Luận án Human resources for the reform of economic growth model in Vietnam

HO CHI MINH NATIONAL ACADEMY OF POLITICS NGUYEN DUC HAI HUMAN RESOURCES FOR THE REFORM OF ECONOMIC GROWTH MODEL IN VIETNAM SUMMARY OF DOCTORAL THESIS FIELD OF STUDY: POLITICAL ECONOMY Code: 62 31 01 02 HA NOI - 2017 The thesis was completed at Ho Chi Minh National Academy of Politics Supervisors: 1. Assoc. Prof., Dr. Doan Xuan Thuy 2. Prof., Dr. Chu Van Cap Reviewer 1: ....................................................... ....................................................... Reviewer 2: ....................................................... ....................................................... Reviewer 3: ....................................................... ....................................................... The thesis shall be defended in front of the Thesis Committee at Academy level at Ho Chi Minh National Academy of Politics At...... hour....... date...... month...... year 20... The thesis can be found at: The National Library and The Library of Ho Chi Minh National Academy of Politcs 1 INTRODUCTION 1. The necessity of the thesis Over 30 years of renovation, our economy has gained many important achievements. These achievements are partly determined by the economic growth model of this period, which is in line with Vietnam's conditions. Until now, Vietnam's economy has many signs of instability, the economy has been preserved for so long in the "low value added" model, based on increased capital investment, exploitation of natural resources, leverage cheap labor to pursue rapid growth. The economic growth model in Vietnam is currently considered as spreading widely and ineffectively in the long run, not really promoting the strengths and effectively exploiting the advantages of the economy. This shows that a fast-growing economy does not mean a strong economy. Hence, Vietnam's economic growth model for the period 2017-2020 with a vision to 2030 needs to be transformed with the basic contents of: the combination of growth of width and growth of depth, in which the growth in depth is the mainstream, combining economic growth with social development and environmental protection. In order to implement the new economic growth model, solutions should be implemented synchronously, in which the development of human resources, especially high quality human resources - important inputs of economic growth model - is considered a "breakthrough", decisive solution. Meanwhile, human resources in our country are now in large numbers, but low in quality, not meeting the requirements of socio-economic development and international integration. Due to the above reasons, the PhD candidate selects the topic "Human resources to innovate the model of economic growth in Vietnam" as the subject of his PhD thesis. 2. Research purposes and research tasks 2.1. Research purposes Presenting the theoretical and practical issues of human resources to reform of the economic growth model. Based on that, as performing assessment of the current state of human resources - the inputs of the existing economic growth model in 2001-2016, the thesis proposes some solutions for human resource development, focusing on improving the quality of human resources for the renewal of the model of economic growth in Vietnam during 2017-2020 with a vision to 2030. 2.2. Research tasks Firstly, to systematize and analyze theoretical issues and practical experience on human resources to reform the economic growth model. Secondly, to objectively assess the current state of human resources - the input of Vietnam's economic growth model (2001-2016). 2 Thirdly, to propose some comprehensive and synchronous solutions for the development of human resources, especially high quality human resources for the renewal of economic growth model in Vietnam during 2017-2020 and the vision until 2030. 3. Research subjects and research scope 3.1. Research subjects The thesis studies about human resources for the reform of the economic growth model in Vietnam as a component of the economic growth model, one of the development resources and the subject of the creation and implementation of the economic growth model. 3.2. Research scope - Regarding contents, the thesis focuses on researching: + The impact of human resources on economic growth model in two aspects: firstly, human resources is a component of the economic growth model, acting as a resource for development; secondly, the development of human resources is a decisive condition for the implementation of the reform of the economic growth model. + The relationship between the reform of the economic growth model and the development of human resources. + Proposing some macro-level solutions for human resource development to reform the economic growth model for the period 2017-2020 with a vision to 2030. - Regarding space: on the territory of Vietnam. - Regarding time: to analyze and evaluate the actual situation of human resources - the inputs of the current economic growth model from 2001 to 2016. Solutions to develop human resources to reform the economic growth model studied during the period of 2017-2020 with a vision to 2030. 4. Research approaches and research methodologies 4.1. Research approaches In order to achieve the set objectives, the author uses the following approaches: socio-economic; from theory to practice; accessing to human resources in a way that motivates the growth paradigm and is a decisive resource for the reform of the economic growth model. 4.2. Research methodologies Based on the application of dialectical materialism and the materialist history of Marxism-Leninism, the thesis uses the unique research methodology of political economy of scientific abstraction, along with the specific methods, such as: analysis - synthesis; interpretive - inductive; incorporating logic with history; collecting and processing secondary information; summarize the results and inherit the results of research from other works related to the topic. 3 5. The new contributions of the thesis 1. The thesis affirms that human resources are one of the inputs of economic growth model, and at the same time, the subject that exploits and effectively uses other factors (capital, technology, institutions...). Human resources create and implement economic growth model, in which high quality human resources play a decisive role in renewing the model of economic growth. 