The socio-economic changes during urbanization process in Yen So ward, Hoang Mai district, Ha Noi

VIETNAM NATIONAL UNIVERSITY, HANOI
INSTITUTE OF VIETNAMESE STUDIES & DEVELOPMENT SCIENCES
NGUYEN NHI! QUYEN
THE SOCIO-ECONOMIC CHANGES DURING
URBANIZATION PROCESS IN YEN s o WARD,
HOANG MAI DISTRICT, HA NOI
Master thesis on the speciality of Vietnamese studies
Code: 603160
Science Instructor: Prof. Dr. Truong Ọuang Hai
LUC •) I c L i t. J if
Hanoi - 2011
G uarantee
I certify that the master dissertation on " I HI SOCIOHCONOMIC (HANCihS
1)1 RING URBANIZATION PROC'l'SS IN YEN so WARD. HOANG MAI DISTRICT.
HA NOI" is really my personal study and is carried out on the basis of theoretical
research, survey research and the practical sciences under the guidance of Prof'. Dr.
Truong Quang Hai. The data and research results in the thesis are true.
Hanoi, November 11, 2011
Student
Nguyen Nhu Quyen
A cknoH'l edge m en ts
I o complete the master graduate program and this thesis. I have received the
valuable guidance, support and enthusiastic comments of teachers working and
teaching in Institute of Vietnamese studies & Development sciences.
First of all. I would like to thank the leaders of Institute o f Vietnamese
studies & Development sciences, the teachers involved in teaching the master
programs on Vietnamese studies and all the staff working for training department,
sciences department and administrative departments for their dedicated guidance,
support and for me favorable conditions to complete mv graduate program.
My sincere thanks also goes to all of my friends and colleagues who have
enthusiastically encouraged and assisted me in the learning process and especially

in my survey process to complete this thesis.
It is my pleasure to thank the leadership of Yen So Ward and the local for
their support during my survey, investigation and collection of documents in the
ward.
{•’specially 1 owe my deepest gratitude to Prof. Dr. Truong Quang Mai, who
has spent much of his precious time to dedicatedlv guide and offer me with
profound and original ideas and suggestions during the implementation of this
thesis. His dedication, enthusiasm and spirit on the scientific passion and serious
working have deeply impressed and those impressions certainly will not he faded on
the education and research way that I am determined to pursue.
Last bit least. I wish to express my gratitude and deepest respect to my
beloved family for their encourages and the great support during the period of my
master program.
Thanks all of you!
Hanoi, November 11, 2011
Student
Nguyen Nhu Quyen
INDEX
INI KODl ( I ION
1. Scientific grounds, practical meanings and urgency of the topic

2. Study purposes and functions of the topic
2.1. Purposes of the thesis
2.2. Study functions of the thesis
3. Study subjects, objects and scope of the topic

3.1. Study subjects and objects
3.2. Scope of the study
4. Theoretic arounds. materials and studv method
4.1. Theoretic grounds

4.2. Sources of materials
4.3. Study method
5. Scientific hypothesis
6. Contributions of the thesis
7. Structure of the thesis
(HAP 11 R I: THEORETICAL GROUNDS f OR THE STUDY ON SOCIO-ECONOMIC CHANGES
DURING THE URBANIZATION PROCESS AND GENERAL INTRODUCTION
ON YÊN SỚ W ARD
1.1. Theoretical grounds for the study on socio-economic changes during
the urbanization process
1.1.1. Urban
1.1.2. Urbanization
1.1.3. Kfleets of socio-economic developments on urbanization

1.1.4. Hfleets of urbanization process on the socio-economic
and environmental development

1.1.5. Urbanization tendency in Vietnam and the criteria system to evaluate
the urbanization level applied to Vietnam
1.1.6. Urbanization in Hanoi since 1954
1.1.7. Summary history of studies on the topic
1.2. General introduction on Yên Sơ ward
1
1
1
2
1
1
~)
3

3
3
3
.4
. 5
5
5
7
7
7
9
10
13
20
24
26
1.2.1. Yên Sơ - people and history 26
1.2.2. Yen Sir duririii the period of 1976-1985 30
1.2.3. Yên Sơ during the period of 1986-2000 34
(HAIM I R 2: K 'ONOMIC' CHANGES IN YẺN so WARD DURING III! URBA N IZA I ION
PROCHSS ( ROM 2000-2010 39
2.1. Transference of the economic structure 39
2.2. Change in land use purposes 43
2.3. Transference in the internal structure of agriculture in Yên Sơ Ward

