NEW CONTRIBUTIONS OF THE DISSERTATION

Topic: Innovating division of social labours by branch in developing process of major economic region of Central Vietnam

Major: Development economics          Code: 62 31 01 05

Research student: Bui Minh Chuyen           

Instructor:   1. a.Pro. PhD. Trinh Khac Tham

2. PhD. Nguyen Van Thanh 

Training facility: Development Strategy Institute 

New contributions on learning, argument 

Clarifying the basic theoretical issues of innovating division of social labours by branch in the  conditions  of  Vietnam  basing  on  the  viewpoint  of  development,  bringing  out  principles, orientations  for  innovating  division  of  social  labours  by  branch  while  globalization  is  taking place  strongly  and  shifted  to  knowledge  economy,  analyzing  10  primary  factors  that  affect innovation  division  social  labours  by  branch.  Proposing  7  targets  (including  4  basic  and  3 supplemental targets)  for evaluating level of social labours division. New findings, proposals inferred from researching, studying results of the dissertation 

- Analyzing actual state of division of social labours by branch in MERCV. Pointing out the  limitations  and  reasons  of  backwardness  of  the  DSL  by  branch  in  MERCV  and  effects  of such actual state to the development of MERCV. 

-  Finding  and  discovering  new  problems  of  division  of  social  labours  innovation  by branch in MERCV. Proposing to adjust some economic development, social targets in 2020 for MERCV. 

-  Bringing  out  orientations  for  division  of  social  labours  innovation  by  branch  and proposing  6  primary  solutions,  stressing  the  solution  of  creating  competitive  playground  for potential  investors,  in  which  core  factors  are  developing  competitive  cluster;  training  and developing  human  resources,  focusing  on  the  solutions  to  ensure  that  human  resources  are suitable  for  the  requirements  of  division  of  social  labours  innovation  by  branch  in  modern direction;  building,  completing  policies  to  promote,  extend  inter-provincial,  inter-regional cooperation;  improving  quality  of  planning  works,  developing,  enhancing  effects  of  labour market.  Simultaneously,  bringing  out  solutions  to  make  performance  of  division  of  social labours innovation by branch in MERCV effective.

-  New  findings  and  proposing  of  the  dissertation  contribute  scientific  and  real  bases  for analyzing,  planning  policies  of  division  of  social  labours  innovation  by  branch  in  developing process  of  Vietnam,  this  is  the  reference  for  Party,  State  agencies  at  the  central  and  regional local in making, supplementing, adjusting targets, orientations, development plans of branches

until 2020 for the major economic region of Central Vietnam. 

     INSTRUCTOR                                                       RESEARCH STUDENT

Instructor 1                                 Instructor 2

a.Pro. PhD. Trinh Khac Tham   PhD. Nguyen Van Thanh     Bui Minh Chuyen  

=======================

INTRODUCTION

1. Reasons for choosing the topic

Division of social labours (DSL) is a property of developing process, one of important factors  that  decide  national  labour  productivity  (LP),  reflect  development  level  of  socio-economy  in  the  context  of   lobalization  and  conversion  to  knowledge  economy.  Modern world  economy  is  not  a  mere  "flat"  network  anymore,  it  now  has  the  structure  of  "global space network". This is a new structural form of modern world economy, which is made on the basis of modern international labour division system.

Major  economic  region  of  Central  Vietnam  (MERCV)  has  the  strategic  meaning  in socio-economic  development  of  the  whole  country  and  firstly  the  Central  region  of  our country,  it  has  an  opened  economic  position,  a  great  potentiality  to  develop  diversified economy  and  deeply  integrate  into  international  labour  division  system.  However,  the economy of this region developed very slowly for years with low labour productivity due to unreasonable division of social labours, slow innovation. 

In order to make MERCV develop stronger with higher level, DSL must be innovated. This  problem  has  not  been  studied  satisfactorily,  there  hasn't  been  any  comprehensive, complete, systematic research on DSL of this region. 

After  living  and  working  in  MERCV,  we  found  out  that  the  problem  of  innovating DSL is very urgent here.

For  above  reasons,  we  chose  the  topic:  "Innovating  division  of  social  labours  by branch  in  eveloping  process  of  major  economic  region  of  Central  Vietnam"  for  our doctor dissertation.

2. Overview of works relating to the topic

DSL and  social  labours re-division ứa mentioned by C. Mark in the doctrine on DSL and doctrine on social reproduction under capitalism.  With the development of economics, there  are  some  authors  mentioning  about  DSL  between  branches  according  to  developing stages, considering it as an objective requirement of  development. 

In  Vietnam,  there  has  been  some  researchs  on  DSL  and  labour  re-division  recently. However,  such  researchs  just  suty  about  general  arguments  on  division  of  labour;  re-division  of  labour  with  job  settlement  in  rural  areas,  with  the  movement  of  economic structure in a suburban district or province. There has been no research on DSL innovation by branch in some  major  economic  regions with current conditions. Such published works showed  the  auhors  necessity  of  systematizing,  analyzing,  interpreting  main  problems  on argument and reality of DSL innovation by branch in the development of MERCV. 

3. Researching purposes

Researching  arguments  on  DSL  innovation  in  Vietnam,  establishing  standards  to eveluate  DSL  level,  applying  to  evaluate  actual  state  of  DSL  by  branch  in  MERCV, bringing out solutions to make DSL innovated effectively in MERCV.

4. Researching objects and scope

4.1.Researching objects

Are  the  arguments  and  reality  on  DSL,  DSL  innovation  by  branch,  relationship between the level of DSL by branch and developing process. 

4.2. Researching scope

The  dissertation  focuses  on  clarifying  arguments  on  DSL  innovation  (general  labour division  and  specific  labour  division).  Analyzing  actual  state  of  DSL  by  branch  in  2005-2009  stage  and  its  ffects  to  the  process  of  developing,  establishing  orientation  and proposing solutions for DSL innovation by branch until 2020 in MERCV. 

5. Researching method and source of data

5.1. Researching method

The  author  uses  following  main  researching  methods:  systematic  analysis  method, descriptive  statistic  method,  comparison  method,  extrapolation  method,  collective  analysis method. 

5.2. Source of data, materials 

Reports  of  related  Party  and  State  agencies,  published  results  performed  by  domestic and foreign organizations, individuals.

6. Contributions of the Dissertation

Main contributions of the Dissertation are:

-  Clarifying  the  basic  theoretical  issues  of  DSL  innovation  in  Vietnam  on  the viewpoint of development. 

- Given the basic principles and proposing 7 targets for evaluating DSL level to apply in Vietnam, specifically in MERCV.

- Analyzing actual state of DSL by branch, Pointing out the limitations and reasons of backwardness of the DSL by branch in MERCV. 

