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MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF ECONOMICS --------------------------------- VO THI KIM LOAN DEVELOPMENT OF HIGH-QUALITY HUMAN RESOURCES IN THE CONTEXT OF GLOBAL ECONOMIC INTEGRATION IN HO CHI MINH CITY MAJOR: POLITICAL ECONOMICS Code: 62310102 SUMMARY OF DOCTORAL DISSERTATION IN ECONOMICS HO CHI MINH CITY, 2015 The work is accomplished at: Ho Chi Minh University of Economics Advisors: 1. HOANG AN QUOC, PhD. 2. LUU THI KIM HOA, PhD. Juror 1: ............................................................................................................................... Juror 2: ............................................................................................................................... Juror 3: ............................................................................................................................... The dissertation is defended before the University Jury at ................................................. At ........................................................ on ......................................................................... The dissertation is available at: - National Library of Vietnam; - Ho Chi Minh City General Sciences Library; and - The Library of Ho Chi Minh University of Economics. ii LIST OF ABBREVIATIONS 1. CC : Central Committee 2. PR : People’s Republic 3. SPZD : Specialized 4. IM : Industrialization and modernization 5. Tech. : Technician 6. VEI : Vocational Education Institute 7. U : University 8. ET : Education and Training 9. GEI : Global Economic Integration 10. IP-EPZ : Industrial Park – Export Processing Zone 11. SR : Scientific Research 12. HQHR : High-quality Human resources 13. VT : Vocational Training 14. JH : Junior High School 15. HS : High School 16. HCMC : Ho Chi Minh City 17. Cen. : Central 1 INTRODUCTION The global development has turned over a new leaf with plenty of breakthroughs in which the major factor determining the twist in quality of the economy is undoubtedly high-quality Human resources. Nowadays, competition among nations and enterprises is mostly for intelligence which is indicated through the knowledge and ability contained in a product or service produced by high-quality Human resources. Therefore, for the rapid and sustainable development, the world is paying more and more attention to Human resources development, which is considered an urgent and strategic issue in this context of economic globalization. The 9th Party Congress of Ho Chi Minh City in 2010 – 2015 tenure analyzed urgent matters that require economic restructuring of Ho Chi Minh City by 2015 and further by 2020. The congress determined development of high-quality Human resources is one of the six breakthroughs of Ho Chi Minh City. In the context of global economic integration, demand for Human resources has brought the national economy in general and Ho Chi Minh City in particular urgent and insolvable matters which are redundant yet insufficiently-qualified workforce, demand for well-educated workers, and deficiency of competent and skilled labor. The national education systems have been improved to approach international standards while qualifications of teachers have been upgraded. Education and training quality, however, still remains far from meeting requirements of the economic development of the country. Such disparity would constrain the capacity for provision of Human resources to a market that highly requires quality for industrialization, modernization and economic globalization of the city. Based on the abovementioned facts and in consideration of demand for Human resources development, the author made the ‘Development of High-quality Human resources in the Context of Global Economic Integration of the City’ the topic of her doctoral dissertation in political economics. 1. Research background and reasons for the topic 1.1. Previous researches on Human resources and high-quality Human resources in the context of global economic integration Nguyen Ba Ngoc and Tran Van Hoan (2002) assume that there are two sides of globalization; one of which is creating opportunities, and the other is bringing out challenges to developing countries. Whether Vietnamese labor becomes the factor that determines the country’s success in the race for global integration or an obstacle on the racetrack to catch up with developed countries all depends on its people’s determination. 2 Pham Thi Thu Hang (2008) and Hoang Van Chau (2009) both assess the overview of Vietnam business environment in 2007 and analyze operating activities of its enterprises based on four aspects which are labor, finance, technology and market approach within six industries (textile, construction, tourism, banking, insurance and food production and processing) that have mostly been affected by Vietnam joining WTO from labor issues to Human resources development. Nguyen Thi Thanh Lien (2011) defines that major causes of such matters are loose connections between schools and enterprises and slow-paced investments in the city transformation in comparison with the society’s demands. Her solutions to the issues are restructuring of the city Human resources, constructing and modernizing school facilities and infrastructure, enhancing connections between schools and