Nearly 30 years after the launch of the Doi Moi (renewal) process, it is no exaggeration to describe agriculture as a main pillar of the country’s economy.
Director of the Institute of Policy and Strategy for Agriculture and Rural Development, Dr. Dang Kim Son, discusses with the Nhan Dan (People) online newspaper about Vietnamese agricultural competitiveness, beginning with the role of farmers - those responsible for creating sustainable value in the sector.
The return of farmers
*After the five years’ implementation of Party Resolution No. 26, dated August 3, 2008, on agriculture, rural areas and farmers, are there any results that are the cause of concern?
Since 2008, the global economic downturn has resulted in negative impacts on Vietnam’s economy. In that context, agriculture has played an important role in attracting migrant workers who lost their jobs in urban areas to their rural hometowns. Agriculture creates jobs and income for rural workers. More importantly, it has helped stabilise the macro-economy and curb inflation.
However, in terms of the general economic structure, the contribution of agriculture to GDP, after years of reducing influence, has seen a resurgence, rising above 20 percent in recent years and signaling a pause in the actual economic restructuring.
It is also important to note that 70 percent of the country’s population lives in rural areas. In terms of labour force, half of the nation’s labourers are farmers. Labour pulled out of rural areas too slowly, resulting in stagnant productivity. In addition, the income gap between urban and rural areas has not been narrowed. It seems that we are falling into the ‘middle-income trap’.
*It has been said that agriculture, a pillar of the economy, is weakening. What do you think about that?
Although agriculture plays an important role in the country's economy, I realise that it is much weaker than it was during the times when agriculture was considered the economy’s salvation, like during the disintegration of the socialist system in Eastern Europe or the Southeast Asian financial crisis of 1997.
It simply means that the agriculture sector is ‘exhausted’ after a long shift mobilising resources for its development while receiving meager investment from the society as a whole. Once agriculture is exhausted, we cannot expect any breakthroughs.
*When agriculture is ‘exhausted’, can farmers still assume their role as an essential part of the development process?
The most concise description of the farmers is productive, hardworking, and creative. No sacrifice or suffering can force them to give up their status as owners. The changes to the co-operative model during 1980s, resulting from the efforts of anonymous farmers, formed an initial step to creating a market economy. When the securities and real estate markets were in bloom, farmers were fearful of land acquisition. But when the economy faces a downturn, they suffer revenue losses by exporting agricultural products at low prices to bring down inflation. Not only does their sweat make up economic achievements, their blood, paid in fishing activities, contributes to protecting Vietnam’s sovereignty over its sea and islands.
The chance can’t be missed
*Although they account for a large proportion of the population, farmers seem to be the most vulnerable in society. How do you explain this paradox?
While many agricultural development policies have created true motivation that has encouraged farmers to increase production, there are still macroeconomic policies and other specialised strategies that adversely affect their lives, including the rapid price increase on agricultural supplies in contrast with the slow price increases on farm produce, unfair reimbursement for land acquisition, differences in the quality of services, and disadvantages in acquiring opportunities for livelihood and residence.
*Is that the dark side of the industrialisation and modernisation?
It’s not the fault of industrialisation and modernisation, but rather of the unreasonable way in which we conduct the processes. As the nation’s strength is agriculture, our industrial and urban development should consider the role of agriculture.
*Do you think that farmers will lose their traditional cultural values as their livelihood experience changes during the industrialisation and modernisation?
In fact, in many countries in Europe and America, industrialisation not only shattered rural areas but also impoverished the peasant class, forcing them to become the urban poor. Over hundreds of years of revolution with blood, sweat and tears, this new class has become urban citizens in today’s society. We should not follow in their footsteps. Vietnam needs to continue implementing industrialisation and modernisation in the next 15-20 years. It is necessary to consider transferring tens of millions of labourers from agriculture to non-agricultural sectors and moving them from rural to urban areas. We must develop comprehensive socio-economic programmes to create livelihoods and residences for them. If we do not master that social transformation and instead neglect the roles of agriculture and rural areas, it will be very hard to preserve and promote traditional values, environmental protection, and even political stability and social order.
*What should farmers do now, as acknowledgement of their role does exist but they still lack supportive policies?
