THE TRANSITION OF SECTORAL ECONOMIC STRUCTURE TOWARDS SUSTAINABLE DEVELOPMENT IN THAI NGUYEN PROVINCE

VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES
-----------------**-----------------

PHAM THI NGA

THE TRANSITION OF SECTORAL ECONOMIC
STRUCTURE TOWARDS SUSTAINABLE DEVELOPMENT
IN THAI NGUYEN PROVINCE

Major: Political Economy
Code: 62.31.01.02

PhD. DISSERTATION SUMMARY

Hanoi, 2016


The work was completed at:
GRADUATE ACADEMY OF SOCIAL SCIENCES
VIETNAM ACADEMY OF SOCIAL SCIENCES

Scientific supervisors: 1. Assoc. Prof. Dr. Ha Huy Thanh
2. Dr. Tran Ngoc Ngoan

Opponent 1: Assoc. Prof. Dr. Mai Thi Thanh Xuan
Opponent 2: Assoc. Prof. Dr. Nguyen Trong Xuan
Opponent 3: Assoc. Prof. Dr. Nguyen Dinh Long

The PhD. dissertation will be defended in front of the Dissertation Scoring
Council of the Academy

at the Graduate Academy of Social Sciences, 477 Nguyen Trai Street,
Thanh Xuan District, Hanoi
Time……….date…….month………year 20…….


1

INTRODUCTION

1. Problem statement
Sustainable development is increasingly becoming the center of
development in all areas when the society has entered the 21st
century. Referring to sustainable development is referring to
requirements for balance and harmony among three aspects of
economy, society and environment. Sustainable development also
means economic structure transition (with the emphasis on sectoral
economic structure) in the direction of improvement. Therefore, it is
the task to clarify basic connotations of sectoral economic structure
transition towards sustainable development and apply it in practice.
Thai Nguyen is a Northern midland and mountainous province,
which has many comparative advantages in geographical location,
favorable climate, mineral resources, and abundant skilled human
resources to construct a rational, modern and efficient economic
structure. After nearly 30 years of implementing the Party and State’s
economic reform, the socio-economic situation of Thai Nguyen province
has achieved some encouraging results.
However, besides the achievements, Thai Nguyen is also
facing strong challenges in the sustainable development of
economy, society and environment. In particular, in the master
planning and plans for the socio-economic development in the

province, three important aspects of sustainable development have
not really been combined and closely integrated.
Stemming from the above reasons, the study on "The transition
of sectoral economic structure in Thai Nguyen province towards
sustainable development" is an urgent and important requirement in
the context of the current development of Thai Nguyen province.


2
2. Research aims and research tasks
2.1. Research aims
To clarify the basic theoretical issues of sectoral economic
structure transition in relation to the requirements of sustainable
development in order to assess the current situation and give
recommendations of the sectoral economic structure transition
towards sustainable development in Thai Nguyen province in the
period 2015 - 2020 and vision to 2030.
2.2. Research tasks
- Clarify the rationale for the transition of sectoral economic
structure towards sustainable development.
- Analyze and evaluate the current situation of the sectoral
economic structure transition towards sustainable development in
Thai Nguyen province on three aspects of economy, society and
environment in the period 2006 - 2015.
- Recommend primary perspectives and solutions to promote
the sectoral economic structure transition towards sustainable
development in Thai Nguyen province in the period 2015 - 2020 and
vision to 2030.
3. Research Subject and research scope
3.1. Research Subject

The dissertation focused on studying the issues related to the
transition of sectoral economic structure in Thai Nguyen province in
relation to the requirements of sustainable development (in terms of
economy - society - environment) under the perspective of political
economics.
4. Research scope
(i) Scope of content
Within the dissertation, the author focused on the theoretical
and practical issues of sectoral economic structure transition,