enterprises, and heightening governmental administration of highquality Human resources. Francis Green, David Ashton, Donna James and Johnny Sung (1999) suggest a new explanation of the role of the State in skill formation with three East Asian newly-industrialized economies. The article considers political mechanism ensuring education development and training policy forming in accordance with the economic growth. In Rethinking the Future edited by Gibson Rowan (2002), researchers believe that every shred of industrial-era thinking is now being rescrutinized and brilliantly reformulated. The study highlights six especially important points to rethinking the future, including (1) rethinking business principles, (2) rethinking competition, (3) rethinking control and complexity, (4) rethinking leadership, (5) rethinking markets, and (6) rethinking the world. Proceeding with those studies, John Naisbitt (2009) summarizes his eleven mindsets of the future to help those who want to join in the high-quality Human resources. Whether rethinking the future or resetting the thinking to see the future, all of the researchers share on point in common that is creative thinking. In Seven Complex Lessons in Education for the Future, after emphasizing the vital importance of education for human beings in nowadays society, Edgar Morin (2008) interprets seven key principles which he considers necessary to be the foundation of future education in order to train excellent brains with high creativity as follows: blindness of knowledge: error and illusion, principles of pertinent knowledge, human condition, earth identity, confronting uncertainties, understanding each other and ethics for the human genre. 1.2. Considerations of HQHR in the current stage in Vietnam Duc Vuong (2008) presumes that Human resources in Vietnam are profuse, yet unfortunately have been not paid enough attention to with unplanned and inappropriately-exploited 3 strategies; plenty of workers are trained with halfway measures or even untrained; and that lowquality Human resources has led to a disparity between quality and quantity. Nguyen Thanh Tuyen and the associates (2002) claim that global integration is the inevitable route for Vietnam. Improving the country’s image with steady knowledge-based economy is believed to be the only way to gain competitive advantages and equal cooperation opportunities in the global integration. Le Thi Ngan (2002) supposes that enhancing the quality of Human resources approaching knowledge-based economy is synonymous with improving physical strength, creativity, abilities to discover information and materialize such information into new products and technology. For those reasons, creativity and innovation ability are outstanding traits of qualified Human resources approaching knowledge-based economy. Agreeing with the said standpoints of HQHR, Tran Van Hung (2012) thinks that investment in development of high-quality Human resources along with economic restructuring plays the major role in order to create competitive advantages in the present context. Economic competition in the broad sense of the word means competition for education, training, sciences and technology. Acknowledging the role of training and education in HQHR, Nguyen Trung (2012) provides readers with valuable information of national training quality via assessments and feedbacks from Vietnamese enterprises towards workers trained domestically as follows: (a) the recruiters have to retrain most of newly-recruited workers regardless education level, i.e. vocational college or university graduates or postgraduates; and (b) education quality of domestic universities and institutes are often doubted due to low quality of education and training; backward and underdeveloped curricula; poor research ability; deficient, asynchronous and obsolete facilities; weak foreign language proficiency; and low level of organization and administration ability. Dam Nguyen Thuy Duong (2004) proves that labor in HCMC is distributed disproportionately between economic areas. Despite the high development of the city economy which provides jobs for a large number of workers, the rate of unemployed people in HCMC still makes up a large part with 6.53% of the population at the working age (in comparison with the rate of Southeast Vietnam as 4.65%, Ha Noi as 4.61% and the nation as 2.1%). 1.3. Overview of the previous studies:  Theoretical significance: - Domestic studies have determined the important role of HQHR in Vietnam IM and GEI. Speaking of HQHR in current economy, the basic point mentioned in those studies is that people 4 have to adjust their thinking to adapt to and control up-to-the-minute and unguessable development tendencies nowadays.  Practical significance: - All of those studies have asserted that Vietnamese high-quality Human resources have not satisfied requirements of the present IM and GEI in Vietnam. The mentioned researches have drawn out a big picture of Vietnamese Human resources in general with facts and demands for Human resources, and limitations of national education and training systems which thirst for reform and improvement whereby feasible solutions to Vietnamese Human resources could be brought into light. 