-  Proposing  practicable  orientations  for  innovating  and  proposing  solutions  for innovating  DSL  by  branch  in  MERCV,  and  solutions  to  make  performance  of  proposals effective. 

7. Structure of the Dissertation

Beside  Introduction,  Conclusion,  List  of  Works  performed  by  the  author,  this Dissertation includes 3 chapters:

Chapter 1

ARGUMENTS AND REALITY ON DIVISION OF SOCIAL LABOURS INNOVATION BY BRANCH IN DEVELOPING PROCESS

1.1.  DIVISION  OF  SOCIAL  LABOURS  AND  DIVISION  OF  SOCIAL LABOURS INNOVATION BY BRANCH

1.1.1.  Division  of  social  labours:  the  category  of  sicio-economy  depends  on productive force, changes from low to high, simple to complex

In  the  doctrine  on DSL,  Marxist  economics  analyzed  3 times  of great DSL that  mark the development of human society. In each great DSL time, a new working method is also established  basing  on  the   evelopment  of  productive  force  (PF)  and  promoting  social labours productivity. The problem is that old DSL must be replaced by a new one. 

DSL:  is  the  division  of  social  labours  into  different  branches,  regions,  stages  of producing process, service, socio-economic activities.

Development  of  technique,  technology,  the  orientation  of  using  machines  to  replace manual  labours  led  to  the  shift  of  labours  between  three  regions:  Agriculture,  Industry  – Construction  (IC)  and  Service  which  increases  social  labours  productivity,  such  process takes place together with developing stages, then affects DSL level strongly. 

DSL  for  each  MER  is  the  DSL  into  different  branches,  regions,  stages  of  producing process,  service,  sicio-economic  activities  in  MER.  DSL  for  MER  is  affected  by administrative  border  line,  natural  conditions,  development  viewpoint  and  orientation  of localities, therefore, it is necessary to base on the advantage of comparing the whole region to process relationships between localities. 

DSL  takes  place  together  with  continuous  developement  and  progress  of  PF  in  the process  of  industrialization,  moderninzation  and  internation  economy  integration.  When labour density of agriculture decreases, labour density of industry and service will increase, in which  labour  density  of service increases  faster  than  that of industry, knowledge  labour density increases faster than manual labour density in total social labours. 

1.1.2. Innovating division of social labours by branch is the premise for economy to develop at high level

Definition: Innovating DSL by branch is renewing, improving DSL level by branch in order to achieve higher labour productivity basing on modernity. 

World  economy  is  developing  with  two  great  trends,  which  are  globalization  and conversion  to knowledge  economy. DSL innovation  by  branch in our  country  must follow the  direction:  Rapidly  increasing  labour  density  of  non-agricultural  area  in  total  social labours, especially the labours working in high technology branches, to export on the basis of  exploiting  comparison  advantages;  density  of  knowledge  labours  working  in  main branches, key branches, environment friendliness and protection branches with added value and high labour productivity  directed to export increases faster than density of manual and semi-manual  labours.  DSL  is  performed  with  the  orientation  of  deeply  participating  in  international labour division system and global "value series".

Innovating DSL by branch for MER is renewing and improving DSl level by branch of the region in order to achieve higher labour productivity. DSL innovation by branch must be associated with the characteristics of MER and uphold comparison advantages of the region in order to blur "hard" boundary, extend "soft" boundary in developing process of the region by promoting cooperation and association between localities.

Basic principles in performing DSL innovation by branch

- Principle on benefit:  DSl innovation by branch must bring more  benefits for people and economy, which is presented in satisfying demands of people through increase of social labours productivity, good social security. 

- Principle on target: DSL innovation by branch is an continuous action from current level  to  a  higher  new  one,  this  is  the  target  of  DSL  innovation  by  branch.  In  order  to perform DSL innovation according to brance, it is necessary to make a premise on economy to  renew  politic,  socio-cultural  problems.  The  level  of  next  renewal  is  higher  than  that  of previous one. 

-  Principle  of  orientation:  DSL  innovation  should  start  from  orientations,  policies  of the Party, State and related ministries, branches. The policies from higher authorities make DSL innovation by branch easier, faster and more effective. 

-  Principle  of  effectiveness:  DSL  innovation  by  branch  is  asociated  with  feature  of culture, natural conditions, socio-economy and customs of inhabitants, therefore, inheriting percept  must be fully grasped. DSL innovation by branch  must exploit the potentiality and advantages of natural,  socio-economic conditions, development of science  – technology  in and outside the country effectively.

Development: is the change of quantity and quality of system from low to high level. For  a  country,  development  must  include  development  of  economy,  politics,  society  and internation relationship. 

DSL  innovation  by  branch  is  an  important  factor  to  the  development,  it  generates  a modern  labour  structure,  promotes  development  of  labour  forces,  increases  labour productivity then makes economy grow, develop. 

DSL innovation by branch plays a great role in developing process: Because it creates the  foundation  so  that  social  production  can  achieve  higher  social  labours  productivity; promotes the use of machines, increases social labours productivity; promotes modernizing process;  promotes  the  participation  in  division  of  international  labour  and  international economy integration, contribute to market development. 

1.1.3. Main factors that affect division of social labours innovation by branch

- Nature and economy is an important factor with decisive effect to DSL level.

-  Mentality  –  custom  –  society  and  population  is  the  initial  condition  for  DSL establishment.

-  Development  level  of  labour  force  and  the  level  of  goods  production,  exchange, commerce is the basic condition to make DSL develop.

- Traffic, transportation and development of science – technique and technology is the condition to make DSL develop in modern direction.

-  Politic  system  –  national  development  policies,  globalization  and  internation economy integration is an important fator that orients DSL and promotes deep participation in internation labour division network.

1.2.  THE  NECESSITY  OF  DSL  INNOVATION  BY  BRANCH  IN DEVELOPING PROCESS

1.2.1. The lag in development of researching region in comparison with the whole country

-  Researching  region:  MERCV  was  established  according  to  Decision  No 148/2004/QD-TTg  dated  13/8/2004  of  the  Prime  Minister,  including  5  provinces,  cities directly uner the Central, which are Thua Thien – Hue, Da Nang, Quang Nam, Quang Ngai and  Binh  Dinh.  Researching  DSL  innovation  by  branch  in  developing  process  of researching region, we acknowledge that such MERCV is existing according to decision of Prime Minister.

- The lag of researching region in comparison with the whole country: The target is  constructing  MERCV  and  making  it    a  dynamic  economic  developed  region  with  high growing  speed,  take  the  lead  in  some  important  fields,  contribute  to  improve  the effectiveness and competitive power of economy, create the motive power for development of our country. However, the development of MERCV in recent years is still lower than the whole country in economy, politics and society, which strongly affects general development of our country. 

