Summary of Doctoral dissertation of public Management: State management for agricultural economy in the northern coastal region in the direction of industrialization and modernization

MINISTRY OF EDUCATION AND
TRAINING

MINISTRY OF HOME
AFFAIRS

NATIONAL ACADEMY OF PUBLIC
ADMINISTRATION

PHAM NGOC QUYNH

STATE MANAGEMENT FOR AGRICULTURAL
ECONOMY IN THE NORTHERN COASTAL
REGION IN THE DIRECTION OF
INDUSTRIALIZATION AND
MODERNIZATION

Major: Public Management
Code:

9.34.04.03

SUMMARY OF DOCTORAL DISSERTATION OF PUBLIC
MANAGEMENT

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Works completed in
NATIONAL ACADEMY OF PUBLIC ADMINISTRATION

Scientific Supervisors: 1. Prof. Dr. Dinh Van Tien
2. Assoc. Prof. Dr. Trang Thi Tuyet

Opponent 1:

…………………………………………………

Opponent 2: ……………………………………………………….
Opponent 3:

…………………………………………………

The dissertation shall be defended in front of Academy-level Review Council
Location: Conference room, National Academy of Public Administration
No. 77 – Nguyen Chi Thanh – Dong Da District, Hanoi City
Time: At………….on……day…….month…………..year

For more information of the dissertation, please learn about in
-

The Library of National Academy of Public Administration

-

The National Library of Vietnam

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PREFACE

1. Reasons for selecting the topic
The Northern Coastal Region is an important economic region of Vietnam,
located along the Gulf of Tonkin. The Northern Coastal Region includes 5 Northern
coastal provinces: Quang Ninh, Hai Phong, Thai Binh and Ninh Binh. According to
Decision No. 865/QD-TTg issued in 2008 by the Prime Minister of Vietnam, The
Nothern Coastal Region is oriented to become a nationally and internationally
important economic region. The Northern Coastal Region has a great potential for
agricultural economic development, with the location of the center of the Red River
Delta, the Northern granary, with the potential for aquatic and tropical climates that
create favorable conditions for cultivation and breeding.
Not out of the general situation of the whole country, the agricultural economy
in the North Coastal Region currently has many limitations. Not many technological
advances, especially technical advances in production and processing of agricultural
products have been applied to produce, so productivity and quality of cultivation,
breeding and aquaculture are low. The agricultural product processing industry is still
underdeveloped. Obviously, agricultural industrialization - modernization is the only
way to increase the added value of agricultural products, while other incentives for
development such as land and labor are limited. Important solutions for agricultural
development in the region is to promote scientific and technological research in
agriculture; To actively transfer technology, training and vocational training to
farmers in order to develop human resources and apply science and technology
effectively.
These limitations and shortcomings have many causes, both objective and
subjective, but the most basic cause is the state management of the authority at all
levels, especially the provincial authority for agricultural economy remains many
limitations and inadequacies both in theoretical awareness as well as direction of
implementation. For the above analysis reasons, it is necessary to study to further
improve the state management of agricultural economy combined with the process of
industrialization and modernization of agricultural sector. Therefore, the author has
selected the direction of researching "State management for agricultural economy

in the Northern Coastal Region in the direction of industrialization and
modernization" as the subject of the Doctorial dissertation, with the desire to make
actual contribution to the innovation process of state management for agricultural

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economy in the Northern Coastal Region, including Hai Phong city - the author's
fatherland.
2. Purposes and tasks of the study
2.1. Purposes of study
The dissertation aims to develop a theoretical framework for state management
for agricultural economy, which is the basis for analyzing and evaluating the status of
state management for the agricultural economy of a territory. Based on that, the final
research purpose of the dissertation is to improve the state management of
agricultural economy in the Northern Coastal Region in the direction of
industrialization and modernization.
2.2. Tasks of the study
- Achieving the research purpose presented above, the dissertation sets out the
following main research tasks:
- Supplementing and improving the theoretical basis for state management of
agricultural economy in the period of industrialization and modernization.
- Researching experiences of state management for agricultural economy in
some regions of the whole country and in other countries in the world and draw
lessons that may be applied to the North Coastal Region.
- Analyzing and evaluating the current status of state management for
agricultural economy in the provinces of the Northern Coastal Region, point out
remaining constraints in state management and identify objective and subjective
causes of such restrictions.
- Proposing orientations and measures to improve state management of

agricultural economy with practical value in order to promote the agricultural
economy development in the direction of industrialization and modernization in the
Northern Coastal provinces.
3. Objects and scope of the study
3.1 Objects of the study:
The research object of the dissertation is the state management of agricultural
economy in the scope of a territory, associated with the process of agricultural
industrialization and modernization.
3.2 Scope of the study:
3.2.1. Scope of content:
Firstly, the dissertation studies and assess the status of the state management
according to the contents of the management process including: organizing the
apparatus; building the legal system; formulating and organizing the implementation
of planning and plans; issuing policies; inspecting and supervising...
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Secondly, the agricultural economy studied in this dissertation includes:
cultivation, breeding and aquaculture. The dissertation does not study forestry subsector. This is because forestry is not the strength of the localities in the Northern
Coastal Region, except for Quang Ninh province; However, Quang Ninh's forestry is
not significant in comparison to other regions in the country.
Thirdly, the subjects of state management mentioned in the dissertation include
the central government and the local government, in which focusing on the provincial
government.
Fourthly, in reality, there is no regional management apparatus in the Northern
Coastal Region. Therefore, during the implementation of studying the dissertation,
the author collects data and documents of each locality, then synthesizes and gives
general assessments for the whole region.
3.2.2. Scope of space:
The research space of the dissertation is the Northern Coastal Region, covering

