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Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
Viet Nam Presentation 24 Mar09
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Viet Nam Presentation 24 Mar09

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  • 1. VietNam’s Challenges in Rural Development IFAD country programme March 2009
  • 2. Overview
    • Main challenges in Rural Development today
    • Looking Forward: Opportunities for the IFAD Country Programme
    • The Value of Partnering with IFPRI
  • 3. Overview: VietNam, Now
    • While Vietnam has achieved consistent and stable high economic growth over the last decade, growth slowed from 8.5% in 2007 to 6.5% in 2008
    • The Government continues to stimulate various resources for development
    • Registered FDI in 2008 amounted to USD 60 billion (more than 3 times that of 2007)
    • Agriculture, forestry and aquaculture sector has grown at 3.6% in 2008, and rice supply increased in 2008 meeting domestic demand and increased exports
    • The economy and state have been converted into an increasingly market-friendly system. The domestic private sector is emerging
    • VietNam is at crossroads between developing country status and Middle Income Country Status
  • 4. Developments in Rural Vietnam
    • Agriculture: high pace toward commercial production, improved productivity, export commodities while maintaining national food security
    • Poverty has been addressed but large pockets of poverty in remoter upland areas and ethnic groups
    • Legislation on ‘Grassroots Democracy’ and efforts made by the Government to decentralise ownership of investment to commune level
    • Environmental protection and management fast becoming a major issue
  • 5. Challenges for Agricultural Development
    • VietNam will face increasing challenges in commodity markets and rural sectors as a result of the forces of globalization and market integration, meanwhile:
    • Further gains in production are not being made
    • Agricultural competitiveness remains low and quality standards are not in place
    • Production arrangements are suboptimal for benefiting the poor
    • Investment into industry, services and agribusinesses around rural areas are insufficient, particularly in poorer provinces
    • Lack of market orientation of extension staff and Government emphasis is on subsidies
    • Resources for adaptive research, science and technology transfer and for capacity development are limited
  • 6. A ‘New Rural Development Strategy with a Vision to 2020’ – Resolution No 26
    • In response to the emerging challenges, the Party has issued Resolution No. 26 for New Rural Development.
    • The strategy includes ensuring food security, commercialization of agriculture and international integration, conservation and management of natural resources, land use planning and allocation and administration policies, institutional development.
    • The strategy aims to reform agriculture and to maintain growth of agriculture at 3 – 3.5% per annum till 2020.
    • However, no one understands how to translate ‘new’ rural development and what it would look like operationalised.
    • The vision of Ministry of Agriculture and Rural Development (MARD) requires it to systematically plan inter-sectoral and inter-regional policies around Resolution No 26 .
  • 7. Expectations from IFPRI
    • Poverty Analysis and Information System: Data from IFAD poverty impact surveys in the 10 provinces, where we are working, could be analysed to create a more robust poverty and agriculture information system, the sample size would need to be determined but sufficient for the Ministry to get an idea of the rural situation, with qualifying indicators.
    • New Rural Development Modelling: Modelling of different scenarios for poor households with land, without land, with productive assets and those that households without, from the IFAD provinces. Different simulations, projections based on scenarios with more market orientation.
    • Investment in agriculture: While the Ministry of Agriculture has been advocating for rural investment, public and private investment in rural areas, agriculture, is still low. The Provincial Competitiveness Index (PCI) has been useful for private sector but it would be good to have specific indices focused on investment in agriculture with a pro-poor impact to be piloted in the provinces.
  • 8. The Climate Change Challenge
    • Government commitment is demonstrated: Climate Change Mitigation and Adaptation Action Plan for the Agricultural and Rural Development Sector is in place, however not yet evidence-based and analytically robust. Some possible actions include:
    • Draft comprehensive quantitative vulnerability assessments for key socio-economic sectors, with a special focus on ethnic minorities and gender given their particular vulnerability to climate change;
    • Develop proto-type models focussing on the needs of the above mentioned target group that introduce climate change sensitive agricultural production systems and cropping patterns, including improved agronomic practices that increase yields and generate higher inputs of carbon residue to soils, as well as, measures that reduce GHG emissions such as through improved irrigation/drainage water management in rice fields;
    • Draft a strategy for capturing carbon financing for LULCF and other GHG mitigation actions.
  • 9. Comments please
    • Thank you
    • Look forward to working together

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