2. The experiences of Japan, Korea and Singapore have been successfully transformed from growth model of width to growth model of depth in a timely and effective manner, is based on training and development of high quality human resources, improving the quality of education - training and national technological level. 3. The thesis argues that Vietnam has advantages and opportunities of an abundant labor force, low cost (compared to China), but the quality of human resources does not meet the demand and in the next few decades, there will be no "golden population structure". Therefore, it is necessary to have policies and solutions to develop human resources effectively, in the long run, to attach importance to quality over quantity, to attach importance to vocational training and the development of high quality human resources in close association with development of science, technology and requirements of the economic sectors. 4. Groups of solutions for developing human resources for the reform of the economic growth model in Vietnam in 2017-2020 and vision to 2030 are comprehensive and feasible. In particular, the solution to use policies, treatments and promote a number of human resources with specific "characteristics", such as: human resources in the State payroll (cadres, civil servants), the youth workforce from 15 to 24 years old and high quality human resources including leaders, managers at all levels in the Party, the State, senior business executives, good businessmen, scientific and technological leaders, intellectuals in the country and overseas Vietnamese intellectuals, skilled workers. 6. Structure of thesis Apart from the introduction, conclusion and reference list, the thesis is divided into 4 chapters, 9 sections. 4 Chapter 1 OVERVIEW OF RESEARCH SITUATION RELATING TO THE THESIS 1.1. RESEARCHES ON HUMAN RESOURCES AND MODELS OF ECONOMIC GROWTH The dissertation reviews the research situation of authors at home and abroad according to 2 groups of issues: 1.1.1. Studies of human resources and human resource development Researches on human resources, human capital of Adam Smith (1776), Bardhan and Udry (1999), Gary Becker of the University of Chicago; on human resources from the perspective of the United Nations (UN), the International Labor Organization (ILO), the World Bank (WB), the United Nations Development Program (UNDP); on human resrouces development and human development of Marx and F. Engels, UNDP, UNESCO, ILO... concerning requirements of growth model for human resources, there is study by Michael Boozer (2003) about the path to success: Paths to success: The Relationship between Human Development and Economic Growth; A study by Gustav Ranis and Frances Stewart (2005) on the Dynamic links between economy and human development. Typical researches in the country on human resources and human capital of Nguyen Binh Duc, Chu Van Cap, Phi Manh Hong; on human resources of Nguyen Minh Hac, Nguyen Sinh Cuc, Mac Van Tien; on the role of human resources, especially high quality human resources in the field of economic growth and development, including some valuable experiences of some countries that can be applied to Vietnam, such as Vu Van Phuc and Chu Van Cap (2012)., Vu Van Hoa (2013), Luu Duc Hai (2015), Ha Thi Hang (2014), Tran Van Tung (2005), Tran Tho Dat (2008 and 2010)... In general, all researches put great importance to the element of human resources in the economic growth model and emphasize the positive and decisive nature of human resource development for the country's socio-economic development strategy. 1.1.2. Studies on growth models Historically, many foreign authors have studied economic growth with classic theories, such as the classical model of Adam Smith and David Ricardo; the Harrod- Domar model of the Keynesian school; Newtonian model (modeled by Solow and Swan, 1956); endogenous growth model; Lewis's binary model supplemented by Oshima; growth model of "balanced" and "extreme" growth; The model of "flying saucers"... The practice in each country in each historical period poses the need for appropriate theoretical hypotheses to promote growth and productivity. In the country, the researches on growth models is quite diverse. Regarding the thesis, the author synthesized into three groups: firstly, analyzing and evaluating the current status of the growth model and quality of Vietnam's economic growth during the years 2001-2016; Secondly, to assess the actual status of human resources (inputs) of growth models as a motivator for development; Thirdly, researches on economic growth 5 model innovation. Representatives of the above studies include Tran Tho Dat, Nguyen Ke Tuan, Nguyen Dinh Huong, Ha Van Hien, Pham Hong Chuong from National Economics University, Le Xuan Ba (CIEM), Chu Van Cap and partners, Dao Duy Huan, Nguyen Sinh Cuc, Nguyen Van Hau, Tran Chi Trung... The researches also mentioned the solutions to implement the new economic growth model, which emphasizes the solution to develop human resources, especially high quality human resources - the input element contributing to the growth of the economy. 1.2. RESULTS DRAWN FROM SCIENTIFIC RESEARCHES MENTIONED ABOVE AND THE GAP NEEDS FURTHER STUDYING 1.2.1. The results drawn 1.2.1.1. The role of human and human resources In any age, human resources are the most important component of social production. Human resources are considered as "endogenous" resources that dominate the socio-economic development process and it has the distinct advantage that there is no "limit" if properly fostered and exploited. Human resources are the most important factor, determining the power of the nation. 1.2.1.2. Human resources development and its role The development of human resources, especially the high quality human resources, will create an important driving force for rapid and sustainable economic growth. There are many factors influencing human resource development... in which development of education - training and vocational training system is the basic way to develop human resources. 1.2.1.3. Experiences to develop human resource and high quality human resource to meet the development requirements of Japan, Korea, Singapore, China and Taiwan are to create and provide vocational training; strongly link training with using human resources. 