Within the framewwork of research, it’s concentated assess the issues related to economics restructuring of animal husbandry farm in Hung Yen towards modernization as well as other relevant contents of restructuring.
VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES HOANG MINH DUC RESTRUCTURING THE AGRICULTURAL ECONOMICS TOWARD MODERNIZATION IN HUNG YEN PROVINCE Major: Development Economics Code: 9.31.01.05 SUMMARY OF ECONOMIC DOTORATE’S THESIS HANOI - 2018 THE THESIS IS COMPLETED AT GRADUATE ACADEMY OF SOCIAL SCIENCES Scientific Advisors: Prof; Dr.Sc Do Hoai Nam Assoc Prof; Dr Nguyen Dinh Long Counter-Argument No.1: Prof; Dr.Sc Nguyen Quang Thai Counter-Argument No.2: Assoc Prof; Dr Nguyen Duy Dung Counter-Argument No.3: Assoc Prof; Dr Phi Manh Hong The dissertation will be defended before the thesis review council of the Academy at the Graduate Academy of Social Sciences at hour minute, day month year The thesis can be found at: - National Library of Vietnam - Library of Graduate Academy of Social Sciences INTRODUCTION The urgency of research project Hung Yen province belongs to Red River Delta, located in the key economic region of the North, with more than 85% rural households, 40% farmers, agricultural workers, etc Over the past 20 years of provincial reebstablishment, the agriculture sector has been developing, however, up to now, Hung Yen agriculture is just a low value added industry, with less proportion of applied high-tech products, undeveloped industry & rural services, besides, the participation of enterpries in production value chain is limitted, agricultural products are mainly consumed domestically The current agricultural economic structure of Hung Yen Province has not been strong enough to make a new breakthrough and to be competitive in the domestic and international market, etc Especially, in the broader international integration context, together with the impact of industrial revolution 4.0 , the agriculture of Vietnam in general and Hung Yen particularly are facing great opportunities as well as big challenges, which require to be restructured towards modernization with hi-tech application It is a necessary and objective demand Therefore, restructuring agriculture economics towards modernzation is a great importance to Vietnamese agriculture in general and Hung Yen particularly to overcome the constraints, make a breakthrough in the development and answer key research questions, etc., Therefore, research project “ Restructuring agriculture economics towards modernzation in Hung Yen Province” has the theoretical and practical meaning and is a urgent matter in the new context The Purpose and research task of the thesis 2.1 The purpose Systemizing and clarifying in theory and practice and analyzing deeply the real status of restructuring agricultural economics of Hung Yen province toward modernization, propose the perspective, orientation, and key solution for restructuring agricultural economics of Hung Yen province towards modernization by 2025 and future vision by 2030 2.2 The research task The thesis is focused on the following tasks: (1) Systemizing and clarifying theoretical matters, acculmulating domestical and international experiences of agricultural economics restructuring from tradition to modern; (2) Analysing, evaluating the current state of agricultural economics restructuring towards modernization in Hung Yen province, identifying the results, limitations, causes and issues needed to solve; (3) Proposing the perspectives, orientations and main solutions to accelebrate the agricultural economics restructuring process of Hung Yen province towards modernization by 2025 and a future vision by 2030 Research object and scope of the thesis 3.1 The Object: is the process of agricultural economics restructuring towards modernization 3.2 The Scope: Place: Research topic was conducted in Hung Yen province, focused on some typical districts, communes and key points in Hung Yen province Time: Study the real situation from 2010 to 2016 Content: Within the framewwork of research, it’s concentated assess the issues related to economics restructuring of animal husbandry farm in Hung Yen towards modernization as well as other relevant contents of restructuring Approaches and Methods of the thesis 4.1 Approaches: The thesis is used the main following approaches: (1) Interdisciplinary, multidisciplinary approach; (2) Regional approach; (3) Participatory approach; (4) System access; (5)Market access, etc., 4.2 Methods: The thesis is used both qualitative and quantitative methods, but the qualitative is the main one, in particular: 4.2.1 The method of data collection 4.2.1.1 Collection of published data (secondary data) 4.2.1.2 Collection of new data (primary data) *Interviewing the information providers directly through questionnaires for 03 subjetcs: producing households; local leaders in , communes, districts who direct the agricultural production, associated agriculture enterprises in the province * Choosing survey sites, survey samples: To collect the reliable information representative for the whole province, the researcher has conducted survey on 03 districts included Khoai Chau, Kim Dong, and Yen My Survey subjects: 03 objects included local households, village, commune and district officials, and typical local enterprises 4.2.2 Data processing method: The data is manually synthesized and then systematized, processed and the figures are calculated mainly through Word, Excel 4.2.3 Data analyzing method 4.2.3.1 Statistic method 4.2.3.2 Comparative method 4.2.3.3 Case Study 4.2.3.4 Special method 4.2.4 Quantitative vector method This method is used to quantify the level of translation between two moments t0 and t1 by the magnitude of the "angle" combined by two structural vectors corresponding to those two moments, this formula is proposed by WB expert and widely used and quantified according to the following quantitative formula: n ∑Si(t0) Si(t1) Cosα = ∑S2i(t0) ∑S2i(t1) In which: - Si(t0) is the proportion of sector i at the moment t0 being considered as the root term -Si(t1) is the proportion of sector i at the moment t1 being considered as the resarch term -α: is the angle made by Si(t0) Si(t1) with condition 0≤α≤90 The speed of agricultural economic restructuring is determined by: V(%)=(α/90)x100 New contributions of the thesis for science: - To systematize and clarify several basic issues on theoretical agricultural economic restructuring towards modernization, building a theoretical framework for research - To analyze the experience of agricultural economic restructuring towards modernization of some countries on over the world and some provinces and cities in Viet Nam, thereby drawing lessons that can be applied to the specific conditions of Hung Yen province - The thesis focuses on analyzing and assessing the current state of Hung Yen's agricultural economic restructuring towards modernization in terms of resources, market, production organization and technology -To propose the perspetive, orientation, solution system comprehensively and accessibly to accelerate the restructuring of Hung Yen's agricultural economy towards modernization and sustainability by 2025 and vision by 2030 The thesis’s theoretical and practical meanings 6.1 The theoretical meaning The thesis solves out directly the theoretical issues of modernizating agricultural economic restructuring (concepts, contents, criteria, etc.,) as a systematical foundation for research in Hung Yen province 6.2 The practical meaning The dissertation was conducted in a new development context of Hung Yen province such as broader integration, industrial revolution 4.0, pollution, etc.,that is also the point when Hung Yen province has gradually shifted its agricultural economics towards industrial economics, urbanlization has been strong, the space for agricultural producing has been decreased, meanwhile the demand for argo-products especially organic agriculture is on a rise On the other hand, Hung Yen still has over 80% rural househoulds, in which approximately 40% of househoulds are poor and lives on agriculture In that context, restructuring agricultural economic towards modernization successfully has the important meaning putting a stepping-stone in economic development The conclusion of the thesis Except the introduction, the conclusion, appendix and index to reference work, the thesis is devided into 04 main chapters: Chapter 1: Overview of the research Chapter 2: Theoretical bases and practical experiences in restructuring agricultural economic towards modernization Chapter 3: The true state of restructuring agricultural economic towards modernization in Hung Yen province Chapter 4: Orientation and solution for restructuring agricultural economic towards modernization in Hung Yen province Chapter 1: THE RESEARCH OVERVIEW Up to now, there are many researches related to agricultural economic restructuring foreign and domestic such as: 1.1 The researches of restructuring agriculture to market-oriented economy The book “East Asia Miracle: Economic Growth and Public Policy” – World Bank (WB) published by Washington D.C in 1993[163] and “Rethinking East Asia Miracle” by Joseph E Stiglitz, Shahid Yusuf, Oxford University Press, 2001 [143] are reader’s interest research works Their points of views show that shifting economic structure is mainly determined by market