Electronics informatics - Key industry of Thai Nguyen province

162 HNUE JOURNAL OF SCIENCE DOI: 10.18173/2354-1067.2018-0061 Social Sciences, 2018, Volume 63, Issue 7, pp. 162-168 This paper is available online at ELECTRONICS INFORMATICS - KEY INDUSTRY OF THAI NGUYEN PROVINCE Nghiem Van Long Department of Geography, Thai Nguyen University of Education Abstract. Thai Nguyen is a major economic, political, cultural and social center of the Northern Midland and Mountainous Areas. Geographical location, natural and socio- economic conditions of the province are very favorable for the development of the industry, in recent years, along with positive changes in the development policy, attracting capital The electronics-informatics industry has seen a very strong growth, and is now the most important industry in the province. In the future, in order to further promote the development of this industry, improve the quality and efficiency of production, we need to synchronously implement positive solutions to meet the requirements of development. Keywords: Thai Nguyen, industry, electronics informatics, industrial park. 1. Introduction Sectoral industrial structure is an important component of industrial structure, which is a component of industrial production; Including many industries, reflecting the level of development of production forces and level, technical capabilities. Localities both tend to develop a diversified sector structure to meet the needs of the market, and tend to focus on key industries and their strengths. Thai Nguyen is a province which has industry developing early of the country. In recent years, the trend of integration has been strengthened with the positive changes in the policy of attracting foreign investment, electronics-informatics industry has a strong growth. The issue is how to impulse the advantages of the province to promote the development of the industry in the future by the introduction of specific orientation and solutions synchronized. 2. Content 2.1. Research subjects and methods 2.1.1. Research subjects This article focuses on the conditions affecting the establishment and development of the electronics-informatics industry of Thai Nguyen province. Analyze the current status of the sector's development and distribution and give the orientations of the electronics-informatics industry in order to improve the quality and efficiency production of the industry in the coming time. 2.1.2. Research Methods The author uses a combination of research methods, which is the method of collecting, processing documents; methods of analysis, comparison, synthetic; statistical methods. Based on these research methods, the author has collected documents related to the development situation, Received January 7, 2018. Accepted July 9, 2018. Contact Nghiem Van Long, e-mail address: abc@hnue.edu.vn Electronics informatics - key industry of Thai Nguyen province 163 the distribution of the industry in general and the electronics-informatics industry in particular in Thai Nguyen province. Processing, synthesizing and analyzing the most typical data, in order to make comment, objective and scientific assessment of the conditions and situation of development and distribution of the electronics-informatics industry in Thai Nguyen province. 2.2. Research results 2.2.1. Conditions for development of the electronics-informatics industry Thai Nguyen has a advantage geographic position in economic exchanges, market expansion and development of linkages with other economic spaces. As the southern gateway of the Northern Midlands and Mountains to the Red River Delta, adjacent to Hanoi capital-the major economic center of the country, Thai Nguyen and some Red River Delta provinces In the development planning of the metropolitan area of Hanoi, the connection between the province and these provinces is becoming more and more easy due to the modernization of infrastructure, especially the formation of highways. These are the potential markets for the products of the province's electronics-informatics industry and can receive abundant labor resources from other localities, capital support and production equipment from the developed economies of the metropolitan region. Moreover, Thai Nguyen is located near the border gates, near Noi Bai International Airport, Cat Bi, near the largest international seaport in Hai Phong, this will be the input of raw materials, equipment as well as output for the products of the industry. The province's transportation convenience is an important factor in attracting investment and locating industrial production facilities. With a natural area of 352.6 square kilometer, of which the non-agricultural land area accounts for 12.7 percents (specialized land 6.3 percents) [4], along with preferential policies in land rent of local authorities which have