3
sustainable development and the mutual impact between them in
terms of political economy. The perspective of sustainable
development used in this research mainly focused on three basic
elements as economy, society and environment.
(ii) Scope of time
The author intended most of the information and data will be
collected, updated and calculated primarily in the period 2006
2015. Also, the author intended to propose some solutions to the
transition of sectoral economic structure in Thai Nguyen province
towards sustainable development up to 2020 and vision to 2030.
(iii) Scope of space
The dissertation focused on researching the transition of
sectoral economic structure in Thai Nguyen province in relation to
Hanoi and neighboring provinces in the key Northern economic
region.
4. Rationale and research methology
4.1. Rationale
The dissertation relied on the following rationale:

- The methodological basis of the dissertation included
dialectical materialism method and historical materialism method of
Marxism – Leninism.
- The basic theoretical points of Marxism – Leninism on
economic structure, sectoral economic structure transition and
sustainable development.
- The perspectives and policies of the Party and policies of the
State on economic structure, sectoral economic structure transition
and sustainable development;


4
- The theories of economic structure transition and sustainable
development;
- The inheritance of the result of some previous researches
related to the dissertation project.
4.2. Research methodology
- Research approach group: Dialectical materialism
method; logical - historical method, etc.
- Theoretical research group: Information collecting, sorting and
processing method; SWOT method, PEEST method.
- Practical research group: Statistical and comparative
method; analytical method of practical model.
In addition, the method of scientific abstraction was regularly
used in the research.
5. New contributions of the dissertation
After the completion of dissertation, there may be some new
theoretical and practical contributions as follows:
- The dissertation summarized the lessons learned that can be
applied to Thai Nguyen province in the immediate and long-term

periods.
- The dissertation focused on analyzing the current situation of
the transition of sectoral economic structure towards sustainable
development on three aspects of economy, society and environment
in Thai Nguyen province, which reviewed the achievements and
shortcomings, then caused the interpretations of the above
shortcomings;
- The dissertation recommended a system of solutions to
promote the transition of sector economic structure towards
sustainable development in Thai Nguyen province, striving to make
Thai Nguyen province to become an industrial province by 2020.


5
6. The dissertation structure
In addition to the introduction, conclusion, appendices and
reference list, the dissertation content is structured of 4 chapters.
Chapter 1: The overview of the research
Chapter 2: The rationale and experiences in the transition of
sectoral economic structure towards sustainable development
Chapter 3: The current situation of the sectoral economic structure
transition towards sustainable development in Thai Nguyen province
Chapter 4: Perspectives and solutions to promote the transition
of sectoral economic structure towards sustainable development in
Thai Nguyen province.
Chapter 1
THE OVERVIEW OF THE RESEARCH
1.1. Previous researches on the economic structure and the
transition of sectoral economic structure
1.1.1. The research situation in the world

The transition of sectoral economic structure was mentioned in
the doctrine of social labor division and the doctrine of social
reproduction by Karl Marx.
Arguments on the economic development stage were given by
the prominent representative W.W. Rostow. The scholar Tatyana P.
Soubbotina clarified the economic development through the stages of
agriculturalization, industrialization, and post-industrialization.
Lately, the "structuralism school" appeared with viewpoints on
the economic structure development in the context of globalization
and expansion of the global value chain. In particular, arguments on
structural changes of the classical school ranked a primary position,
typified as "Lewis – Fellner – Ranis’s dualistic economic model” and
Chenery’s structural analysis model.


6
The World Bank (WB) had two major research projects: "The
East Asian Miracle" and "Ruminating on the East Asian
Miracle". These two projects considered the structural policies of
Asian countries (Japan, Korea, Taiwan, Singapore, etc.)
1.1.2. The research situation in Vietnam
In Vietnam, the transition of economic structure in general and
the transition of sectoral economic structure in particular were
concerned about and studied by a lot of scientists of many
different aspects: "The transition of economic structure in terms of
integration with the region and the world," by Prof. Dr. Le Du
Phong and Assoc. Prof. Dr. Nguyen Thanh Do (1999); the State-level
scientific project, code KH 02-05 "The transition of sectoral
economic
structure

