Socialist Republic of Vietnam

Permanent Deputy Prime Minister Nguyen Tan Dung has stressed the prime importance of agricultural and rural industrialisation and modernisation in the national development.


Mr Dung, also a Politburo member of the Communist Party of Vietnam Central Committee, said on March 19 that "To promote the national combined strength to fulfill the agricultural and rural industrialisation and modernisation targets is of prime importance in the cause for national industrialisation and modernisation."


He praised the great and comprehensive progress made in agricultural and rural development over the past ten years of renovation under the CPV's leadership.


Mr Dung cited the country's remarkable achievements in commercial agriculture, moving from a nation with a backward economy suffering from chronic food shortages to a nation with complete food security. Cash crops now make up a large percentage of the national outputs. For example, he wrote, commercial rice accounts for 50% of Vietnam's output; coffee, 95%; rubber, 85%; and tea, 60%. Many farm produce items have taken a firm foothold in regional and world markets. Vietnam's pepper, coffee, rice, and cashew nut producers for example, currently hold the second largest share of the world market, while shrimp sales hold the second largest share of the American market and the third largest share in Japan.


Many intensive farming areas which produce raw materials for the processing industry have been formed such as rice in the Mekong and Red River deltas; tea in northern mountainous semi-mountainous provinces; sugarcane in the central coastal, southeast parts and Mekong delta; coffee in the Central Highlands; rubber in the southeast region, and shrimp raising along the coastline.


Market-based agricultural production has led to wide application of advanced technology. Industries, traditional crafts and services in rural areas have gradually been restored and developed, thus contributing to restructuring rural economic mechanism, and considerably increasing the production capacity of the farm, forest, and aquatic foods processing industry, Mr Dung wrote.


The production relationship has undergone gradual changes in the orientation towards a multi-sectoral commercial agriculture, he noted.


Rural socio-economic infrastructure facilities, especially the irrigation system, have been strengthened, thus contributing to the development of agricultural production and the improvement of rural living conditions, Mr Dung added.


However, a number of shortcomings and mistakes still remain and need to be overcome.


First of all, economic restructuring in agriculture and rural development has been slow, failing to link with the market demand.


Second, the rural economic structure is too heavily dependent on agriculture (about 70%) mainly characterised by cultivation (80%).


Third, agricultural production has remained small-sized and haphazard in many regions, particularly in mountainous, remote and isolated areas where the development of a commodity economy has been slow and short of industries processing farm, forest and aquatic products.


Fourth, rural areas, industrial and handicraft production as well as services have not involved a large enough labour force.


Fifth, slow scientific and technological development has resulted in low product quality and low productivity in cultivation and stock breeding, thus contributing to lower product competitiveness in these sectors.


Sixth, the production relationship has not yet met the need to develop a new mechanism for commodity agriculture.


And finally, the material and cultural lives of Vietnam's rural population remain poor, while income gaps between different regions continue to widen. Manual work is still being practised everywhere and unemployment has become a serious problem, especially in densely populated plain areas.


Mr Dung also underlined effective ways to accelerate industrialisation and modernisation in agriculture and rural areas.


First, developing the productive force and promoting economic restructuring in agriculture and rural areas.


Second, building a proper production relationship.


Third, developing infrastructural facilities and rural urbanisation.


Fourth, building social and cultural lives and developing human resources.


Fifth, prioritising the planning of work which is linked with the overall national development plan and the country's international economic integration.


Sixth, promoting scientific-technological studies and transfers, considering it to be the most important breakthrough in an effort to boost agricultural and rural economic growth in the course of industrialisation and modernisation in agriculture and rural areas.


Seventh, implementing policies directly relating to agricultural and rural development such as land use, investment, credit, taxation, labour and employment, trade and economic integration, and human development policies. (VNA)