Quản lý nhà nước đối với chuyển dịch cơ cấu kinh tế ngành ở vùng đồng bằng sông hồng tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING

MINISTRY OF HOME AFFAIRS

NATIONAL ACADEMY OF PUBLIC ADMINISTRATION

TRAN THI HUYEN TRANG

THE STATE MANAGEMENT TO THE SECTORAL ECONOMICS OF
STRUCTURAL CHANGE IN THE RED RIVER DELTA

Major

: Public administration

Code

: 09 34 04 03

Summary of Doctoral Dissertation of Public Administration

HANOI –2019


The work is completed at:…………………………………………………
…………………………………………………………………………………...

Science instructor:

1. Assoc.Prof&Dr. LE XUAN BA
2. Assoc.Prof&Dr. NGO THUY QUYNH

Reviewer 1:……………………………………………………………….
………………………………………………………………..
Reviewer 2:……………………………………………………………….
………………………………………………………………..
Reviewer 3:……………………………………………………………….
………………………………………………………………..
The dissertation shall be defended in front of Dissertation Review Council
under the Academy
Location: Room for defense of Doctoral dissertation – Meeting room…..
House ……, National Academy of Public Administration. No. 77 - Nguyen Chi
Thanh street - Dong Da district - Hanoi
Time: at…………..Date……………………….

Also have further information of dissertation at National Library of Vietnam
or the Library of National Academy of Public Administration


PUBLISHED PROJECT LIST RELATED TO THE THESIS
No
.

Project

1

Change
of
economic
structure in the Red River

Delta region

2

Connection of change of
economic structure to labor
structure change in the Red
River Delta

3

4

5

6

Change
of
economic
structure in the sector in Red
River Delta region - Reality
and problems posed with
state management
Promoting
comparative
advantages for change of
economic structure in the
Red River Delta region

Application of results-based
management to raising the
PCI
of
provincial
competitiveness index in the
Red River Delta provinces

State management over
maritime delimitation issues

Status for
participation

Published by

Year of
publicat
ion

Author

Journal of State
Management - National
Academy of Public
Administration, July 2013

2013

Author

Journal of Economics and
Management - Vietnam
Institute of Economics - Ho
Chi Minh National Academy
of Politics, August 2014

2014

Author

Journal of the Asia Pacific
Economy, September 2015

2015

Author

Journal of Information and
Socio-Economic Forecasting
- National Center for SocioEconomic Information and
Forecast – Ministry of
Planning and Investment,
June 2014

2014

Author

Yearbook of Scientific

Conference “Management
according to results - Theory
and practice” - Hanoi
University of Home Affairs

2018

Author

Yearbook of International
Conference - Flander
Technology Research
Institute – Belgium, National
Academy of Public
Administration & Vietnam
Institute of Economics .

2016


INTRODUCTION
1. The urgency of topic
The process of industrialization, modernization and international economic
integration requires the necessity to build a modern and efficient economic structure. This
process starts from the internal change within the localities to the economic regions
across the country. However, the differences in natural conditions, socio-economic
circumstances, historical circumstances, and the operation of economic laws determine
the differences in the economic structure of each region and area. Therefore, the
economic structure reflects the general rule of trend, at the same time; it must be
consistent with the resources and development capabilities of each territory.

The Red River Delta is considered a region with a strategic role in socio-economic
development of the country. Although there are many conditions and resources for
implementing change of economic structure, this process is still slow, inefficient, not
exploiting the potentials and strengths of the region. The goal of the change of economic
structure set out in Resolution No. 54-NQ/TW (9th Congress) “For socio-economic
development and ensuring the defense and security of the Red River Delta until 2010 and
orientation to the year 2020” has not been achieved. In terms of nature, the change of
economic structure of the region has not shown the modernity and efficiency if: GRDP
structure by sector does not reflect the nature of the economic structure level of the
region; limited contribution of science and technology, the change of economic structure
are not associated with change of labor structure, so labor efficiency is not high.
In addition to the impact of the domestic and international economic situation, one of
the causes of this situation is due to inefficient implementation of the Sate in management
role. The State management for change of economic structure in the sector in general and
the Red River Delta in particular has led economic sectors to develop under the
orientation and objectives of change, creating an conducive institutional environment to
the sectors, and at the same time, effectively arranging and organizing regional resources
for change of economic structure. However, the State management for this process of the
Red River Delta is still limited. The change planning lacks predictability and feasibility;
asynchronous laws and policies lead to inefficient mobilization and use of resources,
especially for capital, labor and science and technology. Besides, the State management
apparatus for the change of economic structure of the Red River Delta is still inadequate,
the inspection work has difficulties in this process. These issues reduce the effectiveness
and efficiency of the State management. Therefore, I have selected the issue of “State
management for change of economic structure in the Red River Delta” as the research
topic of my thesis.
2. Objectives and tasks of the research