50
2.4. Transference in labor & occupational structure and imbalance
in economic activities of the farmers due to urbanization's impacts

58

2.4. ]. Transference in labor & occupational structure in Yên Sở Ward

58
2.4.2. Imbalance in the farmers' economic activities due to urbanization's effects 61
2.5. Improved and developed infrastructure 70
2.6. Living standard 72
CHAPTER 3: ENVIRONMENT. CULTURAL-SOCIAL CHANGES IN YÊN SỞ WARD DURING
THE URBANIZATION PROCESS FROM 2000 TO 2010
76
3.1. Landscape and environmental changes during the urbanization process

76
3.1.1. Landscape changes during the urbanization process 76
3.1.2. Polluted living environment 78
3.1.3. Worries of the local people during the urbanization
80
3.2. Rich and poor diffirentiation 82
3.2.1. The farmers who have advantages in land transference

83
3.2.2. The farmers who no advantages in land transference

84
3.2.3. The farmers who have no land transfrence

84
3.3. Changes in the neighborhood relationships 85
3.4. Life of faith 88
3.5. Changes in how to use the free tim e 91
CONCLUSION AND RECOMM ENDATIONS 95

Reference
Appendix
I able 1.1: Criteria svstem to evaluate the urbanization level applied to Vietnam

20
I able 2.1: I ransference in the economic structure from 2000 to 2010

39
i able 2.2: Number of enterprises located within the ward area 42
Table 2.3: Projects within Yên Sơ Ward 43
I able 2.4: The status quo of land use in Yên Sơ Ward in 200. 20050 and 2010

46
Table 2.5: Area of agricultural land in Yên Sở Ward over the period

47
Table 2.6: Area of water surface growing aquatic products in Yên Sơ Ward over the period.48
Table 2.7: Changes in agricultural land use in Yên Sở Ward during the period 2000 - 2010 51
Table 2.8: Value structure of agriculture in Yên Sở Ward over the period 52
Table 2.9: Area of rice-growing area over the period in Yên Sở Ward

53
Table 2.10: The area of some major crops in Yen So Ward over the years 54
'Table 2.11: Situation of cattle-breeding in Yên Sờ Ward during the period 2000 - 2010

56
Table 2.12: Productivity offish in Yên Sở Ward over the period
57
Table 2.13: Sectoral labor structure in Yên SỞ Ward from 2000 to 2010
59

Table 2.14: Level-based labor structure in Yên Sở Ward from 2004 to 2010 60
Table 2.15: Agricultural population in Yen SỞ Ward over the period

62
Table 2.16: Occupations of members of farmer households in Yên Sở Ward
from 2000 to 2010 64
t able 2.17: Occupational structure of the members of farmer families following their age
in Yên SỞ Ward in 2010 65
Table 2.18: Hvaluations of Yên Sờ residents on current agriculture compared to the past

68
Table 2.19: Agricultural labor on basis of age in families 69
Table 2.20: Average income of households in Yên Sờ Ward in 2010

69
Table 2.21: Projects invested for construction and upgrading by Yên Sờ Ward

71
Table 2.22: Main transportation route in Yên Sở Ward 72
Table 3.1: The situation of construction order in Yên Sư Ward year by year

77
List of* tables
Table 3.2: I-valuations of Yèn Sơ residents on changes in living space
78
I able 3.3: Waste dump locations in Yên Sớ Ward 78
Table 3.4: Liquid sewage dump locations in Yên Sư Ward 78
Table 3.5: Results of the survey on local people's opinions about
the contributors of environmental pollution in Yèn SỜ Ward

79
Table 3.6: Sources of water for cooking, bathing and washing done by Yên Sờ residents

80
Table 3.7: Results of survey on the local people's opinions about whether they will
continue with farming permanently in Yên Sơ Ward
81
Table 3.8: Number of criminal cases in Yên Sờ Ward over the period

82
Table 3.9: Number of poor households in Yên Sở Ward over the period 83
Table 3.10: Locations of meetings among Yên Sở residents 88
I able 3.11: Results of the survey on proportion of Yên Sở residents taking part
in worshipping activities at communal houses at the current time compared to
pre-urbanization period 89
Table 3.12: Results of the survey on the percentages of Yên Sở residents taking part
in worshipping activities at pagodas at the current time
compared to pre-urbanization period 90
Table 3.13: Types of entertainment of Yên Sở residents in their spare time
92
I iuure 1.1:1 avout of Yèn Sơ Area 27
I iuurc 2.1: I ransf'ercncc in the economic structure from 2000 to 2010

