MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

Agricultural sector achievements and development in brief.
Outline of the Ministry of Agriculture and Rural Development.
Agencies assisting the Minister performing governance functions assigned to the Ministry.
Outline framework of organization Ministry of Agriculture and Rural Development.
Outline framework of organization industry.

 Agricultural sector achievements and development in brief

Key Achievements 

     During the past 20 years, as a result of the Government’s policy renovation efforts and strengthening of institutional arrangements, the Agriculture and Rural Development (ARD) sector has experienced continuous growth, with high and stable growth rates averaging 4-4,5% per year. In addition the overall food security of the people of Vietnam has been assured. The export value of agro-forestry products is rapidly increasing; expanding from a modest USD 400 million in 1985 to USD 5.8 billion in 2005, the export value of agro-forestry products now accounts for 17.9% of the total export turn-over of Vietnam. Many intensive crop cultivation areas have been established in connection with processing industry, such as rice cultivation areas in the Mekong and Red River deltas, coffee and rubber plantations in the Central Highlands and South-Eastern regions; fruit tree plantations in the South-Eastern, Mekong delta and Northern regions; vegetable in Lam Dong province and the Red River delta, and sugar cane plantation in the Central and Southern regions. Countrywide forest coverage increased from 27.3% in 1990 to 37% in 2005.
     Several agricultural products of Vietnam have achieved dominant positions in the world market: Vietnamese pepper and Robusta coffee export rank first (accounting for 39-40% and 40% of the total world market, respectively), while Vietnamese exports of rice and cashew nuts rank second (12% and 9.5% of the world market).
     Value added to agricultural products through processing is rapidly increasing in Vietnam. The proportion of processed agricultural products has increased with an average rate of 14% per year during the latest years, concentrating on prospective products such as rice, rubber, tea and pepper (accounting for 25% of the added value of raw agricultural products). Research, technology transfer, extension and technical support for agriculture production and provision of public services in rural areas have been expanded and mainstreamed. The structure and management of the agricultural sector have been renovated through promotion of farm establishment and application of new management systems in cooperatives. Significant investments have been made in agricultural and rural infrastructure, particularly in the areas of water management, irrigation, power supply, rural roads, clean water supply and rural sanitation. The poverty incidence in rural areas has decreased at an average rate of 2% per year.

     The overall goals of the ARD sector for the 2006-2010 period are to “build a modern, efficient and sustainable agricultural commodity production; enhance productivity, quality, and competitiveness through application of advanced technology to meet the demands of export markets and Vietnamese consumers; establish a rational economic structure, appropriate production management and appropriate socio-economic structure in rural areas; and secure employment and increase income for rural people, and thereby improve quality of life, prosperity, equality and democracy in rural societies”.

1. Agricultural production growth by 4-5% per year with an annual increase of the added value of agricultural production of 3.3-3.5%.
2. Growth of rural economy by 7.5-8% per year.
3. Forest coverage at 42-43%.
4. Making the most of the present capacity in conjunction with application of scientific and technological advancements for introducing improved crop and livestock species to substitute for the imported, while developing the domestic market for such products as cotton, tobacco, corn, soya-bean, vegetation oil, pulp materials, milk and so on.
5. Securing a balanced economic structure in rural areas with 50% agricultural production and 50% agro-industrial, handicraft and service production.
6. Average value from utilization of 1 hectare of agricultural land: VND 30 million per year.
7. Average GDP per capita in rural area is doubled as compared with that of the year 2000.
8. Reducing the proportion of farming labour to 50%.