1.4. Problems for discussion in the dissertation - Foreign researchers present quite attractive and persuasive analyses and explanations of the importance of knowledge and intelligence in the forming of knowledge-based economy. However, those works have been studied in the context of economy of top developed countries instead of a developing country such as Vietnam. - Domestic studies only mention general theories of establishment, management and development of Human resources and discussions of several factors affecting Human resources qualified for GEI in HCMC. There has been no research analyzing specific causes affecting the development of HQHR in HCMC. - So far, there has been no study that completely and comprehensively looks into the development of HQHR in supply and demand of Human resources of a typical region such as HCMC with persuasive and profound explanations and arguments. Likewise, no one has ever researched to build up an HQHR quality scheme based on demand for labor in HCMC. 2. Objectives of the research - To analyze facts of HQHR; to assess factors affecting the development of HQHR in supply and demand of Human resources in HCMC in the GEI context; to present research methodology and objectives; to suggest points of view and solutions to HQHR development in GEI context of HCMC. 3. Subjects and limitations of the research - Object of the research: The high-quality Human resources in production (technology) within HCMC. - Subject matter of the research: Theoretical and practical development of high-quality Human resources satisfying requirements of GEI in HCMC. 5 - Scope of research: The dissertation studies high-quality Human resources as a constituent part of the productive forces and the workforce of the economy within HCMC in the GEI context. 4. Achievements and contributions of the research 4.1. Academic achievements and contributions: The research systemizes general theories of development of high-quality Human resources, assessment criteria, and factors influential in developing high-quality Human resources in current GEI context both in labor supply and demand in HCMC; and plays a part in defining and proving causes directly influencing the HQHR development in the setting of GEI in HCMC. 4.2. Practical achievements and contributions: The study helps researchers and planners have a clear and big picture of methods of approach to HQHR as a constituent part of the productive forces, and have a complete knowledge of facts of the development of HQHR in GEI setting in HCMC thereby they could suggest solutions to form the foundations of planning and improvement of the current quality of HQHR development in HCMC. 5. Overview of the dissertation Apart from the Introduction, Conclusion, Table of Contents, List of Abbreviations, List of Figures, Appendices and References, the dissertation consists of 4 chapters including: Chapter 1 – Theoretical Foundations, Chapter 2 – Methodology, Chapter 3 – Facts of the Current Development, and Chapter 4 – Viewpoints, Plans of action, and Solutions to HQHR Development in the Context of Global Economic Integration in HCMC. 6 CHAPTER 1: THEORETICAL FOUNDATIONS OF DEVELOPMENT OF HIGHQUALITY HUMAN RESOURCES IN THE CONTEXT OF GLOBAL ECONOMIC INTEGRATION 1.1. Definitions and assessment criteria of HQHR in GEI context 1.1.1. Development of Human resources and high-quality Human resources  Definition of Human resources: Human resources is the set of quantity and quality of individuals satisfying requirements of mental power, physical strength, and ethical and moral virtues which people and the society have been hunting for in creative production and operation for the sake of the development and improvement of the society.  Human resources development: Human resources development is the development of human physical strength, mental power, knowledge acquisition ability, social activeness, creativity, cultures, traditions, etc. From the social point of view, human resources development is the increase in quantity (scale) and quality of the human resources which helps to create and a better and more appropriate human resources structure. From the individual point of view, human resources development is the act that matures people and trains them social skills and abilities (i.e. physical strength, mental power and human dignity) and high social activeness.  Definition of HQHR: HQHR is a part of the human resources with physical strength satisfying recruitment requirements with highly-specialized skills and virtues, high adaptability to changes in technologies, good application of and creativity from trained knowledge and skills in production and operation in order to contribute to the economic and social development as most effectively as possible. According to the abovementioned definitions, quality of HQHR may be indicated via four criteria including physical strength, mental capacity, personalities and social activeness.  Development of HQHR: Development of HQHR is the act of making changes in quantity and quality of the human resources by gradually forming and completing physical strength, knowledge, skills, attitude and business ethics that could satisfy individual demands of operation and social development. HQHR development also goes along with social human resources development, however, focuses on exploiting resources of well-educated individuals with high skills that could satisfy requirements of industrialization, modernization and global economic integration. The process of human resources development is the act that creates changes in quantity, quality and structure of human resources in order to meet demands of the economies. 