created a competitive advantage over localities have condition to develop but limited land resources and higher land rents in neighboring provinces such as Bac Giang, Phu Tho and Vinh Phuc. Thai Nguyen is a populous province. In 2016, the population of the province is 1,246.6 thousand people (accounting for 9.3 percents of the population in the Northern Midlands and Mountains, ranking 28th out of 63 provinces and cities in the country). Labor force in the province is quite plentiful, accounting for 61.3 percents of the population, of which 752.3 thousand people are working in economic sectors (accounting 98.4 percents of labor force and 60.3 percents population) [4]; The percentage of trained workers is 29.4 percents, higher than the national average (20.6 percents) and the Northern Midlands and Mountains (17.5 percents). Abundant labor force, young labor is the basic requirement of the electronics- informatics industry in the current period. With the advantage of being a large training center of the region, near the capital of Hanoi, the level of labor of the province has been improved to meet the increasing requirements of labor resources in the new context. Labor can produce in the high value chain in the product value chain. In terms of development policy, industry is considered as an important economic sector and the province's strength. In 2016, industry accounts for 88.7 percents of the province's production value and nearly 28 percents of the working population [4]. In the planning of industrial development, the electronics-informatics industry is identified as the first priority sector. Thanks to the reform policies, attracting positive investment of the province such as simplifying administrative procedures, business registration, investment approval, investment license with many innovations, creating advantage conditions for various types of enterprises, industrial production have been developed, organize many investment promotion programs and give preferential about land rents. Thai Nguyen has become a bright spot in attracting foreign investment. In the period 2011-2015 and 2016, with total investment capital of 200.9 trillion dong, Nghiem Van Long 164 the industrial sector alone accounts for over 80 percents, and the accumulated FDI in 2016 is 6475.2 million USD. Manufacturing and processing industry accounted for 99.6 percents [4], especially with the attraction of the Samsung project of Samsung Group to lay the foundation for the development of the province's electronics-informatics industry. In general, Thai Nguyen has many advantage conditions for the development of the electronics and informatics industry. At present, and in the coming time, the province needs to promote these strengths to develop stably and efficiently, helping Thai Nguyen industry to has new steps in the process of industrialization and modernization. [6] 2.2.2. Development status of the electronics-informatics industry 2.2.2.1. General overview of Thai Nguyen industry Table 1. Production value, growth rate of production value and structure of production value by economic sector and three categories for the period 2010-2016 Target 2010 2015 2016 Production value (billion dong, current prices) 24.902,2 422.877,9 527.244,0 Production value (billion dong, compare prices with 2010) 24.902,2 376.863,9 477.485,0 Growth speed (%) 111,2 210,2 126,7 Classified by ownership (current prices) - The state economy - The non-state economy - Foreign investment capital economy 100,0 53,6 37,7 8,7 100,0 4,3 4,8 90,9 100,0 3,8 4,3 91,9 Classified by sector - Mining industry - Manufacturing and processing industry - Producing, distributing electricity, gas and water; management and treatment of water, waste 100,0 4,6 92,1 3,3 100,0 0,7 98,7 0,6 100,0 0,4 98,9 0,7 Source: [4] The industrial production value of Thai Nguyen province is increasing rapidly. In 2016, at current prices, production value reached 527,244.0 billion dong, up 21.2 times, at compare prices of 477,485.0 billion dong, 19.2 times higher than 2010. Now, Thai Nguyen is leading the entire in the Northern Midlands and Mountains region in terms of industrial production value, accounting for 76.1 percents of the total production value of the region and ranked second 5th out in 63 provinces and cities, increased by fifteen levels (in 2010 ranked 20/63 provinces and cities). The structure of industrial production value by ownership and by sector is moving strongly. In 2010, the state sector still plays an important role, accounting for 53.6 percents of the structure, however, the current trend is decreasing rapidly, instead of the strong increase of the foreign invested sector, up from 8.7 percents in 2010 to 91.9 percents in 2016. The non-state sector also tends to decrease rapidly. By group industry, now the processing and manufacturing industry dominates with 98.9 percents of the total production value. 