the whole administrative boundaries of 5 provinces: Hai Phong, Quang Ninh, Thai
Binh, Nam Dinh and Ninh Binh.
3.2.3. Scope of time:
The dissertation collects data and analyzes the research materials from 2008 to
2015. The author selects the timeline starting in 2008 because this is the time to mark
the formation of the Northern Coastal Economic Region after the Government issued
Decision 865/QD-TTg dated 10/7/2008 approving the planning for construction of
the Northern Coastal Region up to 2025 with a vision to 2050.
4. Methodology and research method
+ Primary and secondary data analysis and statistics method;
+ Comparison and synthesis method
+ Expert method:
+ Other technical methods: Processing of collected data by some statistical
tools, Word, Excel program in Microsoft Office software.
5. Expected new contributions of the dissertation
- The dissertation has developed and improved the relatively complete
theoretical framework on state management for agricultural economy in the direction
of industrialization and modernization, including: definition, necessity, function and
content of state management for agricultural economy.
- The dissertation identifies two groups of objective and subjective factors that
influence and decide the effectiveness of state management for agricultural economy
in general and in the provinces and cities in the Northern Coastal Region in
particular.

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- The dissertation has analyzed and assessed the status of state management for
agricultural economy in the Northern Coastal Region according to the contents of the
state management. Since then, the dissertation has pointed out the limitations and

weaknesses in state management for agricultural economy; identified the causes
leading to remaining constraints in state management which have hindered the
development of agricultural economy in the direction of industrialization and
modernization in the North Coast Region.
- The dissertation has proposed a system of feasible solutions for state
management to promote the development of agricultural economy in the localities in
the Northern Coastal Region in the direction of industrialization and modernization.
7. Structure of the dissertation
Apart from the preface, conclusion, reference materials and appendices, the
dissertation has four chapters as follows:
Chapter 1: Overview of researches related to the dissertation topic.
Chapter 2: Scientific foundation of state management for agricultural economy in
the direction of industrialization and modernization
Chapter 3: Current status of state management for agricultural economy in the
Northern Coastal Region
Chapter 4: Orientations and solutions to improve state management for
agricultural economy in the Northern Coastal Region in the direction of
industrialization and modernization.

CHAPTER 1
OVERVIEW OF RESEARCH SITUATION RELATED TO THE
DISSERTATION TOPIC
1.1. SUMMARY OF SOME PUBLISHED RESEARCHES RELATED TO
STATE MANAGEMENT FOR AGRICULTURAL ECONOMY IN THE
DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION
Agricultural economy and state management for agricultural economy is not a
new topic; This content has been selected by scholars, researchers and graduate
students as a relatively common research topic. This is because agriculture has played
a key role in economic development in our country, even in the period of
industrialization and modernization of the country and international economic

integration. During the study of this dissertation, the author has collected nearly 100
documents related to the dissertation, including both domestic and foreign documents

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in various forms: magazine articles, scientific research topics, projects, state
management documents, master theses, doctoral theses, textbooks, reference books
and monographs. These materials focus on the following three main research areas:
Firstly, research on agricultural economy and agricultural economic
development includes 3 sub-sectors of cultivation, breeding and aquaculture ...,
agricultural economic restructuring...
Secondly, research on agricultural industrialization and modernization in the
direction of sustainability.
Thirdly, research on state management of agricultural economy is carried out
according to the contents of management such as developmental policies, planning
and developmental plans, inspection and supervision for official in charge of
agricultural management.
1.2. ISSUES NOT YET STUDIED IN THE PUBLISHED WORKS AND
MAJOR RESEARCH DIRECTION OF THE DISSERTATION
As a result, domestic and foreign documents related to state management of
state management for agricultural economy in the direction of industrialization and
modernization, which the author has collected, shows that most of the researches
have mentioned for many contents about agricultural economy development, or the
state management for agricultural economy in both theoretical and practical aspects;
In which, the author has proposed orientations for agricultural economy development
in the direction of industrialization and modernization in some provinces, cities and
some economic regions of Vietnam. It can be said that this is a system of a valuable
scientific works with actual reference meaning in the research process of the author.
However, this rich documentation system remains defective and different from the

author's dissertation:
(1) No comprehensive theoretical framework on state management for
agricultural economy has been developed in the direction of industrialization and
modernization. Most studies refer to only one or more aspects of state management
such as policies, development strategies or monitoring systems.
(2) There have been some works on state management for agricultural
economy, but they have been studied for a long time as Vietnam has not actively
participated in the process of international economic integration as well as there are
no many uncertain factors affecting the current agricultural production. For example,
the issue of climate change, the impact of the economic downturn, and change in
food demand of consumer...
(3) Most of the research studies cover the scope of research in the whole
country or the Red River Delta, the Mekong Delta, the Northern Midland and

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Mountainous Region or within a province such as Da Nang, Hanoi, Thua Thien Hue,
Can Tho...
(4) Recently, many new guidelines and policies of the Party and the State
which have been promulgated (such as the project on restructuring the agricultural
sector, agricultural and rural development strategy up to 2020...) have a great
importance to agricultural development and state management for agricultural
economy, that make the further research become necessity.
(5) At present, there is not any research project or work on state management
for agricultural economy focusing on the Northern Coastal Region in the direction of
industrialization and modernization. Although there are some agricultural research
papers in the Red River Delta, there are two regions interfered by the four provinces
of Hai Phong, Thai Binh, Nam Dinh and Ninh Binh. Particularly, Quang Ninh
province is located in the North Coast Region, but not in the Red River Delta.