2.1. Objectives of the research

Researching this content, the thesis aims to propose solutions and recommendations to
innovate the State management for change of economic structure of the Red River Delta.
2.2. Tasks of the research
Firstly, having an overview of the issues related to the content of the thesis in
domestic and foreign research works.
Secondly, systematizing the theoretical basis of the change of economic structure in
the sector and building a theoretical basis for the State management for the change of
economic structure in the sector.
Thirdly, generalizing the situation of change of economic structure in the sector in
Red River Delta. At the same time, analyzing the State management status for the change
of economic structure in the sector in the Red River Delta, determining the aspects
achieved, shortcomings and causes of weaknesses in the State management process for
the change of economic structure in the sector of the Red River Delta.
Fourthly, on the basis of theory and practice, the thesis proposes some solutions and
recommendations to improve the effectiveness and efficiency of State management for
change of economic structure in the sector in the Red River Delta.
3. Object and scope of the research
3.1. Object of the research
The thesis determines object of the research is the State management status for the
change of economic structure in the sector in the Red River Delta
3.2. Scope of the research
- Scope of space: the thesis implements the research on the Red River Delta consisting
of 2 cities under central authority and 9 provinces of the region.
- Scope of time: period of 2010-2017, focusing on updating the latest data on research
topic which can be collected at the present time.
- Scope of content: under major of public management, the thesis implements the
research on the State management as the center. On the basis of the change of economic
structure in the Red River Delta, the content of the thesis focuses on the State
management for the change of economic structure in this region.
4. Approach and research methods

4.1. Approach method


Change of economic structure in sector is one of the macroeconomic, interdisciplinary,
inter-regional issues and changes over time. The author approaches the topic in the main
direction:
- Approach from theory to practice: after clarifying the issues of relevant theory, the
author assessed the situation and developed the State management orientation for change
of economic structure in the Red river delta.
- System approach: the author considers the Red River Delta a unified economic
system. Sectors are modules of this economic system.
- Interdisciplinary and inter-regional approach: when considering the sectors in the
region's economy, the author considers the economic results calculated in three major
economic sectors: agriculture-forestry and fisheries (referred to as is agriculture),
industry - construction, services. At the same time, researching these economic areas
within the inter-provincial area in a correction which is the region.
4.2. Specific research methods
The thesis uses some of the following main research methods: System analysis method;
Statistical analysis method; Comparative method; Mapping method; Sociological
investigation method; Interview method; Professional solution, etc.
5. Research questions and scientific hypotheses
5.1. Research questions
- Question 1: What is change of economic structure in the sector, where it is from, what is
the necessary condition for change of economic structure in the sector? How does the role
of the State impact on the change of economic structure in the sector?
- Question 2: What is comprehension of the State management and change of economic
structure in the sector? What are scientific criteria for assessing the State management for
the change of economic structure in the sector of the region?
- Question 3: What should we do to improve the efficiency of state management for
change of economic structure in the sector? How should the state management for change

of economic structure in the sector in the Red River Delta need to be renewed to make
the economic structure in the sector reasonable and modern?
5.2. Scientific hypothesis
The result of change of economic structure in the sector in the Red River Delta will be
improved more and more positively, if the effectiveness and efficiency of the state
management in this process is guaranteed. Otherwise, the good state management of the
change of economic structure in the sector in the Red River Delta cannot take advantage


of the potentials and opportunities to effectively change the economic structure in the
sector.
6. Research theoretical framework
The starting point of the research theory is that State management conducted by the State,
using management tools and with management methods, affecting the change process of
economic structure in the sector. Without the impact of the State, this process will still
take place and is governed by a single market factor. However, for this process to take
place most effectively, to make the most of the region’s advantages, the role of the State
is extremely important. The impact of the State on this process is to change the economic
structure in the sector from one state to another in a more modern, efficient, rational and
progressive manner. This process is implemented from intrinsic change of major
economic sectors (agriculture, industry - construction, services), forming the trend of
change of economic structure in the sector in general.
State management

Management tools

Management method

Change of economic structure
in sector

Economic structure in sector
Condition 1

Industry

Agriculture

Economic structure in sector
Condition 2

Services

Industry

Agriculture

Services

Source: The author
7. New contributions of the topic
7.1. In terms of theory
The topic clarifies some basic theoretical issues on the state management for the change
of economic structure in the sector in an economic region.
7.2. In terms of practice


- On the basis of theory, the thesis investigates, collects information, studies data and
uses calculations to provide the indicators that reflect the results of the change process of
economic structure in the sector in the Red River Delta. Based on the quantitative results

obtained, the thesis conducts an objective and scientific assessment of the current
achievements and limitations of this change process taking place in the Red River Delta.
- In the relationship between the economic structure and the factors of input resources,
the thesis studies the impact of labor structure, capital structure, science and technology
content to clarify their direct influence on the change of economic structure of the Red
River Delta.
- The topic investigates the role and influence of the state management on the change of
economic structure in the sector in the Red River Delta. Assessment of state management
for the change of economic structure in the sector in the Red River Delta in the following
criteria: effectiveness, efficiency, sustainability. For each criterion, the author tries to
quantify through specific indicators, as a basis to draw conclusions on the advantages and
limitations of state management for the change of economic structure in the sector in the
Red River Delta. From there, the solutions groups for each content of state management
will be proposed.
- Research results and conclusions can be used as a reference in research, teaching and
learning about the state management in relation to the change of economic structure in
particular and the state management in economics in general. The results of the research
will be scientific content, to a certain extent; it is capable of serving the managers in
making policy and implementing the function of state management for the change
process of economic structure in the sector in the Red River Delta.
8. The structure of the thesis
In addition to the table of contents, list of tables, introduction, list of references and
indexes, the content of the thesis is structured into 4 chapters:
Chapter 1: Overview of scientific projects on state management for change of economic
structure in the sector
Chapter 2: Scientific basis on state management for change of economic structure in the
sector
Chapter 3: Actual situation of state management for change of economic structure in the
sector in the Red River Delta
Chapter 4: Solutions to renovate the state management for the change of economic

