Topic: The transitions in three economic sectors

Topic: The transitions in three economic sectors
A. Introduction.
In 1950, South Korea is poor country, with about 95 percent of population lived
in countryside and worked in agriculture. Then South Korean Government
decided to industrialize their economy. They concentrated on emerging
industries that were textiles and heavy industries like steel and ship building,
light industries like electronic equipment and components, electrical goods
(such as cheap televisions). It also started producing cars (automobiles) and
motorbikes.
Now, South Korea is a industries country, with tenth economy in the world and
fourth in Asian (after China, Japan and India), it has very dynamic economy
with large and famous enterprises, for example: Samsung in computers and
telecommunication equipment (Smartphone, TV…), LG in household goods and
electronic components (washing machine, refrigerator…), Hyndai in
Shipbuilding and automobile manufacturing, Possco in Steel.
So, to build and grow the economy stable and steady, with fast pace of
sustainable growth, it requires determining the appropriate economic structure
and resolving the relationship among economic sectors, economic components
and economic territory. Therefore, transition in three economic sectors is
inevitable in the implementation process of industrialization and modernization
in our country today. Our discussion will talk about: The transitions in three
economic sectors in Viet Nam: situation and reasons.
Economic structure is the overall economic sectors, economic department with
location, density and their corresponding relationships. It includes: economic
sector structure, economic components structure, economic territory structure.
Economic sector structure expressed the relationship between the sectors of the
national economy: agriculture, industry, service. The economic sector
transition matches the increasing development of productive forces and social
labor division.
B. Body
I. Situation

1. The general situation in three economic sectors.
• The economic transformation structure always has a strong attachment
to labour transition.
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When beginning to industrialize, our economic was underdeveloped and at
a low level. Economic structure was still backward, agriculture contributed
high density to GDP, industry and services which bring economy high
value still contributed low density to GDP. Industrialization and
modernization process happened quickly, this led to strong change in
economic structure.
The transformation of the labour structure also happened as a strong
revolution. Labour which made up more than 70% in agriculture decreased;
in 2010, this rate was 49,5% in Viet Nam. Labour density in industry and
service increased instead.
• Economic structure has shifted towards industrialization and
modernization.
Economic transition toward industrialization, modernization likes a way for
Viet Nam to escape quickly from backward situation, slow development
and become a civilized and modern country.
The structure of economic sectors in GDP in our country is a shift towards:
- Proportion of industry and construction is increasing.
- Proportion of planting – forest – fishery and mining is declining in
the gross national product.
- Proportion of region services increased but not yet stable
With continuous high growth rate of GDP and relatively stable, economic
structure has changed significantly in a positive direction. Proportion of
agriculture in GDP has declined rapidly from 38.1% in 2009 to 34.6% in
2010. The ratio of industry in GDP has increased rapidly from 32.08% in
2009 to 36.73% in 2010 and 41% in 2011. Share of service sector also
increased over the year, but also more volatile.

2. The situation of each economic sector.
2.1. Agriculture.
Trend: Reduce the proportion of planting and increase the proportion of the
fishery.
Vietnam is an agricultural country. Growth in agricultural production value
occurs at a rate of 5% to 6%/year, decreasing to 3.5% in 2009, then increased
to 4.7% in 2010, GDP growth the lower branches and swings, from 3% to
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4%. Value of agricultural production, forestry and fisheries in 2010 was
estimated at 232.65 trillion. The export value of Vietnam’s agricultural
products have risen sharply in the last 4 years, especially in product with
competitive advantages, but mainly the product of rice, coffee, rubber,
cashew, pepper and vegetable… while livestock products exported almost
did not.
Structure of cultivation and breeding sectors has shifted towards progress,
increasing the proportion of product yield and high economic efficiency,
exporting worth product. Agriculture has an important change, has shifted
from rice monoculture, low productivity to not only enough in the country
but also exported large quantities of rice, ranked second in the world; exports
coffee, rubber, cashew nuts, pepper, seafood with the volume charted in the
world.
2.2. Industry.
Trend: Increase the proportion of processing industry and reduce the
proportion of mining industry.
Industry structure has quite a shift. The proportion of processing industry is
up from 78.7% in 2009 to 81.23% in 2010. The proportion of the mining
industry increases from 15.7% to 12.8%), increasing the share of industrial
production and distribution of electricity, gas and water (from 5.6% to 5.9%).
2.3. Services
The services sector’s growth in 2011 reached 6.8%, in 2012 reaching 5.9%,