Based on those determinations, the author has bravely selected the topic of
"State management for agricultural economy in the Northern Coastal Region in
the direction of industrialization and modernization".

CHAPTER 2
SCIENTIFIC FOUNDATION OF STATE MANAGEMENT FOR
AGRICUTURAL ECONOMY IN THE DIRECTION OF
INDUSTRIALIZATION AND MODERNIZATION
2.1 OVERVIEW ABOUT AGRICULTURAL ECONOMY IN
DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION

THE

2.1.1. Definition of agricultural economy
To go to the definition of agricultural economy, the dissertation studies and
learns about the definition of agriculture and the definition of economy. From this
dissertation, the dissertation presents the definition of agricultural economy as
follows:
Agricultural economy includes economic activities in agricultural production
such as output, price, value-added, productivity, income, distribution, exchange ... in
agricultural sector such as breeding, cultivation, aquaculture…. The research scope
of this dissertation focuses on the economic aspects of agriculture, not mentions the
production methods or techniques and methods of cultivation and breeding, such as
seed, fertilizer, cultivation and breeding methods…
2.1.2. The role of agricultural economy for economic growth and development

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In the national economy, the role of the agricultural sector is very important.

Firstly, creating a consumption market for agricultural production
Secondly, creating jobs for rural workers, reducing the unemployment rate in this
region
Thirdly, creating consumption markets for the service industry
Fourthly, through the export of agricultural products, bringing a large source of
foreign currency income for the country
2.1.3. Factors affect agricultural economy
2.1.3.1. Natural conditions affecting agricultural production: (1) Land; (2) Climate;
(3) Water resource
2.1.3.2. Eco-social conditions: (1) Labor resource; (2) Infrastructure, investment
capital for agriculture; (3) Policies
2.1.3.3. Group of factors related to technical science
2.1.4. Definition of agricultural industrialization and modernization
Agricultural industrialization and modernization is the process of building
material and technical bases and restructuring the agricultural economy in the
direction of large and modern commodity production, linking agriculture with
industry and services, permitting highly effective promotion of all resources and
advantages of a tropical agriculture, expanding domestic and international exchanges
in order to increase social labor productivity in agriculture, building newly
prosperous, equal, democratic and civilized rural regions.
2.1.5. Characteristics of agricultural economy development in the direction of
industrialization and modernization
The basic characteristics of an agriculture developed in the direction of
industrialization and modernization include:
- Developing diversified commodity agriculture, building specialized
production regions on a large scale and step by step modernizing to meet the
requirements of the domestic and export market.
- Developing production and life services in rural regions such as agricultural
hydraulic services, veterinary services, plant protection services, materials supply and
consumption services.

- Promoting the modernization of agriculture, including irrigation,
mechanization, automation, computerization, chemistry in the agricultural, forestry
and fishery sector.
- Appreciating the application of biochemical science and technology advances
in agriculture.

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- Conducting simultaneously and step by step implementing industrialization
and modernization, it is necessary to gradually shift the structure of agriculture.
- Prioritizing investment in agricultural production and rural and mountainous
economic development.
- Strengthening the level of agricultural science and technology and the
qualification of rural citizens, especially the agricultural labor force.
2.2. THEORY OF STATE MANAGEMENT FOR AGRICULTURAL
ECONOMY IN THE DIRECTION OF INDUSTRIALIZATION AND
MODERNIZATION
2.2.1. Definition of state management for agricultural economy in the direction
of industrialization and modernization
2.2.1.1. Definition of management and state management
2.2.1.2. Definition of state management for agricultural economy
State management for agricultural economy is a macro management of the
State for agriculture through the planning tools, laws and policies to create favorable
conditions and premises as well as favorable environment for agricultural production
and trading towards the common goal of the whole agriculture; regulating the
benefits among regions, sectors, between agriculture and the whole economy; Taking
control of all activities in agriculture and rural economy.
2.2.1.3. Definition of state management for agricultural economy in the direction
of industrialization and modernization

So far, there is no uniform definition of "state management of agricultural
economy in the direction of industrialization and modernization". In the resolutions
of the Party, the Decision of the Government only agrees on the terminology of
agricultural industrialization and modernization. The definition of state management
in agriculture in the direction of industrialization and modernization was firstly
mentioned by Dr. Nguyen Huu De (2008) in his doctoral dissertation. According to
the author, state management of agricultural economy in the direction of
industrialization and modernization is the impact of the state to promote agricultural
development in the direction of industrialization and modernization.
Derived from the theories on the role of the State for the economy, derived
from the reality of characteristics and role of agricultural economy for economic
growth and development, the author of the dissertation sets out the definition of state
management for agricultural economy in the direction of industrialization and
modernization is as follows:
State management for industrial economy in the direction of industrialization
and modernization is an impact which is organized and adjusted continuously by the

