Employment for farmers on land recovery in Hanoi

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HO CHI MINH NATIONAL ACADEMY OF POLITICS PHAM THI THUY EMPLOYMENT FOR FARMERS ON LAND RECOVERY IN HANOI SUMMARY OF DOCTORAL THESIS IN ECONOMICS Major: Political Economy Code: 62 31 01 01 HA NOI-2014 1 INTRODUCTION 1. Rationale Human resources have a great role in the sustainable development of each country, nation. The issue of human resources is very seriously considered by the Party and it is also the basic ideas throughout the renovation period. Vietnamese people in the new era have made significant changes, are really passionate and creative in labor, studying, research..., which is an important contribution in creating the new face of the country. However, those potentials must be promoted through the production process; one of the specific expressions is employments and socioeconomic it creates. So , the documents of the Party’s IXth National Congress emphasize "Job creation is the determining factor to promote human factor, stabilize and develop the economy, strengthen the society, meet the legitimate aspirations and urgent requirements of the people." The general trend of the industrialization process of developing countries associated with the process of restructuring the economic sector towards reducing the proportion of agricultural workers, increasing the proportion of industrial and services employments. Of which, the trend of urbanization, development of industrial zones, the new economic and cultural centers leads to a large number of laborers losing land for production, losing jobs and switching to other ones. This situation is happening to the process of industrialization and modernization of Vietnam in general and of Hanoi in particular. The policy of socio-economic development attached to job creation in Hanoi has had a positive impact on the demand for labor, labor market 2 development, workforce restructuring; contributed to improving the quality of labor, the environment and more opportunities for farmers with land recovered to find a job and settle their lives. However, the result is not much with the pressure on employment of the City, particularly jobs for farmers on increasing land recovery in the suburban areas under the impact of urbanization and industrialization. In the process of restructuring, business reorganization, a division of labor meeting the new requirements for recruitment cannot be retrained and lose their jobs; the problem of converting occupation, training, recovering income for laborers in land recovery area to meet the requirements of the urbanization process is getting more difficult, which makes the problem of job creation even more pressing. Therefore, the author has chosen the research topic "Employment for farmers on land recovery in Hanoi" for the thesis paper. 2. Research objectives and mission 2.1. Research objectives Analyze, assess the status of employments and job creation for farmers on land recovery in Ha Noi; indicate the achievements and the shortcomings, weakness and causes, from which propose viewpoints, orientations and major measures to create jobs and ensure long-term stable life for farmers on land recovery in Hanoi. 2.2. Research Tasks + Systematize the basic theoretical issues about employment and jobs creation for farmers on land recovery. 3 + Research experience of a number of localities in the country to create jobs for farmers on land recovery and draw the lessons learnt for Hanoi. + Analyze and assess the status of employment and job creation for farmers on land recovery in Ha Noi, indicate the results achieved and shortcomings, weakness in job creation for farmers on land recovery in Hanoi in the recent years. + Propose perspective and job creation solutions to ensure long-term stable life for farmers on land recovery in Hanoi. 3. Objects and scope of the research 3.1. Research Objects The object of the thesis research is employments for farmers when land is recovered in terms of political economy. 3.2. Scope of the Study - The thesis mainly focuses on employments and job creation for farmers on land recovery in Hanoi since 2005. - Research and surveys location: The suburban districts of Hanoi, especially the author conducted fieldwork in the districts of Quoc Oai, Tu Liem, Ha Dong, Dan Phuong, Gia Lam and Ba Vi and showed the number of agricultural labors who have lost their jobs, switched into another jobs is very high and it’s unlikely to find new employments to guarantee their income. So, unless this issue is solved, a lot of pressing social problems will arise and affect the sustainable development goals of the city and the country. 4. Rationale and Research Methods 4 4.1. Rationale The thesis applied the Marxism - Leninism viewpoint system and the Vietnamese Communist Party’s polices on job creation for the people whose land is recovered. In addition, the thesis also inherits and develops the theoretical perspectives of scientists in the country and the world on the related content. 4.2. Research methodology - Use the method of dialectical materialism, historical materialism, scientific abstraction methods for analyzing reasoning and practical issues about jobs for farmers on land recovery; - Use statistical methods, analysis, logic combined with history, and summary for survey and evaluation of jobs creation process for farmers on land recovery in Hanoi; - Inherit in a selective manner the results of previous studies and update new information about the research topic. 