during
industrialization
and
modernization" (2005) edited by Bui Tat Thang. "Scientific
rationale for adjusting the sectoral structure policy in conditions of
Vietnam’s international economic integration" – The ministeriallevel-scientific project reported by Dang Thi Hieu La, etc.
From the analysis of the above studies, the author gave possible
conclusions as follows:
First, the author hoped to inherit research achievements made
by the scientists mentioned above.
Second, unlike the previous studies which mainly focused on the
transition of sectoral economic structure in terms of quantity, this study
paid special attention to the transition of sectoral economic structure
in terms of quality from the perspective of political economy.
Third, unlike the previous studies on the transition of sectoral
economic structure (focusing primarily on the production structure),
this paper examined the transition of sectoral economic structure in
the collective relationship between economic, social, environmental
issues towards sustainable development; and evaluated the role and
impact of the inside and outside factors of the economic system to
the transition of sectoral economic structure towards sustainable
development.


7
1.2. Researches on sustainable development
1.2.1. The research situation in the world
* On the concept of sustainable development
As soon as fundamental concepts of historical materialism
were formed, Marx and Friedrich Engels considered the

relationships between man and nature, between human history and
natural history as an organic and inseparable unity. This is really
a rationale for the sustainable development strategy of each
country as well as of all mankind.
The concept of sustainable development was performed by
the WCED in the report “Our Common Future”; then the
economists focused on sustainable development issues. Barbier
and Markandya (1990) synthesized theories and divided
definitions into two groups (ie, in wide and narrow sense). Next,
Hofkes (1996) came up with the growth model in which the
elements of natural resources were included, which could
calculate the optimal exploitation in terms of environmental
sustainability.
* Researches on statistical indicator system for sustainable
development
In 1995, the Committee for Economic and Social Affairs of
the United Nations established a system of statistical indicators
including 134 national indicators of sustainable development;
these indicators were summarized in the "Green Book", which
was published widespread. In 2001, the UN CDS launched a
system of recommended indicators including 15 main themes, 38
branch themes and 58 indicators.
In addition, many scholars were interested in this issue: Peter
P. Rogers, Kazi F.Jalal and John A. Boyd in "An Introduction to
Sustainable Development", published in 2007, introduced the


8
fundamental knowledge of sustainable development. John Blewitt
in "Understanding sustainable development" published in 2008

also played an important part in the theory of sustainable
development. Simon Bell and Stephen Morse in "Sustainability
Indicators: Measuring the Immeasurable” published in 2008
made major contributions to the theory and practice in use of
sustainable development indicators.
1.2.2. The research situation in Vietnam
* Sustainable development in Vietnam’s development policy
The perspective of sustainable development was particularly
clearly asserted in the socio-economic development strategy 1991 2000 and related documents through Party Congress VII, VIII, IX, X,
XI. After that, the Prime Minister issued the strategic orientation for
sustainable development in Vietnam (Vietnam Agenda 21).
* Researches on sustainable development in Vietnam
The most basic and systematic research on sustainable
development in Vietnam was done within the project "Support to the
development and implementation of Vietnam Agenda 21" VIE/01/021 hosted by the Ministry of Planning and
Investment (MPI) with the participation of ministries, sectors,
localities and cooperation of the United Nations Development
Programme (UNDP), the Denmark International Development
Agency (DANIDA) and the Sweden International Development
Agency (SIDA).
On the academic side, there were projects implemented by the
authors as Assoc. Prof. Dr. Ha Huy Thanh – Assoc. Prof. Dr.
Nguyen Ngoc Khanh (eds) (2009), "Sustainable development from
concept to action", Hanoi, Social Science Publishing House, Assoc.
Prof. Dr. Bui Tat Thang, Dr. Luu Duc Hai, Dr. Tran Hong Quang
(2014), "Towards a
sustainable
economy", Social
Sciences
Publishing House, Ha Noi.