1.2.2. Low  social labours productivity and living standard of  inhabitants require

the change in developing method, division of social labours In order to increase social labours productivity, improve living standard of inhabitants, it  is  necessary  to  change  developing  method,  from  the  direction  of  wide  development (growing  by  capital  and  labour)  to  deep  development  (knowledge  economy)  by  increasing labour  density  in  the  branches  of  high-technology,  directing  to  export  on  the  basis  of exploiting potentiality, advantages and opportunities of globalization effectively.

1.2.3.  Satisfying  higher  and  higher  requirements  and  expectation  of  social demand in developing process

Social demand always changes from low to high, from quantity to quality together with the development of human society. DSL innovation by branch makes labour forces develop, improves  labour  productivity,  then  increase  the  volume  of  material,  service  products  in order to satisfy higher and higher requirements and expectation of social demand. 

1.2.4.  The  lag  of  DSL  by  branch  in  comparison  with  the  development  of  science and technology

In  the  era  of  knowledge  economy,  the  most  important  and  decisive  factor  in  labour forces is knowledge, human  mind. This  depends on DSL  level,  low DSL level  will inhibit the  development  of  human,  restrict  the  ability  of  applying  achievements  of  science  and technology.

1.2.5.  Globalization  and  the  ability  of  breaking  development  on  the  basis  of  new international labour division system 

Globalization and internation economy integration have become an objective trend that controls  socio-economic  development  of  each  country  and  international  relationship,  it creates  big  chances  for  development.  In  order  to  deeply  participate  in  international  labour division  system,  the  country  must  have  more  and  more  high  added  value,  high  value products to export. DSL innovation by branch in the direction of increasing labour density in  high-tech  branches  and  exporting  will  change  the  structure,  value  of  exporting  goods, generate a breaking development.

1.3. SOME BASIC TARGET TO EVALUATE THE LEVEL OF DSL

1.3.1. Labour density of non-agricultural region in total social labours

Is the percentage (%) of labour forces working in non-agricultural area on total social labours. The target is calculated according to following formula:

                LD_pnn 

   T_ldpnn  =---------x 100 (%)                   (1.3.1)

                LD

In which: 

T_ldpnn: labour density of non-agricultural region (%)

LD_pnn : labour force of non-agricultural region

LD: Total social labours

This  is  an  important  target  reflecting  the  level  of  industrialization  of  economy,  the higher  labour  density  in  non-agricultural  region  is,  the  higher  level  of  industrialization  is and vice versa. However, this target does not reflect modernity of DSL level. 

1.3.2. Density of labours working in high-tech branches in total social labours

The  density  of  labours  working  in  high-tech  branches  in  total  social  labours  is  the percentage (%) of labour force working in high-tech branches on total social labours, which is calculated according to following formula:

                  LD_cnc

    T_ldcnc  = -----------x 100 (%)                       (1.3.2)

                 LD

In which:  

  T_ldcnc: density of labours working in high-tech branches (%)

  LD_cnc : labour force working in high-tech branches

  LD: total social labours

This  targets  directly  reflect  the  modernity  of  DSL.  However,  it  does  not  fully  reflect the level of industrialization of economy.

1.3.3. Density of labours working in exporting field in total social labours

Density  of  labours  working  in  exporting  field  is  the  percentage  (%)  of  labour  force working  in  exporting  filed  on  total  social  labours,  which  is  calculated  according  to following formula:

                                       LD_xk

                  T_ldxk  = --------x 100 (%)                        (1.3.3)

                             LD

In which: 

  T_ldxk: density of labours working in exporting field (%)

  LD_xk : labour force working in exporting field

  LD: total social labours

This  target  reflects  the  participation  in  internation  labour  division  system,  in  global "value series", it also indirectly reflects modernity of economy. 

1.3.4. Social labours productivity

Social  labours  productivity  is  the  general  effectiveness  of  DSL  in  producing  process. Labour productivity is calculated according to following formular:

                                                  Added value (or GDP)

Social labours productivity = ------------------------------------------          (1.3.4)  

                                                  Quantity of labuors working

                                                in national economic branches

This collective target reflects DSL level of economy. But it does not specifically reflect the modernity of DSL level and participation in internation labour division system.

Supplemental targets:

1.3.5. Opening level of economy

Opening level of economy is expressed through percentage of export turnover on total domestic products in a period, and is calculated according to following formular: 

            XK    

   D_m = -------- x 100 (%)                              (1.3.5)

           GDP

In which:

D_m: opening level of economy

XK: export turnover in the period

GDP: Gross domestic products in the period

This  target  indirectly  reflect  DSL  level.  The  higher  opening  level  is,  the  deeper economy participates in internation labour division system. 

1.3.6. Shift point of labour from agricultural to non-agricultural region

Shift point of labour from agricultural to non-agricultural region is expressed through percentage of decrease of labour density in agricultural region and increase of labour density in  non-agricultural  region  in  next  year  in  comparison  with  previous  year.  This  reflects  the progress in DSL level of economy. It is calculated according to following formula:

          D = T_ldpnns - T_ldpnnt (percentage)       (1.3.6)

In which: 

D: labour shift point (percentage).

T_ldpnns: labour density of (non-)agricultural region in next year

T_ldpnnt: labour density of (non-)agricultural region in previous year.

This target does not specifically reflect the subsectors of non-agricultural region where labour  are  shifted  from  agricultural  region  to  (branch  of  high  or  low  labour  productivity, main, key branch or export products manufacturing branch).

1.3.7. Unemployment rate

Is the target expressing rate of comparing unemployers to labour force (total economic active population) in the period and calculated according to following formula:

                                                            Number of unemployed

  Unemployment rate (%) = 100 x -----------------------------------------------               (1.3.7)

                                                         Economic active population (LF)

Unemployment rate reflets the full employment in social labours of the economy. The target also indirectly reflect DSl level.

Chapter 2

ACTUAL STATE OF SOCIAL LABOURS DIVISION BY BRANCH OF MAJOR ECONOMIC REGION OF CENTRAL VIETNAM AND ITS EFFECTS TO DEVELOPING PROCESS

2.1.  OVERVIEW  OF  POTENTIALITY,  ADVANTAGES  AND  FACTORS AFFECTING  INNOVATION  OF  SOCIAL  LABOURS  DIVISION  BY  BRANCH  IN MAJOR ECONOMIC REGION OF CENTRAL VIETNAM

2.1.1.  Potentiality  advantages  and  conditions  of  DSL  innovation  by  branch  in MERCV

MERCV has the toal area of about 27,879 km2, population in 2009 is 6,108,600 people with  a  series  of  developing  cities  spreaded  across  600km  seashore,  airtight  deep  bays  and large economic areas such as: Chan may, Chu Lai, Dung Quat, Quy Nhon. MERCV has a strategic location for the whole country, Mekong river sub-region and Asia Pacific region. 