40
Figure 2.2: Map of status quo of land use in Yên Sở Ward 45
1 imire 2.3: I he status quo ot'land use in Yen So Ward in 200. 20050 and 2010

46
Figure 2.4: Area of agricultural land in Yên SỞ Ward over the period

47
Figure 2.5: Area of water surface erowina aquatic products in Yên Sở Ward
over the period 48
Figure 2.6: Value structure of agriculture in Yên Sở Ward over the period

53
Figure 2.7: Area of rice-growina area over the period in Yên sở Ward

54
liiiure 2.8: The area of some major crops in Yen So Ward over the years

55
F ieure 2.9: Productivity of fish in Yên SỞ Ward over the period 57
Figure 2.10: Population situation in Yên sở Ward over the period

58
lieure 2.11: Sectoral labor structure in Yên Sở Ward from 2000 to 2010 59
Figure 2.12: Level-based labor structure in Yên Sở Ward from 2004 to 2010 60
1 igure 2.13: Agricultural population in Yên sở Ward over the period

63
f igure 2.14: Occupations of members of farmer households in Yèn Sơ Ward
from 2000 to 2010 64
l- igure 2.15: Occupational structure (%) of the members of farmer families
following their age in Yên Sở Ward in 2010 66
Figure 2.16: Evaluations of Yên SỜ residents on current agriculture
compared to the past 68
Figure 2.17: Agricultural labor on basis of age in families 69
Figure 2.18: Average income of households in Yên Sờ Ward in 2010 70
Figure 2.19: Types of dwelling in Yen SỜ over the period 73

Figure 2.20: Types of toilet rooms in Yên SỞ Ward over the period 74
l igure 2.21: Use of furnitures in the families of Yên Sở Ward over the period
74
Figure 3.1: Results of the survey on local people's opinions about
the contributors of environmental pollution in Yên SỞ Ward 80
I- iuure 3.2: Locations of meetings amone Yên Sở residents

88
liuurc 3.3: Types of entertainment of Yên SỞ residents in their spare time

92
List of figures
INTRODUCTION
1. Scientific grounds, practical meanings and urgency of the topic
Hanoi is one of the big cities with the highest speed of urbanization in the
whole country in which a great many of new production enterprises and residential
areas have been established. Sine 1996. six new districts have been set up apart
from 4 existing interior ones and many new wards in the new districts have been
renewed from the communes of old exterior districts. Not only is the renewal from a
commune to a w ard related to the administrative work also it raises a series of issues
such as architectural planning, construction of engineering and social infrastructure
and it requires a reasonable and simultaneous solution. Yên Sở Ward of Hoàng Mai
urban District, as Yên SỞ Commune of Thanh Trì suburb District previously, is one
of the new ly-established wards during the process of extending the urban scale in
Hanoi. The urbanization process at a traditionally agricultural village has taken
place there where there has been a great investment in centralized industrial zones
and urban residential areas and changes in the mechanism of farming, breeding and
processing of agricultural products and goods based on the orientation of gradual
establishment of a truly urban area. This process changes not only the spacious and
physical structure but more importantly living conditions, earning one's living,

opportunities to get promotion and especially living style of the local people there.
On the other hand, the urbanization has brought about serious social
problems during the process of transforming the economic structure and living
style. The agricultural land has been continuously narrowed which has made a big
pressure on jobs, especially for the labors who have low educational background
and have not yet been ready for workmanship transformation. A new disordered and
confused living style is also unavoidable to the local people there.
However, there has not been a proper attention to the research and study on
the effects of urbanization process as well as the socio-economic changes within the
suburbs of Hanoi in General and Yên Sở ward in particular. Regardless of existing
1
researches on this issue, most of them have just covered some limited areas and
separate aspects without a systematic, comprehensive and profound study.
Accordingly, based on the Area studies and inter-sector approach method, the study
on socio-economic changes in Yên SỞ Ward during the urbanization process is a
topic with scientific and practical meaning and urgency, forming a scientific ground
for policv planning as well as steady development orientation of the ward.
2. Study purposes and fuctions of the topic
2 .1. Purposes o f the thesis
To explore, survey, analysis and evaluate the actual situation of both positive
and negative socio-economic changes during the urbanization process of Yên Sở
Ward, Hoàng Mai District. Hanoi and accordingly to propose some justified
solutions with the aim to complete the management process and a stable
development policy in the Ward.
2.2. Study functions o f the thesis
- To clarify the theoretic grounds and fundamental concepts related to the
topic.
- To explore, survey, analysis and evaluate the actual situation of socio
economic changes during the urbanization process of Yên Sở Ward under the eye of
Area studies and inter-disciplinary research methodology.

