Investment Proportion by Sector in the Period 2003 -2007

1995 and 2007 reached 43.50% of total development investment capital, the annual average during this period reached 36.38%.

Source: General Statistics Office 2007

Chart 2.2 : Investment proportion by industry in the period 2003-2007

Especially since 2003, the proportion of investment in the economic sector has not changed much. The proportion of investment in the agricultural sector accounts for a relatively small proportion. The proportion of investment in the industrial-construction and service sectors is quite high. Increasing investment in the industrial-construction and service sectors aims to transform the economic structure. However, the speed of transforming the economic structure of Vietnam is still slow. Due to the impact of the market, the service sector's investment structure is focused on developing based on the strengths of each region, the proportion of the industrial and agricultural sectors tends to decrease. Along with increasing the volume and growth rate of investment in social development, the issue of increasing the efficiency of using investment capital for the state economic sector.

2.2.2. Shifting the economic structure of the sector according to the United Nations' sectoral classification

Compared with the United Nations' sectoral classification, there has been a shift in the macro-economic sectoral structure in our country. As of 2007, the economic sectoral structure in our country has shifted, sector I is still too high.

accounting for over 30.05% of GDP, sector II (processing industry) is still low at 21.38% and sector III is 48.57%. Each year, sector I decreases by 0.68%, only half of the combined growth of both industry and construction according to Vietnam's statistical classification; sector III increases by 0.24%/year due to the strong increase in electricity, water supply and construction in recent times (see table 2.3).

Table 2.3: Vietnam's economic sector GDP structure (%) by sector of the United Nations

Year

Area I	Region II	Region III
1990	43.95	12.26	43.79
1995	31.99	14.99	53.01
2000	34.18	18.56	47.25
2001	32.45	19.78	47.75
2002	31.64	20.58	47.77
2003	31.88	20.45	47.66
2004	31.93	20.32	47.75
2005	31.57	20.63	47.80
2006	30.63	21.25	48.12
2007	30.05	21.38	48.57

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Source: Statistical Yearbook 2000, 2007

In fact, the economic structure of Vietnam still has a large difference between countries in the region and in the world. The current economic structure of Vietnam in sector I still accounts for a high proportion of GDP at 31.57% in 2005, while this proportion in countries in the region is very low such as China accounts for 11.71%, some NIC countries such as Korea 3.41%, Singapore is 0.09% and some developed industrial countries such as the US accounts for 1.19% and Japan 1.50%. The above situation requires that for sector I in our country, there must be policies and measures to reduce the proportion of sector I in the coming time, reaching the target of 15-16% in 2010 (see table 2.4).

Table 2.4: Proportion of three economic sectors according to GDP of some countries in the region and in the world in 2005 (%)

Water

Area I	Region II	Region III
America	1.19	22.84	75.97
Japan	1.50	29.88	68.61
Singapore	0.09	33.77	66.14
Korea	3.41	40.27	56.32
Thailand	9.83	41.18	45.85
China	11.71	47.52	39.94
Vietnam (2005)	31.57	20.63	47.80
Vietnam (2007)	30.05	21.38	48.57

Source: General Statistics Office 2007

For region II, the proportion is low compared to other countries in the region. In fact, our country has a lot of potential to develop region II, but due to not fully exploiting the strengths of the regions in the country, the proportion in 2005 was low at 20.36% compared to China's 47.52% and South Korea's 40.27%. The above situation requires mechanisms, policies and measures to promote the processing industry in our country to develop more strongly; reduce the proportion for region I and narrow the gap with other countries in the region. Region III in our country has improved in the years of renovation but is still far behind other countries in the region and the world; the low growth rate from 47.80% in 2005 to 48.57% in 2007. Compared to Japan's 68.61% and Korea's 56.32%, our country's sector III is still lagging behind, leading to slow economic restructuring.