5. New contributions of the thesis Firstly, the thesis clarifies the theoretical and practical basis on employment for farmers on land recovery. Secondly, on the basis of analyzing, evaluating job creation process for farmers on land recovery in Hanoi with the figures reported by the competent authority and facts gained through questionnaire survey by the author, the author has concluded some objective statements about the achievements, restrictions and causes of the shortcomings in job creation process for farmers on land recovery in Hanoi. 5 Thirdly, the author has investigated in depth the status of jobs and job creation in some typical districts in Hanoi so that the author can offer perspectives and propose appropriate solutions to improve the efficiency of job creation for farmers on land recovery, achieve the targets that have been set out by the City in job creation plans and strategies of socioeconomic development of the capital. 6. Significance of the thesis 6.1. Reasoning significance The thesis contributes to further clarify the theoretical issues of jobs and job creation in general and in Hanoi in particular. 6.2. Practical significance The thesis can be used as a reference for research and teaching. The directions and solutions proposed in the thesis may suggest the management agencies the appropriate adjustments on job creation for the people on land recovery in the locality today. 7. Structure of the thesis Besides the introduction, conclusion, list of references and appendices, the thesis consists of 4 chapters and 10 sections. Chapter 1 OVERVIEW OF RESEARCH ON EMPLOYMENTS FOR FARMERS ON LAND RECOVERY IN HANOI 1.1. RESEARCH SITUATION OF EMPLOYMENTS FOR FARMERS ON LAND RECOVERY 6 1.1.1. Generalizing some overseas studies into employment The author has studied the works by Karl Marx, JM Keynes, Harry Toshima, EF . Schumacher and the models like classical Job Creation Model: free competition in the market – flexible wage and full employment; Job Creation theory by transferring employees between two regions of the economy. 1.1.2. Some typical studies in the country into employment for farmers on land recovery to build industrial parks and new urban areas The author studies related issues published in the works: books, scientific research, theses and scientific papers. 1.2. GENERAL COMMENTS ON THE RESEARCH SITUATION RELATED TO THE TOPIC ”EMPLOYMENTS FOR FARMERS ON LAND RECOVERY IN VIETNAM TODAY” 1.2.1. The issues ojob creation on land recovery in Vietnam have been resolved All the works domestic and overseas mentioned above have covered all issues of jobs, job creation; perspectives and solutions to job creation for workers to improve material and spiritual life of people, to reduce social problems arising, especially unemployment today. During the study, the author has assessed the status of the influence, the necessity as well as the affecting factors of land recovery on employment for farmers whose land is acquired; on which the author has offered some recommendations and solutions to promote the creation of jobs for farmers whose land is recovered. 7 Each report at a particular time, with different scales, methods and approaches have thoroughly exploited the quite colorful picture of the actual situation of conversion of land use purpose and the issues arising. In sum the reports also highlight the characteristics and size, as well as the impact on socio-economic condition, life – job of the transition of land use purpose in Vietnam recently. 1.2.2. The content on jobs and job creation for farmers on land recovery needs further study So far due to time and other related objective, subjective matters, the views and solutions of previous authors have no longer suitable to the requirements of practicality. So, this problem still requires to be considered more and effective solutions to job creation for farmers in Hanoi. In this direction, the thesis keeps focusing on surveys on jobs and job creation for farmers on land recovery in Hanoi and offers solutions on the basis of inheriting and developing the works of previous authors; especially in the new circumstances and historical conditions of Hanoi. Chapter 2 RATIONALE AND PRACTICES OF EMPLOYMENTS FOR FARMERS ON LAND RECOVERY 2.1. GENERAL THEORY ON EMPLOYMENTS FOR FARMERS ON LAND RECOVERY 2.1.1 . The concepts of job According to some experts in the field of labor in our country, people have different notions on employment as follows: Employees are people who work in the fields, professions that are usefully operating and 8 not prohibited by law, providing income to feed themselves and their families, and contributing to the society. From the concepts, the author considers: employments are all legal income generating activities under many different forms. Stable jobs are the lawful income activities, commensurating with the labor spent and stabilizing the lives of labor with safe workplace, social guarantee, prospects for development of individuals and their families, equal opportunities and treatment. 2.1.2. Employments of farmers and the impact of land recovery on farmers’ employments 2.1.2.1. Farmers’ work and jobs for farmers on land recovery According to the author, jobs for farmers on land recovery are the economic activities that farmers after land recovery can access and use to generate income for themselves and their families legally. 