2.2.2.2. The development of the electronics-informatics industry Over the past years, Thai Nguyen's industry has had a evident change in the structure of production value by sector, in which emerged the advantage of electronics-informatics industry. The production value of the industry increased rapidly, from 1.9 billion dong in 2010, accounting for only a very small rate with 0.1 percents of total production value, up to 476,613.8 billion doing Electronics informatics - key industry of Thai Nguyen province 165 Table 2. Production value and structure of production value by industry current prices for the period 2010-2016 Industries 2010 2016 Billion dong % Billion dong % Total production value 24.902,2 100,0 527.244,0 100,0 Produce electronic products, informatics 1,9 0,1 476.613,8 90,4 Produce metal 14.583,4 58,6 22.936,1 4,4 Produce building materials 1.406,7 5,6 5762,5 1,1 Textiles, leather shoes 780,4 3,1 3.169,6 0,6 Mechanic 1.406,4 5,6 3.258,9 0,6 Produce and process food-beverage 1.215,1 4,9 2612,6 0,5 Chemistry 876,3 3,5 2.888,9 0,5 Process wood and forest products 709,5 2,8 1.511,4 0,3 Produce electricity 648,1 2,6 1.497,3 0,3 Mining coal, metal 1.044,8 4,2 801,1 0,1 Other industry 2.229,6 9,0 6.191,8 1,2 Source: calculation and processing of data from [4] in 2016, accounting for 90.4 percents of industrial production value, 230 times increase (compare price with 2010, from 1.9 billion to 476.613,8 billion), in which 100 percents is FDI investment, the electronics-informatics industry of Thai Nguyen province has far exceeded traditional and strengths industries in a long time in the industrial development of Thai Nguyen province such as metal product and mechanical industries...in 2016, the production value of the electronics- informatics industry was 20.8 times as much as the industry played the second most important role in the value of industrial production and was far away from other industries such as product construction materials, mechanical engineering, food beverages processing, textiles, footwear...[4]. Table 3. The products of the electronics-informatics industry and the value of export goods of the industry, period 2010 - 2016 Target Unit 2010 2015 2016 Electronics-informatics industry products - Smartphone - Tablet PC TAB Million Million - - 77,2 27,2 99,9 24,9 Export value - Total value Inside: + All of kinds phones and electronic components + percent of total export value Million USD Million USD Million USD % 98,9 - - 15.951,7 15.511,6 97,2 19.100,4 18.663,5 97,7 Source: [4] Nghiem Van Long 166 Electronics-informatics can be considered as the key to the industry in particular. Thai Nguyen's economy in generally integrated with the world economy, because different from many other industries this is an industry which attracts mainly foreign investment capital. The development of electronics-informatics industry in Thai Nguyen is now concentrated in Yen Binh Industrial Park, Pho Yen Town. By the end of 2014, the Industrial Park has attracted eight projects with total registered capital of 2,900 billion dong and 3.42 billion USD, including five FDI domestic projects and three projects. At present, there are two projects that have been put into operation as SEVT and the airport complex; three projects have been completed; remaining three projects are taking steps to invest in construction. Talking about Yen Binh Industrial Park, it is impossible not to mention the Samsung Hi-Tech Complex project with the investment of over 3 billion USD from Samsung Group in the fields: research and development of mobile devices. electronic, high-tech and telecommunication; Producing, assembling, processing all kinds of mobile phones, spare parts and accessories; Production, assembly and processing of other electronic and telecommunication products such as wireless internet technology equipment, laptops, smart televisions, digital cameras... The strong development of the Samsung Hi-Tech Complex has suddenly increased the value of industrial production in the province. In particular, with the ability to attract satellite businesses, the SEVT complex has contributed significantly to the development of supporting industries, creating a driving force for the electronics-telecommunications industry and related services. In 2015, this complex contributed more than 85 million USD and increased to 160 million USD at the end of the business income tax exemption period. The economic development of Thai Nguyen province has benefited not small from this complex. The SEVT complex has attracted nearly 30,000 labors. In 2014, Thai Nguyen led the country with speed up the scale of produce industry of 135.2 percents rate of employment increase 79.7 percents compare with 2013, this has solved a considerable part of the province's