7 1.1.2. Global economic integration and requirements of HQHR development  Global economic integration: GEI is the act that a nation combines its economy with regional and global economies by attempts to unilaterally, bilaterally and multilaterally create a liberalized and open economy and minimize its disparity with other nations to make up the perfect whole of the global economy.  Fundamental characteristics of global economic integration Firstly, GEI is the advanced development of international distribution of labor. Secondly, GEI is the international combination and cooperation of two or more than two independent nations that have the control over one or more than one economic and commercial conventions. Thirdly, regional and bilateral economic integration is considered a conciliatory solution to two contrast tendencies in global markets which are protectionism and trade liberalization. Finally, regional and bilateral economic integration has always been a conscious and positive action of member nations in order to coordinate with other nations and adjust economic development policies for reciprocal agreements between member nations.  Requirements of development of high-quality human resources in the GEI context In the GEI context, the historic birth and rapid development of modern technology have drawn many bold lines among economic industries. This new classification of industries wherein high-tech industry came to birth has created high demands for knowledge and intelligence, i.e. demands for high-quality human resources (with highly-specialized skills and competence). GEI has also made the gears of economic structure move forwards. Considerable leaps in applied sciences and technologies in traditional industries in economic integration would increase demands for labor in high-tech industries. Therefore, it is essential for high-quality human resources in order to promptly meet requirements of the markets in this vigorous change. The GEI would attract diverse capital inflows of foreign investment into developing countries such as Vietnam. Requirements of recruiters and international companies would become stricter and more, especially regarding fields and industries requiring extra-intellectual power or high-tech well-skilled workers. In order to meet the demand of the integrated economy, human resources of a nation have to satisfy criteria of both quantity and quality of the investors. As human creativity, innovation and applied knowledge have continuously been magnified by the impact of information technology; occupational knowledge, therefore, has rapidly and incessantly been changing. It means that workers could not help but regularly update occupational knowledge and skills to be able to adapt to new job requirements. 8 In an integrated economy, a product is the result of international cooperation which also means that the scale of production and operation are more and more expanded and that adaptability and flexibility of the human resources have become an urgent and vital necessity. In a knowledge-based economy, technologies are innovated every single minute, and technology life circle become gradually more and more shortened. A manufacturer who wants to survive in such harsh environment has no choice but to innovate and create new technology. Creativity is the soul of innovation. Therefore, high-quality human resources are undoubtedly necessary to meet this requirement. GEI, especially inter-regional economic integration, would create opportunities to export Vietnamese human resources to other countries for study of and experience in operating organization and production management from the importing countries. However, since Vietnamese workers mostly come from a backward agricultural economy, properly policies on human resources development are a vital factor for high-quality human resources in order to achieve foreign exchange gains. 1.1.3. Factors influential in development of high-quality human resources in supply and demand in the GEI setting  Factors influential in development of high-quality human resources in supply in the GEI setting + Impacts of education and training on HQHR development: Education and training are key factors that determine an individual’s education level. Education level indicates one’s knowledge and capability during his work. It is also the foundation for an individual to improve other occupational skills. In most cases, the higher one’s education level is, the higher his capability to do complex work is. Knowledge is a necessary condition for an individual to step into any competition in labor markets. Thanks to education, one could approach state-to-the-art sciences and technologies whereby his productivity would become better in the future. + Impacts of sciences and technologies on high-quality human resources: The development of sciences and technologies would led to the vigorous changes in structures of the economies and labor markets, especially those switching from agricultural to industrial and service sectors. These changes make remarkable effects on human resources, especially high-quality human resources that play an important link in the chain of development of productive forces. The development of science and technology requires suitably-qualified workforce to apply and develop such innovations into reality. Therefore, it is necessary for a certain number of human resources to be trained in developed countries and return to the home country to refurbish their national science and technology. 