Vietnam%20Partnership%20for%20Human%20Resource%20Development%20for%20Rural%20Areas%20(%20VietDHRRA%20)

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Vietnam Partnership for Human Resource
Development for Rural Areas ( VietDHRRA )

• Report of AFTA research

Impacts of AFTA to small producers of
agriculture in Vietnam
Hanoi 2004
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• I. General information

• II.Research results

• III.Key findings

IV.Main proposal
approaches
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• I. General information

1. Agriculture of Vietnam
Contribution 23 of
GDP Using 70 of Laborers
Exportation 2004 reached 5.4 Billons USD which

Among the world market exporters
- Rice is ranked second
- Coffee is ranked second
- Black pepper is ranked first

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• 2. Vietnam to AFTA

- Signed officially the key agreement
on15th.Dec.1995
- The agreement came to force 1st. Jan.
1996
- Commitments
91 of agro-product taxing-lines are cut
down
The averaged tax of imported agro-products
is 6.9 ( highest 20 )
From 1st.Jan.2006 onward all are cut
down to 0-5
Sensitive agro-products are cut down in
2010
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• 3. Vietnam to WTO

- In June 1994 was recognized to be GATT
observer
- In April 1995 WTO received application
form to be member
- In January 1996 WTO formed the Vietnam
Committee which consists of 40 members

- In August 1996 submitted memorandum on
foreign trade
- Answered 2,600 groups of questions concerning
economic-trading policies
- Bilateral and multilateral negotiations are
going on
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• 4. Research method and procedure

- Selected crops rice, corn, coffee and
cashew-nut
- Selected Localities Thai-Binh province
in the North, Dac-lac province in the
Central Highland, Dong-Nai and Binh Duong
provinces in Northeast Mekong delta and
An Giang province in Mekong river delta.
- Conducted 265 small farmer
interviews chosen by random, 23 farmer
group-focused discussions, 19 local
leader interviews, 10 case studies.
- Table and field works followed
SEACON guildline
- Data processing used Microshop
Access
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Selected localities for surveying
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• II. Results of study

1. Small farmers' education level
- most of men and women went to school for 5-6
years
- 61.3 completed primary school,
32.3 secondary school, 5.1 high school,
1.4 technician and 0.9 having
university degree
- Rice and corn growers have education level
higher than coffee and cashew-nut growers

- But only 51.2 was trained of technologies
and only 26.5 of knowledge learnt being
applied to production
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• 2. Small farmers' living conditions

- 91 said they have houses but 49.4 of which is
simple and temporary, 9 does not have
houses of their own
- 37.9 said that they use rain water, 31.3 uses
shallow well water, 28.4 uses stream,
river, pond or lake water, only 7.5 have
drilled-well and pipe water
- Most of household-families use pit latrine,
some use water-flushed or double-vault
latrines. 12.3 does not have latrine any
how.
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• 3. Small farmers' production conditions

3.1. Arable lands
- 98 said they have lands of their own, 90
lands has been allocated to farmers for long term
use, 82.6 households said land-using right
belong to both husband and wife
- 32.3 lands are taken after, 30.2 are
exchanged, 30.6 are bought, 23.4 are from
slash-and-burnt
- Rice and corn growers have lands lesser than
Coffee and cashew-nut growers ( in average rice
1.12 ha per household, corn 1.17 ha, coffee 1.74
ha and cashew-nut 2.28 ha respectively )
- 64 said they need more lands for their
production
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• 3. Small farmers' production conditions continued
  

3.2. Fertilizers
- Only 22 said they use manures together with
chemical fertilizer, 100 said they use chemical
fertilizer and insecticides
- 66 said the quantitative of chemical they used
for the past10 years increased.
- Fertilizer takes major part of production costs
rice 35-41, corn 30-37, coffee 42-48,
cashew-nut 25-33
- 88 said that prices of fertilizers and
insecticides increased 100-150 for the past 5
years
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• 3. small farmers' production conditions continued
  

3.3. Capital
- 67.6 said they are lacking of capital for
their production of which rice 69.5,corn 69.6,
coffee 60.0 and cashew-nut 70.5
- 93 said their own capital can meet only 30 of
demand, 43 said their own capital can be
considered " nothing "
- 61 said they had opportunities to borrow money
for production for the past 10 years of which
rice 32, corn 88, coffee 79.3 and cashew-nut
68 respectively
- 91 said that they can pay back in time, 9
said they can not
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• 3. Small farmers' production conditions

3.3. Capital continued
- 69.3 said they borrowed one time per year of
which mainly coffee growers, 30.7 said they
borrowed twice per year of which rice 81 and
corn 72
- 83.9 said they borrowed from banks, 21.9 from
their native, 8.2 from money lenders, 3.3 from
small credit organizations, 2,7 from their
friends, 1.5 from private traders and 3.6 from
material suppliers
- 87 said that they hardly access to possible
resource of which 41 said they can not borrow
meney from the banks.
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• 3. Small farmers' production conditions continued
  