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law of the State based on the foundation of certain political institutions for processes
and agricultural activities to achieve the agricultural industrialization and
modernization.
According to this concept, the subjects of state management for agricultural
economy in the direction of industrialization and modernization are the agencies of
the State apparatus, including the legislative agencies, executive agencies and judicial
agencies. The objects of state management for agricultural economy in the direction
of industrialization and modernization are economic activities taking place in the
agricultural sector such as production, distribution, exchange and consumption of
agricultural products. The goal of state management for agricultural economy in the

direction of industrialization and modernization is to shift the structure of agricultural
economy towards large commodity production, linking with processing industry and
consumption market, simultaneously applying science and technology into
agricultural production to increase value.
2.2.2. The objective necessity of state management for agricultural economy in
the direction of industrialization - modernization
2.2.2.1. Derived from the role of agriculture in the economy
2.2.2.2. Derived from the dependence of agricultural economy on natural conditions
2.2.2.3. Derived from the process of shifting economic structure in the direction of
more modernity
2.2.2.4. Derived from the issue of national food security and food hygiene safety
2.2.2.5. Derived from the problem of environmental pollution in agricultural
development in Vietnam nowadays
2.2.3. Function of state management for agricultural economy in the direction of
industrialization and modernization
Firstly, orientating agricultural development strategies in line with each stage
of economic development of the country.
Secondly, adjusting relationships in agricultural sector, and between
agricultural sector and the rest of the economy.
Thirdly, supporting and assisting household economy, farm economy, service
cooperatives and other types of production organization in agriculture and rural
development.
2.2.4. Content of state management for agricultural economy in the direction of
industrialization and modernization
2.2.4.1. Organizing the state management apparatus for agricultural economy
The state management apparatus for agricultural economy is a system of power
agencies at all levels from central to local level, is responsible for direct or indirect

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management of agriculture at the macro level. Through the state management
apparatus for agricultural economy, the State plays the role of controlling the
agriculture to be developed effectively, stably with social equality. Each country has
a different way of referring to the Ministry of Agriculture, but the Ministry in charge
of Agriculture in all countries is responsible for the development and implementation
of agricultural policies, and is responsible for implementing the state management
functions for the forestry and aquaculture and rural development of the country.
At the central level: the management agency agrees that agriculture sector is
the Ministry of Agriculture and Rural Development. At the local level, agency in
charge of managing agricultural sector of Departments of Agriculture and Rural
Development, located at provinces and cities. Departments of Agriculture and Rural
Development operate as local branches of the Ministry of Agriculture and Rural
Development, in combination with respective provincial People’s Committees.
2.2.4.2. Building and implementing the legal system of rural development in the
direction of industrialization and modernization
Legislation exists as a management tool for agriculture and rural regions and
plays an important role in the following aspects:
Firstly, establishing the legal basis, protecting and supporting the formation
and development of market mechanisms in agricultural economy. Legislation acts as
a factor to create, support and protect the formation and development of economic
relations in the direction of industrialization and modernization.
Secondly, establishing order and healthy business environment for agricultural
activities.
Thirdly, protecting the legitimate interests of economic objects involved in
economic relations in rural agriculture.
2.2.4.3. Building and organizing the implementation of planning, plan, program
and project of agricultural economy development in the direction of
industrialization and modernization
In order to manage economic activities, the managers of all levels must use the

planning tools. With regard to nature, planning is the manager’s decisions about the
goals, measures, and material guarantees needed to implement goals in a given
period. Planning is a orienting tool for the economic activities of units, localities, or
the whole rural agriculture.
2.2.4.4. Issuing and implementing policies on regulating and promoting the
agricultural economy development in the direction of industrialization and
modernization

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In order to achieve the development goals outlined in the agricultural
development strategies, plans and projects, the State uses a system of economic
policies as a tool to influence the mobilization mechanism of agriculture. Subject to
the different approaches, it can classify economic policies in agriculture according to
different criteria. Some of the following agricultural economy policies may be
mentioned:
+ Land policy
+ Investment policy
+ Credit policy
+ Market price policy
+ Agricultural product export policy
+ Agricultural extension policy
+ Policy on renovation of agricultural and rural structure
2.2.4.5. Inspecting and supervising economic activities in agriculture
Basically, the specialized inspection and supervision in the agricultural sector
includes the following contents: field of cultivation; field of plant protection and
quarantine; sector of breeding; fishery sector; veterinary field; field of agricultural,
forestry and fishery product quality management; field of agricultural, forestry and
aquatic product processing.