- Based on the research results, to make some proposals and
recommendations to finalize the management process and a stable development
policy of Yên Sở Ward.
3. Study subjects, objects and scope of the topic
3.1. Study subjects and objects
The high-speed urbanization and industrialization process have contributed
to the socio-economic development of Yên Sở Ward, changed the economy and
social structure as well as the local living style to an urban structure and directly
affected the local lives. Therefore, the study subject is socio-economic changes
during the urbanization process in Yên Sir Ward and the study object includes the
local people communitN in Yên Sơ Ward.
3.2. Scope o f the study
The study covers socio-economic changes in Yên Sở Ward. I loans’ Mai
District. Hanoi during the urbanization process from 2000 to 2010.
4. Theoretic grounds, materials and study method
4.1. Theoretic grounds
The thesis is based on the dialectical material methodology on the socio
economic development of Vietnam and industrialization and modernization process.
In addition, the thesis also applies some fundamental theories of Sociology on social
structure, social changes and social movements. The analyses are made based on the
viewpoints of urban sociology, urban theory and urbanization theories.
4.2. Sources of materials
The thesis explores and uses the following material sources:
1- Letters, reports, papers, statistic tables and date from the Ward and
District.
2- Geological survey documents
Using the countryside method and sociology survey by a questionnaire (200
sheets), we concentrate on the survey of some of the most important issues to the
study topic:
- Labor and job situation of all the members of all farmer households.

- Changes in economic activities of the farmers during the urbanization
process due to their land selling or withdrawal by the State and then transference
into another use or the termination of use the land for agriculture by the farmers
themselves.
- Poorer environmental hygiene conditions and their effects on the life
activities and agriculture activities of the local people.
- Changes in social environment, neighbor relationship of the local people.
3
- Chances in cultural life of the local people due to the direct effects of the
urbanization process on some typical faith activities such as worshipping the
temples and pagodas, etc and the use of free time as well as entertainment activities
of the local people.
3- Relevant studies and researches of the preceding authours
Among 3 aforesaid material sources, source 1 and 2 play an important role.
4.3. Study method
Based on study object and topic, the thesis applies the viewpoints and
approach method of inter-sectors and multi-sectors. The geographical, ecological
and geological knowledge are used to study and evaluate the natural conditions. The
scientific and social knowledge such as history, ethnology, culture, economy and
sociology help the study on inhabitant origin, structure of economic sectors and so
on so forth. Besides, the thesis also applies the following methods:
Inheritance method: Based on the available studies and researches on
economic-cultural-social changes in the suburbs of Hanoi during the urbanization
process, the study on Yên Sở Ward itself includes much information related to
theoretical grounds, economy, culture and society. Learning and inheritance from
the previous studies is the first method to be carried out.
Method of data summary', statistics and analysis: After having collected the
available studies and researches related to the thesis and the data, papers, statistics
figures related to economy- society in Yên Sở Ward, we have summarized all the
material sources related to the thesis topic, analyzed and processed all the socio

economic data.
Method of sociology survey: In order to collect the geological data, we have
made a survey on the study area and prepared a questionnaire on econom\-society
and a profound interview with the managers and local residents.
The historic and logic methods are also applied together during the study
process. Those methods support the acknowledgement, evaluation and explanation
of objects and phenomena on a prof ound historic viewpoint.
4
5. Scientific hypothesis
At Yên Sơ Ward, during the high-speed urbanization process the system of
old relations has been chanced along with the formation of new social ones.
1- There has been a rapid change in economic structure. The chanue in
purposes of land use has created conditions and opportunities for the local people to
become the urban hut raised the challenges on new jobs. A considerable majority of
local labor with low educational and professional background mainly works in
informal industrial sectors and small commercial and service sectors.
2- The liv ing style of the local residents here is now changing to urban stvle
w hich is possibly seen through the rapid transformation of social space, hi eh
flexibility of occupation; increasing development of personal and private living
space parallel with continued narrowing of community and collective social
relations; development of infrastructure in general along with the overloading of
infrastructure at some areas with suddenly increasing population; wider and richer
opportunities to select different ways of working and entertainment.
6. Contributions of the thesis
6.1. Based on the abundant material sources, the thesis has drawn a
systematic and complete economic- social picture of Yên Sở Ward and also
analyzed and pointed out main economic- social changes in the Ward during the
urbanization process from 2000 to 2010.
6.2. Applying the inter-sector approach method and from the profound study
of socio-economic changes of a particular ward, the thesis has made some