labor force, improving the quality of life of workers, thereby also developing human resources, creating a momentum for the development of education in the high-tech industry [4-6]. Beside the traditional products based on the strengths of the province such as coal, steel, tea, building brick...the products of electronics-informatics industry are increasing rapidly output and value. Since 2014, after the Samsung Hi-Tech Complex project went into stable operation and made product, the output of the industry has continuously increased, from 29.9 million smartphones, 11.3 million Table TAB in 2014, up to 99.9 million and 24.9 million in 2016 respectively, accounting for 49.8 percents of the country's smartphone [1]. Now those are product which has export value in the industry of province, while other major industrial products tend to decrease in output such as coal, rolled steel tea, paperboard... In 2016, telephone and telephone accessories were the most valuable items in the total export value of Thai Nguyen province, with nearly 18.7 billion USD, accounting for 97.7 percents, the growth rate reached 120.3 percents. [4] Not only bring about high economic efficiency, the development of electronics-informatics industry also creates high social efficiency with solving a large number of jobs for laborers. Today, this is also the industry that creats the largest number of jobs in the industry with more than 30,000 employees in the electronics and informatics industry, accounting for 37.3 percents of total employment in the industry. of the province. Thanks to the reform policies in administrative procedures, attracting foreign investment capital, preferential land rental price and advantage conditions for the development of industry in the province of Thai Nguyen. Industrial parks and industrial cluster have been formed, developed and invested in many big projects, which are the areas where most of the labor resources in the industrial sector of the province are concentrated, Electronics informatics - key industry of Thai Nguyen province 167 while also creating great attraction with the labor outside the province, increasing population mechanics of Thai Nguyen in recent years. With the average income of four to five million dong/person/month, the quality of life of the employees has been guaranted and improved, which has shown the social efficiency of this industry has created. Since the Samsung Hi-Tech Complex has been in operation, the role of Pho Yen town in the industry has increased significantly. Industrial production value from 2,164.4 billion dong in 2010 increased to 4,766.6 trillion dong in 2016, accounting for 90.4 percents of the total industrial production value of the province, leading nine districts, towns and cities , which far exceeds that of the Thai Nguyen city, which is considered to be the industrial center in the past 20.7 times [4]. 2.2.3. Orientation for development of electronics-informatics industry Identifying the role and meaning of the motivation of the electronics and informatics industry in the industrialization and modernization process, contributing to the development of the province in the industrial development planning of the Thai Nguyen by 2025, vision to 2030 is to identify electronics-informatics with the activities of producing blisters, semiconductor microchips, electronic accessories, electrical equipment together with the mechanical industry as priority industries leading in development and continues to be the dominant industry in the industrial structure in modern development tendency of the province. Targets to 2020, the industrial production value of the machine manufacturing industry, electronics-informatics, metal processing and mechanical assembling industries will reach 740 trillion dong by 2025 and 1,250 trillion dong by 2020, reaching 1,995 trillion dong by 2030, maintaining a growth rate of over 10 percents. In the industrial structure of the province, the sector accounts for the largest rate, with a target of 93.5 percents by 2020, 93.6 percents by 2025 and 92.6 percents by 2030. In order to raise the quality and efficiency produce of the electronics-informatics industry, in the coming time, to focus on investment and development of the industry according to the following principal orientations: - Establishing Industrial Park concentrated information technology center Yen Binh; Quyet Thang hi-tech park, Quyet Thang software and digital content technology park, with priority develop of components industry, semiconductor semiconductor microchip industry, microelectronics industry, software industry and digital content; the training, research on technology transfer, technology incubation, business incubation; Producing and trading information technology services, supplying information and communication infrastructure. - Prioriti