2.2.5. Factors affect state management for agricultural economy in the direction
of industrialization and modernization
2.2.5.1. Group of objective factors
(a) Situation of socio-economic development; (b). Political context in the
country; (c) The process of international economic integration; (d) Increasing
competition in the agricultural market.
2.2.5.2. Group of subjective factors
(a) Viewpoints of the Party and the State on agricultural development; (b)
Mode and method of state management for agricultural economy; (c). Capability and
quality of officials and civil servants; (d). Costs for management work
2.3. INTERNAL AND INTERNATIONAL EXPERIENCES IN STATE
MANAGEMENT FOR AGRCULTURAL ECONOMY IN THE DIRECTION
OF INDUSTRIALIZATION AND MODERNIZATION AND APPLICABLE
LESSONS TO THE NORTHERN COASTAL REGION
2.3.1. Experiences in state management for agricultural economy in the direction
of industrialization and modernization

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- Experience in orienting agricultural activities in the direction of
industrialization and modernization
- Experiences in implementing policies on application of modern technology
and techniques, computerization ... to improve farming methods, increase
productivity and sustainable production.
- Experiences in policies of investment in building storage system, enhancing
the processing of waste and by-products
- Experiences in support policies for agricultural product consumption
- Experience in agricultural extension system
- Experiences in policy of shifting sectoral structure and diversification of

agricultural products.
2.3.2. Lessons learned for the Northern Coast Region
- Measures shall be taken to support farmers in applying scientific, technical
and technological advances to agricultural production.
- Building infrastructures for agricultural and rural production, in which
arteries are irrigation, traffic and electricity works.
- Paying attention to and adopting policies to support and encourage other
economic sectors to invest in the agricultural sector, to build a network of service
cooperatives to support inputs such as agricultural supplies, technical services, and
credit ... and consume outputs for households and farmers.
- Implementing agricultural and rural industrialization and modernization in
combination with shifting agricultural economy.
- Assigning ownership of production assets (including land) to farmers and
organizing production by concentration of land in various forms such as transfer,
lease...
- Renewing mechanisms and policies of management for science, techniques
and technology in service of agricultural and rural development and farmers.
Encouraging the signing of contracts between scientific, technical and technological
agencies with agricultural subjects.
- Making long-term investments in the storage and preservation system, should
take into account the cooperation in the construction of agricultural product
warehouse in foreign countries, so that enterprises will be able to monitor which
market in need to meet timely or wait for selling at a time when prices have risen
again.
- Improving and strengthening the horizontal-vertical integrated efficiency in
the production and consumption of agricultural products.

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CHAPTER 3
CURRENT STATUS OF STATE MANAGEMENT FOR AGRICULTURAL
ECONOMY IN THE NORTHERN COASTAL REGION
3.1. NATURAL, ECONOMIC AND SOCIAL CHARACTERISTICS AFFECT
THE DEVELOPMENT OF AGRICULTURAL ECONOMY IN THE
NORTHERN COASTAL REGION
3.1.1 Natural characteristics
3.1.2. Economic-social characteristics
3.2. SITUATION OF DEVELOPMENT OF AGRICULTURAL ECONOMY IN
THE NORTHERN COASTAL REGION
3.2.1. Situation of agricultural production in the Northern Coastal Region
3.2.1.1. Cultivation situation in the Northern Coastal Region
Over the seven-year period from 2008 to 2015, the area of agricultural land
tended to decline from 563.7 thousand ha in 2008 to 541.9 thousand ha in 2015,
equivalent to a decrease of 21.8 ha (equivalent to a half of the agricultural land fund
of Quang Ninh province). This is a disturbing situation not only in the North Coastal
Region but also in the whole country. Compared with other regions, the per capita
food output of the Northern Coastal Region is relatively low (422.2 kg/person), only
higher than the Red River Delta (342 kg/person), the North Central Region and the
Central Coastal Vietnam (396.1 kg/person), equally to only one quarter compared to
the Mekong Delta (1473.8 kg/person). This represents a weakness in the region's
agricultural development since the region has long been considered a privileged
natural resource with great potential for land and climate for the development of
cultivation.
3.2.1.2. Breeding situation in the Northern Coastal Region
Cattle breeding: From 2008 to 2015, the number of buffaloes and cows in the
region has decreased dramatically, from 101 thousand buffaloes to 75 thousand
buffaloes; From 199 thousand cows to 131 thousand. Pig breeding in the region
counted for the most development, is concentrated in Thai Binh and Nam Dinh with
the largest number of pigs, approximately 1 million per year in each province.

Basically, pig breeding in the North Coastal Region has been relatively stable, with
the nearly unchanged number of pigs during 2008-2015; however, the output of pigs
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increased gradually over the years with the average growth rate of 2.12%/year.
Poultry breeding (mainly chicken) counted for the strongest growth, with a quite
good growth in the period of 2008-2015. The annual number of poultry has been
increasing steadily with an average increase of about 10% per year. For the whole
period, poultry flocks in the Northern Coastal Region increased by 7.5 thousand.
Compared with localities in the region, Thai Binh still has the largest population of
poultry, at the first time in 2014 exceeded 10 million per year. This is followed by
Hai Phong and Ninh Binh with the number of over 5 million per year. In recent years,
poultry breeding has been paid much attention and invested quite synchronously in
breed, techniques and breeding method has been changed, so the output of meat and
poultry eggs have been higher than that of the previous year with a high growth rate.
3.2.1.3. Situation of aquaculture in the Northern Coastal Region
The seafood ouput in the region has increased continuously over the years from
341 thousand tons in 2008 to 555 thousand tons in 2015, with a spectacular growth
rate in the whole period as 160% while the area for aquaculture has not been
increasing. Compared with the whole country, the North Coastal region ranked
second in terms of seafood output just after the Mekong Delta and accounted for
22.68% of total output.
3.2.2. Agricultural productivity in the Northern Coastal Region
Regarding rice cultivation, the productivity of rice in the Red River Delta,
including four provinces of the Northern Coast Region (except Quang Ninh) counts
for the highest in the country with an average of 5.8 tons/ha/crop. With this number,
Vietnam's rice productivity is the highest in the Southeast Asia. For corn production,
the region's harvested yield is only equal to the national average of 4.4 tons per
hectare, lower than the Red River Delta and especially the Mekong Delta.

