Download Structural Transformation

Agriculture Sector
Structure and Restructuring
Dang Kim Son
IPSARD/MARD
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Content of Economic Restructuring Scheme
Decision 339/QĐ-TTg dated 19 February 2013
Investment restructuring, focus on public investment
Banking and Financial System Restructuring, focus on credit institutions
Enterprises Restructuring, focus on state-owned enterprises and corporations
Restructuring, establishing and developing a reasonable regional structure
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Content of Agricultural sector restructuring Scheme
Decision 899/QĐ-TTg dated 10 June 2013
Restructuring crop sector toward developing productions, large-scale, focusing, and
linking with preservation, processing and consumption
Restructuring livestock sector towards the direction of centralization, farming, applying
science & technology and ensuring food hygiene & safety;
Restructuring fisheries sector towards focusing on intensive farming on main objects,
applying international technical standards and developing off-shore fishing;
Restructuring forestry sector towards increasing its economic values along with the
conservation of forests, environment, biodiversity, climate change adaptation;
Restructuring salt production towards industrial production, large-scale, application of
mechanization & automation, improvement of productivity & product quality;
Restructuring processing production and rural profession towards effectively contributing
to enhancement of the value-added agriculture and rural environmental protection.
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Reasons for agricultural sector restructuring?
Not able to grow as in the past:
• Exhausted natural resources
• Imbalanced society
• Polluted environment
• Worse competitive capability
• Reduced growth
Changing context:
• Changing demands
• Developed science & technology
• Restructuring whole economy
• Strong Industrialization &
Urbanization
• Globalization & international
integration
• Climate change & weather risks
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Structural Restructuring
Agricultural commodities
Agricultural commodities
Agricultural commodities
Market
Value chains
Input
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Input Structure Transformation
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Land
Water
Forest
Aquaculture
Mineral
Fossil Fuels
Labor
- Science and
Technology
- Management
- Financial Resource
- Skilled labor
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Output Structure Transformation
Market:
 Domestic:
- Replace imports
- Processing raw materials
- Ensure food security
 International:
- Close areas
- Accommodating
- Competition through
cheap price
- Less barriers
Market:
 Domestic:
- Compete with imported
goods
- Serve process technology
- Ensure food hygiene &
sanitation
 International:
- High value-added
- Large scale
- Negotiation, integration
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Sectorial structure transformation
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Have experience
Fit the conditions
Scattered& fragmented
Low risk
Frequent change
Low investment
requirements
• Have comparative
advantage
• Have suitable scale
• Have market
• Specialization
• Long-term planning
• In-depth Investment
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Structural Transformation
Small producers
Traders
Professional
farmers &
Cooperatives
Thị trường
ThịShops
trường
and
Markets
Input Supplying, Processing and Trading
Thị trường
Thị
trường
Distribution
System
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Agricultural and rural institution transformation
Job
transformation
Increase the
scale of
production
Farmer
Specialization
Strong private
enterprises
Develop
trade
associations
Support
cooperative
economy
Develop
rural
communitie
s
Grassroots
Democracy
Association
transformation
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Agricultural Policies Transforming
• Focus on production
development
• Create incentives
• Remove obstacles
• Administrative intervention
• Focusing-Oriented
• Rely on public investment
• Vertical Direction
• Solutions for Short-term
problems
• Focus on post-production
process
• Create legal frame
• Create favorable conditions
• Follow the market mechanism
• Decentralization & devolution
• PPP & Socialization
• Regional and sectorial link
• Long-term strategy orientation
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The Agriculture “House”
Law and Policy System
System and organization of production
Science and
Technology
Infrastructure
and Services
Human
Resources
Governance
Development thinking and orientation
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Thinking and Developmental Orientation
Make Vietnam an agriculture superpower
• Promote the advantages and competitive capabilities
• Apply science and technology & improve management
• Thoroughly implement market mechanism
• Large-scale and effective commodity production
• Improve product quality and food hygiene
• Sustainable development
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Science and Technology
• Combine research and transfer
• Increase investment, focus on
sectors with advantages
• Focus on products and efficiency
• Promote the role of private
enterprises
• Develop the market for science and
technology
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Infrastructure and Services
• Develop multi-purpose irrigation
• Complete the electricity system for
agriculture
• Establish infrastructure for off-shore
fisheries
• Develop transportation system for
agriculture
• Reform agricultural services under
market mechanism
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Human Resources
In accordance with labor market
demand:
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Agricultural labor Specialization
Skillful labors shift out of agriculture
Labors with rural economic skills
Capable agricultural managers,
traders and technicians.
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Governance
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Focus on Planning, Policy and Strategy
Improve public services under market
mechanism
Focus on post-production processes and
market development
Enhance the social participation and
supervision
Public Administration Reform
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System and organization of production
• System of Production:
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Structure of Plants and Forest
Structure of livestock and fishery
Processing and services
• Organization of production:
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Restructure State owned enterprises
Restructure State owned farms
Promote private enterprises
Promote co-operative economy
Promote household and farm economy
Encourage FDI
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Law and Policy System
• Comply with law of markets
• Comply with international
obligations
• Long-term and transparent
• Devolution and decentralization
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Discussion
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