1.2.1.4. Theory of economic growth model Economic growth model is the most basic expression of the economic growth and the factors that affect the economic growth. Classification by time (history) includes classic, new-classic and modern economic growth model; by business approach includes import substitution and export oriented growth models; In terms of the use of inputs there are growth models in width and growth model in depth. Concerning the structure of growth models, there are: dynamics of growth (consumption, investment, public expenditure and net exports); inputs (capital, labor, resources, technology); and the role of the State in the economy. 1.2.1.5. The role of human resources in economic growth The study of economic growth of countries around the world and theories of economic growth have shown that human resources are considered the most important factor. A country that wants rapid, sustainable economic growth requires high quality human resources together with factors of capital, technology and resources. 6 1.2.1.6. Studies on the current state of human resources to meet the needs of the economic growth model in Vietnam in the 2001-2016 period, the studies share the common perception that Vietnam has advantages and opportunities for abundant labor force at low cost (compared to China), but the low quality of human resources has affected the quality of growth and competitiveness of the economy, which is one of the three major bottlenecks of socio-economic development. 1.2.1.7. Studies on the reform of the economic growth model to 2020, with a vision to 2030 in Vietnam, all studies show the need for reform of the economic growth model, rooted in internal and external factors. Hence, reform of economic growth model is to combine growth in width with in-depth growth, and growth in depth is the mainstream. Human resources for the reform of the economic growth model must have a long-term vision, with high quality rather than quantity, meeting the requirements of the economy. 1.2.2. The "gap" - issues need further studying and research direction of the thesis 1.2.2.1. The "gaps" of previous studies (1) There has been no comprehensive and systematic study under the perspective of political economy on human resources for the reform of economic growth model, especially the characteristics, roles and factors affecting human resources to innovate the economic growth model. (2) The requirements of economic growth model reform for human resources and the role of the State in ensuring these requirements. (3) There are few comprehensive assessments on the human resources situation - the input of the economic growth model in Vietnam over the last 30 years. (4) Accordingly, there is a lack of research on the system of solutions for human resource development to reform the economic growth model in Vietnam in the period of 2017-2020 with a vision to 2030. 1.2.2.2. Research direction of the thesis (1) To clarify some theoretical issues and practical experience on human resources to reform the economic growth model; The requirements of the reform of the economic growht model for human development. (2) To assess the human resource situation of Vietnam - the input of economic growth model in the last 30 years; focus on analyzing of human resources status in the existing economic growth model for the period 2001-2016, from which the results and limitations of human resources together with the causes of such limitations are presented. (3) What are the requirements for human resources to reform the economic growth model in Vietnam in the period 2017-2020? and what are the solutions to the development of human resources of the new economic growth model? 7 Chapter 2 THEORETICAL BASIS AND INTERNATIONAL EXPERIENCES ON HUMAN RESOURCES IN INNOVATING THE ECONOMIC GROWTH MODEL 2.1. THEORETICAL ISSUES CONCERNING THE ECONOMIC GROWTH MODEL AND HUMAN RESOURCES OF THE ECONOMIC GROWTH MODEL 2.1.1. Theory of economic growth model 2.1.1.1. Concept of economic growth model The model of economic growth is the basic expression of economic growth theory, the determinants of growth of an economy or a country, and the factors that affect economic growth in the relationship with factors of political, cultural, social and environmental conditions. Countries with different characteristics should have differences in growth models. Depending on the angle of study, they are classified into different types of economic growth models. The dissertation studies general growth models both in width and in depth, consisting of three basic elements: capital, labor, technological progress, and at the same time considering the combination of two types of growth models. 2.1.1.2. Elements of the economic growth model - Overall, the structure of growth model includes: (i) dynamics of growth (consumption, investment, public expenditure and net exports); (ii) input factors for growth (capital, labor, resources and technology); (iii) management mechanism embodied in the institution and role of the State in the economy. - Factors influencing a country's economic growth model: Firstly, economic factors: physical capital, labor capital (raw labor and human capital); technological advances and other economic factors, such as foreign direct investment (FDI), international trade, the State and public spending, the structure of the economy, the role of state-owned businesses. Secondly, non-economic factors: socio-cultural factors, socio-economic institutions... Unlike economic factors, non-economic factors have an indirect impact on economic growth and it is difficult to quantify the extent to which they affect economic growth. Thus, it can be seen that human resources or labor resources are one of the inputs of the economic growth model, playing a role in driving economic growth and implementing reform of the economic growth model. 2.1.1.3. Classification of economic growth models The dissertation classifies economic growth models in three aspects: - According to the contribution of growth models’ inputs: growht model in width and growth model in depth. - Historical appearance: Classic, New-classic and modern growth models. - According to the trade approach: growth models basing on the choice of alternative industrialization of import, and growth model basing on the selection of the export-oriented industrialization strategy. 8 2.1.2. Human resources - inputs of the model of economic growth Human resources, human capital, and human are elements of economic growth model of a country or an economy through its developmental stages. 2.1.2.1. Perspectives on human capital and human resources - Hu