3.2.3. Application of technical sciences in agricultural production in the
Northern Coastal Region
Most of the localities in the Northern Coastal Region have actively applied
advanced science and technology to agricultural production. Not only biotechnology
but mechanization has been widely applied in agricultural production. The rate of
using machines in production such as soiling, irrigation, threshing has been more and
more increasing; postharvest technology and agricultural product processing industry
have been also strongly developed. Many agricultural product processing units have
used modern technology and equipment in production; At the same time, associated
with farmers to perform all-in production, according to the process from farming to
processing and export. Therefore, it has contributed to promote industrialization and
modernization of the agriculture sector, enhance added value of products, create more
jobs and improve the living standards of rural employees.

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3.2.4. Shifting of the structure of agricultural sector in the Northern Coastal
Region
In terms of the proportion of agricultural majors, there is a change in the
contribution of each sub-sector to GDP in agricultural sector of the region. In
particular, the proportion of cultivation has been reduced from 39.05% in 2008 to
32.28% in 2015, although a decrease its proportion was still relatively high.
Meanwhile, the proportion of livestock sector increased from 21.65% to 30.39%; At
the same time, the proportion of the breeding sector decreased from 37.3% to
33.65%. In addition, agricultural services such as the supply of plant seeds, livestock,
fertilizers, veterinary drugs, pesticides ... have grown tremendously in value and
made the contribution in the sector’s GDP to increase from 1.35% to 3.39%. The
forestry proportion has been decreasing, almost contributing insignificantly to the
GDP of the sector.

3.3.
CURRENT
STATUS
OF
STATE
MANAGEMENT
FOR
AGRICULTURAL ECONOMY IN THE NORTHERN COASTAL REGION
3.3.1. Current status of organizing state management apparatus for agricultural
economy in the Northern Coastal Region
In reality, there is no agricultural management apparatus for the entire
Northern Coastal Region but only the agricultural management apparatus of each
province and city in the region. Basically, agricultural production in the whole region
is managed by the central level (Ministry of Agriculture and Rural Development) and
at the local level (Department of Agriculture and District Agriculture). At the local
level, the Department of Agriculture and Rural Development is in charge of all state
management of agriculture in the localities in the region.
As a direct unit of state management of agricultural economy, the Ministry and
Department of Agriculture and Rural Development in collaboration with other state
management agencies such as the Ministry of Planning and Investment; the Ministry
of Industry and Trade; The Ministry of Finance; the Ministry of Science and
Technology; Ministry of Health ...
3.3.2. Current status of the legal system related to agricultural economic
development in the direction of industrialization - modernization in the North
Coastal Region
Since agricultural economy consists of many different branches, each branch
has different production functions. Therefore, the legal framework related to
agriculture includes many legal documents such as the Land Law; the Fisheries Law;
the Law on Agricultural Land Use Tax; the Law on Plant Protection and Quarantine;
the Law on Food Safety; and the Veterinary Law...

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In general, the laws related to agricultural production have been newly
amended and promulgated in the direction of better adjustment, more and more
completion in content in order to expand opportunities and create conditions for
economic sectors involved in production and business in agriculture, in addition to
strict regulations on quarantine and food safety to protect the health of consumers,
maintain the natural environment and agricultural development in the direction of
sustainability.
3.3.3. Current status of planning, plans, programs and projects on agricultural
development in the direction of industrialization and modernization in the
Northern Coastal Region.
One of the important contents of state management in agricultural economy in
the Northern Coastal Region is the planning, meaning the promulgation and
implementation of planning and plans for agricultural development in the direction of
industrialization and modernization in the provinces in the Region. The promulgation
of planning and plans related to agricultural development in the region is clearly
defined at two levels: central and local level depending on the issuing level. Plans
issued by the central level will be applied nationwide or the whole region; while the
plans issued by the local authorities will only be applied internally within the territory
of that locality.
3.3.3.1. Planning at the central level
- Decision No. 865/QD-TTg dated 10/7/2008 approving the planning of
construction of the Northern Coastal Region up to 2025 with a vision to 2050.
- Agricultural and Rural Development Strategy for the period 2011-2020 by the
Ministry of Agriculture and Rural Development.
- The five-year plan 2016-2020 of the agricultural sector and rural development
sector is one step to concretize the 10-year development strategy.