structure in the sector in the Red river delta region
CONTENTS


CHAPTER 1: OVERVIEW OF SCIENTIFIC PROJECTS ON STATE
MANAGEMENT FOR CHANGE OF ECONOMIC STRUCTURE IN THE
SECTOR
Chapter 1 conducts an overview of issues directly related to the contents of the topic,
including:
- Overview of research projects on economic structure, economic structure in sector and
change of economic structure in sector.
- Overview of research projects on state management for change of economic structure in
sector
- Overview of research projects related to change of economic structure in sector in the
Red River Delta
The contents include a collection of relevant domestic and foreign projects. Each project
is researched and exploited in different views, with a different scientific aspect.
Implementing this overview, the author tries to give a generalized picture of the actual
published research results related to the topic. From the perspective of state management,
major of public management, the thesis learns and inherits to the extent that it allows the
state management research for change of economic structure in the sector in general, in
the Red River Delta in particular in order to clarify the research arguments of the author.
At the same time, from the author’s perspective, the overview carries out to assess the
researched issues, the remaining ones to find new ones, supplement to the theoretical and
practical system for the research of thesis.
CHAPTER 2: SCIENTIFIC BASIS ON STATE MANAGEMENT FOR CHANGE
OF ECONOMIC STRUCTURE IN THE SECTOR
2.1. Theoretical basis on state management for change of economic structure in the
sector
2.1.1. Some theoretical issues on economic structure in sector and change of economic

structure in sector
2.1.1.1. The economic structure
Economic structure is a system consisting of parts of the economy with relatively stable
size, position and relationship formed in a certain period. Thus, the concept of economic
structure covers both quantity (usually measured by the percentage of parts in a whole)
and quality (level of development and connection of parts).
2.1.1.2. Economic structure in the sector


Economic structure in the sector (or sector economic structure, or economic sector
structure, or sector structure) is the most common form of economic structure, including
the overall structural relationship of sectors and sub-sectors of the economy for specific
time and space. The economic structure in the sector has the main morphology: Structure
by sector group: Agriculture, forestry and fishery - Construction industry - Services.
2.1.1.3. Change of economic structure in the sector
a. Awareness on change of economic structure in the sector
The change of economic structure in the sector is an objective economic phenomenon. As
a historical economic category, the economic structure is always fluctuating, at different
times with different conditions; the corresponding economic structure will be formed. It
is the change in the quantity of sectors due to the appearance or disappearance of some
sectors. It is also the change in the quality due to the change in position and the
contribution of the sectors to the economic structure. Accordingly, the sector whose
growth rate is faster than the average will create the greater economic value, playing a
bigger role in the structure.
b. The concept of change of economic structure in the sector
The change process of economic structure in the sector is essentially a correlation change
between the three major economic sectors (three regions) in the overall economic
structure. In particular, there is an increase in the proportion of this sector group and a
decrease in the proportion of the other sector group. This changes the sector structure
from one condition to another.

From the perspective of state management, analysis of indicators reflecting the change of
economic structure in the sector include: The change of GDP structure (within the region,
it is GRDP structure); the change of sector labor structure; the change in the proportion of
value-added in production (GT)
c. The trend of change of economic structure in the sector
Firstly, in the structure of GDP /GRDP, the trend is shown as: increasing the proportion
of contribution to GDP /GRDP of service area (area III), industry and construction area
(area II), decreasing the proportion of agriculture - forestry - fishery (area I)
Secondly, for the labor structure, the change trend is to increase the proportion of nonagricultural labor, and decrease the proportion of agricultural labor.
Third, increase the proportion of added value (GT) in the total production value
d. Some theories on change of economic structure in the sector


The thesis studies some theories on change of economic structure in the sector such as:
The theory of balanced development and the theory of unbalanced development; The
theory of sequential change of economic structure; The theory of change of economic
structure in the sector towards industrialization, etc.
2.1.2. State management for change of economic structure in the sector
2.1.2.1. The concept of state management for change of economic structure in the
sector
a. Approach method
The study of State management for change of economic structure in the sector must
clarify:
(i) Managing entity: In response to the question “Who manages it?”, the managing entity
here is identified as: State management apparatus for change of economic structure in the
sector. At the same time, it is clarified: What is objective for the State to manage the
change of economic structure in the sector? (Management objective), what does the State
do to manage change of economic structure in the sector? (Management content)
(ii) Managing object: In response to the question "What does the government manage?",
the object of management is defined as the change process of economic structure in the

sector.
(iii) Environment: Considering the state management for change of economic structure in
the sector, it must be placed in the context of the domestic and global economy,
analyzing clearly how the environmental factors affect the operation of state management
for change of economic structure in the sector.
b. The concept
The State management for change of economic structure in the sector has been paid
attention to by many scholars.
In the author’s viewpoint, with the systematic approach method, the state management
for change of economic structure in the sector is the impact of the State on the existing
economic structure in the sector, through the processes of planning, to issue, organize and
control the implementation of laws and policies in order to mobilize and effectively use
the resources, serve the development of an economic structure in the sector suitable to the
orientation of the State in a certain period. In the nature, this is also the process by which
the State impacts on economic sectors to change the quantity in contributing to the
economic structure in the sector and change the quality relationship between them.
c. Impact method


