full play all resources, especially bring into

full play and optimize all internal resources, attract external resources at maximum to
focus on socioeconomic development of the district.
Forth, it is necessary for the district to combine economic development with
social advance and equity.
development requirements of the district to 2020.
Next, socioeconomic development of Dong Anh district is in accordance with
the development strategy and master plan of Hanoi Capital with expanded
administrative boundary and in the context of international economic integration.
Expanded Hanoi (incorporating Ha Tay province, Me Linh district - Vinh Phuc and 4
communes of Luong Son district - Hoa Binh) with area of about 3,350 km2 and over
6.5 million people will develop quickly to deserve a Capital of a wealthy and
powerful country in the future
Finally, the district ought to grasp the viewpoint of the Communist Party of
Vietnam thoroughly: economic development is the key task, Party establishment is
the core task; investment in building rural infrastructure in an urban and modern
manner and enhanced urban management and construction in the district are the
regular and important task; cultural development is the spiritual background of the
society; maintenance of political security, social order and safety; non-stop
enhancement of material and spiritual life of the people.
3.1.2. Orientation of development
Dong Anh district should continue comprehensive and uniform renovation,
exploit all potentials, resources to strengthen industrialization, modernization and
urbanization, create requisite for sustainable socioeconomic development, maintain
political security, social order and safety, keep increasing material and spiritual life of
the people, coordinate with the capital to go ahead of the whole country 5 years in the
industrialization and modernization.
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The district should intensify urbanization and formulate urban areas, industrial

centers, trading and service centers; build Dong Anh into a big socioeconomic center
as the development driving force in the North of the Capital by 2020.
In economic development, the district must always pay attention to developing
and taking initiative in international integration together with other districts to make
the Capital really one of the leading cities in the industrialization and modernization
cause. Fortify economic growth and structural shift in the direction of industry service trade - agriculture, enhance efficiency and competitiveness of the enterprises
and economic facilities in the district, maintain and expand domestic and foreign
markets.
The district should focus on accomplishing socialist-oriented market economic
mechanism, uniformly developing markets and market supporting institutions,
enhancing transparency, equality and democracy and openness of the economy in
accordance with international commitments. Boosting socialization, enhancing
cooperation and association among enterprises, divisions, economic sectors, creating
new development investment wave in the district.
The economic development of the district must go together with urban
development planning and be associated with preserving and improving ecological
environment landscape, bringing into full play local historic and cultural tradition,
enhancing material and spiritual life of all walks of life in the district.
It is important for the district to give priority to developing infrastructure ahead
of time in order to build basic technical material infrastructure for formulating new
Hanoi in the North of the Red River in the direction of building a civilized and
modern Capital in 2020.
3.2. Analysis based on SWOT of potentials and challenges in socioeconomic
development process of Dong Anh district
SWOT analysis model is a very useful tool for grasping and making decisions
in all situations for any organization.
As an abbreviation of 4 words Strengths (S), Weaknesses (W), Opportunities
(O) and Threats (T), SWOT provides a tool for analyzing strategy, reviewing and
evaluating position, orientation of a unit or a business project. SWOT is suitable for
working and analysis in groups, used to make socioeconomic plan, establish strategy,

evaluate competitors, marketing, develop product and service, etc.
SWOT analysis is aimed at obtaining a quick overview of a certain situation at
a certain time and in a certain location. This should not be understood as an
evaluation method because it fails to work out solution or option or compare opinions
and create related decision.
In the project planning and establishment process, SWOT analysis is used in
the first phase and the second phase in identifying the issue and the demand,
collecting and analyzing data. Some issues may have been identified but the use of
SWOT analysis remains important to consider further identification of the issue.
The result of SWOT analysis may go further than the list of Strengths,
Weaknesses, Opportunities and Threats. After interpreting, collecting and analyzing
16


items, SWOT analysis will lead to a list of priorities. Moreover, SWOT analysis will
orientate conditions of a strategic planning process.