9
For Thai Nguyen province, related to issues of sustainable
development, the People's Committee of Thai Nguyen province
published "The strategic orientation for sustainable development in
Thai Nguyen to 2020 (Thai Nguyen Agenda 21)".
1.3. The researches on the transition of economic structure
associated with sustainable development
On this content, it is important to mention the works as "The
transition of sectoral economic structure in view of sustainable
development of the key Northern economic region - Vietnam", PhD.
dissertation
by
Ta
Dinh
Thi,
National
Economics University; "The relationship between economic growth
and sustainable development in Vietnam", the special ministerial
level project in 2009, the Central Institute for Economic
Management; "The transition of sectoral economic structure towards
sustainable development in Vietnam ", monograph, Assoc. Prof. Dr.
Pham Thi Khanh, National Political Publishing House, 2010.
One of the most recent researches was updated and referred
by the author was the PhD. Dissertation implemented by Ngo Thai
Ha, which focused on “the transition of sectoral economic
structure towards sustainable development in Vietnam."
1.4. The raising issues and research orientation of the dissertation
1.4.1. The raising issues should be further studied

First, so far, there has been no study on the transition of sectoral
economic structure in relation to the sustainable development issues for
a particular province as Thai Nguyen.
Second, at present, the province's orientation of sectoral
economic structure transition has not been based on scientific
grounds on the basis of thorough analysis of the province’s
advantages of nature and society, especially in the new context of


10
economic integration and the impact of climate change to the current
global.
Thus, in this dissertation, the author had a deep analysis and
interpretation of the major issues on theory and practice of the
sectoral economic structure transition towards sustainable
development for a particular province as Thai Nguyen, then proposed
some specific solutions to ensure the sustainability of that kind of
transition.
1.4.2. Research orientation of the dissertation
- On approach: The dissertation studied the transition of sectoral
economic structure of Thai Nguyen province towards sustainable
development on three aspects: economy, society and environment. The
study was done in view of the political economics.
- On theory: The dissertation clarified the rationale, criteria and
factors affecting the economic sector restructuring process towards
sustainable development. The issue of sustainable development
mainly focused on three aspects: economy, society and environment.
- On practice:
+ Lessons learned for the transition of sectoral economic
structure towards sustainable development in Thai Nguyen province

were drawn on the basis of theoretical analysis and practical
experiences of some countries in the world (Korea, China) and some
provinces and cities in Vietnam (Vinh Phuc, Da Nang).
+ The analysis and assessment of the sustainability of sectoral
economic structure transition in Thai Nguyen province in the period
2006 - 2015 was done on the basis of arguments made clear in chapter 2.
+ Based on the analysis and assessment of the current situation in
chapter 3, the dissertation will propose perspectives and solutions to the
transition of sectoral economic structure towards sustainable
development in Thai Nguyen province up to 2020 and vision to 2030.


11
Chapter 2
THE RATIONALE AND PRACTICE OF SECTORAL
ECONOMIC STRUCTURE TRANSITION TOWARDS
SUSTAINABLE DEVELOPMENT
2.1. The rationale for sectoral economic structure transition
towards sustainable development
2.1.1. Arguments on economic structure and sectoral economic
structure transition
2.1.1.1 Eeconomic structure and sectoral economic structure
* Economic structure
Now there are many concepts of economic structure.
According to Vietnam Encyclopedia, "Economic structure is
the overall economic sectors, areas and divisions which have a
relatively stable organic relationship.
* Sectoral economic structure
Sectoral economic structure is a combination of economic
sectors and a ratio relationship between economic sectors shown in

the position and weight of each sector in the overall national
economy. Sectoral economic structure transition reflects the level of
social division of labor in the economy and the development level
of productive forces.
2.1.1.2. Sectoral economic structure transition
Sectoral economic structure transition was mentioned by the
schools of economic theory from many different approaches. Three
major economic schools were Marxist economics; mainstream
economics and development economics.
2.1.2. Arguments on sustainable development
2.1.2.1. The concept of sustainable development
In Section 4, Article 3 of the Law on Protection of the
environment, sustainable development was defined as the


12
development that meets the needs of the present without
compromising the ability of future generations to meet their own
needs on the basis of close and harmonious combination among the
economic growth, social progress guarantee and environmental
protection."
Based on the above analysis, the author proposed a more
specific definition of sustainable development: "Sustainable
development is a way of socio-economic development to better tackle
the relationship among the economic growth, solutions to the social
issues and environmental protection to better meet the needs of the
present without compromising the ability of future generations to
meet their own needs ." This definition can be extended to three basic
constituents of sustainable development: economy - society –
environment.