The state impacts the change process of economic structure in the sector in two ways:
direct or indirect.
2.1.2.2. The necessity of State management for change of economic structure in the
sector
The modern view of analyzing State’s intervention can have both positive and negative
effects on change of economic structure in the sector, thus affecting economic growth. In
order to have a positive effect on the change of economic structure in the sector, the
State’s intervention must be correct in all three stages: (1) Outline the sector and field
development orientation; (2) Design mechanisms and policies to organize the successful
implementation of the set orientations; (3) Monitor and assess implementation results.
2.1.2.3. Contents of state management for change of economic structure in the sector

Researching the state management for change of economic structure in the sector, the
thesis carries out the analysis of contents: Planning on change of economic structure in
the sector; Laws and policies on change of economic structure in the sector; Organizing
the State management apparatus for change of economic structure in the sector;
Inspecting, examining and supervising the State management activities for change of
economic structure in the sector.
2.1.2.4. Factors affecting State management for change of economic structure in the
sector
Approach two main groups of factors: Objective factors (the overall socio-economic
development of the whole country; Natural and socio-economic conditions of each
locality in the region; Economic context of internationalization and globalization, etc.)
and subjective factors (such as regional development thinking of central and local
governments; capacity to implement tasks of the State management apparatus; legal
framework; quality of the related policy system; Mechanism for controlling the activities
of the state management agencies for change of economic structure in the sector; The
connectivity between localities.)
2.1.2.5. Criteria for assessing State management for change of economic structure in
the sector
In the thesis, based on theoretical consideration and practical analysis at the same time,
applying the assessment criteria for state management of Asian Development Bank
(ADB), the author recommends 03 basic criteria:
+ Validity criteria
+ Efficiency criteria


+ Sustainability criteria
The author tries to quantify each criterion through specific quantitative criteria. The
system of indicators is calculated on the basis of secondary data or from processing from
surveyed primary data.
2.2. Experience in state management for change of economic structure in the sector

in a region
The thesis studies the practical state management for change of economic structure in the
sector in some regions of countries around the world (such as the Western Region China, Kanto Region - Japan) and some regions in Vietnam (such as the Mekong River
Delta, Southeast Region). From there, the applied lessons for change of economic
structure in the sector in the Red River Delta are drawn.
CHAPTER 3
ACTUAL SITUATION OF STATE MANAGEMENT FOR CHANGE OF
ECONOMIC STRUCTURE IN THE SECTOR IN THE RED RIVER DELTA
3.1. Overview of change of economic structure in the sector in the Red River Delta
3.1.1. Overview of natural and socio-economic conditions
The Red River Delta is surrounded by the Red River downstream area of Northern
Vietnam. The Red River Delta consists of 11 provinces and cities directly under the
Central Government: Hanoi, Hai Phong, Hai Duong, Bac Ninh, Vinh Phuc, Hung Yen,
Thai Binh, Nam Dinh, Ha Nam, Ninh Binh and Quang Ninh with a total natural area
accounting for 6.36% of the country’s area. As of 2016, the region’s population was
20,925.5 thousand people, accounting for 22.81% of the country’s population.
3.1.2. Actual situation of change of economic structure in the sector in the Red River
Delta
3.1.2.1. Change of GRDP structure in the sector
Unit: %


2010

2016

Estimated in 2018

Agriculture
Industry- Construction

Services

Source: Processing according to the data provided by Department of Statistics for 11
provinces, cities of the Red River Delta, Statistical Yearbook of 11 provinces, cities of the
Red River Delta in 2010, 2016 (In 2018: See Appendix 11)
Chart 3.1: GRDP structure in the economic sector in the Red River Delta in 2010 2018
Based on the chart, we see that, from 2010 to 2016, the GRDP structure of the region has
changed towards reducing the proportion of agriculture and increasing the proportion of
non-agriculture in the structure. However, the change is not stable, there are large
differences between periods.
3.1.2.2 Change of labor structure in the sector
The change of labor structure in the sector reflects the proportion of labor in large
economic sectors in the Red River Delta fluctuating over the years.
Table 3.2: Labor structure in economic sectors in the Red River Delta
Unit: thousand people
Indicator/ year

2012

2014

2016

Labor in agriculture
Labor in industry –
construction
Labor in services
Total social labor of the
Red River Delta region