comments on the features and experiences and proposed the economic- social
development orientation of Yên Sờ Ward. The thesis may become an useful
reference to the management and organization leaders of Yên Sờ Ward to revise and
orient the urbanization process and resolve the social issues which are and will be
about to take place. Also, the thesis can be used as a reference for the people who
are interested in the studying and teaching on this issue.
7. Structure of the thesis
5
Introduction
Chapter Ỉ: Theoretical grounds for the study on socio-econom ic changes
during the urbanization process and general introduction o f Yên Sơ Ward
Chapter 2: The economic changes in Yen Sơ Ward during the urbanization
process from 2000 to 2010
Chapter 3: The cultural-social changes in Yên Sơ W ard during the
urbanization process from 2000 to 2010
c 'one I us ion and recommendations
6
CHAPTER 1
THEORETICAL GROUNDS FOR THE STUDY ON SOCIO-ECONOMIC
CHANGES DURING THE URBANIZATION PROCESS AND GENERAL
INTRODUCTION ON YEN s o WARD
1.1. Theoretical grounds for the study on socio-economic changes during the
urbanization process
/././. Urban
All the urban concepts are relative and origin from the differences in the
economic- social development level, cultural features and population system, Each
country in the world has it own regulations based on its requirements and capacity
of management. On the consideration within the most general aspect, urban is a
habitation space of a people community living together and performing within non-
acricultural sectors.

Vietnamese language has many words demonstrating an urban such as: city,
town, small town, urban and the concepts and criteria to determine an urban are
different at different times.
Sociology considers an urban as an existence form of the society within a
particular space area and a habitation form of humankind. The existence of urban
itself is totally different from a construction of many separate buildings together; in
other words, the composite here is not simply a combination of different
components. Instead, an urban is a separate living body with its own style.
From the viewpoint of socio-economic management, an urban is a high-
density population area, mostly non-agricultural labor, with proper infrastructure, is
a collective or specialized center playing the role to promote the socio-economy of
the whole country, a territorial region, a province, a rural district or a part of
province and rural district.
From the viewpoints above and in the current conditions, the common
concept of urban is understood as follows: An urban is the habitation space of
7
I
Ì
humankind in which the inhabitants Gather with hieh-densitv and the labor mainly
works in non-agricultural sectors, the infrastructure, eeonomv and society develop
and play the role of enhancing the socio-economic development of a particular
territory.
This concept aims at emphasizing 2 sides including social and economic
development of an urban: Socially, an urban is a habitation form in which there is a
hiah-density of population, high living standard, more convenient facilities and
progressive legal institution and the urban space includes space of architecture,
technical infrastructure and environment Economically, the production activates
mainly cover industrial and service ones. In order to achieve the socio-economic
development, an urban needs to have an advanced technical infrastructure system.
Thanks to the socio-economic development, an urban contributes to accelerate the

economy and society of a region or the whole country. Thus, once mentioning an
urban, it is necessary to refer to its main components such as scale, population
density, socio-economic development, labor type and modernity of the
infrastructure and role of an urban in the region or the whole country [ 14. p. 13]
In conclusion, an urban, regardless o f big or small scale, is
sim ultan eo usly:
- An object space containing construction works technical infrastructure
system
- A strong economic space
- A cultural-social space with dominance in material, mental and spiritual
life of the community combined with each other a common living style
New urban areas in Vietnam has been established under 3 main form s
1) New urban areas from the areas not vet urban:
2) New urban areas closely connected with the existing ones;
3) Urbans developing traditionally which are based on the socio-economic
development of the population areas [50. p.29],
Features o f urban living style:
8
- Connected with industrial manufacturing: easily changeable
accommodation and working place; exact working time.
- Dependent and connected with service activities, high living standard and
associated with the market.
- Abundant, diversified and complicated communication of the urban people
with many cultural and artistic activities meeting the demand of the urban:
accordingl) bringing about the conditions for them to bring their imaginative
capacity into play.
- Use of spare time in cultural, sports activities and other varied ones freely
and effectively [54. p.57],
1.1.2. I Urbanization
The urbanization process is a complicated, multi-dimensional phenomenon

