A new direction for agriculture in Nghe An.

Ho Duc Phuoc

Member of the Central Committee of the Party

Secretary of the Provincial Party Committee, Chairman of the Provincial People's Council of Nghe An Province

(Baonghean.vn) - Nghe An is the province with the largest natural area in the country (16,500 km2) and the 4th largest population nationwide. With its diverse natural geography, including borders, mountains, plains, rivers, and the sea, Nghe An can be likened to a miniature Vietnam.

Large agricultural and forestry land areas, fertile soil (especially in western Nghe An), a relatively complete irrigation network, numerous estuaries, and seaports are important advantages for Nghe An in agricultural development.

Current situation and solutions for agricultural development in Nghe An.

To assess the current level of agricultural development in Nghe An, it is first necessary to clearly identify which stage and process we are currently in within the model of modern, standardized agricultural production. From small-scale, self-sufficient, or less commercialized household agricultural production, Nghe An has now established large-scale specialized agricultural areas such as: rice (85,000 ha), sugarcane (33,000 ha), rubber (10,000 ha), tea (9,000 ha), oranges (3,000 ha), passion fruit (1,200 ha), and grass for dairy cattle (9,000 ha),…

Vinh oranges – one of Nghe An's key agricultural products – have initially succeeded in building a brand in the domestic agricultural market. (Photo courtesy of Nghe An Newspaper)

This signals that Nghe An's agriculture has undergone a transformation, responding to the requirements and trends of the overall economy. However, Nghe An's crop productivity is still low, the economic value per unit area remains low, and it has not yet developed many key products with strong local brands that are highly competitive in the market.

The reason is that the level of technology applied to agricultural production is still limited; the production "chain" is only at the stage of commercializing raw products and has not yet delved into processing and exporting refined products. Similarly, the crop farming, livestock, and fisheries sectors have not yet developed synchronously, reaching a commodity production scale, and are still operating on a household model.

In summary, the economic value derived from agriculture in Nghe An is not high, which partly explains the average per capita income reaching only 29 million VND/person/year (data up to the end of 2015).

(Graphics by: Thuc Anh)

Given the aforementioned situation, the task of developing agriculture towards industrialization and modernization in Nghe An is set as an urgent priority. To achieve this goal, the direction for Nghe An in the coming period is to accelerate agricultural restructuring with the following specific solutions:

Firstly, agricultural development is linked to the construction of new rural areas. In 2015, the entire province had 114 communes meeting the standards of new rural areas, accounting for 27% of the total number of communes, ranking first nationwide in the number of communes meeting the standards. During the process of building new rural areas, not only was the agricultural infrastructure upgraded, but the transportation and social infrastructure was also improved. This better served the needs of transportation, travel, and trade, raised people's awareness, and increased the economic value of agricultural products.

Secondly, the province has built, expanded, or replanned economic models with the goal of increasing output and economic value, and spreading effective models. During the period 2011-2015, the entire province built more than 4,500 agricultural economic models, notably including 100 large-scale model fields thanks to the active implementation of land consolidation and exchange policies in all 21 districts, cities, and towns, increasing efficiency by 10-15% compared to mass production.

Many other effective models such as cattle farming, pig farming, super-egg laying chicken farming, fish farming in hydroelectric reservoirs, medicinal plant cultivation, incense production, etc., bring good income to farmers and need to be maintained and expanded. In addition, implementing the policy of restructuring and reforming state-owned agricultural and forestry farms since 2004, Nghe An has established 7 agricultural companies and 5 forestry companies, developed plans for equitization, reorganized them in a streamlined manner, reviewed land resources, strengthened management, and ensured the efficient use of agricultural and forestry land.

Demonstration of agricultural mechanization. Photo: Phu Huong

Thirdly, increase the technological content in agricultural production through mechanization, biotechnology, and the use of high-precision production lines and applications to move towards the processing industry. Notable high-tech agricultural projects in Nghe An, such as dairy farming and fresh milk production by TH True Milk and Vinamilk; Masan Food Processing Plant; Royal Foods Seafood Processing Plant;… are typical examples that open up new directions for Nghe An's agriculture, focusing more on refined products and "post-production" industries.

Attracting capital and technological expertise from businesses - a new direction.

The issue of funding is one of the challenges, given the limited central and local government budgets, while Nghe An's agricultural sector has a relatively small production area and a low starting point in terms of development.

In this context, attracting investors in the agricultural sector and encouraging the development of economic models linking businesses with farmers could be a promising new direction. On the one hand, it diversifies and enriches investment capital for agricultural development; on the other hand, it allows farmers and agriculture in Nghe An to access advanced scientific and technical advancements, changing the traditional mindset of small-scale farming, leading to improved product quality and expanded markets.

Japan is one of the countries actively promoting investment in Nghe An's agriculture and has initially achieved promising results. Many Japanese expert delegations have visited the area for field surveys, concluding that Nghe An is a land with many advantages for Japanese businesses to invest effectively. Some crops and products that Japanese investors are interested in and intend to invest in include tea, sesame, peanuts, and rice.

A team of experts from the Japan International Cooperation Agency (JICA) surveys the agricultural market in Nghe An province. Photo: Canh Nam.

After the factory is built, the Japanese partner will guide farmers on cultivation and harvesting techniques and commit to purchasing the produce. This will not only bring economic benefits to farmers but also create a golden opportunity for us to access foreign knowledge and technology, improving the level of local agricultural production.

Following the success of the initial projects in cooperation with Japanese investors, we will develop other crops such as sugarcane, oranges, passion fruit, ginger, and vegetables, based on the internationally standardized models introduced by these businesses. Thus, the benefits we receive are not only direct benefits for farmers through economic contracts and revenue for the province, but also technology transfer and the creation and promotion of Nghe An's agricultural brand to friends both domestically and internationally.

Similarly, in the forestry, livestock, and fisheries sectors, we must aim for sustainable cooperation models between businesses and people with professional, modern, closed-loop processes that prioritize commercialization. This could include linking reforestation with the processing of diverse, high-quality products (wood, clean charcoal, plywood, etc.), dairy farming for the dairy industry, raising Australian beef cattle for high economic value, building large fleets for offshore fishing, and attracting seafood processing plants.

Raising Australian beef cattle in Nghi Lam, Nghi Loc - a project by Ket Phat Thinh Company - opens a new direction for Nghe An's livestock industry. (Photo courtesy of Nghe An Newspaper)

Let's look at the example of Ibaraki Prefecture, Japan – an agricultural prefecture with 3 million inhabitants – whose GDP reaches $110 billion. Nghe An, with its inherent advantages, can absolutely develop a high-value economy with a strong position and competitiveness in both domestic and international markets.

The key lies in improving productivity and production value so that the agricultural sector does not fall behind in the era of deep integration. Investment cooperation and learning from businesses in advanced countries is a correct approach and also the shortest path for the development of our province's agriculture, contributing to the successful achievement of the goals of Resolution 26 of the Politburo on the development of Nghe An by 2020.

Ho Duc Phuoc