2.1.2.2. The content of sustainable development
(i) Sustainable development in economy
(ii) Sustainable development in society
(iii) Sustainable development in environment
2.1.3. Arguments on sectoral economic structure transition towards
sustainable development
2.1.3.1. The concepts of sectoral economic structure transition
towards sustainable development
The author identified with the author Ta Dinh Thi in defining
sectoral economic structure transition towards sustainable
development "Sectoral
economic
structure
transition
towards sustainable development is the transition that ensures a
balanced and harmonious development among the aspects of
economy, society and environment; or to put it more specifically,
sectoral economic structure transition towards sustainable
development must ensure a positive, efficient, stable, and high-level
economic growth; ensure the necessary stability of the economic
system; avoid and mitigate risks, with competitiveness; avoid


13
stagnation, recession and structural collapse of the economy; be less
vulnerable from external changes; be less harmful or be harmless to
the natural environment; ensure a progressive social development;
ensure the maintainability of security, social order and safety;
proactively and effectively participate in international cooperation".
According to this concept, sectoral economic structure

transition towards sustainable development must meet the
following demands:
(i) Promote the rapid, effectively, stable, balanced and
harmonious economic growth between localities, regions,
particularly between rural and urban areas.
(ii) Ensure the rational, economical and effective use of natural
resources, the maintainability of biodiversity and the minimization of
the adverse impact on the environment.
(iii) Contribute to solve social problems.
2.1.3.2. The contents of sectoral economic structure transition
towards sustainable development
According to this concept, sectoral economic structure
transition towards sustainable development must ensure the
following contents:
(i) E economy
(ii) Society
(iii) Eenvironment
2.1.3.3. Evaluation criteria on sectoral economic structure transition
towards sustainable development
(i) Economic indicators
(ii) Social indicators
(iii) Environmental indicators
2.1.3.4. Factors impacting sectoral economic structure transition
towards sustainable development
(i) Factors within the economic system
(ii) Factors outside the economic system


14
2.2. The experiences on the sectoral economic structure

transition towards sustainable development of the countries in
the world and some provinces in Vietnam
2.2.1. The experience of some countries in the world
2. 2. 1.1. The experience of Korea
2.2.1.2. The experience of China
2.2.2. The experience of some provinces and cities in Vietnam
2.2.2.1. The experience of Vinh Phuc
2.2.2.2. The experience of Da Nang
2.3. Some lessons learned on the transition of sectoral economic
structure towards sustainable development for Thai Nguyen Province
(i) Put emphasis on the economic structure transition from
sectors with low productivity to sectors with higher productivity to
give greater contributions to the economic growth.
(ii) Make use of geographical advantages to strengthen the
investment (especially FDI) and initial accumulation, etc.
(iii) Persist the motto of sectoral economic structure transition in a
"rolling" way, of immediately building any economic sectors effectively,
and of establishing primary and spearhead economic sectors to form
growth poles to create ripple impacts promoting other sectors (the
experiences of China, Vinh Phuc, Da Nang).
(iv) Better solve the unemployment for workers to match the
qualifications and skills for each sector of the economy.
(v) Choose a development model of services sector, taking this
sector as the main one on behalf of the industry's role in the past.
(vi) Choose a development model with friendly, modern
environment and reduced pollution; gradually eliminate the image of
an industrial city with topped pollution levels in the country.
Thus, we can say, on the basis of studies on theories and
experiences of sectoral economic structure transition towards
sustainable development, in the opinion of the author, the strategy of

sectoral economic structure transition in Thai Nguyen province in the
coming period should follow ”the unbalanced development theory"
or “growth poles theory".