According to the United Nations sectoral classification, the economic structure shift in our country is slow and backward, the proportion of GDP in the agricultural sector is still too high and in the processing industry is too low, the service sector is growing slowly. The above reality poses challenges to our country's economy, the goal of striving for our country to basically become an industrialized country by 2020 becomes difficult.

2.3. Internal restructuring of sectors in the national economy

2.3.1. Internal restructuring of agriculture, forestry and fishery sectors

2.3.1.1. According to the sub-sector of the General Statistics Office

During the years of renovation, the GDP structure within the agricultural sector continued to have positive shifts, the internal structure of the agricultural, forestry and fishery sectors has changed, reducing the proportion of agriculture and forestry and increasing the proportion of the fishery sector; it has been gradually exploited and promoted, contributing to promoting production development and improving growth quality (see table 2.5).

Table 2.5: GDP structure of agriculture, forestry and fishery in the economy (%)

Year

% of GDP of the whole industry in the economy	Agriculture	Forestry	Seafood
1995	27.18	23.03	1.24	2.91
2000	24.53	19.82	1.34	3.37
2001	23.25	18.26	1.27	3.72
2002	23.03	18.02	1.21	3.80
2003	22.54	17.34	1.27	3.93
2004	21.81	16.65	1.32	3.84
2005	20.94	15.85	1.20	3.89
2006	20.40	15.36	1.11	3.93
2007	20.30	15.22	1.05	4.02
2008	21.99	16.98	1.07	3.94

Source: General Statistics Office, Statistical Yearbook from 1995 to 2008

Table 2.6: GDP structure of the entire agriculture, forestry and fishery sector (%)

Year

GDP total branch	Agriculture	Forestry	Seafood
1995	100	84.73	4.60	10.70
2000	100	80.80	5.50	13.70
2001	100	78.50	5.50	16.00
2002	100	78.25	5.25	16.50
2003	100	76.93	5.63	17.44
2004	100	76.34	6.05	17.61
2005	100	75.69	5.73	18.58
2006	100	75.30	5.44	19.26
2007	100	75.00	5.20	19.80
2008	100	77.21	4.87	17.92

Source: General Statistics Office, Statistical Yearbook from 1995 to 2008

Although, within the agricultural sector there has been a shift, from 1995 to now the proportion of agriculture in GDP has decreased, specifically in 1995 it was 23.03%, in 2007 it was 15.22% but in 2008 it increased to 16.98%. The proportion of forestry decreased from 1.24% in 1995 to 1.05% in 2007 while forestry still has a lot of potential in terms of forests and forest land. Meanwhile, the proportion of aquaculture in GDP has increased from 2.91% in 1995 to 4.02% in 2007 but the growth rate is still low.

The restructuring of the agriculture, forestry and fishery sector is shifting from raising and cultivating low-value-added plants and animals to high-value-added plants and animals to increase income; shifting from producing products with supply exceeding demand to products with large consumer markets. The structure of the production value of the agriculture, forestry and fishery sector has also shifted. In the total production value of the agriculture, forestry and fishery sector, the proportion of the agricultural sector has decreased from 87.1%

in 1991 to 78.3% in 2002, at the same time the proportion of the forestry sector decreased from 5.6% to 3.9%; the proportion of the fishery sector increased from 7.3% to 17.8%.

Within the agricultural sector, the livestock sector continues to be focused on development and promoted to become the main production sector. As of 2008, the production value of the agricultural, forestry and fishery sector at 1994 comparable prices was estimated at nearly 212 trillion VND, an increase of 5.6% compared to 2007, of which agriculture increased by 5.4%, forestry increased by 2.2% and fishery increased by 6.7%. [31].

- In agriculture

The agricultural sector has begun to shift the structure of crops and livestock towards producing products with high quality and added value, ensuring food safety and hygiene.

The development of agriculture and the change in its structure have created new opportunities and conditions for the development of industry and services in rural areas, promoting the process of economic restructuring in general. The development of agriculture has gone into depth, rice output and productivity have increased continuously over the years, no longer purely due to increased area and labor but have begun to shift to increased output thanks to increased productivity.