in 2013 is at 6.56%, higher than the rate of other regions.
In the service sector, there has witnessed a dramatic development both in
quality and quantity. Share of service sector in GDP growth is relatively
strong in recent years. The worrying thing is the proportion of a number of
important services in the structure of the service sector and in GDP as the
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financial sector – banking, science – technology, transport,
telecommunications, service business is still volatile. And, though it appears
that some new services in the service sector, but in general the share of
service sector in the structure of our country’s economy is still low compared
to other countries in the region.
II. The reason of transition in three economic sectors.
1. The government policies.
Policies play the major role to create the transition in three economic
sectors; remove barriers, facilitate market development; orientate and
support the process of economic restructuring; control, limit the downside of
the market mechanism and ensure sustainable economic development.
For agriculture: Government has policy to create a powerful change in
agricultural production and rural economy.
- Government invests in the development of economic infrastructure, rural
society and building a new countryside, to quickly apply science and
technology to agricultural production.
- Aquaculture development towards large-scale commodity production,
coupled with the protection of ecological environment. Improve
competitiveness and ensure sustainable growth in production and export of
aquatic products.
- Focus on the development of farm economy, the type of economic
cooperation, speed up the reorganization and management innovation of
agricultural and forestry farms; develop the types of enterprises.
For industry: Policy of government in industry and constructions is

developing construction industry towards higher quality, competitiveness and
modernization. Viet Nam should concentrate resources on the development
of industries with advantages competitive, generate exports, such as agro-
forestry-fishery apparel footwear, industrial technology information…
For service: Government has policy to prioritize the development of
service sector which has great potential and high competitiveness.
Traditional services such as transport, trade, banking and
telecommunications must be expanded and improved quality legal services,
auditing, insurance, science, technology, education and training, health,
culture, sport information is being developed.
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Specially, government has policy to create favorable condition for all
economic sector development. Government implements innovation
management mechanisms and enhance the effectiveness of state management
for the restructuring of economic activity.
2. The trend of the world.
Trade may impact to changes in the economic structure. It stimulates
the development of service and industry: transportation, telecommunication,
banking and service and meet the need for improving the quality of life:
health, education, sports, entertainment and tourism. Thus, it alters the
structure of production and services.
In the coming years, the international economy continues to move up
into the branches of knowledge economy, high technology.
Globalization and international are an opportunity for the developing
countries in international economic integration, expand exchanges with other
countries in the world, on that basis can acquire the skills and experiences to
develop domestic industry, in addition can promote the advantages of its
economic structure, and it is a good opportunity to showcase the country as
well as a prerequisite for the development services industry.
When joining the WTO, with the constraints of the global economy and

the requirements about the market opening has helped Vietnam expand the
international relations, opening up opportunities to attract investment abroad.
3. Science and technology develop quickly
In the world, science and technology are more and more developmental.
There are many new inventions and scientific advances are invented.
The development of science and technology is widely applied to
agricultural production. People use machine to replace labor in production,
they apply methods of biotechnology to increase quantity. Tractors,
harvesters, sprinklers, pumps, dryers and other motorized vehicles are used
to expand production and save time for workers in the field. Besides, the
development of science and technology increases the effect of production
and business in the industry and services. This leads to the ability of
expanding the scale of production, labor demand increases, and they attract
labors from the agricultural sector. 
4. Other reasons.
- Geographical location, natural resources.
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Viet Nam has many forests, scenic well suited to the development of
tourism and related services, many mineral create good conditions for the
development of the mining industry. We have also a long coastline, many large
ports, it makes convenient to develop transportation services.
- Level of development of market economy.
Social needs of market are basis to production and meet a demand not only
the quantity, thereby leading to the changes in position, the proportion of
occupations in the economy.
C. Conclusion.
Transition economic structure trend over the years is positive, the direction
of industrialization and modernization and in accordance with actual
conditions of our country.
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