15
Chapter 3
THE CURRENT SITUATION OF SECTORAL ECONOMIC
STRUCTURE TRANSITION TOWARDS SUSTAINABLE
DEVELOPMENT IN THAI NGUYEN PROVINCE
3.1. The overview of the socio-economic situation of Thai Nguyen
province
* Economic growth
* Investment attraction
* Socio-economic infrastructure
* Socio-cultural situation
3.2. The current situation of sectoral economic structure
transition towards sustainable development in Thai Nguyen
province in the period 2006 - 2014
3.2.1. The economic growth
3.2.1.1. The GDP growth
The average growth rate of GDP in the period 2006 - 2012
reached 10.1% per year, which was higher compared with the period
2001 - 2005 with 9.05% per year.
In 2014, the provincial GDP went by 18.6% (while the target
was 15%). In comparison with year 2013, the growth rate of industry
and construction increased by 40.5%; agriculture, forestry, aquatic
sectors by 4.8% and services sector by 6.4%. The average growth
rate for 2 years from 2013 to 2014 across the province reached
12.65. This has marked a breakthrough in the growth so far.

This result, on the one hand, shows the outstanding efforts in
the policy of socio-economic development of the province. On the
other hand, it shows the potentially unsustainable economic growth
in general and the transition of sectoral economic structure in
particular in the province (the economic growth depends largely on
external factors).


16
3.2.1.2. The growth within each economic sector
Industry, construction: In the period 2000 - 2012, the regional
growth rate of industrial production and construction was
fulfilled. On average in the period 2006 - 2012, the growth rate
reached 13.5% per year (12.45% higher compared with the period
between 2001 and 2005).
However, there was the fact that the growth of FDI
enterprises decided the economic growth rate of the whole province
in general and industry sector in particular. This is a new direction in
the selection and development of key industries in the developing
scenario of the province in the next years. On the other hand, this
fact also shows a big dependence on external factors.
Services: The service sector growth was relatively stable; on
average in the period 2006 - 2012, it reached 10.63% per year
(compared to 10% in the period 2001 - 2005).
Year 2014 marked a breakthrough in export values in the
province (reached 8.97 billion US dollars), with 897 plans, which
was 36.5 times higher (up by 3,544%) compared with year 2013.
Specifically, the sectors with foreign investment reached $8.72
billion, which increased 93.8 times compared with the same period,
the domestic economic sector reached $246.108 million, (61.5 %

higher compared with the same period).
Agriculture, forestry and fisheries:
In the period 2006 - 2012, the growth rate of the total
production value of agriculture, forestry and fisheries increased
unstably, in which major contributions to the increase of the
production value of this region was forestry sector (the average
growth rate was 11.52% per year in the period 2006 2012) , followed by the fisheries sector. Particularly, year 2012
marked a significant increase of the forestry sector (50.97%), this
showed the huge potential of this sector in the agricultural structure
in particular and of the whole economy in general.


17
3.2.2. The transition of sectoral economic structure
3.2.2.1. The GDP structure
* The Macroeconomic structure
- On the economic structure: The results of sectoral economic
structure transition in the period 2008 - 2013 showed that the
economic structure of the province had a prompt shift, in which the
ratio of agriculture, forestry and fisheries tended to decrease, the
ratio of industry and construction tended to increase, along with the
trend of increasing the ratio of services
* The FDI attraction in Thai Nguyen in the period 2000 - 2014
In 2014, Thai Nguyen attracted 22 new FDI projects with total
registered capital of 3.2 billion USD. Also, there were 9 projects of
capital increase which helped the total newly registered capital and
increased capital reached 3.35 billion USD, leading the whole
country in attracting FDI in 2014. This has gradually asserted the
role as well as efforts to attract FDI of Thai Nguyen province.
3.2.2.2. The internal economic structure

- The internal structure of industry and construction had a
positive shift, in the right direction. In particular, in 2014, the
province's industrial production had the structural adjustment from
heavy industries to industries of assembly and high-tech
manufacture, support, to create products with highly increased value,
developing the potentials and advantages of the province.
However, there was a large difference of within the industry of
the province. This is something that should definitely be interested
for improvement in 2015, because if we want a sustainable
development in local industry, it is necessary to have the growth and
large contributions of the industrial sector in the country.
Construction: Although the capital for investment from the state
budget and individuals increased rapidly over the years, the
contribution level of the construction sector was not matched, the
contribution level of new branches was respectively 6% GDP .