2.1.2.2. The positive impacts of land recovery on employments of farmers - Create more working opportunities for laborers - Promote enhanced qualifications for employees. - The positive impact on economic restructuring and thus on the labor structure 2.1.2.3. The negative impacts of land recovery on employments of farmers - Land for agricultural cultivation is narrowed down creating pressure on laborers. 9 - Acquisition of agricultural land increases the risk of unemployment in the group of laborers over the age of 35. - Due to not getting a job in rural areas after land recovery, the flow of people into the city for jobs increases causing many negative phenomena and potential of instability in the society. 2.2. EMPLOYMENT FOR FARMERS ON LAND RECOVERY 2.2.1. The concept of employment for farmers on land recovery In this thesis, the author considers: Creating jobs for farmers on land recovery is the process of creating a legal environment, necessary socioeconomic conditions, developing and implementing policies to support training and re-training, career transformation, developing goods production businesses and services in order to ensure legal income, stabilize the long-term life for farmers on land recovery. 2.2.2. Content, subject and assessment criteria for outcome of job creation for farmers on land recovery * Content and the agent solving jobs for farmers on land recovery - Content of job creation for farmers on land recovery includes: + Developing and implementing a master plan for the recovery of agricultural land and plan to create jobs for farmers on land recovery. + Developing regulatory environment, necessary socio-economic conditions to develop the labor market. + Developing production - business, especially those using a number of laborers to attract agricultural labor after land recovery. + Developing and implementing policies to support job training , career transformation for workers to find employment opportunities . 10 + Coordinate closely between the local government with the businesses and investors using acquired land in the training and job placement for farmers whose land is acquired. + Disseminating, mobilizing and helping farmers when losing their land with actively seeking career and suitable new jobs - The participants in job creation: employers, employees and the role of the State. + Employers are the entire businesses both at home and abroad, with the role of creating new and stable jobs for farmers who have been working in the businesses. + Employees: Employees who want to have jobs must have good health, be well-educated as well as the necessary skills to meet the requirements of the jobs. Therefore, if workers want to have jobs, they must constantly improve themselves in all aspects such as good health to meet the job requirements and complete knowledge about specialized skills. + The State has an important role in creating job. The role of the State is reflected in the creation of a favorable environment for the formation and development of jobs, creating a favorable environment for employees as well as employers who promote their ability and issuing policies related to employees and employers. In addition, the social and political organizations also have an important role in job creation for farmers after land recovery: dissemination of the Party’s policies, laws of the State on land to farmers; raise farmers’ awareness of the recovery of agricultural land for the benefit of socio-economic development. In addition, such organizations as the 11 Women's Union, Farmers' Association ... also contribute actively in guiding career change, looking for new jobs, and increasing income for farmers. * Criteria for evaluating results of jobs creation for farmers on land recovery - First, the ratio of rural workers after land recovery can find jobs in industrial zones and new urban areas in the total rural labor on land recovery. - Second, the proportion of rural workforce supported with vocational training, job change and the proportion of people who are trained in accordance with the needs of the labor market in the total rural labor on land recovery. - Third, the proportion of the rural labor force on land recovery without stable employments, precarious and difficult lives among the total rural labor on land recovery. - Fourth, the proportion of rural workers after land recovery supported by the State in labor export to resolve employment in the total number of rural labor on land recovery. - Fifth, the level of coordination between local governments with projects investors in the development and implementation of training, retraining plans for farmers whose land is recovered in order to attract them to work in the investment projects. - Sixth, the implementation of policies of the Central government and the local on job creation for farmers on land recovery. 12 2.2.3. The need to create jobs for farmers as agricultural land is recovered - Create jobs and contribute to stabilizing economic development - Provide jobs to stabilize the political – social conditions. - Provide jobs to help ease hunger eradication and poverty alleviation 2.2.4. Factors affecting employment for farmers on land recovery - The influence of international factors: WTO accession has brought more job opportunities for Vietnam, especially in the direction of industrial employments; the legal barriers of legal migration, human have been losened, economic relations, foreign affairs, labor ... have contributed to attracting labor, creating jobs and partly solving unemployment. - The impact of domestic factors: First, economic potentials, location and advantages of the local Second, the ability to attract investments for economic development and business production Third, economic and labor restructuring Fourth, the qualification of laborers Fifth, the macroeconomic policies of the State. Sixth, socio-economic development strategies of the local also have impact on job creation for farmers after land recovery. Seventh, the development of the labor market directly affects jobs of employees. 