O/S
Take advantage of
opportunities to
promote strengths

O
Opportunities

O/W
Grasp opportunities to
overcome weaknesses

S

W

Strengths

Weaknesses

SWOT

S/T
Take advantage
of strengths to
minimize threats

W/T

T

Reduce
weaknesses to
prevent threats

Threats

Figure 3.2. Expanded SWOT analysis model
Through carefully studying Dong Anh situation, we dare to adopt SWOT
model to evaluate strengths, weaknesses, opportunities as well as threats of Dong
Anh as follows:
3.2.1. Strengths (favorable conditions for socioeconomic development)
3.2.1.1. Politics and policie

Dong Anh, together with Hanoi and the whole country, now prepares to enter a
new phase, the period 2011 - 2020. This is the period of intensified industrialization
and modernization to make Vietnam an industrial country in 2020. Hanoi space has
been expanded after incorporating Ha Tay province, Me Linh district (Vinh Phuc)
and 4 communes of Hoa Binh province under the Resolution No. 15/2008/NQ-QH12
by the National Assembly. Hanoi now covers about 3,300 km2 and has around 6.5
million people. These are especially favorable conditions for the Capital
development.
Furthermore, the policies adopted by the National Party Congress, Hanoi Party
Committee and realization ability of Dong Anh district Party Committee are
favorable conditions for Dong Anh to attract investment projects and big economic
programs in the coming time.
3.2.1.2. Socioeconomic development resources
Geographical position of Dong Anh is favorable for the district to cooperate
and exchange with other districts of Hanoi capital and the Northern provinces in
economic development.
Land fund of Dong Anh remains considerable, which is the leading advantage
of the district in the urbanization and comprehensive socioeconomic development in
the district.
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Labor force is relatively abundant and enthusiastic, which is a favorable factor
for Dong Anh to attract investment and development of business lines, fortify
economic structural shift in the direction of industrialization and modernization.
Road, railway and waterway traffic system of Dong Anh is quite favorable
with national roads, expressways in the district. Dong Anh is close to Noi Bai
international airport, the biggest airway junction in the Northern Vietnam, the
international exchange gateway of the Capital and the country. These are great
favorable conditions for comprehensive and uniform development of economic,

cultural and social fields of the district.
Thousand-year cultural tradition, revolutionary historical depth and traditional
identities are still preserved and promoted, which is a great driving force for the
sustainable development of Dong Anh in the coming years.
Potentials of goods and service market of the district are quite big, especially in
the context of developing socialist-oriented market economy and international
economic integration. This is a motive force in attracting investment and promoting
production and business activities in the district..
3.2.2. Weaknesses (shortcomings in socioeconomic development)
3.2.2.1. Politics and policies
In this regard, we are facing fierce challenges. The world and regional
political and economic situation develops complicatedly; financial crisis and
global economic depression exert strong and direct influence on the
socioeconomic situation of Vietnam and Hanoi, making the national economic
growth decrease.
On the other hand, policies adopted by the Party are applied at national level.
Their feasibility depends on the realization ability of Hanoi city. Through comparing
the resolutions adopted by the Party Committee Congress of Dong Anh with those
adopted by the Party Committee Congress of Hanoi city and with the Central Party
Committee Congress, it can be seen that there are many inconsistencies in carrying
out the contents and action plans. This is also a weakness.
3.2.2.2. Socioeconomic development resources
Intrinsic factors in the economy such as economic structure, investment
structure, labor structure and competitiveness show many weaknesses that inhibit
quick and sustainable development in the coming time.
The weather is increasingly severe, unfavorable. Many epidemic outbreaks
affect agricultural production and the people’s life.
Flood: Every year, from June to September, the water in the Red river system
rises high, causing flood to the dyke areas. Even, in some years, it breaks the dyke
and results in catastrophe for a vast area, failure of crops and big damage in people

