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Socio-Economic Policies For Agriculture And Rural Areas


- People's interests are increasingly seriously violated due to:

+ The fixed rate is continuously adjusted to increase.

+ Increasing the situation of workers spreading points makes the rate of increase in shared working days in cooperatives much greater than the rate of increase in output.

+ Rapid increase in surcharges (25-26 items) has led to a decline in farmers' income.

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- The newly-established policy mechanism is not yet synchronous and does not keep up with development reality.

- The old production organization system increasingly reveals its limitations but is slow to be modified (state-owned, cooperatives).

Socio-Economic Policies For Agriculture And Rural Areas

- The management apparatus and staff are still weak, even negativity is arising more and more.

Faced with the increasingly declining economic situation in general and agriculture in particular falling into a serious crisis, our Party decided to comprehensively reform the country's economy (Resolution of the 6th Congress in December 1986), with the immediate step (1986-1990) being oriented to "concentrate human and material resources on implementing 3 economic programs on food, consumer goods and export goods".

In June 1991, at the 7th Congress, our Party continued to affirm the renovation policy. It can be summarized that the renovation policy proposed by the 6th Congress of the Communist Party of Vietnam and continued to be perfected at the 7th Congress of the Communist Party of Vietnam has been demonstrated at a high level, surpassing the patchwork reforms of previous years, more thoroughly overcoming the centralized bureaucratic planning mechanism, the key content of which is: Building and developing a multi-sector commodity economy, operating according to the market mechanism under the management of the State, following the socialist orientation.

Implementing the Party's innovation policy for agriculture and rural areas, on the basis of summarizing practical experiences, on April 5, 1988, the 6th Politburo issued Resolution 10-


Resolution/TW on innovation in agricultural economic management with the following basic policies and solutions:

- Allocate land to households and groups of cooperative members for long-term stable production, evaluate production materials and technical facilities of the cooperative that the collective management is not effective for sale to members for use.

- Implement household contracts in the direction of "whoever is good at what job, does that job" and encourage getting rich through legitimate labor.

- Implement distribution according to labor, abolish the distribution system according to work points in cooperatives and unreasonable additional fees; farmers and cooperative members who receive contracted fields only have the obligation to pay agricultural taxes to the State and fulfill contractual obligations, the remaining products belong to the producer and have full decision-making power.

- Redefine the functions and tasks and perfect the organization of the management apparatus of cooperatives and production corporations to both effectively direct and manage production development and provide good services to contractors.

- Reorganize and fundamentally innovate the management regime of state-owned economic units in agriculture, forestry and fishery.

- Encourage the development of family economy, individual and private economy in agriculture, the State protects their business rights and benefits from their business results. "Allow the right to use land for 1 to 2 business cycles for long-term crops and 15 to 20 years for annual crops" for agricultural and forestry production and be "allowed to transfer the right to continue using to another owner" when switching to another profession.

At the 6th Conference of the Central Executive Committee, term VI (March 1989), it was officially determined that "cooperative member families become autonomous economic units".

After more than 10 years of implementing economic management mechanism innovation, especially since Resolution 10 of the Politburo, our country's economy has had positive changes.


especially in the agricultural sector, although the starting point of the economy was still low. Food output in paddy increased at a rate of 5.7%/year (equivalent to 1.3 million tons/year). Food per capita increased from 281kg (in 1987) to over 400kg (in 1998). Rapidly increasing food production has created conditions for ensuring national food security, turning Vietnam from a country with annual food shortages and having to import food to a rice exporting country since 1989 and up to 3.57 million tons in 1998. The life of people in rural areas, especially farmers, per capita income increased significantly, the rate of poor households decreased from 30% in 1987 to about 17% in 1997. Health and education services have also improved significantly. Rural infrastructure has been improved, renovated and upgraded, and new construction has been built to better serve production and the lives of rural people. In recent years, many models of good farmers have appeared following the farm economic model, with high efficiency...

