Drive the market with specific priorities

(Baonghean) - After 25 years of innovation, Vietnamese agriculture has achieved many important achievements, but has not yet created a breakthrough in improving productivity, quality and added value for products; the application of high technology accounts for a very low rate, mass production is still facing many difficulties and there is no "strong enough" policy for development.

Increase the biological productivity of the land

The current situation of Vietnam's agricultural production shows that, with the production land area of ​​each household being quite limited, in order to increase farmers' income, it is necessary to increase the application of science and technology in production to increase the biological productivity of the land; at the same time, create close links, form value chains in production, processing, and consumption of products to improve the economic efficiency of the entire production - business chain. On the other hand, localities need to have dynamic and creative ways of doing things, with policies to encourage enterprises to invest in rural areas such as investing in industry and services. In addition, it is also necessary to strengthen regional linkages associated with the completion of development plans to promote the common potentials and strengths of the whole region and each locality.

Farmers in Hung Tien commune (Hung Nguyen) harvest summer-autumn rice. Photo: Truong Sinh

According to economic experts, although agriculture, forestry and fishery are sectors that play a very important role in solving the country's socio-economic problems. However, agricultural growth in recent times has been mainly in breadth through increasing acreage, increasing crops and based on the high level of intensity of input material factors for production (labor, capital, materials) and natural resources. This explains why growth over the periods tends to decrease because agricultural production resources are limited, subject to competition from industries and construction in the use of land, water resources, etc. The only solution for sustainable agricultural development in both quantity and quality is to increase the application of science and technology in the entire value chain of each product - Dr. Dao The Anh - Institute of food crops and food plants said.

Not only that, the structure of the agricultural, forestry and fishery sector has shifted slowly, in which the proportion of fishery in the total production value of the whole sector, although it has increased rapidly in the period from 2000 to 2007, has tended to decrease. Agricultural production is still heavily dependent on crop cultivation (accounting for 73%), livestock and services only account for 27%. The structure of the rural economy is still mainly purely agricultural (agricultural production accounts for 65%), non-agricultural activities, industry and handicrafts still account for a small proportion, not enough to attract jobs to promote labor shift. The application of science and technology has not met the requirements for the quality of agricultural products, because Vietnam's investment in science and technology is still too focused on the production stage, without market orientation, leading to the quality of Vietnam's agricultural products increasingly failing to meet the needs of consumers. Not to mention the irrationality in the distribution of agricultural product value and low added value per agricultural laborer.

Establishing powerful business groups

The summary of 20 years of national renovation shows that the process of policy innovation, focusing on investment in the agricultural sector and the development of science and technology has helped the agricultural sector have sustainable momentum for development. However, the current reality shows that there needs to be changes in the main factors, in which it is necessary to determine that science and technology development must be the foundation for increasing product quality and value. It is necessary to promote and support the development of enterprises and key economic units, calling on enterprises to invest in agriculture and rural areas; establish groups of enterprises with enough resources to master the market for each key product of Vietnam, to be able to stand firm in the market in the current widespread integration trend, especially after the establishment of the ASEAN economic community and the signing of the TPP agreement. In addition, it is necessary to continue reforming and perfecting policies in agriculture in general and land accumulation policies in particular, through various forms such as buying and selling, establishing farmers' organizations, etc. Science and technology development must be the decisive factor, the foundation for sustainable agricultural and rural development.

Compared to other countries in the region, Vietnam's agricultural growth is relatively higher and more stable, with an average rate of 3.8% in the period 1986 - 2012, almost equal to 4.1%/year of China, a country with a lot of investment in science and technology for agriculture, stable and higher than 2.8%/year of Thailand, a country with a lot of subsidies for agriculture. Especially in the period 2001-2013, state investment in rural agriculture in general and in science and technology in particular received special attention, especially since the Party's Resolution 26 on agriculture, farmers and rural areas. This is also the period of accelerating the shift in agricultural production structure, shifting from low-value crops and livestock to higher-value ones, while improving product quality to meet market requirements and implementing bilateral and multilateral trade commitments that Vietnam has signed. However, this contribution is unlikely to increase in the near future with current technology, mainly utilizing resources and increasing raw product output. The above issues pose an urgent need for institutional innovation in production organization policies and chain linkages based on investment in science and technology.

Changing production thinking

According to market demand

According to Associate Professor, Dr. Trinh Khac Quang - Vietnam Academy of Agricultural Sciences, we need to identify 3 pillars for current agricultural development: science and technology research, enterprises and cooperatives and farmer organizations, and policies/markets. In which, science and technology are decisive. Due to the characteristics of fragmented and small-scale production, enterprises are considered the leading agents that can pull Vietnam's agriculture, forestry and fishery to develop. Enterprises with large capital sources can increase investment in large-scale and effective agriculture; quickly grasp the market, help connect domestic and international agricultural product consumption markets; have the potential to apply science and technology, especially high technology, in production and processing to help increase added value and increase competitiveness of agricultural products.

In recent times, Vietnam has issued policies to call for enterprises to invest in this area, creating a very good environment for enterprises to invest. However, it can be seen that enterprises investing in this area are very limited, accounting for only about 1.14% of the total number of enterprises in 2012, and enterprises tend to invest in the service sector. Enterprises investing directly in production such as planting, raising animals or planting forests only account for 25% of the total number of agricultural enterprises today. Therefore, to develop the market of science and technology in agriculture, we need to correctly assess the current situation of the agents using technology in the agricultural value chain. These are enterprises, new-style cooperatives, farms and advanced farming households.

In terms of policy, to promote the demand for science and technology, it is necessary to support enterprises, cooperatives and farmers in applying science and technology to serve the restructuring of the agricultural and forestry sector. Regarding research and development, it is necessary to have the highest incentives on corporate income tax, value added tax, export and import tax; it is necessary to have the highest support for costs when enterprises invest in research and development of technology with application results and development projects. Not only that, it is necessary to have transparent and fair policies in protecting intellectual property rights. In terms of the market, it is necessary to change the mindset from production according to capacity to production according to market demand, and manage the industry according to the value chain approach. The government supports the identification of strategic markets for each industry and signs national commitments.

In addition, it is necessary to build a system of product standards or harmonize international standards, promote brands on media, mobilize maximum participation of transport companies (including airlines) to use and introduce products) to support participation in trade promotion, exhibition fairs; protect geographical indications for agricultural and forestry specialties. Regarding investment, it is necessary to restructure public investment in research according to the value chain, focus more on production organization, quality management, market forecast research; incentives on land tenure and land lease term, support for land accumulation, taxes, loans, risk insurance, resource training; create conditions for farmers to contribute land use rights such as buying shares in enterprises. At the same time, it is necessary to have policies to promote the supply of science and technology with specific priorities on taxes, premises, consulting services, etc. Enterprises importing good technology need to be given tax incentives and product introduction to reduce technology costs, etc.

Red River