and property.
The urbanization and industrialization process is now impairing quality of
water, air and soil environment in Dong Anh and Hanoi city.
3.2.3. Opportunities of socioeconomic development of Dong Anh district from now
to 2020
3.2.3.1. Politics and policies
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Hanoi in general and Dong Anh in particular have political guarantee of the
Party, the State and the Central Government for the industrialization and
modernization. In particular, as the Capital, Hanoi has many special priorities from
socioeconomic development policies of the Party and the State.
3.2.3.2. Opportunities of economic development
Vietnam has jointed the World Trade Organization (WTO) and integrated more
deeply into the global economy, which provides us with great opportunities for
development promotion.
Priority policies for the Capital make Hanoi in general and Dong Anh in
particular a potential and attractive investment environment for domestic and foreign
partners. Construction investment and development projects will be more and more in
the coming years.
3.2.4. Challenges of socioeconomic development of Dong Anh district from now to
2020
3.2.3.1. Politics and policies
As the Capital, anything wrong in Hanoi will have very strong spreading
influence (much higher than other provinces). Therefore, Hanoi leadership and
people should be prudent at maximum in dealing with political issues. This is a
difficulty for renovation because the nature of renovation needs breakthrough,
reckless and risk-taking steps.
3.2.3.2. Socioeconomic challenges

Besides, urgent and difficult issues of the quick urbanization in the district,
especially in the suburban like Dong Anh; the lack of uniformity, low qualification of
the capital market economy, weaknesses of science - technology, human resources,
etc.; inadequacies in the State economic management as per the market mechanism,
urban, cultural - social management are main challenges for the development in the
coming time.
Labor force of Dong Anh is fairly crowded but its quality is low, slow to adapt
to the market mechanism and meet the requirement of the new sector and production
and business fields. This weakness may make Dong Anh lose its advantage in
attracting domestic and foreign investors, especially big investors.
Although the urbanization has just been started in Dong Anh, due to lack of
planning orientations and slow solution of resulting issues, it is faced with many
complicated social issues, especially unemployment, social evils due to reclamation
of agricultural land. This is a great challenge for Dong Anh in the urbanization in the
coming years and if not solved, it will eradicate achievements of the development.
Infrastructure system in Dong Anh district remains asynchronous and weak. In
the district, there is almost no urban technical infrastructure. Infrastructure condition
in rural residential areas is quite backward and shows inadequacies in the
urbanization.
Capital source in the district is quite limited. The economic is not yet
developed strongly, the number of enterprises in the district remains little (there is
one enterprise per 200 people in the district and one enterprise per 80 people on
average in the city), thus the accumulation is low.
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SWOT analysis results combined with the local socioeconomic
development orientations are the basis for us to work out specific orientations,
taking into consideration feasible conditions and work out general solutions for
socioeconomic development of Dong Anh district in a scientific manner.

3.3. Orientation of development in economic sectors
3.3.1. Orientation of development in trade - service sectors
3.3.1.1. Viewpoint of development
The district must diversify and enhance quality of service products, pay
attention to developing high quality services. Build Dong Anh into a new city, a high
quality trade, financial, tourist and service center in the North of the capital.
Consolidate and develop after-sale goods and service distribution and
circulation system. Build some customs clearance depots, ports and coach stations in
the district. Further invest in modernizing material facilities, diversify types, enhance
quality of tourist products. Fortify export supporting services and boost service
export; give priority to developing rural agricultural development services.
3.3.1.2. Orientation of development
* Market system plan in the district
Develop market network in the district to meet the demand for sale, purchase
and daily life of the people, ensure each commune/town has at least one local market
to serve life activities, not to mention junction markets and specialized markets.
Review market system in the district. Organize the implementation of the
market management model transformation project so that by the end of 2010, markets
in the district would be transformed from the market management unit to the
enterprise or co-operative operation.
Make new plan for some local markets in the areas without market to serve the
people.
Together with planning market system, it is necessary to be determined in
removing temporary markets in the residential area that affect the traffic order and
safety, landscape and environmental sanitation.
* Plan for trade centers, supermarkets and self-service retail shops
This is a modern trade type that become more commonly in the urban area. In
the future, when the urbanization rate in Dong Anh is strong and new urban areas are
built, the development of trade centers, supermarkets and self-service retail shops is
of great necessity.