and therefore it is very difficult to generalize it in a few sentences. We do not have
any ambition to generally cover all aspects of the urbanization phenomenon with
our definition as stated below but only raise the common tendency instead, from the
causes, developments and multi-face results of the urbanization process:
Urbanization is a social phenomenon related to the deep economic-social-
cultural-spacious movements associated with scientific- technological
advancements and it makes an momentum to enhance the labor distribution,
occupational transference and establishment of new jobs and simultaneously creates
the demand for moving to the urban center, promote the economic development,
supporting the changes in social and cultural life, increasing living standards,
changing living style and social communication forms , making a ground for a
reasonable population distribution to meet the increasingly plentiful and diversified
social requirements with the aim to set up a dynamic balance among the
construction environment, social environment and natural one.
The aforesaid definition has tried to point out the urbanization process as an
economic-social-cultural-spacious (environmental) phenomenon covering 2 points:
causes and results of the phenomenon. As far as the first point is concerned, we can
9
SCO 2 outstanding factors: the development of science and engineering and
manufacturing technology and the development of manufacturing itself, i.e. the
economy. As far as the second one is concerned, it can be divided into 3 main
categories: The first category is socio-economic results including the important
events in the social-occupational structure and social movements as well as the
changes in family structure. The second one belongs to cultural-social results
including the increase in living standard, the changes in living style and the demand
tor social communication. The last one is spacious- environmental results consisting
of the changes in the factors that form an urban and that form the space in the
structure of each group of population as well as the whole system of groups [50.
p.40].
/. 1.3. Effects o f socio-economic developments on urbanization

/. 1.3.1. Level o f economic development is a condition o f urbanization
Economic development, including the development of industries and
services, is a determinant of the urbanization process. The level of economic
development of a country is shown in many aspects: scale and speed of GDP
increase, div isional structure of the economy, the development of economic sectors,
level of completion of infrastructure, cultural and educational level of the
inhabitants, living standard At some degrees, the level of economic development
demonstrates the advantages of position, natural conditions and social issues of a
country or a region.
However, when the economic development as a necessary condition for the
urban development is achieved, the remaining problem of the policy or mechanism
of urban development is considered to be sufficient condition. No proper urban
development policy will bring about a deadlock in the future.
/. 1.3.2. Social production pattern has an important effect on urbanization
The social production pattern and the politic situation of the country directly
affect the urbanization process. Each production pattern has a relevant urban style
and the urbanization process consequently has its own characteristics. In Vietnam.
10
alter 1954 the country was divided into 2 parts with 2 different politic regimes in
which the North uoes with socialist production pattern and the urbanization model
has the main following characteristics:
- The cities were established systematically and hierarchically, coverine the
whole territory in order to remove the regional differences
- The cities were developed on the centralization basis and heavy industries
and national cultural color maintenance were taken priority.
Also, in the period 1954- 1975 in the South, the main characteristics of
American-aeed urbanization include administrative and service urbans.
undeveloped production and dependence of the local economy on the foreign
countries.
After the libration of the South (Mav. 1975) and the unification of 2 parts,

the whole country went with a common politic policy amid the tremendous
consequences of the war. difficulties of a independent and self-control economy and
slow progress of urbanization. After 1986. the DOl MỚI movement with the
socialist-oriented market mechanism and multi-sector economy opened the strong
development of production force. Especially, the policy of open market, attraction
of foreign investment and development of multi-sector created a jump in economic
development and strong urbanization process.
I.Ỉ.3.3. Managem ent guideline, policy and capacity has a strong effect on
urbanization
Guidelines and policies issued by the Government have a strong effect on the
economic development as well as urbanization process. Guidelines and policies on
urbanization, housing policies. Land Law, Foreign Investment Law are the major
policies of the State which has a direct and powerful effect on the urbanization
process in the country. After the National Party Congress No.VII. apart from the
major policies such as multi-sector economy development and open policies, the
State paid much attention to the urban development management and planning.
Accordingly, the national urban has been increased both in quantity and quality.
makinii big achievements, meeting the socio-economic development of the whole
country and simultaneously becoming a positive factor and determinant of
urbanization process.
Level and capacity of the urban management staff or State management
system on urban are crucial to the implementation of urban policies. All the proper
guidelines and policies require the staff who have good implementation and
organization capacity to realize the new policies.
ỉ. 1.3.4. National culture has an important effect on urbanization
The tradition of national culture has an important effect on the urbanization
process, firstly the management of urban land, social and population management,
i'ach nation has its own culture and it affects all the economic, politic, social issues
in general and urban style in particular. Socially. Vietnamese urban still have rural
colors. Not a long time ago. the current urban people were still farmers. Going to

