Vietnam%20agriculture%20Current%20situation%20and%20development%20capabilities

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Vietnam agricultureCurrent situation and
development capabilities

• Bïi Quang Ton
• CAEV-VietDHRRA , Ha Noi

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• I. Overview
• II. Advantages and disadvantages
• III. Production and agricultural trade
• IV. Solutions for development

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• I. Overview ( Vietnam Agriculture in 2004 )

Comparative criteria Whole country Farmers, Agriculture, Rural Area
1.Population (million people ) 2. Labor (million people ) 3. Land (million ha ) 4.GDP (1000 billion VND / ) 5.Investment (1000 billion VND / ) 6. Population growth ( ) 7. Unemployment ( ) 82.03 41.59 32.93 713.0 275.0 1.4 5.6 60.41 ( 73.6 ) 24.43 ( 58.8 ) 9.53 ( for production ) 21.76 19.77 1.67 6.72
Source Statistic Book 2004
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• Agricultural- forestry and fishery production
  has been divided into 7 zones as following
• 1. North Mountainous and Middle lands zone
• 2. Red River Delta zone
• 3. North of Central Cost zone
• 4. South of Central Cost zone
• 5. North East of the Mekong Delta zone
• 6. Central Highland zone
• 7. Mekong River Delta zone
• ( See the map )

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• - Large population, average density per
  square km is 249 people/km2, uneven distribution,
  i.e. 86 people/km2 in Central Highland, 1204
  people/km2 in Red River Delta, 430 people/km2 in
  Mekong River Delta and 380 people/km2 in East of
  Southern zone.
• - Red River Delta and Mekong River Delta
  are central production zones providing food made
  from annual plantation, pig and poultry breeding
• - Costal area with length of 3200 km2
  concentrates on aquaculture and fishing as well
  as salt making
• - Other areas focus on perennial plants
  and forestry

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• II. Advantages and disadvantages of
  agricultural sector in Vietnam
• A. Advantages
• 1. Fertile and expandable soil. There are
  more than 7,3 millions ha of production area
  which is alluvial and Feralitic soil. This kind
  of soil is known as damp tropical and rich
  characters. Reclaimable area is 2,1 millions ha,
  multi-crop area is 1,6 millions ha.
• 2. Moist tropical climate which is neither too
  hot nor cold creates favorable conditions for
  diversifying plantations and livestocks. There
  are 48 kinds of plants and 13 kinds of livestocks
  in 316 ecological sub-areas across the country.
  Moreover, it can do 2-3 crops per year in some
  areas.

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• 3. Abundance of labor force 20 millions
  of agricultural labors have work to do in about
  150-200 days/year, not taking into account 2
  millions of unemployed. Moreover, 1,2-1,5
  millions of young people supply to the labour
  force in rural areas every year. Developing
  industries and services also employ only a number
  of this force. Thousands of young labors in rural
  areas must be exported.
• 4. An important advantage Easy and
  convenient international transportation. Vietnam
  has a system of road, rail, waterway and aviation
  which connects to most countries in the world.

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• 5. " Doi moi " has created a social,
  political environment including many policies and
  regimes enhancing production, openness, regional
  and global integration. Many investors from
  developed countries has increasingly invested in
  agricultural sector and rural area in Vietnam.
• B. Disadvantages
• 1. Agricultural, forestry and fishery
  infrastructure is incomplete and underdeveloped
  which could not be able to meet requirements of
  agricultural and rural modernization and
  industrialization. Irrigation, transportation,
  energy and production input meet 60 of need for
  production, especially in remote areas.

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• 2. Low level of education, backward
  technology and difficult to access to information
  system. 1/3 among 9012 communes are facing with
  difficulties, in which 1710 communes are
  especially difficult. There are illiterate
  people, backward custom. There are still 600,000
  ha milpa in high mountains.
• In our recent survey at 26 rural
  communities specialized in growing coffee,
  cashew, maize, and rice for export purposes,
  despite the fact that we have joined into AFTA in
  1995, 48 of population said that they do not
  know what is AFTA. Among 52 remained, 35 of
  people said that they just hear about but do not
  understand AFTA issues..

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• 3. Natural disasters, considerably
  storm, flood in rainy season and drought in dry
  season. Storm and flood destroy not only crops,
  infrastructure but also threaten the lives of
  people. Thousands of ha of crops have been wiped
  out in a long flood or drought. It is estimated
  that we lost 12-15 of income per year caused by
  these disasters. That does not mention to
  hoarfrost, hailstone, hot and dry westerly wind
  Natural disasters can happen at anytime and
  anywhere during the year.

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• 4. Fragmentary production, small-scale
  field cause big difficulties for the
  construction, operation and management of
  infrastructure, mechanization and application of
  advanced technologies.
• We have found that 68 of rice-growing
  households have the field of less than one ha
  area, 47 coffee-producing households have
  producing land of less than one ha area.
• Even among 110,000 farms which are
  emerging as production bases embodied with higher
  level of production, 29 of them have producing
  land of more than two ha area .

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• III. Production and agricultural trade

Hereinafter as summary of 4 surveys we have
made from 2001 to 2004, surveying 1650 farming
households in 96 communities of 17 provinces
representing for 7 economic areas
Plants, livestocks Total value Self consuming Domestic consuming Export
1. Food plants 2. Industrial plants 3. Vegetables and fruit 4. Livestocks 5. Fish, shrimp 100 100 100 100 100 53.0 29.0 38.0 27.2 17.6 26.2 11.0 35.0 41.5 35.7 20.8 60.0 27.0 31.3 46.7
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• Based on above results, some conclusions
  were made on agricultural products generally and
  traded agricultural products specifically, which
  shared common views from local officials and the
  majority of households
• 1. Low productivity caused by unwell
  varieties, incomprehensive production
  technologies, weak infrastructure and natural
  disasters.
• 2. Low quality by unwell varieties,
  incomplete production technologies, especially
  backward post-harvest and processing
  technologies.
• 3. Weak competitiveness because of low
  quality, high price, especially weak marketing
  experiences.

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• IV. Solutions to develop agricultural
  production and trade in post AFTA and WTO
  accession
• 1. To ensure food security and
  sovereignty in all levels of households,
  community and nation by enhancing self
  production, marketing capability and knowledge of
  nutrition.
• 2. To establish some high quality
  specialized areas and intensive farming of some
  key traded plants and livestocks coffee, cashew,
  rice, maize, sugar-cane, shrimp, fish... These
  are areas which intensively invested, ensuring
  inputs for industrially processed manufactories
  to produce good products meeting the need of
  domestic and international markets.

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• 3. To improve post-harvest including
  drying, classification, primary process,
  transportation and preservation.
• 4. To give a priority pushing investment in
  building a network of advanced processed
  facilities, appropriate equipped dock warehouse
  system.
• 5. To enhance and develop rapidly a system
  of information, marketing involving in producers,
  material suppliers, buyers, processors and
  consumers. Creating agricultural trade name of
  Vietnam in domestic and international markets.

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• 6. To restore and protect natural
  resources, environment, firstly forest and water
  sources, biological diversification, traditional
  knowledge and heritage.
• 7. To continue reforming regimes and
  polices, especially investment and market
  policies in line with our situation in post AFTA
  and WTO accession. To support poor farmers and
  small-scale producers in coping with side effects
  of integration and trade liberalization.

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• Thank you!