They don’t expect compassion or mercy, only respect and fair treatment. They should enjoy their rights and receive equal opportunities as any other group, exactly to the letter of what laws and policies have laid out, in compliance with the spirit of Party Central Committee Resolution No. 26: "In the intimate relationship among agriculture, farmers and rural areas, farmers are the centre of the development process".-VNA
Director of the Institute of Policy and Strategy for Agriculture and Rural Development, Dr. Dang Kim Son, discusses with the Nhan Dan (People) online newspaper about Vietnamese agricultural competitiveness, beginning with the role of farmers - those responsible for creating sustainable value in the sector.
The return of farmers
*After the five years’ implementation of Party Resolution No. 26, dated August 3, 2008, on agriculture, rural areas and farmers, are there any results that are the cause of concern?
Since 2008, the global economic downturn has resulted in negative impacts on Vietnam’s economy. In that context, agriculture has played an important role in attracting migrant workers who lost their jobs in urban areas to their rural hometowns. Agriculture creates jobs and income for rural workers. More importantly, it has helped stabilise the macro-economy and curb inflation.
However, in terms of the general economic structure, the contribution of agriculture to GDP, after years of reducing influence, has seen a resurgence, rising above 20 percent in recent years and signaling a pause in the actual economic restructuring.
It is also important to note that 70 percent of the country’s population lives in rural areas. In terms of labour force, half of the nation’s labourers are farmers. Labour pulled out of rural areas too slowly, resulting in stagnant productivity. In addition, the income gap between urban and rural areas has not been narrowed. It seems that we are falling into the ‘middle-income trap’.
*It has been said that agriculture, a pillar of the economy, is weakening. What do you think about that?
Although agriculture plays an important role in the country's economy, I realise that it is much weaker than it was during the times when agriculture was considered the economy’s salvation, like during the disintegration of the socialist system in Eastern Europe or the Southeast Asian financial crisis of 1997.
It simply means that the agriculture sector is ‘exhausted’ after a long shift mobilising resources for its development while receiving meager investment from the society as a whole. Once agriculture is exhausted, we cannot expect any breakthroughs.
*When agriculture is ‘exhausted’, can farmers still assume their role as an essential part of the development process?
The most concise description of the farmers is productive, hardworking, and creative. No sacrifice or suffering can force them to give up their status as owners. The changes to the co-operative model during 1980s, resulting from the efforts of anonymous farmers, formed an initial step to creating a market economy. When the securities and real estate markets were in bloom, farmers were fearful of land acquisition. But when the economy faces a downturn, they suffer revenue losses by exporting agricultural products at low prices to bring down inflation. Not only does their sweat make up economic achievements, their blood, paid in fishing activities, contributes to protecting Vietnam’s sovereignty over its sea and islands.
The chance can’t be missed
*Although they account for a large proportion of the population, farmers seem to be the most vulnerable in society. How do you explain this paradox?
While many agricultural development policies have created true motivation that has encouraged farmers to increase production, there are still macroeconomic policies and other specialised strategies that adversely affect their lives, including the rapid price increase on agricultural supplies in contrast with the slow price increases on farm produce, unfair reimbursement for land acquisition, differences in the quality of services, and disadvantages in acquiring opportunities for livelihood and residence.
*Is that the dark side of the industrialisation and modernisation?
It’s not the fault of industrialisation and modernisation, but rather of the unreasonable way in which we conduct the processes. As the nation’s strength is agriculture, our industrial and urban development should consider the role of agriculture.
*Do you think that farmers will lose their traditional cultural values as their livelihood experience changes during the industrialisation and modernisation?
In fact, in many countries in Europe and America, industrialisation not only shattered rural areas but also impoverished the peasant class, forcing them to become the urban poor. Over hundreds of years of revolution with blood, sweat and tears, this new class has become urban citizens in today’s society. We should not follow in their footsteps. Vietnam needs to continue implementing industrialisation and modernisation in the next 15-20 years. It is necessary to consider transferring tens of millions of labourers from agriculture to non-agricultural sectors and moving them from rural to urban areas. We must develop comprehensive socio-economic programmes to create livelihoods and residences for them. If we do not master that social transformation and instead neglect the roles of agriculture and rural areas, it will be very hard to preserve and promote traditional values, environmental protection, and even political stability and social order.
*What should farmers do now, as acknowledgement of their role does exist but they still lack supportive policies?
They don’t expect compassion or mercy, only respect and fair treatment. They should enjoy their rights and receive equal opportunities as any other group, exactly to the letter of what laws and policies have laid out, in compliance with the spirit of Party Central Committee Resolution No. 26: "In the intimate relationship among agriculture, farmers and rural areas, farmers are the centre of the development process".-VNA