the urban for studying, working, they have learned and integrated with the urban
living style hut maintained the old customs and habits. With reference to
construction viewpoint, Vietnamese urbans are still affected by many different
cultures which are shown through forms of dwelling construction of historic stages.
In 3 parts of the country, each city has it own typical features. Hanoi. Huê and [Jo
Chi Minh City have separate symbols which show its own color and the common
feature of Vietnam.
I. Ì .3.5. International integration is a boost o f the urbanization process
The full integration is a boost of higher-speed urbanization process. The
import of architectural forms, commercialization of relations, modern management
method, and joint venture in the construction of urbans or urban areas is a fact
happening lively in the developed countries like France and Canada. Vietnam is not
out of this fact. Since the French-occupied period, there have been such areas in
Hanoi. Recently, Japanese villages. Korean and Russian building areas have
appeared and those truly are positive foreign effects during the urban development
process in Vietnam. Economically, the economic integration results in the
development of markets. cspccialK financial markets. Currently, we arc not afraid
of insufficient capital but management incapacity.
Globalization process through international transaction (in terms of goods,
capital and labor) has made an integrated global economy. The competition among
the local and foreign urban centers has been increasingly powerful. The
interdependency is being established over the national borders, forming the closer
and stricter connections of economic co-operation. Commercial liberalization and
integration is creating new opportunities and changes within the urbans.
1.1.3.6. Scientific-technological revolution is a condition o f urbanization
The development of science and technology has a powerful effect on the
growth of the economy in general and each urban in particular at different degrees
and subject to the regional advantages, leading and management capacity and the
adaptation that each urban can perceive. The exterior science and technology affect
cities in terms of 2 tendencies. Firstly, cities compete with each other when multi

national companies compare input factors and evaluate the advantages of legal,
policies, activeness of the labor force and stable politics. The cities which can meet
these requirements will further grow and vice versa. Secondly, electron service
sectors including financial and commercial services, information and postage
services emerge. Modem communicative means also bring about great benefits to
big cities because those cities have created conditions to meet the modern
communicative means effectively.
Nevertheless, a question is whether developing countries like Vietnam can
grasp the modem technology achievements, learn from experience in economic
development and urban management from other nations in the world and in the
area, well deal with the issues of environment, population, transportation, housing,
employment and so on in urban? Those are truly big challenges to developing
countries in general and Vietnam in particular [ 14, p.26].
1.1.4. Effects of urbanization process on the socio-economic and environmental
development
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l .Ị .4 .1. Urbanization creates a prem ise to the transference of urban economic
structure
Economic structure is understood as a collection of fundamental and
considerablv stable relations among the interior components of an economy. The
most fundamental relations formed during the social re-production in the economy
in general and urbans in particular are those among different economic sectors,
areas and sectors.
Sectoral structure is shown by the proportion of each sector in the urban
economy, indicating roles and relations among the collections of organizations and
enterprises who play the same functions within the labor distribution system in
urban societies. Sectoral structure reflects the level of labor distribution and
development level of labor forces. Sectoral structure in an urban always changes
due to the rapid growth of industrial and service sectors.
Sectoral structure is made subject to Gross Production Value and Gross