13 2.3. EXPERIENCE OF A LOCAL ON EMPLOYMENT FOR FARMERS ON LAND RECOVERY 2.3.1. The experience of Da Nang City The City has applied the solutions to help create jobs for workers, especially foreign workers affected by the urbanization process: loans for running business from the Bank of Policy, national fund for job creation; tax exemption or reduction for production and business; mobilize farmers to farm; written regulations for businesses assigned with land in the industrial parks in the area to be cleared to recruit the workers in the areas affected by the urbanization process; associate with the Farmers Union of the City to conduct investigations, surveys on the lives of households whose land is recovered, relocated in the clearance area; classify households’ labor resources for training plans and suitable job creation ... 2.3.2. The experience of Hai Duong province Hai Duong has taken a number of basic measures to create jobs through education - training, especially vocational training systems and skills training for rural workers; socio-economic development, primarily the agricultural development program towards the commodity production, development of traditional handicraft villages to attract workers; Solve job issues through industrial, handicraft development programs; development of services; promote labor export. 2.3.3. The experience of Vinh Phuc To ensure jobs for people on land recovery, conversion of land use purpose, the Party, government, unions, businesses and people have together implemented the solutions: promote the shift of economic structure, especially the structure of plants and animals in the direction of 14 commodity production, creating more jobs for farmers; develop handicraft villages, restore and develop traditional handicraft villages; encourage farmers to contribute equity in form of land use rights to the business, strengthening the relationship between businesses and workers; focus on funding vocational training for students being children of household whose land hase been recovered. 2.3.4. The lessons learned in the creation of jobs for farmers on land recovery in Hanoi - To help employees with the opportunity to find new jobs due to the requirements of economic restructuring and the profession needs, must focus on the issue of training for qualified workers through many different forms: enterprise self-training, experience transfer, vocational training at training centers; need specific detailed plan for training, job search for farmers on land recovery.- Adjust the planning progress, gentrification, build resettlement areas in accordance with the conditions and socio-economic development of the City; have a master plan to direct the relocation, key resettlement. - Strengthen participation of the community, the unions, social- political organizations in life stabilization, organize vocational training and job creation. - Develop economic sectors, types of economic types and promote labor market development with emphasis on labor export to create jobs for the people. - Strengthen the relationship between businesses and workers for the enterprises to issue priority policies to attract and use local labor and landless laborers. - Effectively use the funds from the National Fund for job creation. These are the significant lessons learnt for Hanoi to study, apply in a creative way to create job for farmers after land recovery in the 15 next years, when the rate of urbanization and industrialization is getting increasingly faster, more powerful in the process of economic development of the country. Chapter 3 EMPLOYMENT STATUS FOR FARMERS ON LAND RECOVERY IN HANOI 3.1. OVERVIEW OF NATURAL, SOCIO- ECONOMIC CONDITIONS RELATED TO EMPLOYMENTS AND JOB CREATION FOR FARMERS ON LAND RECOVERY 3.1.1. Natural conditions, geographical location of Hanoi Hanoi is the capital of Vietnam with an important geopolitical location and special advantages in comparison with other localities in the country. In the region, Ha Noi is confirmed the center city with the model of modern central urban system, major transport hubs, research centers, financial services, trade, culture, tourism, and social infrastructure services bearing the scope of the Southeast Asia. These factors closely connect Ha Noi with the centers in the country and create favorable conditions to thrive economic exchanges with the locals and foreign nations; get involved in the process of international and regional labor division together with the integration process of dynamic development of East Asia – Pacific region. 3.1.2 . Socio- Economic Characteristics of Hanoi Compared with the whole country, Hanoi is always one of the locals having the highest rate of economic growth. Hanoi's population continues to grow constantly. The structure of the rural labor shifts towards reducing the proportion of agricultural labor. 