4176.4202

4103.4707

2975.8756

Estimated in
2018
(Appendix 11)
2375.6033

3435.1378

3576.7790

3758.1314

3919.6282

4114.5420

4352.2503

5259.7930

5832.4185

11726.1

12032.5

11993.8000

12127.65


Source: Report on labor and employment investigation in 2012, 2014, 2016, General
Statistics Office, Statistical Publishing House, Hanoi
Based on the above data, in the period of 2012 - 2016, the rate of workers in nonagricultural sectors of the region continued to increase. In the 4 years from 2012 to 2016,
in the labor structure of the Red River Delta provinces (excluding Hanoi), the proportion
of agricultural labor decreased on average 3% per year. Especially, from 2014 to 2016,
this rate decreased by 11, 2%. By 2016, the region had a non-agricultural labor rate of
73.1%, while the national average in 2016 was only 58.1%. If the above change is
maintained, by the end of 2018, the Red River Delta will have over 9 million nonagricultural workers, equivalent to 80%.
3.1.2.3. Change in proportion of added value in total production value
Table 3.3: The proportion of added value in the total production value of the Red
River Delta period 2010 – 2016
Unit: Billion VND
2010
2016
Compare 2016 with 2010
Added value
1.421.360
2.191.110
769.750
Proportion of added
532.983
755.864
222.881
value in the total

production value
Percentage (%)
41.6
44.2
2.6
Source: Processing according to the data provided by Department of Statistics for 11
provinces, cities of the Red River Delta, Statistical Yearbook of 11 provinces, cities of the
Red River Delta in 2010, 2016.
In 2016, the proportion of value added in total production value accounted for 44.2%.
Although this is not low compared to the national average, however, in terms of growth
rate, within 6 years, this proportion increased by 2.6%, meaning that the average annual
increase of 0.43%. The slow growth rate proves that the value added of material
production and service supply is not high, the modernity in the change trend of economic
structure in the sector has not been significantly improved.
3.2. Actual situation of State management for change of economic structure in the
sector in the Red River Delta
3.2.1. Planning on change of economic structure in the sector in the Red River Delta
- The feasibility of the planning: the fact shows that the planning of change of economic
structure in the sector in the region has not guaranteed the feasibility, there are goal set
out of the planning not achieved in reality. For example, Resolution No. 54-NQ/TW sets


the goal “By 2010, agriculture will account for 10% of GDP and services will account for
48% of GDP”. However, in reality, it has not been met.
- The uniformity of the planning: The planning of change of economic structure in the
sector in the Red River Delta region has not ensured the synchronization when there is a
conflict between the master planning of socio-economic development in the Red River
Delta Region until 2020, attached Decision No. 795 /QD-TTg of the Prime Minister
dated May 23, 2013 and the Industrial Development Planning in the Red River Delta
Region until 2025, with a vision to 2035 attached with Decision 3892 /QD-BCT of the

Ministry of Industry and Trade dated September 28, 2016.
- The objectivity of the planning: Other important indicators reflecting the change of
economic structure in the sector of the region have not fully ensured the objectivity of the
planning.
- The forecast of planning: Calculation of the forecast between analyzing existing
resources and the goals are very limited.
3.2.2. Laws and policies on change of economic structure in the sector in the Red River
Delta
3.2.2.1. Investment laws and policies on change of economic structure in the sector
Investment laws in general and the Red River Delta region in particular have created a
basic and unified legal framework to encourage and attract investment capital into
developing the economic sectors of the region. These include the regulations to
encourage the change of economic structure in the sector in the 2014 Investment Law, the
2014 Enterprise Law, the 2008 Corporate Income Tax Law, the 2014 Public Investment
Law, the Law on Management and Use of state capital to invest in production and
business in the enterprises in 2014.
The investment policy in service of the change of economic structure in the sector
focuses on two major contents:
Firstly, the State advocates creating an open environment in order to attract non-state
investment in the sector encouraged by the State.
Secondly, the State directly uses the State capital to invest in developing sectors serving
the change of economic structure in the sector.
3.2.2.2. Laws and policies on labor structure change to meet the requirements of
change of economic structure in the sector
Laws related to labor structure change are mentioned in many legal documents on labor
and employment: 2012 Labor Code, 2013 Employment Law, 2014 Social Insurance Law,


Vocational Training Law, 2014 Vocational Education Law, etc. and other by-law
document.

On the basis of legal regulations, specific policies of the region are organized to move the
labor from agricultural area to non-agricultural area, meeting the requirements of change
of economic structure in the sector.
In terms of labor quality, the proportion of trained workers continued to increase, with a
steady speed from 20.7% in 2010 to 27, 5% in 2015, which means that an average
increase of 1, 36% per year, in 2016, reaching 28.4%, increasing by 0.9%. The proportion
of trained workers by locality shows an imbalance in the labor structure of the region.
There exists a great difference in the qualification of labor force between localities,
between the two sub-regions of North and South in Red River Delta.
In addition, the labor not using effectively in economic sectors will result in
underemployment and unemployment, leading to the low labor use efficiency.
3.2.2.3. Laws and policies on science and technology meeting the requirements of
change of economic structure in the sector
The legal system of science and technology has basically been completed, promoting the
role of science and technology in the production and life. Law on Science and
Technology in 2013 with many new regulations shows the breakthrough in the policy for
science and technology. In reality, the implementation and application of legal documents
of Science and Technology also reveals many limitations and shortcomings.
Results of implementing the science and technology policy: Industrial products using
high technology increased relatively quickly, accounting for 8.5% in 2010 to 9.6% in
2016, especially a sharp increase from 2014 to the present (about 0.6%). Meanwhile, the
proportion of products and services in the total value of high-tech products also increased
with a slower rate, the deviation is about 0.4 compared between 2010 and 2016. This
shows that the science and technology policy are intensive, promoting the development
of sectors but with heterogeneity. In particular, there is the potential of the high-tech field
in the economic sectors not developed, especially in the agriculture and service.
3.2.3. Organization of state management apparatus for change of economic structure
in the sector in the Red River Delta region
3.2.3.1. Structure of the apparatus
Approaching the structure of the state management apparatus for change of economic

