Agriculture Sector Structure and Restructuring Dang Kim Son IPSARD/MARD 1.

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Presentation transcript:

Agriculture Sector Structure and Restructuring Dang Kim Son IPSARD/MARD 1

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 2

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 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. Restructuring livestock sector towards the direction of centralization, farming, applying science & technology and ensuring food hygiene & safety; 3

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 4

Structural Restructuring Market Value chains Agricultural commodities Input 5

Input Structure Transformation - Land -Water -Forest -Aquaculture -Mineral -Fossil Fuels -Labor - Science and Technology -Management -Financial Resource -Skilled labor 6

Output Structure Transformation Market:  Domestic: -Compete with imported goods -Serve process technology -Ensure food hygiene & sanitation  International: -High value-added -Large scale -Negotiation, integration Market:  Domestic: -Replace imports -Processing raw materials -Ensure food security  International: -Close areas -Accommodating -Competition through cheap price -Less barriers 7

Have experience Fit the conditions Scattered& fragmented Low risk Frequent change Low investmentrequirements Have comparativeadvantage Have suitable scale Have market Specialization Long-term planning In-depth Investment Sectorial structure transformation 8

Structural Transformation Small producers Thị trường Traders Thị trường Shops and Markets Professional farmers & Cooperatives Thị trường Distribution System Input Supplying, Processing and Trading 9

Agricultural and rural institution transformation Increase the scale of production Grassroots Democracy Strong private enterprises Farmer Specialization Job transformation Association transformation Develop trade associations Support cooperative economy Develop rural communitie s 10

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 11

System and organization of production The Agriculture “House” Law and Policy System Development thinking and orientation Infrastructure and Services Science and Technology Human Resources Governance 12

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 13

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 14

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 15

Human Resources In accordance with labor market demand: Agricultural labor Specialization Skillful labors shift out of agriculture Labors with rural economic skills Capable agricultural managers, traders and technicians. 16

Governance 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 17

System and organization of production System of Production: Structure of Plants and Forest Structure of livestock and fishery Processing and services Organization of production: Restructure State owned enterprises Restructure State owned farms Promote private enterprises Promote co-operative economy Promote household and farm economy Encourage FDI 18

Law and Policy System Comply with law of markets Comply with international obligations Long-term and transparent Devolution and decentralization 19

Discussion 20