I. SOME CONCEPTS AND EXPERIENCES

1. The role of agriculture and rural economic sector in a modern market economy

In some recent decades, there have been dramatic changes in concepts regarding the role of agriculture and rural economic area, with major points as follows:

- Without agricultural and rural economic developments, industrial growth alone can lead to unbalance of the economy and matters of poverty, inequality, and unemployment would be more burning.

- The modern market economy creates many new advantages and opportunities to agricultural and rural economic development. Given such favorable conditions, agriculture and rural economic sectors have not been viewed as simple economic matters but crucial politic issues as well by many countries.

- If farmers are pauperized, and rural resources are exhausted for industrial and urban capital accumulation, there will be contradictions, and social and politic upsets arising. Many of global matters, such as agricultural trade, polluted and destroyed environment, and unbalanced biology, make many countries rethink about and appreciate the importance of agriculture and rural economic sector in their development process.

Given such context, the concept of “sustainable agriculture and rural economic development” (SARD) has been formulated.

2. Issues of three-component agricultural economy and four- component agricultural economy

Over the development process of agriculture and rural economic development of many countries in the world, the issue of three-component agricultural economy (agriculture, rural areas, and farmers) has been mentioned regularly. Relationship among components of the three-component agricultural economy played a crucial role to agricultural and rural economic development. And it has been seen as a vital politic matter rather than a simple economic one

Nowadays, in addition to the three components, there’s an arising hot matter of rural farmers moving to urban areas, which is causing many socio-economic problems (so called four-component agricultural economy). To many countries, especially developing ones, this is an extricable and insolvable matter.

3. Paths and measures of agricultural and rural industrialization and modernization

Reviewing the process of agricultural and rural industrialization and modernization during the 20^th century, we can see some common distinguished issues: (1) modernization of agricultural production tools and equipments means replacing manpower, animals, and traditional agricultural production tools with mechanical devices; (2) modernization of production technique means applying new technologies in agricultural production; (3) modernization of production means is transforming from individual and close agricultural production to large-scaled and professional way of production; (4)non-agricultural economy develops buoyantly in rural areas; and (5) relationship among agriculture, rural areas, and farmers is more and more appreciated.

II- VIETNAM RURAL AREAS AND RURAL RESIDENTIALS WITH THE CAUSE OF SUSTAINABLE DEVELOPMENT

1. Defining the role of Vietnam’s agriculture, rural areas, and farmers in the cause of national industrialization and modernization by 2020 and in the following years

At present, Vietnam is speeding up the industrialization and modernization process with a view to turning Vietnam into an industrial country by 2020. The Party and the State confirmed vital roles and crucial importance of agricultural and rural industrialization and modernization in the cause.

By 2020, rural areas will be living place of 50 percent of Vietnamese population (amounting to 50 million people), with developed socio-economic infrastructures. The population consists of farmers, rural residents working in non-agricultural areas, and rural residents temporally moving to work in urban areas. By 2020, Vietnamese farmers will be knowledgeable, mastering technologies and sciences related to agricultural production, enjoining relative good incomes and a modern rural living environment.

2. To focus on settling top 10 matters of agricultural and rural development

2.1. In term of cultivating land for farmers

Cultivating land is of vital importance to farmers. There remain many burning problems related to this issues as transforming cultivating land into urban and industrial land, such as: unemployment of farmers loosing their land, land speculation resulting to land price escalation, and corruption, etc. Unless such problems are solved definitely, there will be no way to protect farmers’ livelihood, labor productivity, and incomes, leading to adverse impacts on sustainable development.

2.2. In terms of relationship between rural and urban areas

Effective inter-support of the two sectors will create favorable condition for development. In reality, however, rural and agricultural sector is often of disadvantages, and given less priorities than the urban areas. Therefore, the rural and urban gap keeps widening. The Party and the State view agricultural and rural industrialization and modernization as the first priority in the national development path; thereby, more priorities should be granted to agricultural and rural development in the time to come.

2.3. Socio-economic infrastructures and the appearance of rural areas

Infrastructures form the foundation for production development, living standard improvement, and rural development planning. However, there remain some shortcomings in rural and agricultural infrastructures given requirements of socio-economic development. It is necessary to make proper development planning to create a harmonious, traditional but modern apprearance of rural areas. This should be seen as a major way to make a breakthrough in new rural development.

2.4. Livelihood od farmers and rural residents

Thanks to the enforcement of new policies of renovation generally and agricultural and rural development particularly, livelihoods of farmers and rural residentials have been more favorable. Many agricultural products of Vietnam have gained their footholds in international markets. This is a good opportunities for Vietnamese farmers catch up with others in the world. But, there are still many difficulties and challenges to sustainable livelihood and employment of farmers and rural residential.

2.5. Taxes and other payments made by farmers

In general, incomes of farmers are rather low, moreover, they have to burden hundreds of fees and payments every year. The Ministry of Agricultural and Rural Development has submitted the Government to abolish 18 payments for farmers. In the long run, however, it is necessary to adopt other measures to relief such a burden for rural residents.

2.6. Price hikes of agricultural and industrial products

Agricultural and industrial price hikes is an important concern because it reflect the gap between real incomes of urban and rural areas. To limit industrial and agricultural price hikes, and ensure interests of farmers, it is required to: increase public investment into agricultural and rural development; gradually reduce agricultural subsidies; providing credit to private investment in rural and agricultural areas; providing priority of credit access to agricultural ex-import enterprises and rural households; fighting against market arrangement and monopoly; providing agricultural and farmer insurances; stabilizing input and output prices of agricultural production and products.

2.7. Basic social services in rural areas

Over the last time, rural social policies have been put into force, making great contribution to the improvement of rural living standards. However, the implementation of such policies is still required to be more strictly and seriously to meet demands of new rural development conditions. It is necessary to further supplement, adjust, and complete rural social policies.

2.8. Grassroots democracy and self-sovereign of farmers and rural residents

This is an important factor of the development process. It is required to establish and implement regulations on democracy matching concrete rural conditions; build up strong grassroots authorities and governments; improve performance of politic and social organizations in rural areas; provide transparent information; enhance management capacity of Party and governmental bodies in the localities, etc.

2.9. Rural urbanization

For successful rural urbanization, it is necessary to:

- Develop agriculture in close connection with rural industrialization and modernization.

- Develop infrastructures to bridge rural and urban gaps.

- Focus on SMEs development in rural areas

- Concentrate more in human development and social security investment in rural areas. Further develop orientation training and human resource development in localities. Etc.

2.10. Enhancement of cultural and spiritual lives of rural residents

In the time of renovation, spiritual life of rural people has been improved significantly. But, on the other hand, there are also many related problems emerging. Thus, it is necessary to concentrate on measures to build new, modern cultural and social lives in rural areas while reserving traditional characteristics.

Source: VNEP, June 2008.