The area under rubber and coffee trees, as well as reforested, seafood exploration and agro-forestry export value surpassed the sector’s target set for 2010. To fulfill its goals in the five-year development plan from 2006 to 2010 and ensure sustainable development in the current integration process, the agricultural sector still needs to resolve many issues.

One year since Vietnam became a WTO member, the sector has developed well and is very competitive. It recorded a total agro-forestry export turnover of about US$12.5 billion, up US$1.5 billion compared to its set target in 2010. Vietnam still maintained its position as the world’s second largest rice exporter and ranked first in terms of robusta coffee and pepper exports. The country was also among the world’s top ten seafood exporters. Its five key export items earning an export turnover of more than US$1 billion included seafood, rice, coffee, rubber and pepper. Although total output of the agro-forestry and aquaculture sector accounted for 20.23 percent of the country’s economic structure, the sector is considered a keystone in economic stability as more than 70 percent of population live in rural areas. The number of poor households reduced considerably from 18 percent in 2006 to 14.7 percent in 2007 with an average income of US$800 per capita a year.

However, the shift in the agricultural structure failed to meet the set targets with nearly 60 percent of the rural population engaging in agricultural production. Their living conditions remained difficult due to low productivity, quality and competitiveness of agricultural products, while infrastructure development in rural areas has not yet met requirements for the shift of economic structure.

According Chairman of the Long An provincial People’s Committee, Duong Quoc Xuan, agricultural production met numerous challenges, therefore many farmers flocked to cities to earn their living.

“It is essential to reorganise production, especially in the current process of national industrialisation and modernisation,” Mr Xuan said.

In recent times, the rapid development of some plants and animals has badly affected the local environment. Guidelines on improving the quality, productivity and competitiveness of agriculture, forestry and seafood products and reducing costs have not been well implemented. Experts warn that the agricultural sector should not rush for quantity but focus on sustainable and effective development factors. Without support from industry, scientific technology, businesses and markets, farmers cannot develop and agriculture cannot play its vital role in general socio-economic development.

Nguyen Van Thien, vice chairman of the Binh Dinh People’s Committee said that many scientists and engineers do not want to live and work in rural areas despite good salaries and transport. Therefore, it is very difficult to help farmers to access advanced technologies. The most effective solution is to train and educate farmers as well as to create good crop varieties to improve quality, productivity and competitiveness.

In addition, the agricultural sector is facing another difficulties, such as food hygiene and safety and environmental pollution, affecting its sustainable development.

The sector should diversify crafts towards sustainable development, restructure State-owned farms, dissolve loss-making farms and not shift land from agriculture to industrial zones. It must prevent corruption in land management and use. The sector set the targets for 2008, focusing on sustainable growth, poverty reduction, improvement of local people’s lives, infrastructural development, human resource training, administrative reform and strict implementation of the Law on Anti-corruption and the Law on Thrift Practice and Wastefulness Prevention.