In the national target programme for new countryside construction, the business sector is expected to contribute 20 per cent of resources to new rural reconstruction. Thus far, the business sector has contributed only 5 per cent or so of expected value. This is an obstacle to the goal of building 1,800 communes meeting new countryside standards by 2015. Mr Ho Xuan Hung, Former Deputy Minister of Agriculture and Rural Development and Former Deputy Director of the Steering Committee for New Rural Construction, recently granted an exclusive interview to Vietnam Business Forum on this issue. Nguyen Thanh reports.
The objective of the New Rural Countryside Construction Programme is to improve both the material and spiritual life of rural residents. Has this objective truly been reached yet?
Among 19 new countryside criteria, the income of farmers must be raised 2-2.5 times over 2008. In 2013, farmers in qualified communes must have annual income of VND18-26 million each, depending on regions. To achieve that level of income, we must address a series of issues, including production promotion and rural economic restructuring. Each commune must build its own new countryside scheme and it must introduce agricultural development and rural industrial development projects. The leading guideline of production development in new rural reconstruction programme is to base on best local advantages. Or in other words, a commune that could produce 50-70 different types of products from local plants and animals must now pick the 3-5 best ones to focus on. The chosen ones must have good consumption markets, suit local production practices, soil and climate conditions to achieve higher quality and value. Then, the local people will subsequently have higher incomes.
Businesses are considered a major force for the new countryside construction process. We even organised a forum on “Promoting roles of businesses in new countryside construction” but this force remains quite thin thus far. What do you think about this?
According to the beginning guidelines, the business system plays a pivotal role in production expansion and income increase for farmers. However, when carrying out this programme with localities, they have faced huge difficulties and challenges.
In the present context when the agricultural and rural investment climate is not very convenient and is prone to high risks but low profit, it is rather difficult to attract investors. The new countryside construction programme is being carried out in 9,052 communes across the country where livelihoods are poor and infrastructure is dilapidated. Even when businesses come to rural areas, expenses for initial infrastructure investment and product transportation are high, leading to limited market access. Although rural labour is plentiful, their professional level is low and uneven and the awareness of working manner is not high. Besides, the difficult access to bank loans is a big challenge for companies engaged in agriculture and rural development. For its part, the State has actually no real solution to effectively accompany and support enterprises in dealing with difficulties.
Although the Government issued the Decree 61/2010/ND-CP on policies vis-à-vis encouragements for enterprises investing in agriculture and countryside in 2010, the outcome of this decree remains limited after three years because the mechanism pertaining to this remains non-specific and the fund for enterprises to invest in agriculture and rural areas is mostly taken from local budgets which are very small in these poor localities. We often say that we need the supporting bracket for agriculture to entice enterprises.
So, in your opinion, what policies should be taken to stimulate enterprises to further engage in this field?
If businesses cannot participate in this programme, it will surely end in failure. In fact, input and output products of farmers are completely dependent on businesses. Farmers cannot take care of inputs and outputs in commercial production. Enterprises function to consume products made by farmers and tell farmers to grow crops or raise animals that bring the highest value in a sustainable manner.
The Government has issued some policies to encourage enterprises to go to the countryside and many have engaged in agriculture and rural development. For example, Programme 137 on the eradication of makeshift shelters mobilised VND12 trillion from businesses for basic investments or vocational training for rural people.
Applying high technology to new countryside development will be the right direction to catch the attention of enterprises which do not risk investing in this sector because of high probability of risks caused by dependence on nature, huge start-up capital and slow capital recovery. Israel is a semi-desert country with a harsh climate, but it managed to apply high technology to agricultural development and achieved miracles in green agriculture in the desert. In Vietnam, some businesses raised production value on a one-hectare unit from VND70 million a year to VND500 million – VND1.5 billion in the present time by applying advanced technologies. Therefore, to change the picture of backward agriculture, high-tech application is very important.
In the current context of economic difficulties, farmers will not be able to continue without the “hand” of businesses which will also be unable to survive without supporting mechanisms and policies from the State. It is clear that the roles of these three parties form a closed chain and if a part breaks down, it will affect the entire system. For that reason, a clear mechanism, an appropriate policy system plus a good cooperation of all levels of the political system and the consensus and response of people will be an important driving force for enterprises to perform their roles in rural reconstruction.
Do you think if the above orientations are successfully carried out, the object of 20 per cent of communes meeting all new countryside criteria is within reach?
We also take into account these factors. For example, we must bring the poverty level definition to common world criteria.
With new standards, 85 communes already met all criteria, approximately 12 per cent of communes satisfied 12-15 criteria and 50-70 per cent of communes met some basic criteria. I believe that the objective will be reached, although there are a lot of difficulties ahead.
Đăng ký: VietNam News