Thus, innovation has brought about great changes to rural areas, raising income and living standards for rural people, including female workers.

2.1.2 Socio-economic policies for agriculture and rural areas

During more than 10 years of innovation, our Party and State have issued many economic policies for agricultural and rural development such as: economic sector policy, land policy, investment policy for rural infrastructure development, credit policy and capital creation for production, price and exchange policy, market policy and production protection, regulatory policy, research policy and technology transfer for rural areas, job creation policy, hunger eradication and poverty reduction...

* Land policy

Land is a special means of production, which has a decisive significance in the development of agricultural production in particular and the rural economy in general. The land policy of our State in recent times, especially in the last 10 years, has had a positive impact on the development of agricultural production in particular and the rural economy in general.


use to promote effective use by organizations and individuals, contributing to the liberation of productive forces, promoting internal resources, boosting economic growth, contributing to solving employment for rural workers, ensuring socio-economic stability. With such important significance, land has been given great attention by the Party and the State in formulating policies and strategies to promote the great effect of this resource in the process of socio-economic development.

Based on the Party's policies and the 1992 Constitution, from 1993 to present, the National Assembly, the National Assembly Standing Committee, the Government and ministries have issued over 70 Laws, Ordinances, Decrees and Circulars. Provinces and centrally run cities have issued over 400 documents on land prices, allocation of agricultural land to households and individuals for use, and settlement of land disputes... in order to gradually perfect the legal framework on land management and use, preparing for the formation and development of the land market in our country. The main documents on land are:

- Land Law 1993 and was amended by the National Assembly at the end of 1998.

- Law on Agricultural Land Use Tax 1993.

- Law on land use rights transfer tax 1994.

- Ordinance on rights and obligations of domestic organizations assigned land or leased land by the State in 1994.

- Ordinance on rights and obligations of foreign organizations and individuals leasing land in Vietnam in 1994.

- Ordinance amending and supplementing a number of articles of the Ordinance on rights and obligations of domestic organizations assigned land or leased land by the State in 1996.

- Decree 64-CP regulating the allocation of agricultural land to households and individuals for long-term stable use for agricultural production purposes in 1993.

- Decree 87-CP regulates the price framework for land types in 1994.


- Decree 02-CP regulating the allocation of forestry land to organizations, households and individuals for stable and long-term use for forestry purposes in 1994.

- Decree 01-CP regulating the allocation of land for agricultural, forestry and aquaculture production purposes in state-owned enterprises in 1995.

- Decree 11-CP detailing the implementation of the Ordinance on the rights and obligations of foreign organizations and individuals leasing land in Vietnam in 1995.

- Decree 85-CP stipulates the implementation of the Ordinance on the rights and obligations of domestic organizations assigned land or leased land by the State in 1996...

The allocation of stable and long-term land use rights to farming households and individuals using agricultural land has aroused the spirit of diligence and hard work and increased the attachment of farmers to their land. The allocation of land and forests for protection and regeneration in national programs (such as Program 327, the program of planting 5 million hectares of new forests, the program of sedentarization, etc.) has helped to gradually improve and increase the coverage, by 1998 the coverage had reached 28%. Forests have been managed and are being restored. The life of the rural population in general and the living standards of the population living on agricultural and forestry production have been improved, the face of the countryside is being renewed, proving the correctness of the land policy in recent years.

* Investment policy for agricultural and rural development

The rapid and comprehensive development of agriculture in recent years of renovation has contributed significantly to the transformation of the rural economic structure of our country from purely agricultural to multi-sector development combining agriculture with non-agricultural service industries. Although the proportion of agriculture in GDP has decreased in relative terms, the absolute value has increased continuously over the years. New and upgraded rural infrastructure, especially electricity, roads, irrigation, schools, stations, etc., the face of the countryside is increasingly being renewed. These


That great achievement has the role of state investment capital for agricultural and rural development.

* Period 1991-1995.

