OPPORTUNITIES AND CHALLENGES MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT ORIENTATION FOR NEW RURAL DEVELOPMENT IN 2011 – 2020 OPPORTUNITIES AND CHALLENGES Prepared by Mr.Hồ Xuân Hùng Deputy Minister of Agriculture and Rural Development

ORIENTATION FOR NEW RURAL DEVELOPMENT 2011 - 2020 “development of new rural areas where the more and more modern socio-economic infrastructure is constructed; proper economic structure and production modalities are applied, agriculture and quick development of industry and service are linked; rural development is linked to planned urban development; the rural society is democratic and rich in ethic cultural identities; the environment is protected; the security is maintained; and the material and spiritual life is improved (Resolution 26-NQ/TW)

- Civilized, clean, and modern infrastructures CHARACTERISTICS OF NEW RURAL AREAS IN VIETNAM Civilized, clean, and modern infrastructures - Production based on the commodity economy and sustainable development. Quickly improved material and spiritual life. Conserved and developed cultural identities Democratically managed society and maintained security is maintained. Specified by the National Set of New Rural Criteria, 19 criteria

OTHER FOLLOW-UP ACTIVITIES RESOLUTION 26-NQ/TW NEW RURAL DEVELOPMENT DECISION 800/QĐ-TTg National Targeted Program for New Rural Development DECISION 491/QĐ-TTg 19 new rural criteria OTHER FOLLOW-UP ACTIVITIES

By 2015: 20% communes realize new rural standards OBJECTIVES OF NATIONAL TARGETED PROGRAM FOR NEW RURAL DEVELOPMENT (NRD) By 2015: 20% communes realize new rural standards 100% communes finalize NRD planning; essential socio-economic infrastructure is developed based on new standards; 100% local staff are trained on NRD knowledge; income is increased 1.5 times. Poverty households decrease to under 8% (standard 2007). By 2020: 50% communes realize new rural standards Life quality is improved; income is increased more than 2.5 times; Poverty households decrease to under 3% (standard 2007).

(1) Planning of new rural development ACTIVITIES OF THE NATIONAL TARGETED PROGRAM FOR NRD (1) Planning of new rural development (2) Development of socio-economic infrastructure (3) Restructuring and development of the economy for higher income (4) Reduction of poverty and promotion of social security (5) Reforming and development of effective production forms (6) Development of rural education and training

(7) Development of rural health care ACTIVITIES OF THE NATIONAL TARGETED PROGRAM FOR NRD (7) Development of rural health care (8) Development of culture, information and communication (9) Supply of clean water and sanitation (10) Improvement of the Party, governmental, social and political organizations (11) Maintenance of the security

1975-1980: developing new rural model at district level. NRD METHODOLOGIES BEFORE 2009 1975-1980: developing new rural model at district level. 2000 - 2003: piloting new rural model at commune level (in 18 communes) 2007 - 2009: community-based new rural model at village/hamlet level .

NRD METHODOLOGIES IN 2010-2020 1- based on the National Set of New Rural Criteria (the first time for Vietnam to issue the new rural criteria to be used nationwide). 2- application scope covers all the communes nationwide (advantages of commune level: close community relations, direct beneficiaries have an incentive to actively join the NRD movement, and the capable leaders).

PHƯƠNG PHÁP XÂY DỰNG NTM 2010-2020 3- Community - owner of NRD. The State only defines orientation through regulations, standards, support policies and guidance. 4- the national targeted program is the framework, covers objectives of rural development in 2010-2020; identifies necessary activities to realize 19 criteria; a lot of sub-programs and projects specified by different ministries and sectors to implement this program (the sub-programs and projects focus on the new rural criteria and their content must not be duplicated).

NRD IN 2010-2020: URGENT ACTIVITES 1) formulate new rural planning and issue rural construction regulations in order to quickly deal with the on-going unmethodical construction which consequently destruct the rural landscape and environment. Content: general planning (residential areas, socio-economic and production infrastructure) and detailed planning of the mentioned areas. The participants in the planning include local communities, professional agencies and district People’s Committees which appraise and approve the planning . Government regulations: public works shall not be constructed unless the commune planning has been finalized. The Government will provide sufficient funding to finish basically the commune planning by the end of 2011..