The  region  has  many  potentialities,  advantages  and  conditions  to  innovate  DSL  by branch  in  a  modern  direction.  About  potentiality,  advantages:  opened  economic  location; many  beatiful  seaside  resorts,  world  cultural  heritages,  diversified  natural  resources  with specific  character  (ocean,  forests);  continental  shelves  which  are  potential  for  gas  oil, airtight  deep  bays;  economic  areas.  About  conditions:  The  trend  of  international  economy integration is becoming wider and deeper; lying in the most dynamically developing region in  the  world,  developed  commerce,  high  demand  for  transportation  and  logistics  service; cared by the Central; the demand for human resources of nations in EU, Australia, Japan... is likely to increase fast in the next years.

2.1.2. Basic factors affecting DSL innovation by branch in MERCV

-  Natural  conditions:  MERCV  has  a  strategic  location,  long  seashore,  many  airtight deep  bays,  beautiful  seaside  resorts,  great  stock  of  sea  products,  beauty  spots  and  almost types of minerals in comparison with the whole country, especially in gas oil. 

- Economic factor: GDP growing speed (actual price) is high, average in 2005-2009 is over 11%/year; industry – construction, services increase with average level of 18.69% and 13.57%  respectively  but  unstable;  underdeveloped  economic  structure,  shifting  to  modern direction slowly. Economic structure in 2005: Agriculture 25.1%, Industry 36.4%, Services 38.5%, 2009: 20.5%, 38.7%, 40.9%. Income per capita is low, in 2009, it is equal to 86.67% of the whole country. Economic density is very low. 

- Factor of population – labour – culture - society

In  2009, total population of MERCV is 6,108,600 people  occupying 7.1%  population of  the  whole  country.  Population  distribution  is  concentrated  in  rural  areas,  accounting 66.87%.  Labour  force  of  MERCV  in  2009  is  3,430,146  labours,  accounting  56.12% population, underdeveloped labour structure, labour density of agricultural area is still high, 31.8%.  Labour  quality  is  low,  the  rate  of  trained  labours  is  only  29%,  social  labours productivity is low, about 30.7 million VND/person in 2009. Economic mentality is slowly innovated, especially the economic mentality in technology. In general, social development level of MERCV is lower than other regions of our country. 

- Development orientation, policies for the region and localities

DSL is affected by guidelines, policies of Party and State, especially the Decisions of Prime Minister, ministries, branches, and localities in the region. These decisions will give the direction for developing economic branches, fields of MERCV.

- Inter-regional nature and international economy integration

Inter-regional  nature  helps  to  uphold  comparison  advantages  of  each  locality  and  the whole  region.  It  is  expressed  by:  cooperation  in  developing  economy,  cooperation  in forming infrastructure network, cooperation in training human resources and cooperation in environmental  protection.  International  economy  integration  nature  and  level  are  mainly expressed  through  international  commercial  activities  and  FDI  capital  attraction.  Export turnover of the region is low, in 2009, it is about 1.360 million USD; the registered amount of  FDI  capital  for  the  region  is  high,  however,  implementary  FDI  is  low,  only  about  1 billion USD (7% registered capital). 

2.2.  ACTUAL  STATE  OF  SOCIAL  LABOURS  DIVISION  BY  BRANCH  IN MAJOR ECONOMIC REGION OF CENTRAL VIETNAM – STATE 2005 - 2009

2.2.1. Actual state of DSL by branch in MERCV

Stage 2005 – 2009. The labours working in agricultural branches decreased in quantity and  density.  Labours  in  industry-construction,  service  branches  increased  regularly,  labour density  of  non-agricultural  area  increased  from  54%  in  2005  to  68.2%  in  2009,  average 3.5%  for  each  year,  a  modern  labour  structure  was  establish.  The  labours  of  industry-construction  branches  increased  fast  in  both  quantity  and  density,  404,347  labours  from 2005 to 2009, average 80,869 labours for each year, labour density increasing speed in the stage was 2.5%; labours of service branch also increased regularly after years, but slow than industry-construction, average 44,614 labours/years. 

-  In  agricultural  branch  block:  Labour  shifting  from  agriculture  to  forestry  and marine product was very slow, in 2005, labour densities of agricultural, forestry and marine product  were  respectively  79.9%,  4.31%,  15.7%,  The  region  had  great  potentiality  to develop sea economy, including marine product, but labour density of such branch occupied only 15.7% total labours of branch block. 

-  In  industry-construction  branch  block:  The  quantity  of  labours  working  in industry-construction branch  increased  regularly after  years,  there  were 748,180 labours  in 2005,  increased  to  1,152,529  labours  in  2009,  average  11.5%/year.  However,  the  labours were  mainly  distributed  to  processing  industry  and  construction,  labour  density  of  these  2 branches occupied 94.43% total labours of branch block, while labour productivity of such branches  was  low.  The  branches  that  had  high  labour  productivity  such  as  mining, producing  and  distributing  gas  power  had  small  labour  density,  occupied  only  5.57%  total labours of the branch. Labour shift point in stage 2005 – 2009 of both 2 branches decreased 0.14% and 0.03%. 

-  Service  branch  stock:  Service  attracted  many  labours  after  years.  In  2009,  the number  of  labours  working  in  main  service  branches  was  610,884  labours.  However, labours  were  not  divided  reasonably,  they  were  concentrated  in  branches  of  low  labour productivity  such  as:  trading,  repairing  motor  vehicles,  motorbikes  and  personal  items, occupied 53.7% (328,615 labours). Science-technology, Financial-banking branches had not developed,  labour  density  was  low,  4.4%  (27,253  labours)  for  both  branches.  Labour density  of  branches  which  could  create  many  works  and  attract  labours  decreased,  for example,  labour  densities  of  transportation  and  communication,  assets  trading  and consultancy were 21.2% and 2.3% in 2005, then decreased to 19.9% and 1.6% in 2009. 

- Policies, methods of organizing DSL in MERCV: There have been many important documents orienting socio-economic development and contributing to performance of DSL in  modern  direction  for  the  region  in  the  period  of  industrialization,  modernization  until 2020. However, these policies still have many shortcomings, such as: potential, advantages upholding  was  not  mentioned  reasonably;  There  were  no  active  methods  to  encourage  the development  of  high-tech,  high  intelligence  and  labour  productivity  branches;  The  targets just mention jobs settlement, they did not focus on improving labour productivity; Not many specific  policies  for  the  region  were  made,  especially  the  policies  on  organizing performance  of  DSL  in  the  whole  region  such  as:  associating  areas,  developing  labour market, training human resources... 

