The Emergence of Highly Effective Economic Models

With thousands of square meters of livestock and crop farms , providing thousands of tons of agricultural products to the market inside and outside the district every year, many products have become famous brands, Van Giang's agricultural sector after the process of urbanization has developed in the direction of commodity agricultural production.

* Innovation to improve the operational efficiency of agricultural service cooperatives

The agricultural production cooperative model is no longer a model that has been focused on development in recent years. However, with the need for agricultural development and the goal of industrialization and modernization of rural agriculture in the district, the activities of agricultural service cooperatives are increasingly important. The district has issued timely instructions to change the activities of agricultural cooperatives according to the content of the revised Law on Agricultural Cooperatives. Resolution No. 12 - NQ/HU " On continuing to consolidate, innovate and improve the quality and efficiency of agricultural service cooperatives " dated May 31, 2001 clearly identified the goals and orientations for the development of agricultural service cooperatives in the district. In general, these cooperatives, after implementing the organizational reform and conducting activities according to the new Law on Cooperatives, have demonstrated a certain role in agricultural production.

Agricultural service cooperatives undertake the general stages of the agricultural production process under the direction of the district and the Department of Agriculture. The main services such as irrigation, electricity, and plant protection are effectively undertaken by cooperatives in most communes. The activities of cooperatives are to ensure that agricultural production is carried out smoothly, on time, and according to technical procedures, effectively supporting the production process of farming households. Each commune in the district has built a model of service cooperatives to serve the production of the people in the commune.

2.2.3. The emergence of highly effective economic models

Along with the process of land concentration, policies to encourage economic development, promote rural industrialization and modernization of the district and the dynamism in production and business of the people, have created conditions for the birth of highly effective economic models. These are models of agricultural production, services, handicrafts, processing industry... on an individual, household or collective scale.

* Farm economic model in agriculture:

This is the most popular economic model in Van Giang, especially after the urbanization process. Since the early 90s of the 20th century, some households have boldly invested capital to develop the VAC farm economic model, but the scale is still small and the number is still small. After the urbanization, the most important condition is that land is concentrated in one place, combined with support policies on seeds, capital, techniques, and output for products of the district, many households in Van Giang have shifted from small-scale agricultural production to concentrated, large-scale production, supplying goods to the market.

On June 8, 2001, Van Giang District People's Committee issued Resolution No. 13 - NQ/HU on promoting the transformation of crop and livestock structure on agricultural land , clearly identifying the goals and tasks of Van Giang's agricultural sector as gradually shifting to modern agricultural commodity production. In particular, focusing on promoting and expanding the economic model of crop and livestock farms, combined with the land use planning work of the People's Committee, and specific planning of production areas. According to statistics of the District Department of Agriculture, the number of household farms has increased rapidly after 10 years.

Table 2.13 : Data on crop and livestock farms in the area

Year

2000	2003	2005	2008
Integrated Farm (VAC)	76	98	135	151
Farm growing all kinds of trees	21	30	58	68
Livestock and poultry farms	18	35	50	98
Aquaculture farm	17	30	38	54
Number of households providing seeds, animals and animal feed	31	38	45	51
Total	163	231	326	422

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Source: Report of Van Giang District Department of Agriculture

Looking at the summary table above, it can be seen that from 2000 to 2008, the number of farms in the district increased 2.6 times. From 163 farms to 422. The smallest farm size is calculated to be from 5 Northern Sao or more. Of which, the number of farms following the VAC model still accounts for a high proportion and has increased the most. In 2000, the number of VAC farms was 76, accounting for 46.6%, by 2003 it was 98 farms, accounting for 42.4% and by 2008 it increased to 151, accounting for 35.8%. Although the proportion has decreased, it has increased rapidly in terms of quantity and value of contribution to the district's economy. With a small and medium scale, about 1 hectare of Northern Vietnam, this is still the most effective agricultural production model for Van Giang, both taking advantage of the land and promoting existing strengths. Among these types of farms, there are examples of effective farmers such as the farm of Mr. Do Van Mau's family in Van Giang town with an area of 3600m2 raising

Combining freshwater aquaculture, raising pigs, chickens, ducks, bananas, oranges, grapefruits, annually brings in an income of 40-50 million VND. Mr. Vu Van Tru's family in Me So has a VAC farm with an area of dozens of hectares combining cultivation and livestock raising, each year bringing in a profit of several hundred million VND.