structure in the sector in the Red River Delta Region, there are two points of concern:
- Firstly, there is no regional state management agency in Vietnam as an independent
administrative intermediary level between the central and provincial levels. In other


words, the regional level is not an administrative level. However, that does not mean that
there is no state management in the regional scope. Within this scope, the state
management still takes place to implement the regional connection and socio-economic
development of the region. In fact, the state management in the region is assigned to the
central state management agency (government) and the provincial state management
agency in that region.
- Secondly, the state management for change of economic structure in the sector is a wide
issue, covering many sectors and fields. Therefore, there is no specialized agency on the
change of economic structure in the sector at the central or provincial levels, but this
function is implemented by many different agencies and ministries. These agencies
manage to develop their respective sectors and fields according to planning and
orientations for change of economic structure in the common sector. In particular, there is
a lead agency (assigned to the Ministry of Planning and Investment and Departments of
Planning and Investment of provinces) taking responsibility and coordinating the
agencies for implementation.

3.2.3.2. Determination of the functions, tasks and powers of agencies in the apparatus.
The functions, tasks and powers of the agencies in the state management apparatus for
change of economic structure in the sector in the Red River Delta Region are specified in
many legal documents at both central and local levels. In particular, there are tasks and
powers that directly implement the function of state management for change of economic
structure in the sector in the Red River Delta Region. Implementing the policy of
continuing to renovate and reorganize the apparatus in order to increase the effectiveness,

efficiency and reduce the internal focal points of the above-mentioned agencies arises a
number of inadequacies affecting the task of state management for the change of
economic structure in the sector in the Red River Delta Region.
3.2.3.3. Civil servants in organizing the state management apparatus for change of
economic structure in the sector in the Red River Delta region
In terms of quantity, this human resource mainly consists of civil servants in the system
of lead agencies of vertical sector, directly implementing the function of state
management for change of economic structure in the sector in the Red River Delta region
including the Ministry of Planning and Investment (with related professional
departments) and Department of Planning and Investment of 11 provinces and cities
(with related professional divisions). At the local level, some departments only establish
one sector economic division, some departments establish two divisions. On average,
each professional division has 6-9 permanent staff. Through practical research, many
professional division of the Department have an unreasonable arrangement of staff. In
particular, there are professional divisions with too many "leaders", the situation of
“subordinate abuse” is relatively common.
On the quality, the survey at the Department through the questionnaire collects
information about the qualifications of the surveyed people, the author carries out the
process of primary data. The results show that 70% of officials and civil servants in these
agencies are mostly trained, the university level is the majority.
3.2.4. Inspection, examination and supervision of activities of state management
agencies for change of economic structure in the sector in the Red River Delta region
The inspection, examination and supervision as a state management activity for change of
economic structure in the sector in the Red River Delta region are carried out by the State
on two sides:
(1) The State inspects, checks and supervises the state management agencies in
implementing the assigned functions and tasks related to the change of economic
structure in the sector.
(2) The State through competent state management agencies shall carry out the
inspection, examination and supervision of entities operating in economic sectors of the

Red River Delta Region.
3.3. Assessment of state management for change of economic structure in the sector
in the Red River Delta
3.3.1. Assessment by the criteria
3.3.1.1. Validity criteria


The effectiveness of state management for change of economic structure in the sector in
the Red River Delta is expressed in two main aspects:
- Firstly, from the managing entity, the effectiveness of state management for change of
economic structure in the sector is assessed through the law compliance level of
competent state management agencies.
- Secondly, from the managing object, the effectiveness of state management for change
of economic structure in the sector is assessed through: The reliability of entities
operating in economic sectors on the effectiveness of state management through
assessment of the compliance with the laws of state management agencies and civil
servants in the apparatus. This level of confidence is reflected in the Legal Institutions
index. The index of "legal institutions" is quite stable over the years but there is a great
difference between localities.
3.3.1.2. Efficiency criteria
(i) The efficiency of using the investment capital of ICOR
Apply formula (1) to calculate the ICOR coefficient. In particular, the indicators of
investment capital and gross output in the GRDP area to calculate the ICOR must be
calculated according to the same price (comparative or current price). The author selects
the current price for analysis:
Based on the above data table, the ICOR of the Red River Delta is lower than the national
ICOR in the period of 2011-2016 (lower than 0.42 units). Despite this, the region’s ICOR
remains high. In the period of 2011-2016, the region's ICOR was 6.49, meaning that it
had to invest 6.49 units of capital to increase 1 GRDP unit. This reflects the low capital
efficiency.