2.2.2. Evaluating the level of DSL by branch in MERCV 

The  level  of  DSL  by  branch  in  MERCV  was  very  low.  This  affected  the  process  of socio-economic development, international economy integration. 

-  Labour  density  in  non-agricultural  area  was  still  low,  occupied  only  68.2%  total social  labours.  Labours  of  this  area  was  distributed  mainly  to  processing  industry  and construction, of which added value and labour productivity are low. 

- Labour productivity of the region was very low, lower than general level of the whole country,  only  30.7  million  VND/person,  due  to  unreasonable  division  of  labour,  80% labours of non-agricultural area work in low labour productivity branches.

- Opening  level of the  economy was very low, 22.8%, much lower than general level of the whole country (58.37%). Such low opening level showed that labour density in export area of high added value was small. DSL by branch of the region did not participate deeply in international labour division system, the economy was not modern.

-  Unemployment  rate  increased  slowly,  only  0.09%  in  stage  of  2005  –  2009, unemployment rate was 5.12%. This reflected that full employment of labours in the region is still low, DSL by branch was not performed reasonably, it could not attract all people of suitable age to join labour force. 

-  Labour  shifting  point  from  agricultural  area  to  non-agricultural  area  in  relatively high,  average  3.5%,  however,  labours  were  mainly  shifted  to  intensive  employment branches with low labour productivity.

There are many shortcomings in DSL by branch: DSL by branch developed primarily to the width, it did not exploit advantages, potentialities to improve competitive power, DSl by  branch  was  not  associated  with  moving  economic  structure  to  the  direction  of industrialization,  modernization,  was  not  based  on  inter-provincial,  inter-regional  cooperations nor participated in internation labour division system.

The main reasons for low level of DSL by branch are: (1) There were no premises in MERCV  to  attract  potential  investors.  This  is  the  most  decisive  and  general  reason  that makes  the  level  of  DSL  by  branch  in  MERCV  underdeveloped  and  unreasonable.  (2) Restricted  market,  poor  infrastructure.  (3)  There  were  no  favourable  mechanisms,  policies for  investors  and  (4)  The  lack  of  policies  to  support  innovation  of  DSL  by  branch  in MERCV. 

2.2.3. Effects of actual state of DSL by branch to developing process

Level of DSL by branch in MERCV recently affected developing process of the region in economy, society and environment.

In  economy:  Economic  growth  was  low,  growing  speed  was  unstable,  slow, effectiveness of investment capital use was low, but social investment capital for the whole volume  of  generated  GDP  was  high,  growth  primarily  depended  on  materials  producing branches,  labour  productivity  was  low; growth model based  on processing, capital,  growth to  the  width,  economic  structure  moved  slowly,  economic  density  of  MERCV  was  still poor. 

In social development: Income per capita of the region was very low, even much lower than  average  level  of  the  whole  country;  poverty  rate  of  MERCV  was  too  high;  unequal distribution  of  income  was  likely  to  grow,  the  level  of  unequal  growth  is  higher  than average level of the whole country. 

In  environment:  DSL  into  industrial  branches  of  average  technological  level  and  the industrial  branches  that  might  cause  environmental  pollution  such  as  mining,  chemical industry,  cement  manufacturing  industry,  paper  and  pulp  industry,  textile  industry...,  the situation of environmental pollution in industrial zones became more and more serious. 

Chapter 3

SOLUTIONS FOR INNOVATING DIVISION OF SOCIAL LABOURS BY BRANCH IN MAJOR ECONOMIC REGION OF CENTRAL VIETNAM

3.1. PROBLEMS OF SOCIAL LABOURS DIVISION BY BRANCH IN MAJOR ECONOMIC REGION OF CENTRAL VIETNAM

3.1.1.  Requirements from actual  state  of  DSL by branch and general  orientation for developing the region

-  Problems  from  actual  state  of  DSL  by  branch:  Level  of  DSL  by  branch  in MERCV  is  still  underdeveloped.  Labour  density  in  non-agricultural  area  is  small, knowledge  labour  density  of  branches  of  high  technology,  high  added  value  and productivity  directing  to  export  is  still  low.  There  are  too  few  labours  working  in  export area,  aperture  of  economy  is  low;  unemployment  rate  is  high,  labours  are  not  fully employed. 

- Problems from general orientation for developing the region:  Developing socio-economy  fast  and  ffectively;  positively,  effectively  integrating  into  world  economy; leading  in  industrializing, modernization,  taking  the  leading  role  in  North-Central  and Central  Coast  region;  developing  closely  and harmoniously  in  economy,  society  and environment. 

Table 3.1: Primary targets until 2020 of MERCV

Source: Decision No 148/2004/QD-TTg in 2020* and proposal of author in 2020

3.1.2. Problems from orienting branch develoment plan 

-  Industry-Construction  branch:  Shifting  structure  of  industrial  branch  to  the direction  of  establishing  main  industrial  branches:  Filtering  industry,  petrochemical industry;  electronic  –  computing;  etallurgical;  mechanical,  processing  industry  of  high added  value...    with  modern  technology  level,  high  productivity  and  quality  to  ensure competitive  power  of  the  products...  Developing  subsidiary  industries  to  improve  national value in competitive products in the region. 

-  Service  and  Tourism:  Developing  Higher  and  postgraduate  education  service, Science  –  technology  service  to  create  the  foundation  for  other  service  branches  such  as: information  technology,  postal  telecommunications,  financial  –  banking...  to  develop. Constructing  service  branch  and  make  it  a  real  key  economic  branch  of  the  region. Developing sea transportation,  logistics service  in  modern direction. Promoting the  role of commercial  and  international  trading  centre  of  Da  Nang,  Hue,  Quy  Nhon  so  that  they  can undertake  the  function  of  commercial  service  for  the  whole  Central  –  Tay  Nguyen  region, forming the gateway for developing economy of East – West economic corridor. 

-  Agriculture,  forestry,  marine  product:  Continue  promoting  the  conversion  of structure  of  agriculture,  forestry  and  marine  product  in  the  direction  of  enhancing  natural calamity  preventing  ability, developing  agriculture  steadily,  developing  agriculture  in combination  with  garden  and  hill  forestry  to  create  scenery,  environment  for  tourism. Promoting development of marine product industry in order to use the advantages of sea. 

3.1.3.  Requirements  from  developing  and  improving  operating  effects  of  labour market

Labour  market  of MERCV develops inharmoniously  with the  economy  which affects growth  and  competitive  power  of  the  region.  Labour  structure  shift  and  jobs  extension  are still at low quality, they do not focus on works of high productivity and effects, the supply and  demand  of  labour  are  not  associated.  Labour  shifting  inside  and  outside  the  region  is unstable,  labours  in  economic  areas  are  imbalance,  labours  of  non-state  areas  occupy  high density,  however,  most  of  them  work  at  individual  household,  dispersed,  informal  small productions with underdeveloped level of technology, method, low labour productivity.