18
- The structure transition within the agriculture, forestry and
fisheries:
In general, the agricultural sector still accounted for the highest
proportion (around 95 %); forestry and fisheries had similar
proportion. The structure within these sectors over time did not have
a lot of fluctuations (sector structure in 2012 nearly resembled the
one in 2000) and was generally consistent with the objectives set out
in the "The planning of environmental protection and sustainable
development in agricultural sector and rural areas in Thai Nguyen
up to 2020", as well as in line with the natural conditions of Thai
Nguyen province.
- The economic structure transition within the service sector

In the period 2006 - 2014, the structure of services sector of Thai
Nguyen province had a prompt shift, but with a slow transition rate:
35.95% (in 2000) to 36.52% (in 2006), and 37.81% (in 2012) of GDP.
However, comprehensively, the province's economic growth
mainly thanked to the contribution of the sectors of industry and
construction, with 14.9%. Two remaining important sectors in the
economic structure transition including services and agriculture forestry - fisheries reached low growth with the contribution of
percentage points to the whole province of respectively 2.72 and 1.0
3.2.2.3. Labor structure
In the period 2006 - 2012, the province's labor structure had a positive
transition. However, this transition was took place at a slower rate. This
showed industry, construction and services did not have enough power to
attract labor from switched agriculture, forestry, fisheries.
Regarding labor skills in the province, the proportion of trained
workers was very low (only 20.4% of total labor force in the
province in 2012). This was one of the causes of the slow movement
of labor from the sectors of agriculture, forestry and fisheries to the
sectors of industry, construction and services.


19
3.3. Factors affecting the transition of sectoral economic structure
towards sustainable development in Thai Nguyen province
3.3.1. Factors within the economic system
3.3.1.1. Natural resources (geographic location and natural resources)
3.3.1.2. Human resources (population and labor resources)
3.3.1.3. Financial resources for investment in the socio-economic
development
3.3.2. Factors outside the economic system
3.3.2.1. Market storage (domestic and foreign markets)

3.3.2.2. The process of international economic integration
3.3.2.3. Policy and institutional factors and the consensus & involvement
of the community in the implementation of sustainable development
3.4. Evaluating the sustainability of sectoral economic structure
transition in Thai Nguyen province. Main causes for the
achievements and shortcomings
3. 4.1. Evaluating the sustainability of sectoral economic
structure transition in Thai Nguyen province.
3.4.1.1. The transition of sectoral economic structure and the
economic structure sustainability itself
* The economic growth rate was unstable and tended to
decrease, the GDP per capita increased continuously, but was not
commensurate with the potentials and strengths of the province.
* GDP structure transition within each sector was not only
unbalanced and could not promote the potential and strengths of each
sector
* There was no link between the sectoral economic structure
transition and labor structure transition from agriculture to the
industry and services
* Spillover effects within the industry and between the
industries to the agricultural and service sector remained low
3. 4.1.2. The transition of sectoral economic structure and social
sustainability
* Regarding unemployment
* Regarding poverty


20
* The income gap between the strata of society
3.4.1.3. The transition of sectoral economic structure and

sustainability of ecological environment
* Solid waste
* Environmental pollution
* Forests and biodiversity
3.4.2. Main causes for the achievements and shortcomings of the
sectoral economic structure transition towards sustainable
development in Thai Nguyen province
3.4.2.1. The cause for the achievements
First, there was a change in thinking on the sectoral economic
structure transition
Second, there was a strong innovation in the policy of FDI
attraction
Third, the transformation of modern economic thinking and
proactive international economic integration were clearly expressed
in the policies of development.
Forth, the effectiveness of policies improved and enhanced the
Provincial Competitiveness Index.
Fifth, the province strengthened business support services,
created a healthy business environment; improved the quality of
administration of government at all levels, enhanced the activeness
and creativity in issues on attracting investment.
Sixth, the province was interested in the planning.
3.4.2.2. The causes for the shortcomings
First, limitations on policy mechanism and motivation for
development
Second, limitations on existing economic potentials
(i) The limits of high-quality human resources
(ii) The difficulties in mobilization and effective use of funds
(iii) The relationship between the sectors and competitiveness in
the market were weak