(ii) Labor efficiency
Applying formula (2), the labor productivity of the Red River Delta shows that the labor
productivity of the region has a relatively slow annual increase. This labor productivity
reflects the low labor efficiency, labor force participation in the economic sectors but the
GRDP creation is not commensurate. In particular, the labor productivity is particularly
low in the agricultural area. This situation creates great pressure on the labor structure
change from agriculture to non-agricultural areas, improving labor efficiency in
agriculture.
(iii) Effectiveness of using science and technology
The calculation to quantify the value and added value of economic sectors brought about
by science and technology is very complicated. At present, in our country, there is no


organization that can research and statistic on this indicator. Therefore, within the limited
resources of the thesis temporarily does not consider this indicator.
3.3.1.3. Sustainability criteria
In the change of economic structure in the sector, the sustainability criteria are measured
through indicators:
- The stability of the growth rate of the non-agricultural field in the economic structure of
the Red River Delta Region through stages. The data show that the structural change has
a great difference in the speed of development between stages.
- The degree of difference between localities in the region in terms of economic structure.
Red River Delta has a great difference between localities in the change of economic
structure in the sector.
- Level of environmental pollution control. This problem is still a great problem in
parallel with the process of change of economic structure in the sector in the Red River
Delta Region. The rate of common solid waste collected is treated to the standards and
national technical regulations of the Red River Delta.
3.3.2. General assessment
3.3.2.1. Achievement

The State has shown its management role in the change process of economic structure in
the sector in the region. As a result, the change of economic structure in the sector in the
Red River Delta Region has gradually changed in a positive direction, contributing to
economic growth and changing the socio-economic face of the region.
3.3.2.2. Limitation
Although there have been certain progress, but so far the results of change of economic
structure in the sector in the Red River Delta region have been mainly a quantitative
change. In terms of quality, the change of economic structure in the sector in the region
has not changed significantly.
3.3.2.3. Causes
a. Objective causes: International integration is becoming more and more extensive,
especially economic integration, the situation of economic development of the whole
country, the situation of climate change, natural disasters and epidemics continuously
occurring, reaching out to social security requirements, internal weaknesses of each local
economy in the region.
b. Subjective causes


Limitations in the change of economic structure in the sector in the Red River Delta are
also from subjective causes from the state management.
CHAPTER 4
SOLUTIONS TO RENOVATE THE STATE MANAGEMENT FOR THE
CHANGE OF ECONOMIC STRUCTURE IN THE SECTOR IN THE RED
RIVER DELTA REGION
4.1. The international and domestic context affecting the change of economic
structure in the sector in the Red River Delta region
4.1.1. The international and regional contexts affecting the change of economic
structure in the sector in the Red River Delta region
The specific goals pursuit of large countries has created the significant challenges to the
world economic prospects in the future. While the global economic picture includes light

and dark colors, the analysts generally forecast that the world's economic outlook next
year will improve.
4.1.2. Domestic context affecting the change of economic structure in the sector in the
Red River Delta region
The overall picture of Vietnam's economy in recent years has experienced many changes.
Experiencing 2016 - the first year of the new Government term, which is also the first
year to implement the 5-year socio-economic development plan (2016-2020) of the
domestic economy with certain development but not achieved the desired levels.
4.2. Opinions, objectives and directions for the change of economic structure in the
sector in the Red River Delta region
The points and courses of action towards the State's goals are set up, which are: Building
the Red River Delta region is really a pioneer of the country to implement "strategic
breakthroughs" and economic restructure, becoming the nation's leading on the economic
development.
4.3. Solutions to renovate state management for the change of economic structure in
the sector in the Red River Delta region
4.3.1. The basis for the solutions proposal
The solutions to renovate state management for the change of economic structure in the
sector in the Red River Delta are proposed by the NCS, depended on the following basis:
Theoretical system for the change of economic structure in the sector and the State
management for the change of economic structure in the sector; the causes of the
limitations and weaknesses are drawn from the state management practices for the change
of economic structure in the sector in the Red River Delta region, the lessons from the
State management for the change of economic structure in the sector in some regions of


the world and my country, new socio-economic contexts that have resulted in new
challenges and conditions, requiring the State to adapt, change and adjust in the
management activities.
4.3.2. Main solutions

4.3.2.1. Planning on the change of economic structure in the sector in the Red River
Delta region.
The change of economic structure in the sector in the Red River Delta is needed to be
developed into a separate plan, which must be an important content in the regional
planning.
It is also required to supplement the gaps in the planning of contents for the change of
economic structure in the sector. The planning of contents for the change of economic
structure in the sector has put forth the target for the change of GRDP structure. The
goals of the change of economic structure in the sector in the Red River Delta region set
out in the plan should be studied on the basis of official GRDP statistics from the General
Statistics Office of Vietnam calculating for the localities instead of decentralizing to be
performed by the local Statistical Office as present.
On the other hand, the GRDP indicator - itself does not reflect adequately on the process
of the change of economic structure. Therefore, in order for this process to come into
effect, it is necessary to have other combined criteria such as changes in the proportion of
labor force in the sector, the proportion of added value in the total value of production
and efficiency of using investment capital, the proportion of high-tech products in the
economic structure of sectors.
Concretize the project spirit of the Planning Law, the change of economic structure in the
sector into a content and only in the regional socio-economic planning. Besides, it is also
needed to eliminate the specific planning of sectors or products. The planning of the Red
River Delta region, especially the change of economic structure in the sector is needed to
pay attention to the harmonious balance between the two sub-regions of north and south
of the Red River Delta Region.
The planning should be supplemented the programs and projects related to science and
technology and labor quality, especially the application of high technology in the sector
and improve the quality of labors in order to meet technical and professional
requirements.
In order to ensure the feasibility, the change of economic structure in the sector must be
built on the basis of balance with other contents of regional planning. The contents of the