3.1.4. Requirements from regional association and internation cooperation

Association in constructing connective traffic infrastructure, training human resources, attracting  foreign  investment...  is  an  important  factor  for  shifting  economic  structure  with modern  direction,  simultaneously,  improving  competitive  power  inside  and  outside  the country.  International  cooperation  requires  the  region  to  produce  many  products  with  high export  value,  satisfy  the  demands  of  world  market,  then  deeply  participate  in  international labour division system. 

3.1.5. Requirements on environment protection

MERCV  develops  unsteadily,  it  has  not  solved  the  relationship  between  economic growth and natural resources, environment protection. Uncontrolled exploitation and waste of  natural  resources, environmental  regression  are  now  taking  place  regularly.  Industrial branches  that  are  friendly  to  and  protect  the  environment  have  not  developed,  producing technology  in  many  enterprises  is  still  underdeveloped,  spends  many  natural  resources, power and discharge much waste. Sea resources are exploited ineffectively, unsteadily, this causes  many  consequences  to  the  environment.  Land  resource  is  likely  to  be  seriously degradation due to overexploitation and natural impacts.

3.1.6. Requirements on dealing with climate change

MERCV  with  over  600km  seashore  is  region  that  seriously  affected  by  extreme phenomena  due  to  climate  change.  Therefore,  it  is  very  necessary  to  develop  the  branches which use little fuel of fossil origin such as petroleum, coal (these fuels eliminate little gas that  can  cause  green  house  effect),  branches  that  are  friendly  to  the  environment  and agricultural  –  forestry  branches  that  use  organic  fertilizer  to  avoid  eliminating  too  much methane.

3.2.  PRINCIPLES,  ORIENTATION  OF  SOCIAL  LABOURS  DIVISION  BY BRANCH  AND  THE  ACHIEVEMENTS  OF  MAJOR  ECONOMIC  REGION  OF CENTRAL VIETNAM

3.2.1. Principle of DSL innovation by branch

-  The  target  of  fast,  stable  growth  in  market  economy  condition  and  development  pf international economy integration must be achieved.

-  Upholding  potentiality,  advantages  of  the  region,  putting  it  into  socio-economy developing strategy/plan of the whole country.

- Innovating DSL by branch, combining with shifting economic structure in a modern direction: service – industry – agriculture.

-  Developing  "breaking"  branches  which  have  wide  effects  to  other  economic branches.  This  principle  controls  the  process  of  defining  contents  and  orienting  the performance of DSL innovation by branch in MERCV. 

- Participating in international labour division system and global "value series".

3.2.2. Orienting DSL innovation by branch in MERCV 

As predicted, the scale of labours in MERCV in 2020 will be about 4,155,300 labours. DSL by branch is innovated  in  modern direction on the  basis  of exploiting and  effectively using  potentiality  and  advantages  of  the  region,  taking  advantages  of  the  opportunities, improving  restrictions,  challenges  of  generated  environment  to  make  MERCV  develop rapidly, stably. Specifically:

- Increasing labour density in non-agriculture area on the basis of developing industry and  service  in  order  to  attract  more  labours  into  these  two  branches.  The  region  has  4/13 economic regions of the whole country and many industrial zones with favourable policies of  the  Government,  especially  in  attracting  investment,  this  creates  good  conditions  for developing  industry,  service,  including  tourism  and  logistics  service.  Development  of service  not  only  helps  to  exploit  advantages,  use  opportunities  but  also  creates  many  jobs  and promotes the innovation of DSL by branch.

-  Innovating  DSL  by  branch  in  MERCV,  in  which  the  number  of  labours  of  service increases faster than that of industry relatively and absolutely. Development of service is not only  suitable  for  developing  trend  of  the  world  but  it  also  helps  to  exploit  comparison advantages  of  PERCV  on  geographical  location,  tourism  resources,  seaports  while commerce  is  developing  and  the  demands  for transportation,  tourism  is  becoming  higher and higher. 

- Innovating DSL by branch in MERCV in the direction of increasing labour density in high-tech  area,  export  area  among  total  social  labours.  Labour  density  in  high-tech  and export area reflects modernity of economy. 

- In industry, it is necessary to increase labour density of primary, key branches of high added value and national value. This is decisive factor for long-term economic growth of the region in order to improve competitive power inside and outside the country. 

-  Innovating  DSL  in  the  direction  of  effectively  dealing  with  climate  changes. Therefore,  labours  of  underdeveloped  branches,  steel,  cement  manufacturing  and  dyeing industry  must  be  decreased,  simultaneously,  labour  density  of  high-tech,  clean  branches must be increased rapidly.

Table 3.2: General orientation for DSL by branch in MERCV until 2020

Source: Table 2.8 and orientation of the author

Industry:  Increasing  labour  density  in  primary  industrial  branches  that  use  high technology such as: petrochemical filtering, electronics – computing, mechanic, metallurgy, export  products  processing  industry,  increasing  labour  density  of  these  branches  to  about 26% - 32.5% total labours of industry. Developing exporting industrial branches, labour full employment  branches  with  advantages  in  materials,  little  market  displacement  to  stablize labours  such  as:  marine  products  processing  for  export,  processing  luxury  wooden furniture...,  labour  density  of  these  branches  occupies  from  35-40%  total  labours  of industry. 

Service: Increasing labour density of key service branches, prioritizing development of tourism, sea transportation, logistics service,  labour density of these branches occupies 10-12%  total  labours  of  service,  this  is  an  important  direction  to  promote  the  participation  in internation  labour  division  system.  Improving  labour  density  of  financial  –  banking branches,  higher  education  and  postgraduate  education,  Science  –  technoligy  service, insurance,  telecommunications,  information  technology  –  communication,  ensuring  that labour density of these branches occupies 3540% total labours of service.

Agriculture:  Developing  agricultural  services,  traditional  and  potential  branches  in order  to  rapidly  shift  the  purely  agricultural  labours  to  these  branches,  developing  aquatic product  economy,  settling  jobs  for  agricultural  labours.  This  is  a  basic  and  decisive  factor for  innovating  DSL  in  agriculture  in  MERCV.  Until  2020,  the  labours  of  aquatic  product branch must occupy about 25-30% total labours of agriculture.

3.2.3. Forecasting primary targets for MERCV in 2020

Basic  and  thorough  target  of  DSL  innovation  by  branch  in  MERCV  is  to  develop socio-economy fast and stably. If the orientations for DSL innovation by branch in MERCV proposed by the author are successfully performed, MERCV will achieve the results stated in Table 3.6 in 2020. 