After the district had a specific plan for 3 specialized production areas: fruit trees, specialties, ornamental plants, high-quality rice, livestock and fish farming, the number of households switching to concentrated farms in the direction of producing only one crop or livestock product also increased significantly and accounted for an increasingly large proportion. These are also models

farms for high economic efficiency by focusing on developing a type of tree with good yield and quality. The number of farms growing various types of trees increased from 21 farms (12.9%) in 2000 to 68 farms (16%) in 2008. The number of farms raising livestock and poultry increased sharply from 18 farms in 2000 (11%) to 98 farms in 2008 (23.3%). Among these, the farms raising pigs for meat, breeding pigs and dairy cows increased the most. The highly effective pig farms are the farms of Mr. Dao Tat Hiep's family in Me So commune, raising sows and commercial pigs on

Area 7000m2 for average profit 150 million VND/year... Farm

Mr. Do Van Hung's dairy farm in Van Giang Town, Mr. Nguyen Van Xay's chicken and duck farm in Long Hung... are farms with an income of around 100 million VND/year.

Freshwater aquaculture farms also increased threefold from 17 farms in 2000 to 54 in 2008. These farms are concentrated in low-lying communes with agricultural land prone to flooding such as Long Hung, Tan Tien, Nghia Tru, Vinh Khuc, Xuan Quan. The main products are freshwater shrimp and fish, not only providing food for the people in the district, most of the products from these farms are exported to Hanoi and neighboring districts and provinces.

The model of specialized tree farms is increasing in the planning of the district's key tree growing areas. A typical example is Mr. Chu Van Hung's farm in Lien Nghia commune. This is a tree growing model that has brought high economic value for many years in Lien Nghia. Although he is 41 years old this year, Mr. Hung has 15 years of experience in growing kumquat and orange trees. With an area of 6 hectares, he grows 2,000 kumquat and orange trees and thousands of orange trees, rare ornamental trees. Mr. Hung said that in addition to applying techniques to plant and care for trees, soil improvement is very important. Usually, after harvesting at the end of the year, he invests

tens of millions of dong on land improvement. This helps improve the efficiency of cultivation. Every year, his family estimates that they harvest 10 tons of oranges, kumquats and hundreds of ornamental plants of all kinds. In 2008, his garden brought in an income of nearly 500 million dong .

Depending on their specific conditions, each locality builds its own fields worth 50 million VND/ha/year or more in its own way. With the formula of growing 2 crops of glutinous corn + summer-autumn and autumn-winter vegetables each year on a 121-hectare field, farmers in Thang Loi commune (Van Giang) earn over 70 million VND/ha.

The flower and ornamental plant growing model in Lien Nghia, Me So and Phung Cong communes brings in an income of 80 - 130 million VND/ha/year.

This is the most visible change in rural Van Giang after the land reform. When the land was concentrated into large plots, some families continued to voluntarily consolidate and exchange their land with other families or buy and rent more land from adjacent plots to expand the scale of the farm, then put into cultivation plants and animals with high economic value, which are in the planning of local agricultural products and have guaranteed output for the products. Plants and animals often put into cultivation are: Bananas, grapefruit, oranges, tangerines, apples, ornamental plants, medicinal plants, vegetables of all kinds, pigs, dairy cows, beef cattle, poultry, freshwater shrimp and fish...

As the number of family farms increases, the number of households specializing in providing plants, breeds, animal feed, pesticides, and veterinary medicines increases sharply to meet local needs. The number of households providing plants, breeds, and animal feed in the whole district increased from 31 households in 2000 to 45 households in 2005 and 51 households in 2008. On average, each commune in the district has 4.6 establishments providing plants, breeds, animal feed, pesticides, and veterinary medicines, which relatively ensures the demand for animal feed for the communes. This is also a way to get rich for a few farming households.

The people are quick to respond to the economic development in the locality. Most of these households have rented out their land to focus on agricultural services.

* Small-scale handicraft production facility model

The urbanization work in Van Giang not only creates conditions for some farming households to develop their economy according to the farm model, but also creates conditions for some farming households to escape agriculture to focus on developing the handicraft economy. The urbanization process and the thematic resolution " On the development of industry, small-scale industry, and craft villages in the period of 2003"

- 2010 ” created a strong change in the handicraft industry in Van Giang. The scale of these handicraft production establishments, although still quite small, has initially contributed to the local budget, developed the family economy and created changes in the economic structure of the district. The number of handicraft production establishments in Van Giang increased rapidly after 2003.