- Fisheries and breeding development strategy to 2020
In addition, at the central level, there are programs and projects in the
agricultural sector such as:
- Project on agricultural restructure in the direction of enhancing added value
and sustainable development.
- Project on development of cultivation up to 2020, vision to 2030
- The program for agricultural development with application of high
technology approved in conjunction with the Decision No. 1895/QD-TTg dated
17/12/2012 by the Prime Minister.
3.3.3.2. Planning at the local level in the Northern Coastal Region

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In addition to the implementation of strategies, plans, projects, national
programs for agricultural development in the direction of industrialization modernization, the provinces in the Northern Coastal Region have also promulgated
and implemented the planning, plans and programs of agricultural development
towards the industrialization and modernization of their respective localities. From
2008 to 2016, the People's Committee of the provinces/cities in Northern Coastal
Region has directed to build nearly 30 agricultural and rural development plannings
and assigned Department of Agriculture and Rural Development to organize and
implement. Completed planning is an important basis for the agricultural and rural
development sector and localities as a basis for developing land use plans, shifting
plant and livestock structure, building concentrated production and promoting the
application of technical advances to agricultural production; shifting agricultural and
rural economy structure and sustainable development.
3.3.4. Current status of promulgating and implementing the policy system of
agricultural development in the direction of industrialization and modernization
in the Northern Coastal Region
3.3.4.1. Central agricultural policy system

a. Policy on agricultural land use tax exemption and reduction
b. Policy on credit for farmers
c. Policy on price support for agricultural products
d. Agricultural extension policy
e. Policy on encouraging enterprises to invest in agriculture
f. Policy on application of high technology in agriculture
3.3.4.2. The agricultural policy system of the localities in the Northern Coastal
Region to implement the central policy
The provinces and cities in Northern Coastal Region have issued many policies
to encourage cultivation, breeding, and aquaculture, based on the general policy of
the Government.
3.3.5. The current status of inspection and supervision of agricultural
production in the Northern Coastal Region
Annually, the specialized inspection system of the Ministry and Departments
of Agriculture and Rural Development in the Northern Coastal Region carries out
many inspections and inspections of activities of food production and processing
establishments…, establishments of trading in agricultural materials, the inspection of
food safety from production and processing establishments to the business and
consumption of products.

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Inspection results in the region for the past few years have shown that many
violations of pesticides, low-qualified organic fertilizers and other fertilizers have
been detected in some localities and some enterprises; small establishments which
have not yet met the necessary conditions still exist and participate in the production
and trading of fertilizers; Many mistakes in processing, food safety such as not
maintaining quality control, periodic product testing; Using origin-unknown materials
for food processing; Repairing, erasing contents of food quality and safety certificates

with exported food batches; Failing to comply with food safety control procedures as
prescribed.
Regarding the inspection of agricultural land use: Based on the results of the
inspection in localities in the Northern Coastal Region, there have been many
mistakes in the management and use of the agricultural land fund such as the lump-up
and lease of land is not bided or auctioned; No maps, records and management books
as prescribed.
3.4. EVALUATION OF CURRENT STATUS OF STATE MANAGEMENT
FOR AGRICULTURAL ECONOMY IN THE DIRECTION OF
INDUSTRIALIZATION AND MODERNIZATION IN THE NORTHERN
COASTAL REGION
3.4.1. Achievements in state management for agricultural economy in the
Northern Coastal Region
The state management of the agricultural economy in the direction of
industrialization and modernization in the Northern Coastal Region in the period
2008-2015 has achieved the following outstanding results:
Firstly, a legal framework has been established more and more perfectly in
agricultural economy with a punctual and updating issue level.
Secondly, the tools of planning such as strategy, planning and plans ... have
been used quite flexibly and regularly in state management in the Northern Coastal
Region.
Thirdly, policies supporting agricultural development through agricultural
offering agricultural credit, price stabilization of agricultural products, land use tax
exemption and reduction... have promoted agricultural production in the Northern
Coastal Region towards production and concentration with large scale, have been
agreed by farmers, and , in which enterprises are considered the center for production
development.
Fourthly, the Northern Coastal Region has developed information and
extension systems and rural financial services for agriculture.
Fifthly, the guarantee of food hygiene and safety quality and quarantine are

paid attention by local authorities in the region; communication on food safety has
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been improved; The application of international standards in agricultural, forestry and
aquaculture production and processing is gradually promoted step by step towards a
green agriculture.
3.4.2. Outstanding limitations in state management for agricultural economy in
the Northern Coastal Region
Apart from the advantages of state management for agricultural economy, the
implementation of state management for agricultural economy in the direction of
industrialization and modernization in the Northern Coastal Region has not avoided
certain limitations.
Firstly, there is no Steering Committee with the function of coordinating
Northern Coastal Region leading to weak regional linkage.
Secondly, the agricultural management apparatus of the Northern Coastal
Region is overlapping, lacking in rhythm and coordination among management
agencies.
Thirdly, the Land Law 2013, although recently promulgated, has exposed some
shortcomings in implementation; legal documents on food hygiene and safety are
contradictory
Fourthly, the planning in the provinces/cities is too massive, the planning has
overlapping content, planning is unfeasible
Fifthly, the credit policy for agriculture in the Northern Coastal Region has not
really been effective
Sixthly, the management of pesticide use is lax, leading to widespread use,
causing environmental pollution and endangering the health of both producers and
consumers.
Seventhly, the inspection is not strict, poor performance and overlapping.
3.4.3. The basic causes of the limitations

3.4.3.1. Group of objective reasons
3.4.3.2. Group of subjective reasons

CHAPTER 4
ORIENTATIONS AND SOLUTIONS TO IMPROVE STATE MANAGEMENT
FOR AGRICULTURAL ECONOMY IN THE NORTHERN COASTAL
REGION IN THE DIRECTION OF INDUSTRIALIZATION AND
MODERNIZATION