9 + Impacts of cultures and traditions on high-quality human resources: Traditions, customs and cultures are basic foundations to form an individual’s capabilities and personalities. Living in an environment with civilized and healthy cultures, customs and lifestyles would help one build his clean and clear mind. A worker with high consciousness of working would be well aware of his own work. However, cultures and traditions of one’s country would more or less affect their work habits. + Impacts of governmental policies on high-quality human resources: Governmental macroscopic policies would have considerable effects on HQHR development, especially those on the economy and society such as education and training, labor recruitment and utilization, salaries, social insurance, employment insurance, and other economic development policies. In case the State macroscopic policies accord with economic and social development conditions, there might be positive signals from the quality of human resources. Otherwise such policies might become great obstacles to the improvement of HQHR.  Factors influential in development of high-quality human resources in demand in the GEI setting + Quantity of HQHR: Quantity of HQHR indicates high-quality human resources annually trained to supply to labor markets. Another factor is the increase in graduate, postgraduate workers and specialists among the entire workforce. + Quality of HQHR: Quality of HQHR is manifested via four elements: physical strength, intelligence, personality and social activeness. In this context of global economic integration, the more sciences, technologies and knowledge are appreciated, the more important the role of human intelligence becomes. Knowledge, however, could only be turned to one’s strength by the human being himself. One has to master characteristics of knowledge in the 21st century which are rapid increase, continuous change and innovation, widespread circulation, and direct connection with operation, production and social life. However, these four characteristics of knowledge are only the first steps; the key point is whether one could apply the knowledge he gains into reality. + Impacts of governmental policies on the development high-quality human resources: The way workers are employed and treated is the cause of the current situation of human resources qualifications as policies on employment and treatments of skilled and qualified workers may affect their psychology in occupational orientation of their descendants or their own selves. 10 1.2. Theories of the roles of HQHR in global economic integration and development 1.2.1. HQHR is a direct element of the production activity. Adam Smith believes that the origin of the national wealth lies not in land or in opulence but in labor. According to Ricardo, capital and labor are actually complementary and combined with each other in certain proportion depending on each sector. Therefore, in order to produce more products, the increase in not only the capital but also the workforce is required. In Marxist theory, elements influential in the reproductive process are land, labor, capital and technological progress. Marx emphasizes the importance of labor in the production of surplus value which is the origin of accumulation fund to expand the scale of production. Engels points out that in a rational order which has gone beyond the division of interests, the mental element certainly belongs among the elements of production and will finds it place in political economics among the costs of production. As he says, a single achievement of science like James Watt's steam engine has brought in more for the world in the first 50 years of its existence than the world has spent on the promotion of science since the beginning of time. Clearly, early in the 20th century, Engels already foresaw the importance of knowledge which would be one of the factors of production and would occupy an important position in the productive process. Quality of human resources is synonymous with high levels of intelligence, including the worker’s professional skills, virtues, physical strength, pure mind, appreciation of beauty, and business cultures. Intelligence, among those mentioned factors, is the key element to determine quality of human resources. President Ho Chi Minh, when he was alive, once said that a nation of ignorant people could never be a strong nation. 