change of economic structure in the sector in regional planning, which is necessary to
assess the current status of resources, quantify by specific criteria, such as labor force,
trained labor force, and capital capable of mobilization, the rate of science and


technology is applied to each field of production, the structure of infrastructure ... from
which to compares quo with the level of meeting the objectives.
4.3.2.2. Laws and policies on the change of economic structure in the sector in Red
River Delta region
a. For the investment, meet the requirements of the change of economic structure in
the sector in the Red River Delta region
Adjust some articles in the legal documents promulgated before the effective date of the
Law on Enterprises 2014 and the Law on Investment 2014, so as to ensure the
consistency and synchronization with the reforms of this law.
The State management should give appropriate priority to experimentally apply
investment in the form of public-private partnership before choosing other forms of
investment. In order to do that, it is necessary to transfer the regulations related to PPP
into the law, so as to promptly review and adjust conflicts with specialized laws.
Early promulgate the Law on Special Administrative-Economic Units to attract
investment to develop the economic sectors. The Draft Law should include regulations to
expand investment incentives according to the special administrative and economic units.
Since then, the formation of diverse economic structure in the sector has advantages and
timely captures domestic and foreign investment needs.
Investment policies on the change of economic structure in the sector which are
important to be completed in the direction of:
- Balancing investment capital sources, keeping a stable source of investment capital for
industry, services and infrastructure, and having policies to encourage investment in
agricultural development, especially the hi-tech agriculture.
- Having the balanced policies among localities to attract investment capital, creating
conditions to attract harmonious capital attraction among localities in the region, as well

as promoting regional linkages.
- Selecting and adding more sectors to the list of sectors encouraged for the investment
incentives. In the developing policies of priority sectors that are zonal planning.
Definitely, the high-tech and service sectors have gaps in the investment attraction.
Therefore, in the future, the policies to encourage investment in the region, especially the
policies to attract foreign investment, should focus on these sectors.
b. For the labors meeting the requirements of the change of economic structure in the
sector in the Red River Delta region
The law lacks regulations on the job equality, safe jobs, full-time employment
regulations, labor market concepts and definitions that are not well defined ... Therefore,
Labor and employment laws need more specific provisions to ease the organization and
implementation of policies.


The change of labor structure of the above region focuses on two core contents: The first
is to develop industry - construction and services to create the labor demand, for example,
create jobs; the second is to improve the quality of labor, create a supply of labor, which
have enough qualifications to meet the requirements set by the labor markets.
The policies for the change of regional labor structure are required to:
- Build a flexible labor market, in which supply and demand of labor are exchanged.
Establish an information system, conduct a labor market survey, and combine the
forecasting and aggregating work for the labor use demands by the sectors, levels and
geographical areas to serve as a database on the labor markets, enabling the supply and
demand of labor to intersect.
- For the labor demand, it is necessary to enhance the economic development, in order to
create new jobs, improve employment quality, as well as focus on the industry, services,
investment approval, which must fully calculate the labor demand (quantity, quality,
structure and so on). Its purpose is to ensure the ability to meet the local human resource,
continue to maintain traditional markets with the demand for high-quality, high-income
technical employees and limitation of the risky markets.

- For the supply of labor, the region needs to consider labor quality as a key issue in the
policies for the change of labor structure. When the process for the change of labor
structure in the sector is taken place, which will create jobs in non-agricultural sectors.
This inevitably requires the workers to have enough qualifications and capacity to meet
the work requirements. Therefore, the regional planning sets up the targets on the quality
improvement of human resources, not only to set the targets of trained labors rate as
present, but also need to supplement the targets on the labors rate that have been trained
and have jobs and income from the right training sectors.
- The policies for the change of labor structure are needed to pay special attention to job
creation in the rural areas. Implement the vocational training and apprenticeship to be
effective, in the course of implementing vocational training projects, it is necessary to
have specific statistics not only on the number of laborers who have completed
vocational training programs and granted certificates but also in the number of workers
getting a new job or working more effectively from the learned jobs.
- In the context, the fourth industrial revolution brought about the strong development of
new technologies. Accordingly, the production methods of some sectors with the
advantage of cheap labors and unskilled labors will quickly be greatly affected. With the
characteristics as the high quality human resource training center of the country with
104/311 colleges and universities, the Red River Delta should aim to train high quality in
the network of universities, colleges and research institutes and consider this as the main
direction to promote the investment focused on each discipline is the strength, meet the