Table 2.7: Rice area and output in the period 1995 - 2008

Unit: thousand tons, thousand hectares

Year

1995	1996	2000	2002	2006	2007	2008
Output	24963.7	26396.7	32529.5	34447.2	35849.5	35876.5	38000.6
Acreage	6765.6	7003.8	7666.3	7504.3	7324.8	7201.0	7400.5

Source: Statistical Yearbook 2007, page 239

From 1991 to 2000, rice output increased mainly due to increased area and labor. From 2002 to present, rice output increased labor productivity, rice growing area decreased from 7666.2 thousand hectares in 2000 to

7,201.0 thousand hectares in 2007. The high rice productivity is due to the conversion of unstable, low-yield, high-cost rice cultivation areas to aquaculture and other effective crops. In the Central Highlands, the low-yield and low-efficiency food growing land area has been converted to industrial crops with high export value such as coffee, pepper, etc.

In 2007, the output of many annual industrial crops such as jute, sugarcane, peanuts, and soybeans increased in both area and yield compared to the previous year. These crops have become key crops, growing steadily and having export markets. The output of high-value export crops such as rubber, pepper, cashew, and tea increased from 8.3 to 14.4% due to expanded area and increased yield. In particular, although the area of coffee increased by 1.9%, due to pests and diseases, the yield was low, resulting in a 2.4% decrease in output.

In particular, Vietnam is considered to be the country with the highest pepper productivity in the world today at a common level of 4-5 tons/ha compared to the world average of about 0.8-1.2 tons/ha. Our country is currently the world leader in exporting this product, having exported about 16,000 tons and reaching a turnover of 55 million USD.

However, the proportion of the crop sector has decreased, but the output and growth rate have still begun to develop rapidly towards commodity agriculture and export. The growth rate of the crop sector is uneven, with a tendency to decrease in food and industrial crops, and increase in fruit trees and vegetables.

Table 2.8: Production value of crop production in the period 1996 - 2007

[ Year

Total production value (VND)	Production value growth rate (%)
Total production value (VND)	Total	Food	Vegetables, beans	CN tree	Fruit tree
1996	66183.4	6.9	6.0	2.1	14.9	2.0
1997	70778.8	7.0	5.1	6.9	13.2	7.8
2000	90858.2	5.2	8.3	2.5	9.4	- 0.4

2003

101786.3	3.8	2.4	3.3	8.7	1.8
2004	106422.5	4.6	4.2	3.2	5.9	4.8
2006	111613.0	3.4	0.5	5.1	11.1	0.8
2007	114333.2	2.4	0.8	8.2	2.6	8.8

Source: Statistical Yearbook 2007

The internal structural transformation of the crop cultivation industry is evident in the growth rate of industrial crops, reaching 11.1% in 2006 and decreasing to 2.6% in 2007; for vegetables and beans, from 2000 to now, the growth rate over the years has been relatively steady, and especially fruit trees in 2007 grew at 8.8%, high-value fruit growing areas associated with the processing industry and serving exports have developed rapidly: lychee in Hai Duong, mango in the South, Vinh Long, green-skinned grapefruit... Through the table above, we can see that the total production value of the crop cultivation industry accounts for a large proportion, increases steadily every year and is higher than the aquaculture industry.

- Livestock sector

Livestock is an important economic sector in agricultural production, meeting the daily food demand in society and is also a source of income for millions of people today. Currently, livestock has not developed on a large scale; therefore, the quality and variety of livestock products are still low, prices are not high, and have not met the requirements of both domestic and export markets.

Livestock and poultry farming is gradually recovering from the damage caused by natural disasters and epidemics. In our country, as of 2006, livestock and poultry herds were diverse, but the food source from these livestock and poultry herds was not enough to meet the current consumption demand of 24.5 kg/person/year. Therefore, the Party and the Government have set out policies to develop the economy, promote industrialization,

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