Socialist Republic of Vietnam

Ha Noi, May 30 (VNA) -- The Government will provide more than 2,000 communes described as the poorest in Viet Nam with VND 700 million (USD 50,000) each to build infrastructure facilities, Deputy Prime Minister Nguyen Cong Tan told National Assembly deputies at a debate held at the Ba Dinh Hall in Ha Noi Tuesday, May 29.

The money is part of the Government's plan called Programme 135 to develop infrastructure in these communes, which has been deployed nationwide for three years now.

"This is a programme involving joint investment from the State, social, and international organizations to upgrade socio-economic facilities and improve the local people's life, especially ethnic minority people in remote highland regions," the Deputy PM stressed.

He further said that on June 15 last year, the Government issued a resolution to promote structural changes in agriculture and seek more outlets for farm produce. However, little progress has been made in this regard partly because of the Government's slowness in issuing a guideline for implementation.

Tan called for greater efforts to combine structural changes with the stabilization of food output (33 million tonnes/year), including coffee, hot pepper, and other cash crops, and farm produce markets.

"Since the beginning of this year, the Government has considered farm produce consumption as a 'mandate' of the people," Nguyen Cong Tan told the National Assembly.

The Government's decision to stockpile rice and coffee in order to help stabilize market prices is part of its endeavour to carry out the mandate, according to the Deputy PM.

As for investment in agriculture and rural development, Planning and Investment Minister Tran Xuan Gia said that every year, the Government gives considerable budget allocations to the sector. However, foreign direct investment (FDI) and investment from Vietnamese businesses in agriculture and rural development have been small.

The Government hopes to work out more effective policies to boost investment in the sector in order to reduce the labour force in agriculture to 50 percent in 2001.

Other controversial issues were also brought up for National Assembly debates, including the abolition and exemption of land use taxes in agriculture, the handling of pressing social problems, and the State management of import-export activities.

The Government agreed to broaden the scope of land use tax exemption and abolition in agriculture, and for the time being, rice and coffee growers would benefit from the Government's policy of land use tax exemption, despite the difference of views among National Assembly deputies, according to Finance Minister Nguyen Sinh Hung.--VNA