Vietnam agriculture to be spotlighted at WEF

A Food and Agriculture Organisation (FAO) report shows agricultural production needs to be boosted to feed the increasing global population estimated at nearly 10 billion by 2050.

Rural workforce is downsizing as a consequence of rapid urbanisation, posing a great threat to agriculture. In addition, the global food system is beset by serious challenges and risks: more volatile production and prices, high hunger and poverty levels, and unsustainable farming practices.

The 2010 World Economic Forum on East Asia in HCM City put forward the initiative “A New Vision for Agriculture”, aiming to build a new farming model that yields high output and improve farmer livelihoods.

Agriculture restructuring is a must to ensure national food security, improve product quality and increase farmer incomes

The initiative has been undertaken in Vietnam, Indonesia and Myanmar (in Asia) in partnership with 250 stakeholders.

Vietnam lives off agricultural production, with rice, coffee, rubber, tea, pepper, fruits, aquatic products and husbandry being key products. In 2012 agriculture contributed 21.5% of the country’s GDP, 20.8% of total export earnings, and nearly 50% of the workforce.

However, the sector is faced with challenges arising from climate change, excessive use of water resources, and high levels of greenhouse emissions.

A European Chamber of Commerce (EuroCham) white book reveals the agricultural ratio to GDP dropped from 46.3% in 1988 to 22% in 2012, and the rural workforce proportion also fell from 67% in 1997 to 47.5% in 2011.

In his 2014 New Year message, Prime Minister Nguyen Tan Dung raised concerns about the agricultural sector’s weaknesses, including an annual decreasing growth rate, uncoordinated links, and low productivity in the context of global fierce competition.

He stressed the need to accelerate agriculture restructuring and technological application, with farmers forming the core.

The government has approved a 10-year agriculture development strategy, encouraging the engagement of private businesses.

The agricultural sector has established six working groups on seafood, coffee, fruit and vegetables, tea, soybean and maize, as well as support solutions, to realise the WEF initiative.

Vietnam has gained encouraging results after undertaking the initiative for the past three years. Coffee yield rose 10%, consumed water amount decreased 14%, gas emissions dropped 54%, and tea export output rose threefold.

In his New Year address, the PM affirmed the government will introduce policies to increase the application of scientific and technological advances, especially biological and information technology, in agricultural production and management, helping accelerate agricultural industrialisation and rural modernisation.

New cooperation models will be established between farmers and businesses to create value chains, from production to consumption, and attract more investment in to agricultural production, trading and services.  

A Government decree, effective as of February 10, 2014, will encourage businesses to invest in agricultural production and rural development. Investors will enjoy many incentives including land rent reductions or exemptions.