NRD IN 2010-2020: URGENT ACTIVITES 2) restructure commune economy in the light of the commodity economy. Professional agencies provide communities with guidance for selecting the plants, animals and industries that match planning so that every commune has some major commodities to improve production effectiveness and income.

NRD IN 2010-2020: URGENT ACTIVITES 3) improve and develop rural infrastructure - “breakthrough” to change rural areas and promote social-economic-cultural development. The Government invests 100% in 5 essential works: transport (main road of communes), schools, clinics, cultural houses and Commune People’s Committee headquarters; invests partially in other works (main roads of villages, water supply stations, commune stadiums, village cultural houses, village sports areas, rural electricity, markets, rural communication systems…)

NRD IN 2010-2020: URGENT ACTIVITES 4) train program operators. Expand knowledge training for farmers to have certain knowledge (for agro-production, rural development, civilized life…), capable to own NRD.

NRD IN 2010-2020: URGENT ACTIVITES 5) prioritize investment in especially difficult areas (62 poor districts in program 30a); especially difficult districts, communes and villages not in program 30a; some good communes (already basically realized the criteria) to have 20% achieving the objectives, becoming models for neighborhoods and enhancing people’s trust.

OPPORTUNITIES AND CHALLENGES NRD IN 2010-2020 OPPORTUNITIES AND CHALLENGES Opportunities - strongly supported advocate on new rural development will certainly create a great internal force for rural development. - some successful models (now 1.5% communes satisfy 19 criteria) and failure - valuable experiences for NRD. - Determination of the Party and Government to invest in this program. The Resolution 26 identifies that the state budget for agriculture and rural areas for the 5 successive years shall double that for the 5 preceding years (excluding inflation).

NRD IN 2010-2020: OPPORTUNITIES - investment structure: 10% from people’s contributions, 30% from credit, 20% from enterprises, and 40% from the State budget (for the past 5 years, rural programs have been invested 23% by the State budget, meaning only a 17% addition). - Decree 41/2010/ND-CP on credit policies for agricultural and rural development; and Decree 61/2010/ND-CP on incentive policies for enterprises investing in agriculture and rural areas… - poverty reduction, institutional reform, agricultural development, technology … have been internationally supported, continued in the national targeted program for NRD

NRD IN 2010-2020: CHALLENGES 1- Primary challenge: most leaders’ limited awareness of the content and methodologies (management by administrative orders, gap between the Governmental policies/direction and lower level agencies’ acquisition capacity and responsibilities for implementation…). Reliance habit of some people and local staff, especially in mountainous and ethnic minority areas

NRD IN 2010-2020: CHALLENGES 2- requirement for huge resources, especially for infrastructure (very poor infrastructure in Northwest region and Mekong River Delta). 3- agricultural workforce accounts for 51.9%, must be reduced as the law on development. However, development of the industry and service is still at a low pace. Even trained rural laborers are facing difficulties in finding jobs. Therefore, not easy at all to lower the agricultural workforce to 30% by 2020 unless active and practical measures are defined and implemented.

NRD IN 2010-2020: CHALLENGES 4- big gap between commodity production requirements and fragmented production land (farming land: 1.6 ha/household nationally, 2.98ha/household in the Northern hilly and mountainous region, 1.76ha/household in the Northern Central Region, 2.13ha/household in the Southern Central region, and nearly 0.35ha/household in the Red River Delta where intensive farming at a higher level is applied but a household may have 3-4 plots); gap between small farming and large market. Therefore, to restructure the production, invest in production infrastructure, train the farmers, and apply new technological advances to agriculture.

NRD IN 2010-2020: CHALLENGES 5- gap between investment needs and actual investment. (only 3.7% of enterprises in agriculture, forestry and fisheries sectors; enterprises in rural areas invests only 6%) 6- limited experiences in NRD

NRD IN 2010-2020: SOLUTIONS (1) reform mechanisms and policies (2) invest in technological research to serve NRD (3) develop pilot models (4) enhance international cooperation (5) identify resources for NRD

NRD IN 2010-2020: SOLUTIONS (6) concentrate on vocational training, for job change and technological application to agro-production. (7) create conditions for professional associations and mass organizations to work as bridge between the production, consumption and technological application. (8) launch movement “All people work for new rural development”; mobilize strength of the whole political system. (9) establish steering committees at different levels..

Thank you!