Table 3.6: Some collective targets on development of the region in 2020

Source: Forecast of the author according to proposed orientation for division of labours

3.3.  PROPOSING  PRIMARY  SOLUTIONS  FOR  PERFORMANCE  OF SOCIAL  LABOURS  DIVISION  INNOVATION  BY  BRANCH  IN  DEVELOPING PROCESS OF MAJOR ECONOMIC REGION ON CENTRAL VIETNAM

3.3.1. Creating competitive playground for potential investors

Potential  investors  play  an  important  role  in  performing  orientations  of  DSL innovation  by  branch  in  MERCV.  MERCV  has  great  potentiality,  advantages  to  develop tourism  and  sea  economy,  especially  logistics  service.  Therefore,  the  development  of tourism  cluster  and  logistics  cluster  will  help  to  create  a  competitive  playground  for investors. 

- Developing tourism cluster: Objects of tourism cluster in MERCV from now to 2020 are:  Hue  –  Da  Nang  –  Quang  Nam  where  there  are  many  world  cultural  heritages  with unique cultural characteristics, moreover, sea space and eco-tourism is developing strongly in  these  areas.  Sollutions  for  developing  tourism  cluster:  Creating  binding  and  association with  key  components  in  tourism  cluster;  associating  key  and  supplemental  components  to improve  product  quality  and  value  for  customers.  Establishing  connection  to  important economic  foundation  such  as  infrastructure,  residential  community  and  environmental resources  for  a  stable  development.  Policies  for  developing  tourism  cluster  focus  on  4 following  groups:  Improving  product  quality;  Supplementing  new  products;  Penetrating new  market  segments;  Extending  distribution  scope  and  participating  in  new  distribution channels. 

-  Developing  logistics  cluster:  logistics  is  a  collective  line  activity.  Effects  of  this process  is  a  very  important  and  decisive  factor  to  competitive  power  of  industry  and commerce  in  MERCV.  The  strong  development  of  logistics  will  help  to  reduce  costs, improve service product quality. Now, logistics is acknowledged as a useful tool that brings success for enterprises of both production and service areas in the region: Areas and objects of  logistiscs  cluster  include  5  provinces  and  cities  in  MERCV;  The  structure  of  logistics cluster  is  cross-connection  between  factors,  input  services  provider  for  seaports,  customer relationship  and  other  informal  relationships;  Policies  supporting  competitive  logistics cluster:  Effectively  investing  in  logistics  cluster;  Enhancing  network  connections  and building bridges; Developing human resources for logistics cluster.

3.3.2.  Training  and  developing  human  resources  to  satisfy  the  requirement  for DSl innovation in modern direction 

- Ensuring that human resources satisfy the requirement for DSL innovation by branch: It  is  necessary  to  combine  human  power  strategy  with  branch  development  strategy/plan. Basing  on  input  information  from  development  strategy  of  construction  and  human resources  with  specific  targets,  methods  and  activities;  Planning  occupational  education network  to  meet  the  demand  for  quantity  and  quality  of  human  resources  of  the  branches. The key factor is balancing training occupations and distributing schools suitably according to  branches,  localities.  Extending  and  improving  quality  of  current  occupation  training facilities, establishing more vocational schools, in which ther  must be at least 3 vocational colleges of international standards. Establishing inter-regional and international cooperation in  training  human  resources,  extending  forms  of  associated  training,  focusing  on  training labours  for  weak  branches,  such  as  logistics,  metallurgy,  aquatic  product  processing industry, petrochemical filtering. 

-  Developing  human  resources:  Improving  quality  of  human  resources,  promoting investment in training and vocational education are very important factors. Building policies to  train  and  attract  talented  people  in  every  field  and  branch  which  are  suitable  for orientation  of  DSL  innovation  by  branch,  developing  the  staff  of  scientists,  experts  and make  it  key  force  in  researching  and  transferring  technologies,  promoting  intensive investment,  modernizing  science,  technology  and  high-tech  application  researching facilities.  In  order  to  develope  human  resources,  it  is  necessary  to  build  and  implement following policies: Specifying the important role and task of the region in human resources training, checking, adjusting structure of training occupations, determining the labours who need to be prioritized for training. Building policies to diversify training forms and methods. Policies  for  encouraging  high-quality  human  resources  training,  attracting  high-quality human resources coming from outside.

3.3.3. building, completing policies to promote DSL innovation by branch

Policies  for  attracting  and  forming  investment  capital:  Improving  mechanism, policies  to  diversify  domestic  and  foreign  investment  capital.  However,  attracting  process must  be  filtered  in  branch,  invested  field  and  applicable  technology,  focusing  on  growth branches. Performing priority mechanism, policies issued and applied for economic region, opened  economic  region,  industry  zones;  Building  special  policies  to  attract  foreign investment  in  tourism,  logistics  service,  science  and  technology.  Building  mechanism, policies  to  attract  ODA  capital  for  rural  development,  vocational  education  for  rural, agricultural  and  non-agricultural  labours  according  to  the  orientation  of  DSL  innovation within agricultural branch. 

Building policies to develop science and technology: Building policies of transferring new  technologies  form  other  countries,  improving  competitive  power,  this  is  an  important direction  to  improve  actual  state  of  technology  and  increase  labour  productivity.  Building policies  on  researching  activities  and  deploying  in  the  region,  developing  science  and technology  market,  services  on  intellectual  property,  consultancy,  performing  technology trading  services,  assessing,  evaluating,  transferring  technology  in  the  region;  encouraging development of "industrial nursery" zones, "industrial foster" zones to innovate technology, this  is  a  practical  form  which  gives  high  effect  in  the  process  of  researching  and  applying new technologies. Building policies to encourage researchs and deployment of high science-technological applications, these policies play an important role in developing primary, key branches of the region.

3.3.4.  Extending  inter-provincial,  inter-regional  cooperation  to  promote  DSL  by branch 

Extending inter-provincial, inter-regional cooperation to solve problems of region scale which  separate  locality  can  not  deal  with,  such  as:  constructing  inter-provincial infrastructure;  associating  in  investment  attraction;  associating  in  developing  industrial zones,  tourism  service,  logistics  service,  constructing  training  centres  of  international standards.  Building  mechanism  to  cooperate,  exchange  information  between  ministries, branches,  central  and  localities  of  the  region  to  agree  action  programs,  investment  plans. Extending  bilateral  and  multilateral  international  cooperating  activities  in  every  field; cooperating  to  organize  foreign  investment  promoting  activities,  extending  intensive international  cooperation,  seeking  investment  partners,  especially  large  economic  group  in US, Japan, Europe... 