Develop trade centers, supermarkets and self-service retail shops firstly in new
urban areas, centralized residential areas and district center.
* Plan for high grade service sectors: Finance, banking, insurance,
consultancy and logistics.
Develop services: Finance and banking in new urban areas in order to build
Dong Anh into a financial and banking center in the North of the Capital.
Attract and develop branches and transaction offices of the banks in the district
central areas and in centralized residential areas to formulate high-density financial
and banking system when the Northern Red River Urban Area Plan is carried out.
Develop logistics centers in the district.
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* Plan for recreation areas
Focus on improving and upgrading Cau Doi Park into a big recreation area in
the district.
Make new plan for some recreation areas, parks in new urban areas in the
district.
* Plan for tourist development
Develop hotel and restaurant system in new urban areas and the district central
areas.
Focus on refurnishing and upgrading historic sites to serve the demand of the
tourists. Strictly combine craft villages with tourist services, upgrade the
infrastructure system to create attractive tourist craft villages.
3.3.2. Orientation of development in industry, small scale industry and construction
3.3.2.1. Viewpoint of development
Selectively develop items of goods, groups of industrial products with modern
technology and environmental friendliness. Pay attention to groups of products with
trademark and prestige in electric equipment - electronic equipment - information
technology and communication equipment, mechanical equipment, food processing,

high grade garment and textile, create favorable conditions for the development of
pharmaceutical chemical industry, high quality materials. Support in development to
modernize technology, expand scope of producing and exporting some small scale
industrial products with market potential (wood processing, wood furniture, high
grade handicrafts, etc.)
Basically complete occupancy of the centralized industrial parks; expand North
Thang Long industrial park; continue building some new industrial parks by the
domestic investment. Develop small and medium-sized industrial clusters in
accordance with the plan to provide production plan to the enterprises.
3.3.2.2. Orientation of development in industry, small scale industry and construction
* Orientation of development:
- Develop industry as the key sector that creates highly added value and makes
the most contribution to the economic structure of Dong Anh district.
- Enhance industrial production efficiency, enhance the adoptability of modern
technology into production and enhance competitiveness of industrial products in
Dong Anh district both in domestic market and for export.
* Selection of key industrial products:
- Mechanical products: laminated steel, nail, mechanical products in means of
transport, lock, mechanical products for life activities.
- Electric equipment: transformer, voltage stabilizer, electric wire, etc.
- Assembled electronic products: printing machine, monitor and computer
accessories, etc.
- Beverage and processed food: confectionery, meat, milk, cattle feed.
- High class wood furniture, handicrafts; furniture, wood carving, wall painting
and painted wood furniture.
- Textile, garment and leather.
* Industrial distribution in the district:
- Continue expanding the old Dong Anh industrial park.
21

- Occupy North Thang Long industrial park.
- Expand in the second phase Nguyen Khe small and medium-sized industrial
cluster.
- Build Co Loa and Dong Hoi industrial parks.
- Build craft industrial cluster in Van Ha and Lien Ha communes.
- Reorganize production in craft villages: Van Noi rattan and bamboo, Viet
Hung pork pies, Xuan Can, Hai Boi, Co Loa noodle and Vong La toufu, etc.
3.3.3. Orientation of development in industry
3.3.3.1. Viewpoint of development
Develop agriculture in the direction of ecological urban agriculture and clean
agriculture. Accelerate the intra-agricultural structure shift.
Plan for stabilizing agricultural production areas, establish the combined model
of residential area - craft village - ecological and cultural resort, and formulate the
city green belt.
Develop clean agriculture with high technology; expand application of modern
technology, biotechnology into clean agricultural production, focus on producing
crop seedling and animal breed with high quality and highly economic value, reduce
rice and food crop growing area, increase area for flowers, bonsai and medicinal
herbs; develop high quality and safe husbandry and aquaculture. Support in building
technical infrastructure for some craft villages with development potential.
Diversify sources of investment to build rural agricultural infrastructure
modernly. Consolidate, improve the dyke system in the district.
3.3.3.2. Orientation of development
- It is necessary for the district to accelerate the shift in rural economic
structure, intra-agricultural economic structure in the direction of reducing food crop
area, increasing area for flowers, bonsai, vegetable and foodstuff crops (gradually
popularizing clean vegetable and fruit trees); fortify husbandry with focus on ox for
food, lean pig, chicken, goose, duck, fish and shrimp. The objective is to develop
goods agriculture in order to provide fresh food within the city and export.