Domestic Product with the aim to demonstrated roles of each sector in the
production of social products in urbans. At some degrees, sectoral structure shows
the production effectiveness in urbans. During the urbanization process, the
production values of industry, construction and service sectors will rapidly increase
because industrialization is a premise of urbanization and it is closely connected
with the modernization of infrastructure.
Urban economic structure is divided into 3 sectors: The whole urban
economic activities are arranged into 3 sectors. The first sector includes
agricultural-forestry and marine activities while the second consists of industrial
and construction activities and the last one comprises scientific and service
activities. At the beginning of urbanization process, the second sector has grown
fast and played the main role in the urban economy before gradually becoming
weak due to the replacement of industrial labor with automatic technology. The
third sector has gradually increased and eventually accounted for the highest
proportion within the post-industry period while the first one has decreased both
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absolutely and relatively during the whole urbanization process. I hose chanties
have been shown through the structure of labor, occupation and production results.
Hconomic structure based on economic sectors: liconomic sectors reflect the
growth level of the production relationship and at first ownership relationship in the
economy. The study on the urban economic structure is made on the basis of actual
existing economic components and it indicates the quantity, roles of each
component and consequently the dominance level of the main production
relationship is clearly stated. The urbanization process in the market economy has
been rapidly changed the proportion of the economic components. The non-state
economic component (private one) has been increasingly grown, especially foreign-
funded economic sectors, which has contributed to a compensation oflack of public
economic component in the areas requiring big investment such as new urbans,
modernization of existing urban infrastructure and resolution of environmental
issues.

1.1.4.2. Urbanization increases the effectiveness o f use o f natural resources
The urbanization process rapidiv increases the demand for use of natural
resources, particularly land.
Urban land is divided into the followings:
Industrial land: land for the construction of regionally centralized industrial
enterprises.
Commercial and service land: land for commercial transaction centers,
banks, financial and insurance centers which are normally located at the urban
center.
Transportation land: including land for transportation system of railway,
waterway, airports, ports and so on so forth.
Urban civil land: land for the construction of dwelling and public utilities
serv ing the demand for liv ing, rest and entertainment of the people.
Treasure land: land for the construction of city or state treasures
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Special land: land for the military, cemeteries, national and international
administrative agencies and so on 154. p.l 13].
Rapidly increasing population, increasing income and increasing demand for
hieh dwelling quality has made an increase in the demand tor building land. The
urowth of production, land and plan is completely crucial: therefore, urban land has
continuously been in shortage, especially at the center of big cities like Hanoi. Ho
C hi Minh City. In this case, it is compulsory' for the more economical and effective
use of land. The price of land is dependent on many factors but fundamentally its
profit-making capacity. The people who have the capacity of making profit most
will offer the highest price in the competitive market mechanism. Accordingly,
people always try their best efforts to make continuously high economic
effectiveness of land. Other natural resources such as \vate also has been in
shortage day by day. An allowance of solutions to enhance the effectiveness of use
of natural resources should be done in all the urban activities.
1.1.4.3. Urbanization improves the m arket extension

The first feature of an urban: an urban is a place which can supply the labor
market with a high-qualitv and large-scale labor source. Due to the high income of
the urban residents, the demand for consumer goods drives the development of
production. The second feature of an urban: an urban is a high-density population
area which creates a wide consuming market with many advantages of product
supply and distribution [14. p.29],
1. 1.4.4. Urbanization and social labor structure
I Irbanization is a continuous transference process of social labor structure
and nature from agriculture to industry, from industry to services and science-
teehnologv. from simplicity to complexion, from small intelligence content to big
one. from manual labor to intellectual work based on the increasing and widespread
technology transformation.
1.1.4.5. Urbanization and social movement
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The changes in labor structure and nature are related to a social phenomenon
closely associated with the urbanization process, which is social movement
phenomenon. The essence of social movement consists of 2 sides, i.e. occupational
replacements called occupational movements (vertical movements) and
accommodation changes called geographic movements (horizontal movements).
I he 2 most outstanding forms of movement during the urbanization process include
rural-urban movements (sharing the features of both geoeraphic movements and
occupational ones) and urban-urban movements (normally only sharing features of
nongraphic movements.
Urbanization is an endless movement process comprising occupational and
geographic movements with their fundamental forms, at first rural-urban
movements and then urban-urban movements, drawing a lively picture of social
movements.
1.1.4.6. Urbanization and way o f living
There are 3 components of a wav of liv ing or more exactly, a way of living is
dependent on 3 main factors below:

- A way of living is a demonstration of the economic life of a social
community. In other words, a man can only live by all that the community has
produced.
- A way of living is a demonstration of the social life of a community. A
person lives within a combination of particular social relationships and each one can
not go beyond the shape of institutions that a particular society has established.
- A way of living is a demonstration of the cultural life of a social
community; i.e. the cultural values of a community including spiritual ones during
the existence process of the community.
Urbanization has created economic, social and cultural premises to change
the living standard and way of living. Therefore:
Urbanization is an increasing transference process of material and mental life
based on the improvement of consuming the material and cultural values made by
O c l u l).'-iuL ( C 'i H
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