3.3.5.  Improving  quality  of  planning  works  to  promote  innovation  of  DSL  by branch

Innovating  contents  and  methods  of  planning.  Beside  the  orientation  of  growth  and economic  structure  shift,  it  is  necessary  to  determine  the  demand  for  human  power  to perform  plans  (quantity,  qualifications,  skills)  in  each  period.  Mobilizing  domestic  and foreign experts, scientists to participate in planning, collecting opinions of inhabitants who are  affected  by  plans.  Enhancing  association  between  plans,  branch  plans  must  deal  with general  interdisciplinary,  inter-regional  problems,  plans  must  be  built  synchronously. Improving  quality  of  assessment,  approval  and  state  management  on  planning.  Improving quality  of    planning  staffs  from  Central  to  localities,  consolidating  information  system  to serve  planning  works,  these  are  important  factors  that  help  to  enhance  the  quality  of planning works.

3.3.6. Developing and promoting operating effect of labour market

MERCV  is  facing  the  challenge  of  shifting  labour  structure,  from  intensively  using (using  unskilled,  low-skilled  labours)  to  using  qualified,  skillful  labours.  Developing  and promoting  operating  effect  of  labour  market  will  help  to  develope  information  of  labour market,  ensure  an  effective  shift  and  association  between  supply  and  demand  for  labours, develop  job  service,  vocational  guidance,  support  weak  groups,  improve  negotiating  and labour market administrating capacity... Therefore, it is necessary for the region to deal with following  problems:  Removing  administrative  barrier;  Developing  infrastructure  of  labour market; Improving quality of labour supply and Developing economy in poor areas.

3.3.7. Solutions for proposal performance guarantee

- In order to create legal bases for corresponding agencies of the Government to build strategy, plan and regional development programs, the National Assembly needs to discuss, build and issue legal frame for major economic region, including MERCV. 

- The Government: Establishing an office to manage and monitor the development of MERCV under the Government, issuing specific policies for the development of MERCV. These policies must be applied for the whole region to avoid breaking, inconsistency... that may cause waste or inefficiency. 

-  Local  authorities  and  enterprises  in  the  region:  Need  accurate  aware  of  the importance  of  DSL  innovation  by  branch  to  the  development  of  the  region,  building Decisions  to  instruct  performance,  making  priority  policies  on  budget  to  innovate  DSL  by branch  in  localities  according  to  general  orientation  of  the  whole  region.  For  existing enterprises,  it  is  necessary  to  be  active  in  innovating  technologies,  especially  the  resource technology,  focus  on  investing  to  produce  high  added  value  products  for  export.  Being active  in  improving  qualifications  of  labour  force  in  order  to  enhance  the  ability  of approaching  and  operating  advanced  technologies,  information  technological  applications and  promoting  effects  of  management.  It  is  necessary  to  direct  potential  enterprises  in investing  in  occupations  which  are  suitable  for  orientation  of  DSL  innovation  by  branch, building satisfactory priority policies for such enterprises. 

- Ministries, sectors: ministries, sectors are responsible for supporting the performance of DSL innovation by branch in the region according to their functions. Fullness and quality of  branch  development  plan  plays  an  important  role  in  DSL  innovation  by  branch  in MERCV.  Plans  must  be  detailed,  specific  for  each  medium-erm,  long-term  period.  Beside targets,  budget,  responsible  agencies...  it  is  necessary  to  determine  the  demand  for  human power to ensure the performance of plan, this factor is missed in most of current plans. 

CONCLUSION

Globalization and international economy integration are creating great opprtunities for poor  and  developing  countries,  including  Vietnam,  to  approach  the  market,  attract  capital sources, science-technological applications and modern managing capacity from developed countries, integrate into international economy. However, in order to use such opprtunities, each country, territory must create good conditions for accepting. DSL innovation by branch is  necessary  in  current  situation  of  Vietnam  because  it  promotes  the  development  of productive  force,  improves  social  labours  productivity,  living  standard  of  people,  uses achievements of domestic and international science – technology, it is also  suitable for the orientation  of  globalization  which  is  becoming  wider  and  deeper,  new  international  labour division system and the ability of breaking through in "global production network", this can help  Vietnam  to  widely  and  deeply  integrate  into  world  economy  and  participate  in International labour division network.

MERCV has an important position, role in socio-economic development of the whole country. The region has many potentialities, advantages, such as: opened economic location, many  beauty  spots,  world  cultural  heritages;  long  seashore,  airtight  deep  bays,  beautiful seaside resorts, economic regions, industrial zones... Moreover, the Party and the State pay much  attention  to  investment  of  the  region,  this  allows  performing  DSL  innovation  by branch.  However,  actual  state  of  DSL  by  branch  in  MERCV  is  not  corresponding  to  its potentiality  and  advantages.  DSL  level  is  still  low,  labour  density  of  low  productivity branches  is  high,  labour  densities  of  high-tech  branches,  export  branches  of  high  added value  and  labour  productivity  are  low,  this  obstruct  the  development,  participation  in international labour division network of the region. 

The  level  of  DSL  innovation  by  branch  of  MERCV  is  not  reasonable,  leading  to consequences  on  both  socio-economy  and  environment.  On  Economy:  old  economic structure,  low  growth  model,  poor  economic density... On Society: low income  per  capita, high  poverty,  unemployment  rate,  increasing  inequality.  On  environment,  unreasonable DSL  by  branch  makes  environmental  problems  more  serious  in  nature,  scale  and  level, restricting the adaptability to climate changes and sea level rises. It  is  very  important  to  find  and  discover  problems  to  DSL  innovation  by  branch  in MERCV  and  bring  out  instructive  principles  to  innovate  DSL  by  branch  in  MERCV effectively.  On  the  basis  of  analyzing  and  evaluating  potentialities,  advantages  and conditions to innovate DSL by branch in MERCV, the dissertation has built orientations and proposed  practical  solutions  for  DSL  innovation  by  branch,  specifically:  creating competitive playground for potential investors; Training and developing human resources to satisfy  the  demand  for  DSL  innovation  in  modern  direction,  in  which  solutions  to  ensure that  human  resources  are  suitable  for  requirements  of  DSL  innovation  by  branch,  training and  developing  high-quality  human  resources  to  meet  the  requirements  of  high-tech branches  with  reasonable  structure  are  focused;  Building,  completing  the  policy  of promoting  DSL  innovation  by  branch;  Extending  inter-provincial,  inter-regional cooperation to promote DSL innovation by branch; Improving the quality of planning works to promote DSL innovation by branch and developing, enhancing operating effects of labour market. The solution of creating competitive background for potential investors is new and important  to  perform  DSL  innovation  by  branch  in  MERCV.  Beside  proposals,  the dissertation  has  brought  out  solutions  to  guarantee  performance  of  stated  proposals.  If  the solutions  in  this  dissertation  are  used,  they  must  be  organized  to  operate  synchronously  in order to give high effects.