1.2.2. Human capital and economic growth One of the most common economic growth models is the Cobb-Douglas production function of Y = AKaLb where K is the capital input, L is the labor input and A is the total factor productivity (TFP) resulting from the use of L and K. Hence, too much capital input (K) indicates that the economy mostly depends on material elements for growth, which means that the marginal product of capital is low, and that the economic growth would not be sustainable. L could be unskilled labor as in classical models or skilled and well-educated labor as in neoclassical and endogenous growth models. The growth model of Mankiw and associates (1992) which is Y = KaHb (AL) 1-a-b (where H is the stock of human capital, and A is TFP resulting from effects of human capital improvements on working and management that reflects productivity to maintain long-term economic growth. According to Solow (1956), economic growth could not be explained only by the growth of capital, raw material, or available labor. Residual elements contain countless unidentified 11 factors; one of which (possibly the most important one) is to raise the quality of input elements. More than 50 years ago, Schultz (1961) forecast that investment in human capital would probably be the major explanation for the difference between the growth of output and input of conventional capital and labor. 1.2.3. Benefits of investment in human capital Adam Smith emphasizes the importance of education in two aspects as follows: Education is possibly a good way to resist disintegration caused by excessive division of labor, and education may take a great part in forming social harmony. Alfred Marshall, on the other hand, considers education a form of national investment and support education in order to develop technology. He opines that even though general education brings less direct fruits to technological progress, it makes people more intelligent and trustworthy in their ordinary work. Karl Marx also agrees with the idea when pointing out that education plays the major role in promoting social peace and harmony and self-improvement in the productive process. However, Schultz (1961) was one of the first researchers who considered education an investment in human beings and believed that it is a form of capital – human capital. He focuses on policies on investments in human capital and believes that removing barriers to investment in human capital could bring a lot of interest to society. Fitzimons (1999) thinks that individuals invest to accumulate skills, knowledge (which are parts of human capital) and those that may bring them long-term benefits. Such investments would benefit the national economy and enhance economic growth. For Becker (1964), he discovers various ways to invest in human capital, but mostly through education. Investment in human capital may bring prosperity to a nation for several reasons. First, education brings individuals at a certain education level job and earnings (personal benefits). Second, human capital promotes the economic growth. Finally, human capital contributes to create social sustainability. 1.2.4. The role of high-quality human resources in global integration context Adam Smith (2003) believes that division of labor could increase labor productivity. His idea relates to the improvement of workers’ skills thanks to specialization of the labor. He understands the root of labor division in market economy and recognizes that once division of labor is internationally, developed each nation would be able to acquire absolute advantages. Absolute advantages in the production of a product are based on natural or acquired advantages including skills and techniques. David Ricardo (1978) brings into light the comparative advantage theory, arguing that nations benefit from international trade as long as there are comparative advantages, i.e. specialization of labor between the countries. A country would still benefit from international trade whether its absolute advantage is greater or comparatively less than another country when taking part in specialization of labor as each country is more efficient in the production of certain 12 commodities and comparatively less efficient in the production of the other goods. According to Heckscher – Ohlin theory, countries have comparative advantages in production and export of certain goods for which the required factors of production are locally favored (including capital, labor, natural resources, land, climate, etc.) whereby it has lower opportunity cost (in comparison with the production of other commodities) when producing such goods. H – O theory, primarily built on David Ricardo’s theory of comparative advantage, determines that the source of comparative advantage resides in the production factor endowments which are called productive resources in modern economics. 1.3. Lessons from experience of Korea, China and Malaysia 1.3.1. Lessons in training of high-quality human resources First, education and training should be considered the deciding factor in HQHR development. Second, strategies for training and development of human resources should go together with social and economic development strategies. Third, popular university education models should be deployed to increased high-quality human resources. Lastly, vocational education should get more attention. 1.3.2. Lessons in the use of high-quality human resources Initially, human resources should be considered the fundamental deciding factor of social and economic development. Next, high-quality human resources should be attracted from all available sources. Finally, employers should encourage the creativity of high-quality human resources by paying them proportionally to their contributed intellect and knowledge, and create opportunities for young human resources to bring out the best of their capabilities. 