16 In the years of innovation, Hanoi has strongly promoted economic development to ensure social justice. In particular, education, training, health care, poverty reduction, improvement of material and spiritual life of people, reduction of negative social issues are always included in the socio- economic development program of the City. 3.1.3. The process of agricultural land recovery in Hanoi since 2005 Hanoi is one of the locals with the highest urbanization rate. Generally in 8 years (2000-2007), the City has had 2,725 projects involving clearance over the areas of 13023.23 hectares and in fact has conducted recovery and hand over 7274.661 hectares of agricultural recovered land for investors. Until 2011, in the city of Hanoi there have been 1,090 investment projects related to land recovery, with the land recovery scale up to 10,574ha; involving more than 190,066 organizations, households and individuals; expected to arrange resettlement for over 17,087 households. 3.2. EMPLOYMENT STATUS AND JOB CREATION FOR FARMERS IN HANOI ON AGRICULTURAL LAND RECOVERY 3.2.1. Current status of employment for rural labor in Hanoi The number of residents of rural areas in Hanoi occupies a large proportion in comparison with the whole city, in 2010 it was 3801.4 thousand people (62%) were stable distribution in the district of Hanoi (see appendix table 6). The quality of labor in agriculture and rural sector is still low. By 2011 in Hanoi, the unemployment rate of labor without technical expertise in rural areas remained high (83.7%). This reduced the 17 adaptability, job seeking ability of people was low and the risk of unemployment was very high. 3.2.2. Employment situation for farmers after land recovery in Hanoi The author has analyzed the situation of jobs for farmers after land recovery in Hanoi: The shift of business production activities and occupation of the employees; Attracting workforce from enterprises; The effectiveness of training activities; The support from the Central government and Hanoi to create employments; Operations of the job service centers and labor export activities. 3.3. OVERALL ASSESSMENT OF EMPLOYMENT FOR FARMERS ON LAND RECOVERY IN HANOI RECENTLY 3.3.1. The results of job creation for farmers on land recovery in Hanoi With much effort and various measures of the Party Committee, the City government, local businesses and the workers themselves, in the recent years Hanoi has created a lot of achievements in the field of job creation for labor in general and for farmers in particular after the land recovery. This fact shows: - Hanoi has attracted a significant number of local employees to work in the industrial parks and clusters - The city has several policies, programs and projects in order to create various favorable conditions and opportunities for farmers whose land is acquired to find a new job 18 - Vocational training activities in the City has gained certain achievements contributing to help labor find jobs. 3.3.2. The limitations, weaknesses and cause of limitations in creating jobs for farmers on land recovery in Hanoi Firstly, the number of people whose land is recovered attracted to work in the businesses, industrial parks accounts for a very low percentage compared to the total number of employees losing their jobs. Secondly, unemployment, underemployment remains high percentage. Thirdly, the number of farmers switching to new industries is low; the quality, stability and sustainability of jobs for farmers after land recovery is not high Fourthly, labor export results is low (only accounted for 2% of the total labor getting jobs annually). Fifthly, the operation of the employment service centers are not really effective. Sixthly, policies and implementation of the State and the City policies in job creation for farmers on land recovery is asynchronous and not radical. Seventhly, the organization of vocational training for farmers on land recovery is not studied thoroughly, leading to trained occupation is not appropriate with the needs of the labor market, so, even though employees have been trained, they cannot find a job. 19 Eighthly, businesses using recovered agricultural land haven’t implemented well their commitment of giving priority to local labor with land recovered on recruitment. Ninethly, the preparation of the locals and people in job creation after land recovery is not really synchronous, making it difficult for people, especially rural people to stabilize their lives. Chapter 4 DIRECTION AND EMPLOYMENT SOLUTIONS FOR FARMERS ON LAND RECOVERY IN HANOI 4.1. FORECAST FOR LAND RECOVERY AND VIEWPOINTS ON JOB CREATION FOR FARMERS IN HANOI ON AGRICULTURAL LAND RECOVERY 4.1.1. Forecast of land recovery and employment needs of farmers on the recovery of land in Hanoi by 2020 According to the land use planning of Hanoi by 2020, the land use plan in the period 2010-2015, in the period from 2010 to 2015 the area of agricultural land will decrease by 11.6 thousand hectares to switch to the non-agricultural purposes, and will continue to decline 25,218.9 hectares in 2020, reducing the area of agricultural land in Hanoi down to 151,779.9 hectares only. Thus, in the coming years, the agricultural land area in Hanoi will decrease over 36,000 ha. Based on calculations of the Ministry of Labour - Invalids and Social Welfare once each hectare of agricultural land is revoked, 13 people will lose their jobs. This means in the coming time in Hanoi approximately 468,000 farmers will lose their jobs due to land recovery. This will greatly impact the balance of jobs supply -
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