Table 2.14 : Number of handicraft production establishments in Van Giang over the years

Year

2000	2003	2005	2008
Total	1031	1048	1224	2158
I. Classification by economic sector	1031	1048	1224	2158
State economic sector
Non-state economic sector	1031	1047	1223	2517
Collective, cooperative	4	4	4	1
Individual, organization	1021	1036	1212	2145
Private economy	6	6	7	11
Foreign investment economic zone	0	1	1	1
II. Classification by industry	1031	1048	1224	2158
Food and beverage production	506	573	586	664
Garment manufacturing	60	106	130	132
Leather products manufacturing	13	22	32	889
Manufacture of products from wood, bamboo and rattan.	59	37	70	153
Manufacture of paper and paper products	5	3	1	44
Manufacture of products from non-metallic mineral substances	224	186	122	71
Manufacture of metal products	60	59	161	164
Manufacture of electrical and electronic equipment			1	1
Production of beds, cabinets, tables and chairs	84	57	118	33
Production of chemicals and chemical products	4	3	3	3
Production and distribution of electricity and water				2

Source: Statistical yearbook of Van Giang district 2000 - 2008

The total number of establishments producing industrial and handicraft products increased from 1031 establishments in 2000 to 1048 in 2003. After the land reform, this number was 1224 in 2005 and 2158 in 2008. This means that the number of households doing pure agriculture has decreased, some households and some villages have completely switched to handicraft production. The number of handicraft production establishments in the form of individuals and private individuals clearly shows this change. From 1021 individual and private handicraft production establishments in 2000, the number increased to 1036 establishments in 2003 and 2145 establishments in 2008. In the production structure by industry, the food and beverage production industry accounted for a high proportion of 49.07% in 2000 and 30.76% in 2008, the leather product production industry increased sharply from 13 establishments in 2000 to 22 establishments in 2003 and skyrocketed to 889 establishments in 2008, accounting for 41.2% of the number of handicraft establishments. The handicraft industries producing products from wood, bamboo, rattan and metal products also increased sharply.

The production scale of these handicraft establishments is still small compared to the actual needs and requirements of industrialization. Most of these production establishments are family and individual handicrafts. After the land reform, some households transferred or leased their land, focusing on handicraft production to get rich. Van Giang's handicraft production is concentrated in the communes: Xuan Quan, Van Giang Town, Nghia Tru, Vinh Khuc, Me So, Lien Nghia, Long Hung.

But Van Giang still does not have any traditional handicraft village with professional characteristics. Most handicraft households still do business spontaneously. There are still many households that do both handicraft and agricultural production.

* Commercial, hotel, restaurant business model:

Besides the models of family and private handicraft production, service business is also an emerging form of economic development in Vietnam.

Van Giang after 2003, met the local service needs. The number of service establishments, hotels, restaurants increased sharply over the years, contributing to the growth in production value of the service sector in the general economic structure. The increase in the number of households doing service business was partly due to the increased demand for local services, and partly due to the fact that after the urbanization, some households in the planning areas of industrial parks, clusters, urban areas... no longer had land for production, so they switched to service business. The number of surplus laborers from agriculture looking for motor vehicle maintenance and repair services, wholesale and retail of consumer goods also increased rapidly. This model also opened up a new direction for economic development in Van Giang during the industrialization and urbanization process.

Table 2.15 : Number of households engaged in commerce, hotels, restaurants, tourism and individual services

Year

2000	2003	2005	2008
Total	456	1616	1937	2372
1. Trade, repair of motor vehicles, personal and household goods	392	1342	1604	2040
1.1 Sale, maintenance and repair of motor vehicles	20	78	97	125
1.2 Wholesale and agency sales	12	103	122	150
1.3. Retail and repair of personal and household goods	360	1161	1385	1587
2. Services	26	97	150	75
3. Hotels, restaurants	38	177	183	257

Source: Statistical yearbook of Van Giang district 2000 - 2008

The number of households participating in commercial and service activities in Van Giang has increased sharply over the years, especially after the 2003 DDDT. From 456 households in 2000, it increased to 1,616 households in 2003 and 2,372 in 2008. The number of households participating in commercial activities, repairing motor vehicles and personal belongings has increased the most. In 2000, there were 392 households, but by 2008, it had increased to 2,040 households, 5.2 times more. Hotel and restaurant services in the district have also increased according to market demand. The number of service business households increased in 2003 (97 households) and 2005 (150 households) and then suddenly decreased sharply.

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