In 2002, the Communist Party of Vietnam (CPV) Central Committee issued a resolution on accelerating agricultural and rural modernisation. This issue will be discussed by the CPV Central Committee in June next year. Therefore, it is imperative to review the implementation of resolutions adopted at the fifth CPV Central Committee’s Conference and devise solutions aimed completing all programmes pertaining to this decision.

Reporter: We have worked out a plan to boost agriculture and rural development but next year’s budget for this area is no higher than the 2007 level. Is it effective to implement this task?

Minister Phat: Many NA deputies have showed their keen interest in this issue. The Government is trying to adjust investment in agriculture and rural development through different sources- budget, Government bonds and ODA funding. However, investment capital from farmers and businesses is also very important. It is essential to revamp policies and mechanisms to attract more investments from domestic and foreign businesses in agriculture and rural development, considering this a major source to provide leverage to rural development.

Reporter: There are two different trends of opinions on investment in rural areas and key economic zones. The first said that it is necessary to invest in rural areas to ensure social stability and the second underscored the need to pour investment into key economic zones to boost national development. What is your assessment of this matter?

Minister Phat: In my opinion, consistent steps would be essential to balance investment in both rural areas and key economic zones so that farmers can benefit from achievements in economic development and the gap between rural and urban areas is minimised.

Reporter: How harmonious has investment been in the agricultural and rural sectors recently?

Minister Phat: The government has been trying to increase investment in the field, however, more needs to be done. Therefore, it is necessary to mobilise more sources from other economic sectors alongside with the State to speed up economic development in rural areas.

Reporter: The Ministry of Finance has reported 301 fees which rural people are paying for while their income is almost at a standstill. Are these fees too onerous for them?

Minister Phat: The Ministry of Agriculture and Rural Development and the Ministry of Finance are investigating this and will submit our proposals to reduce the number of fees.

Reporter: The Ministry of Agriculture and Rural Development has planned to retrieve agricultural land for the construction of industrial parks. Could you give more information about that?

Minister Phat: This is a new issue. In the current context of high economic growth rate, we are supposed to better meet the aspirations of rural people as well as creating favourable conditions for the development of the industrial sector. The retrieval of agricultural land for the construction of industrial parks is an urgent issue for rural people at the moment. We will do further research and propose some solutions for the issue.

Reporter: There is a great number of rural people moving to urban areas. How can we deal with the situation?

Minister Phat: This is an issue of great concern. Though the migration process from rural areas to urban areas is an inevitable trend, how this will be done remains to be seen as it will depend greatly on our development strategy. If the rural economy continues to develop at a snail’s pace and investment continues to pour into urban areas, mass migration will happen, consequently causing difficulties for cities such as traffic jams and overload of public services in cities.

We expect a harmonious process of migration in line with the development of both rural and urban areas. To this end, we will have to continue to boost agricultural and economic development in the rural areas so that rural people can find local jobs, thereby limiting the migration to the cities.

Reporter: Thank you very much.