Speaking at the ceremony, report team leader Derek Byelrlee said effective, efficient and advanced agriculture provides pathways out of poverty for millions of rural poor.

“Fast-growing urban incomes and demand for high-value agricultural products in cities motivates agricultural growth and poverty reduction,” said Byelrlee.
 

According to the report, agriculture based GDP increases helps increase poor people’s incomes by 2-4 times compared to GDP from non-agricultural activities. In the 21^st century, agriculture is still a major tool for sustainable development and poverty reduction. The benefits of agricultural development are clear and Vietnam must accept an agricultural revolution.

Martin Rama, Lead Economist of the WB in Viet Nam said “Growth in Viet Nam has benefited both urban and rural areas. In 1993, two thirds of the rural population was considered poor. Now, that number has declined to one in five”.

However, as Vietnam embarks on its journey to middle-income status and beyond, the question is whether the same pattern of inclusive development can be sustained. Improving rural productivity and providing opportunities to the rural poor and ethnic minorities are needed to ensure no one is left behind, Martin Rama added.

According to the report, agricultural pathways out of poverty must be complemented by efforts to strengthen the growth of rural off-farm employment and investing in poor areas’ development programs related to farming, migration and safety nets.

The report also dealt with challenges Vietnam and other transforming countries are facing, including water pollution, disease, agro-chemical use, and land and water shortages.

Dr. Dang Kim Son, Rector of the Institute for Agricultural and Rural Development Strategy, said agriculture is always Vietnam’s reform policies pioneer. However, agriculture resources - particularly land and water - are stretched thin. In the past 20 years, 300,000ha of rice fields were lost due to industrialization and other modernization issues. According to Dr. Son, the real figure is probably higher than official statistics.

In addition, workers’ wages, specifically agricultural labor, are rising quickly. “Only science and technology is unlimited but Vietnam doesn’t have sufficient access to this,” Son added.

Byelrlee says Vietnam needs an effective system that will encourage agricultural growth and interest as well as NGOs to provide technical services and training courses to farmers.

“As Vietnam is on the verge of becoming a country with average per capita income and higher, it is important to ask whether that development will benefit everyone? Improving agricultural productivity and creating opportunities for the poor in rural areas and ethnic minority groups is essential to ensuring nobody is left far behind,” said Martin Rama.

Dr. Son said that concurrent to increasing inflation, the burden on farmers’ shoulders is getting heavier. How does a country support over 10 million poor farmers evolving beyond small-scale agricultural production to massive growing operations? How does it ensure 70% of rural laborers are not abandoned in the industrialization process? These are important questions policy makers need to be asking themselves, their constituents and their colleagues?

Farmers, agriculture and the rural sector need the State’s support, Dr. Son emphasized.

In Vietnam, support of rural people is not up to par and State investment in agriculture is modest, not enough to create the significant changes needed in the coming years.

In other parts of Asia, such support is on the rise. China, for example, is implementing a strong agricultural protection policy funded by high taxes and other measures to help both producers and consumers have access to agricultural products at reasonable prices. In Vietnam, agricultural protection accounts for only near 20%, mainly for sugar farmers.

According to the World Development Report, Vietnam invests just 0.13% of GDP from agriculture in research and development; compare that to 4% in agricultural-based economies.

World Bank experts recommended Vietnam invest more and better in public works, including research and development activities, infrastructure facilities, training and institution development.

A representative of the Food and Agricultural Organisation (FAO) said investment amounts are not as important as timely and well directed funding.

Source: VietnamNet.