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4.1. ORIENTATIONS OF IMPROVING STATE MANAGEMENT FOR
AGRICULTURAL ECONOMY IN THE NORTHERN COASTAL REGION IN
THE DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION
4.1.1. Economical context in the world and impacts on the agricultural economy
in the Northern Coastal Region
- Increase of agricultural productivity.
- Increase of agricultural investment
- Green growth in agriculture
- Cooperation in agricultural development
- The 4th Industrial Revolution in agriculture
4.1.2. Strategic orientations for agricultural economic development in the
Northern Coastal Region in the direction of industrialization and modernization
up to 2030.
4.1.3. The viewpoints of the Party and the State on state management for
agricultural economy in the direction of industrialization and modernization in
the Northern Coastal Region.
4.2. SOLUTIONS OF IMPROVING STATE MANAGEMENT FOR
AGRICULTURAL ECONOMY IN THE NORTHERN COASTAL REGION IN

THE DIRECTION OF INDUSTRIALIZATION AND MODERNIZATION
4.2.1. Improving the organizational apparatus and managing human resource in
the Northern Coastal Region
4.2.2. Improving the quality of planning, plans and orientations for agricultural
economic development in the Northern Coastal Region.
4.2.3. Improving the policy system for agricultural development in the Northern
Coastal Region
4.2.3.1. Improving the land support policy for agricultural development in the region
4.2.3.2. Promoting public-private partnership in agriculture in the in the Northern
Coastal Region to diversify the investment capital for agriculture in the region
4.2.3.3. Improving financial policies for farmers and agricultural enterprises
4.2.3.4. Improving the agricultural extension policy by improving the efficiency and
encouraging participation of the private sector
4.2.3.5. Improving policies on transfer and application of science and technology to
agricultural production
4.2.4. Promoting agricultural development in the Northern Coastal Region
towards organic agriculture and clean agriculture

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4.2.5. Promoting agriculture in the Northern Coastal Region to develop towards
large-scale production
4.2.6. Solutions to improve the inspection of agricultural economic activities
- Strengthening the inspection and supervision of the effectiveness of
agricultural support projects and policies
- Strengthening the inspection of agricultural materials, food hygiene and
safety
- Strengthening the inspection on the use of agricultural land by localities in the
Northern Coastal Region

4.3. CONDITIONS FOR IMPLEMENTING THE SOLUTION
4.3.1. Renewing viewpoints on the role of the State, and promoting the role of
industry associations
4.3.2. Raising awareness and capacity of farmers on industrialization and
modernization
4.3.3. Developing rural infrastructures in the Northern Coastal Region
4.3. Some recommendations for the National Assembly
4.3.1. Recovering shortcomings in the Land Law 2013
4.3.2. Completing the Fisheries Law in the direction of recovering inadequacies
4.2.3. Promulgating the Law on Agriculture, agreeing to adjust specialties in the
agricultural sector
CONCLUSION
By analyzing the natural, economic and social characteristics of the Northern
Coastal Region, the dissertation confirms that Northern Coastal Region with the
territory of 5 provinces as Quang Ninh, Hai Phong, Thai Binh, and Nam Dinh, and
Ninh Binh has strength of developing food crops, fruit trees, cattle and poultry, and
aquaculture ... in association with processing industry and agricultural modernization.
The dissertation has shown that the main cause of the limitations in agricultural
development of the region is that the state management of agricultural economy in
the Northern Coastal Region still faces many shortcomings: the planning is limited
without reality and in association with processing, consumption, market and
investment in infrastructures; the policy system remains lack of efficiency, , policy
specification is slow, lack of human resources; The inspection and supervision have
not been paid much attention, so concerns arising have not been solved punctually
and thoroughly.

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In order for the agricultural sector in the Northern Coastal Region to develop in

the direction of industrialization and modernization, the dissertation affirmed that the
most important orientation currently is to improve the role of state management for
agricultural economy in the region by solutions such as: Facilitating to expand the
consumption market of agricultural products, increasing the input of capital for
farmers, promoting the application of science and technology into production;
Reviewing and adjusting the land use planning and agricultural development in
association with the processing and consumption of products in combination with the
planning on development of rural infrastructure; developing the types of business
organizations in agriculture… Through the proposed solutions, the dissertation hopes
that it can contribute to improve the effectiveness of the State management and
adjustment role, facilitating to promote agricultural economy in the Northern Coastal
Region to develop rapidly in the direction of commodity production and trading and
the process of industrialization and modernization of rural agriculture in the coming
years.

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LIST OF THE AUTHOR’S PUBLICATIONS

1. Policy on agricultural economy development in the Nothern Coastal Region in
the direction of Industrialization and Modernization; Lighting and Life
Magazine, the Agency of Vietnam Lighting Association; No. 89+90, September
and October 2016; Page 57-61.
2. Scientific foundation and trend of shifting current agricultural economy
structure; Lighting and Life Magazine, the Agency of Vietnam Lighting
Association; No. 91, November 2016; Page 52-55.
3. Some international experiences in agricultural economic development towards
industrialization and modernization; State management Magazine, National
Academy of public Administration; No.271, August 2018; Page 106-109.

4. State management of agricultủal economy along the direction of
industrialization and modernization in the Northem coastal region; Journal of
Economics and Managerment, Ho Chi Minh National Political Academy; No.27,
Semtember 2018; Page 71-73.

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