13 CHAPTER 2: RESEARCH METHODOLOGY OF DEVELOPMENT OF HIGHQUALITY HUMAN RESOURCES IN THE CONTEXT OF GLOBAL ECONOMIC INTEGRATION 2.1. Analysis chart Labor supply Labor demand Education and training Quantity Science and technology Development of high-quality human resources Intelligence Quality Cultures and traditions Governmental policies Physical strength Personality Employment policies Social activeness 2.2. Research approach During the research, the author’s thinking orientation was based on Marxism – Leninism and Ho Chi Minh’s ideology. The topic was studied on the foundation of fundamentals of Marxist – Leninist political economics in reference to theories of economics, development economics, standpoints and renovated policies in instruments published in Vietnamese Communist Party congresses, decrees of HCMC Vietnamese Communist Party congresses, and experience from nations around the world. This research was carried out using the following methods and approaches: dialectical and historical materialism, interdisciplinary approach, point approach, documentary research method, analysis and synthesis, comparative research, and quantitative and qualitative research. 2.3.1. Qualitative research  Qualitative research design: Qualitative research data was collected via focus group discussions and in-depth interviews with several business managers including personnel managers, 14 deputy managers, directors and deputy directors of production enterprises; and executive directors and deputy directors of production enterprises within HCMC that employ workers graded 3/7 upwards. Information collected from the interviews was the basis for the design of the drafted rating scale used in the in-depth interviews. In-depth interviews were carried out with 10 business managers. The purpose of those interviews was to evaluate content and form of statements (questions) in the initial rating scale in order to polish and complete it for official use in the quantitative research. 2.3.2. Quantitative research: The quantitative research was performed in the following sequence: designing the survey; collecting data from business managers of productions enterprises within HCMC; analyzing data using SPSS 16.0 software to confirm the factors as well as the meaning and reliability of the rating scale of factors influential in the HQHR quality; and verifying the suitability of the research model. 2.4. Information system and research data 2.4.1. Secondary information: The collected information was related to human resources and high-quality human resources from HCMC statistical yearbook, related ministries, departments, reliable articles and scientific studies. 2.4.2. Primary information  Survey subjects: The survey was carried out at productions enterprises within HCMC. Subjects of the survey were business managers including personnel managers, deputy managers, directors and deputy directors of production enterprises; and executive directors and deputy directors of production enterprises within HCMC that employ workers graded 3/7 upwards.  Questionnaire design: The study used the exploratory factor analysis (EFA) with 25 measured variables. As a result, in compliance with the rule of 5 forms per variable, the minimum number of the forms was 125. Based on this minimum result, the number of questionnaires needed in the study was n = 200. However, in order to obtain this number of forms after removing those lacking information or those with low quality, the author decided to use 250 questionnaires in the survey. The survey was carried out in June 2013.  Data collection: Data of the survey was compiled through interviews in two forms: - Interviews with business managers who were graduates from colleges and universities within HCMC, specifically HCMC University of Technology, Ton Duc Thang University and Cao Thang Technical College. - Direct interviews and correspondence with business managers at production enterprises to complement the norm determined in the questionnaire design. 15 2.5. Process of the study Research problem Development of high-quality human resources in the context of global economic integration in Ho Chi Minh City Scientific basis of the research - Fundamental issues of HQHR and HQHR development - Impacts of global economic integration on HQHR - Assessment criteria of HQHR development in the GEI context - Factors influential to HQHR development in the GEI context in supply and demand - Experience from HQHR development of nations around the world. Design of research model - Focus group discussion  Drafted rating scale - In-depth interviews  Official rating scale Official quantitative research (N = 250) - Assessment the reliability of the corrected item-total correlation (Cronbach's alpha) - Verification of factor loading and explained variance (EFA) Solutions to HQHR development in the global economic integration context in HCMC - Decisive standpoint of the HQHR development - Course and objectives of HQHR development Practical basis of solutions to the research problem - Facts of HQHR development in supply and demand in HCMC - Problems of HQHR development in HCMC in the GEI context. - Pressing solutions to HQHR development 16 CHAPTER 3: FACTS OF THE DEVELOPMENT OF HIGH-QUALITY HUMAN RESOURCES IN THE CONTEXT OF GLOBAL ECONOMIC INTEGRATION IN HO CHI MINH CITY 3.1 Overview of HCMC economic development and global integration 3.1.1. Overview of HCMC economic development HCMC economy still faces a lot of problems. Only 10% of industrial enterprises within the city are equipped with modern technology. Specifically, 21 enterprises among 212 ones of the city textile industry, 4/40 footwear ones, 6/68 chemical ones, 14/144 food processing ones, 18/96 plastics one, and 5/46 mechanical ones have applied advanced technologies to their production. The city industries tend to approach high-tech fields which would bring more benefits; as a result, a problem set for the city to solve is high-quality human resources that could meet its demand. 