3.4. Other requirements of production
- 56 said they lack of farm tools and machines
- 68 said they have to hire farm tools and
machinery with high costs for 30-65
requirements, especially in the planting and
harvesting periods
- 61 said they meet with difficulty in buying
electricity, water and gasoline for production
- 31.2 said they hardly can get timely
fertilizer and insecticide
- 51.2 said that they were trained of
technologies concerning their production, but
only 26.2 said that things learnt can be applied

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• 4. Small farmers' product consumption

- 51 said private traders are their product
onsumers,19 state companies, 27 co-operatives,
the rest are other farmers, material providers,
money lenders
- 81.2 said their products are simply processed
( mainly dried and classified )
- 66.5 said they do not have enough storage
tools for their products before sending to the
market

• 67 said they sell their products for cash, 38
• exchange for materials and 22 for mortgage

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• 4. Small farmers' product consumption continued

- Only 46.2 said that they officially contract
for consuming their products and supplying
materials
- 28.5 said they are forced to sell their
products at low prices
- 43.8 said that they are substantially damaged
in consuming their products for the past 10
years
- 68 said for the past 5 years prices of
agro-products increased not so much while
that of coffee decreased by 150-250,
prices of production materials increased
80--170 caused their losses, even some cases
have given up their production.
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• 5. Small farmers' requirement for supports

- Rice growers 87.6 for marketing, 64.9 for
extension services, 63 for transportation, 62.9
for hydraulic construction, 66 for credit, 29
for technical training and 45 for seed
- Corn growers 75 for marketing, 80 for
extension service, 54 for transportation, 62.9
for hydraulic construction, 66 for credit, 45
for technical training, 56 for seed
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• 5. Small farmers' requirement for supports
  continued

- Coffee growers 60 for marketing, 62 for
extension services, 29 for transportation, 49
for hydraulic construction, 41 for credit, 32
for technical training, 21 for seed
- Cashew-nut growers 85 for marketing, 84.8
for extension services, 63 for transportation,
19.6 for hydraulic construction, 93 for credit,
24.4 for technical training and 47 for seed

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• 6. Small farmers' understanding of AFTA

- 54 said that they know AFTA, of which 33.8
said they only saw the "AFTA" signal somewhere,
18 said AFTA may bring in market possible, 28.3
said they don' t know if AFTA bring profitability
or not
- 32.4 said they know something about AFTA
through radio, 47.6 through TV, 9.4 through
newspapers, 5.7 through other people and 2.5
through government agencies
- 46 said that they do not know anything about
AFTA at all, among these people some are local
leaders
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• III. Main findings

1. Most of small farmers were educated for 5-6
years of which 61.3 primary school, 32.2
secondary school. But only more than 50 was
trained technologies concerned .
2. Small farmers are lacking of arable lands
though they were allocated equally lands in "
Renovation" movement.
. 3. Most of small farmers lack of capital.
Their own funds can meet only 30 of
demands. Their main possible resources
for borrowing are from banks but difficult to
access. 9 can not pay back in time
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• III main findings continued

4. Small farmers lack of technologies. Only 51.2
were trained of techniques concerned but
only 26 things learnt was applied to
production. There still 48.8 not being
accessed to technologies
5. Private traders are main buyers of small
farmers' products. State companies take
19 and co- operatives take 27. In
selling and buying only half of small
farmers make official contract with their
partners. They are forced to sell their
products at low prices. for the past 10
years input was increased but output
decreased
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• III. Main findings continued

6. Small farmers are lacking of farm tools and
machinery, they have to hire costly. They can not
get production materials timely and can hardly
access to electricity, water and gasoline for
their production
7. Living conditions of small farmers are poor.
Their houses are simple and temporary. Drinking
water and sanitation infrastructures and
facilities are far from enough.
8. Most of small farmers are knowing little or
not knowing AFTA. If they do it is chiefly
through radio and TV. Government agencies do not
pay due attention to introducing AFTA to farmers
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• IV. Key proposals

1. Focusing on crops and animals which give
high yield and good quality through intensive
cultivation and breeding. Priority should be
given to organic-generated and secure products.
Supporting policies for good quality of
agro-products are necessary.
. 2. Renewal of investment policies.
Priority is given to productions and products
which have comparative advantages. More
investments for products which are exportable.
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• IV Key proposals continued

3. Speeding up and strengthening post harvest
activities, developing processing industry and
transferring new and appropriate technologies to
production and processing of agro-products.
. 4. Fostering extension service system
which have farmers' participation,
combining new technique with indigenous
and traditional knowledge and farmers'
experiences.
5. Improving credit system in rural areas,
helping small and poor farmers to access to
possible resource of loan
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• IV Key proposals continued

6. Developing off-farm activities in rural areas
to help small and poor farmer increasing incomes,
developing lands by reclamation and improvement
of virgin and barren areas to have more lands
allocating to small and poor farmers who are now
landless or land-lacking, protecting and planting
new forestry, safe-guarding biodiversity.
. 7. Helping farmers, especially small and
poor farmers, to thoroughly understanding
AFTA, knowing exactly what are positive or
negative impacts to their lives and their
production, overcoming difficulties by their
internal forces not depending much on
external assistances.
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• Thank you very much
• for your attention !