The increase in budget investment capital for agriculture is mainly for the construction and upgrading of irrigation works to serve the development of agricultural production. In addition to the investment capital of the State budget, after Resolution 10 of the Politburo, agriculture and rural areas also attract more capital from people, enterprises, and economic sectors, the most important of which is capital from households, to develop agriculture and the rural economy.

Since 1993, agriculture and rural areas have received additional investment from the capital of Program 327 on reforestation of barren land and hills with an investment capital of 424 billion VND in 1993; 464 billion VND in 1994 and 556 billion VND in 1995.

In addition to domestic capital sources, investment capital from international organizations and foreign aid capital also contribute significantly to investment in agricultural and rural development.

However, investment policies for agriculture and rural areas during this period still revealed some shortcomings as follows:

- The proportion of budget capital invested in agriculture gradually decreased from 17.34% in 1990 to 17.3% in 1991; 14.8% in 1992; 14.6% in 1993; 13.8% in 1994 and 12.75% in 1995, not commensurate with the position and potential of agriculture in the economy.

- Investment is still scattered and unsynchronized for key projects, so investment efficiency is low.

- The investment structure is not reasonable, not paying attention to supporting the development of farmer households' economy. The capital is mainly invested in the state-owned agricultural sector and is concentrated on state-owned farms, with little attention paid to agricultural technical stations and camps.


* Period 1996 to present

During this time, the State has innovated the investment structure and methods in the direction of:

- Redirect investment to key programs and targets through programs such as: projects under program 327 on reforesting barren hills, rural clean water program, 5 million hectare new forest planting program, offshore fishing program, 1 million ton sugar program,...

- The State has shifted from direct investment to indirect investment to encourage farmers to develop production through the operation of the banking system and rural credit institutions with preferential interest rates to compensate for the price of materials and the selling price of agricultural products.

- State investment shifts from focusing on the state-owned sector to investing in rural agricultural infrastructure, investing in irrigation development and applying scientific and technological advances to production.

In addition to investment from the State budget, every year agricultural production establishments and farming households invest quite a lot to develop agriculture and the rural economy. Enterprises of all economic sectors have also participated in investing in agricultural development, especially in concentrated commodity production areas, with the main investment methods being support for seeds, techniques, advance capital for farmers to buy materials, purchase products, upgrade rural infrastructure, especially in concentrated commodity production areas to create raw materials for the processing industry.

Not only domestic investment capital but also FDI investment capital in agricultural and rural development also increased sharply during this period. By the end of 1997, there were 225 FDI ​​projects in the agricultural and rural areas with a capital of 1.5 billion USD, of which the number of implemented projects had a capital of 467 million USD.


Thanks to the diversification and innovation of investment directions combined with the innovation of agricultural management mechanisms that are popular with the people, the potential of capital, labor, and technical facilities of over 10 million farming households has been aroused to serve production and build rural infrastructure.

Although investment policies for agriculture and rural areas in recent times have brought about very encouraging results, some shortcomings still remain:

- The proportion of budget investment in agriculture and rural areas remains low and tends to decrease, the rural economic structure is slow to shift, and the material premises for growth and development are weak and lacking.

- Investment is still scattered, not focused on key areas and key production projects. Investment in research on breeding high-yield, high-quality plant and animal varieties has not received due attention.

- The policy to encourage foreign investment in agriculture and rural areas is not really attractive; underdeveloped rural infrastructure has caused foreign investment in agriculture and rural areas to remain at a low rate, failing to meet the goals of economic growth and rural economic restructuring in recent years.

* Credit policy for agriculture and rural areas

Over the past 15 years of innovation, the State has issued many policies related to credit activities serving the development of agricultural production and rural economy. Some important policies include:

- Directive 202/CT dated June 28, 1991 on piloting a lending model for farmers, which sets out standards for farmers to borrow credit capital through the banking system with small loans in a short period of time. After a period of pilot implementation, the results showed quite successful results. One notable thing is that by allowing grassroots social organizations to participate

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