3.1.2. Outline of the global integration of HCMC By the first quarter in 2013, total attractive investments have increased by 21.4%% as compared to the same period in 2012 thanks to the investors extending the operating activities. Foreign investments have reached USD 122.65 million (80% increase) whereas domestic investment have achieved USD 21.83 (57.35% decrease). By 31 March, according to HCMC Department of Planning and Investment, 78 FDI projects have been licensed to invest with the total amount of USD 159.8 million (19.6% decrease in the number of projects and 109.4% increase in the invested capital). In addition, 26 projects have adjusted invested capital with the total investment of USD 175.3 million. The city has also encouraged the development of four industries with high growth of value and the use of technology including mechanics – electronics – information technology; pharmaceutical chemistry – rubber industry; food processing; and biotechnology – clean technology – energy efficiency – supporting industries. Investments in modernization of the construction industry by using new materials and applying advanced technology have enhanced the growth of construction industry as compared to other industries. 3.2 Analysis of the facts of the development of high-quality human resources in HCMC 3.2.1. Facts of high-quality human resources in supply 3.2.1.1. Current training situation of high-quality human resources in HCMC  Vocational training (VT) system and technical workers With regard to the teachers: As for VT situation within HCMC, the city has struggled with the shortage of teachers and vocational institutes. From 2005 to 2012, a teacher, on an average, 17 has to be in charge of at least 50 students within the city. The cause of this shortage of teachers is because there have been no teacher training strategies meeting the set criteria, both of quantity and quality. As pedagogic and technical universities and colleges could not provide enough teachers for all fields and sections, vocational institutes have no choice but to walk on their own feet. Vocational institutes, however, could not solve this problem that easily. Newly-graduated workers are mostly inexperienced with low skills and need to be retrained for at least 1 – 2 years if recruited whereas they might leave the company once their skills and capabilities are developed and that they could not find the company salary policies attractive enough. With regard to facilities: On the whole, HCMC has a diverse vocational training system; however, that system has not met standard conditions. For the many past years, plenty of workers graduating from city vocational institutes could not catch up and work with modern equipment and machinery in companies and factories in industrial parks and export processing zones that are equipped with advanced technology in the race of high-quality products. With regard to curricula and teaching materials: Quite a few vocational training institutes have designed their own new curricula; however, their quality has not met the actual demands of the society which are asking for more and more of quality and diversity. Reference materials for teaching and study also suffer from the same problem with serious shortage of quantity, variety, state-of-the-art information and alterations in forms. With regard to financial resources: Resources for vocational training are so limited that it hardly could meet the demands for vocational training at the present and even in the years to come. Expenditure deducted from the State budget for vocational training has not even neared the threshold of the least conditions for vocational training, not to mention for solutions to ultimate questions such as developing an appropriate curriculum, improving teacher quality, and furnishing facilities for teaching and study at vocational schools.  Higher education system With regard to tertiary education system: By the end of 2012, there are 75 universities and colleges all over HCMC. Sorted by types, there are 54 public schools and 21 private ones. If categorized by governing bodies, 66 schools are under the control of the central government whereas the other nine are governed by local authorities. As for the scale, by 2012, there are 701,637 undergraduates in HCMC; 559,830 among them are from public schools and 141,802 from private ones. With regard to facilities: Facilities in public schools, despite having been invested for the past years, have been far from meeting the demands of the more and more increasing number of
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