21
Chapter 4
PERSPECTIVES AND SOLUTIONS TO PROMOTE THE
SECTORAL ECONOMIC STRUCTURE TRANSITION
TOWARDS SUSTAINABLE DEVELOPMENT IN THAI
NGUYEN PROVINCE
4.1. The impacts of the new context and opportunities, challenges
for the transition of sectoral economic structure towards
sustainable development in Thai Nguyen province
4.1.1. The impact of the new context to the transition of sectoral
economic structure towards sustainable development in Thai
Nguyen province
4.1.1.1. International context
* The formation and development of knowledge-based economy
on the basis of modern scientific technology development
* The process of international economic integration
4.1.1.2. New context of Vietnam
* Regarding the economic institutions of Vietnam
* Regarding the state of the economy
4.1.1.3. The new context of Thai Nguyen province
 The implementation of economic restructuring and growth
model transition in Thai Nguyen
 Regarding the master planning of socio-economic
development in Thai Nguyen province up to 2020 and vision to 2030
 . New points in attracting FDI in Thai Nguyen
4.1.2. Opportunities and challenges for the transition of sectoral
economic structure towards sustainable development in Thai
Nguyen province

4.1.2.1. Potentials, advantages and opportunities of development
4.1.2.2. Difficulties and challenges


22
4.2. The perspectives of sectoral economic structure transition
towards sustainable development in Thai Nguyen province
4.2.1. The Party and State’s perspectives
4.2.2. The author’s perspectives
4.2.2.1. Further improve the awareness about the mutual dialectical
relationship among the high economic growth, proactive and
extensive economic integration and sustainable economic
development.
4.2.2.2. The transition of sectoral economic structure should focus
and base on integration to accelerate the process of transferring
4.2.2.3. Give priority to develop sectors in order to better exploit the
advantages of the province as motivation to the development of other
sectors and northern mountainous and midland areas.
4.2.2.4. Ensure the harmony between the objectives of rapid
economic growth and social stability; and ecological environment
protection in sustainable development requirements.
4.2.2.5. Ensure the harmony between the objectives of rapid,
progressive economic growth and social justice and ecological
environment protection in sustainable development requirements.
4.3. Solutions to promote the transition of sectoral economic
structure towards sustainable development in Thai Nguyen province

4.3.1. Improve effectiveness of State management for sustainable
development
4.3.1.1. Improve the capacity and efficiency of the State management

apparatus, promote the reform of administrative procedures,
improve the investment environment, and enhance provincial
competitiveness.
4.3.1.2. Improve the quality of planning work towards sustainable
development


23
4.3.1.3. Strengthen education and communication towards
sustainable development
4.3.2. Develop Human Resources and Science and Technology
4.3.2.1. Develop human resources
4.3.2.2. Develop science - technology
4.3.3. Solutions to mobilize and effectively use investment funds
4.3.4. Solutions to expand the cooperation and linkage among the
provinces, regions, nation, and proactive international integration
CONCLUSIONS AND RECOMMENDATIONS
1. Conclusions
Sustainable Development is not only an indispensable
demand but also a major challenge in the development process of
each country, especially of developing countries such as Vietnam.
Based on the analysis and concept of the sectoral economic
structure transition towards sustainable development, stemming
from practical experiences of some countries in the world and
some provinces in Vietnam, the dissertation identified theoretical
models which were considered to be appropriate to implement the
transition of sectoral economic structure in order to ensure
sustainable development in Thai Nguyen province.
Stemming from the above reasoning, the paper analyzed the
current situation of sectoral economic structure transition in Thai

Nguyen province, which assessed the sustainability of this
transition process. The argument of sustainability here was
considered mainly on three aspects: economy, society and
environment.
From the above analysis, the paper proposed four main
groups of solutions to implement the transition of sectoral
economic structure in Thai Nguyen province towards sustainable
development, making Thai Nguyen province become an industrial