- Develop agriculture in association with developing new rural areas, building
clean agriculture and agriculture in urban.
* Selection of key agricultural products:
- Clean vegetable: bean, kohlrabi, cabbage, cauliflower, tomato and mustard
green are planted centrally in Van Noi, Nam Hong, Bac Hong, Tien Duong and
Nguyen Khe communes.
- Fruit trees: litchi, longan, mango, custard-apple, sapote are planted centrally
in Viet Hung, Uy No, Tien Duong and Xuan Non communes.
- Specialty rice: special non-glutinous rice and special glutinous rice are
planted centrally in Thuy Lam, Lien Ha, Duc Tu and Mai Lam communes.
- Food ox, lean pig, chicken, duck and goose: in the short term, encourage
breeding at household scale and create favorable conditions for breeding at larger
scale.
- Seafood: fish and shrimp are developed based on the strength of big rivers
such as the Red River, Duong River, Ca Lo River and lakes, ponds in the district.
22


* Agricultural production by territory:
- Eastern communes: Thuy Lam, Lien Ha, Van Ha, Duc Tu and Viet Hung.
These communes have future stability for agricultural production. Main agricultural
products of the region to be developed include specialty rice, seafood and poultry.
- District central area: Nguyen Khe, Xuan Non, Tien Duong, Uy No and Dong
Anh town. This region has centralized development in industry and services. Main
agricultural products of the region to be developed include clean vegetable, food ox
and lean pig.
- Urbanized region: Nam Hong, Bac Hong, Tam Xa, Kim No, Van Noi, Dong
Hoi, Mai Lam, Co Loa, Dai Mach, Xuan Canh, Kim Chung, Vinh Ngoc, Hai Boi
and Vong La. This region will be strongly urbanized and become urban area when
the plan for the urban area in the North of the Red River is carried out. Main

agricultural products of the region to be developed include clean vegetable, fruit,
flower and bonsai, food ox and lean pig.
3.3.4. Orientation of cultural and social development
3.4.1.1. Orientation of education and training development
Train and retrain high quality human resources in order to gradually enhance
the labor force with good qualifications. This is a requisite for the development of
industries with high scientific and technological content. The district must work out
specific plan for training labors classified by economic sectors.
3.4.1.2. Orientation of health development
Dong Anh district should focus on solving some issues as follows:
- Invest in upgrading and expanding the District Health Center to more than
300 beds.
- Solidify and enhance material facilities and equipment for communal/town
medical stations. Ensure communal/town medical stations have doctors and clinics to
meet the demand for medical examination and treatment of the people due to
increased population in the coming years.
- Boost private medical and pharmaceutical activities in the district center and
in each hamlet.
- Encourage medical staff to work at grassroots level to enhance communal
healthcare. Do initial healthcare work well.
- Enhance private medical and pharmaceutical service management, combine
professional management with administrative management.
3.4.1.3. Orientation of development in culture - information and sports
* Build a cultural institutional system:
* Improve cultural and spiritual life and civilized, elegant and modern
Hanoian.
3.5. Solutions to socioeconomic development of Dong Anh district
3.5.1. Training and developing human resources
Developing human resources with sufficient quantity and quality for the
socioeconomic development during the planning period of Dong Anh district to 2020

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