It’s suggested that shifting production from “what we have” towards “what market need” Having the same point of view, the researches of E Stiglitz, Shahid Yusuf , named “Agricultural Policy Choices in OECD Countries” from 1961 to 2008 by J.Brooks, published in 2010 The Study “New Traits in Agricultural Rural Economic Restructuring” by Hoang Hien aims to maintain food security, production restructuring oriently meet the requirements of market, renew the production relationships in the countryside Author Tran Tien Khai expressed in the article “Agricultural restructuring: Market Views” in 2015 about the background of modern agricultural development, Vietnam export market and its demand, etc., 1.2 The relevant research paper of tranforming the business organization model and production management towards modernization in agricultural economic restruring According to this approach, the enterprises would produce argoproducts focusedly and in a large-scale And with production nuclear role, they are has enough linkage production capacities to promote restructuring agriculture effectively Stamm & Christian in Study of ILO “Develop the value chain: Approach methodology and Activities of UN agencies, and Opportunities for Interdisciplinary Development” authors Drost, S., Jeroen van Wijk, Fenta Mandefro in research paper named “Key conditions for succcessful value chain partnerships” in 2012 studied the partnership in value chain in Ethiopia Another research paper “The restructuring process and economic centrality in capitalist agriculture” by Terry Marsden, Sarah Whatmore, Richard Munton Sudies on “Farm restructuring in the ex-GDR: towards a new farm model?” by Olivia J Wilson, Bernd Klages[154, p.277-p.291]; “Restructuring and agriculturerural economy linkages: A New Zealand study” by Olivia J Wilson The article “Restructuring or Reconstructing Agriculture –Science basis” by Vu Trong Khai Research of PhD Đặng Kim Sơn, in papper book “Vietnam Farmers, Rural and Agriculture now and forever” All of the authors conclude that small-scale production organisation and smal services are the main obstacles to modernize production 1.3 The research papers on restruturing agricultural economics by advanced technology application Mike Baroni (2011) from U.S National Institute of Education with research “ The Bridge on Agriculture and Information Technology: Innovation and Urgency: Toward a New Green Revolution” suggested that, synchronically and frequently applicating the hi-tech and advanced information technology would be a breakthrough in shifting agriculture structure to new level modern development Mieke Meurs(2008) viết “Agricultural restructuring in Bulgaria”và Christopher Conte, Albert R Karr (2001) in “American Agriculture: Its Changing” emphasized that restructuring agricultural economic by using new technology would create an highly effective agriculture Having the same opinion wwith the above researches, research of Richard Bolt implemented on 7/2004M:“ Accelerating Agriculture and Rural Development for Inclusive Growth: Policy Implications for Developing Asia”, the Article “Towards hi-tech agriculture and new rural construction during restructuring Vietnam agriculture” by Prof.Dr Tran Duc Vien Dr Nguyen Viet Long 1.4 The researches on restructuring agriculture together with substainable developent and climate change adaption This subject includes the report “Our common future” was prese nted at The World Commission on Environment and DevelopmentWCED(Brundtland Report 1987), FAO(1992) in “World Food Dry",etc., Vietnam 2035 Report also state the message of Vietnam is that “Economic prosperity, balanced with environmental sustainability” Research on “Subsistence Agriculture” Malcolm Gillis Study “Urban and periurban agriculture” - FAO published in 2001 Research on Substainable Argitourism” by Bui Quang Tuan (2015) Study of Vu Van in paper book “Sustainable agriculture development in Vietnam”etc., 1.5 Approaching work of restructuring agriculture towards industrialization and modernization 1.6 The issues are needed to be researched more in the thesis The first one is that restructuring agriculture towards modernization is stilla new issue in Vietnam, esspecially in Hung Yen in the context of integration, industrial revolution 4.0, climte change,etc., The second, at the pre“sent there is no science-based study on the restructuring of Hung Yen's agricultural economic in the new context by 2025 and future vision by 2030 With this thesis, the writer expects to contribute to clarify the theoretical and practical matters of restructuring agriculture towards modernization in Hung Yen province in term of market, production organization, technology, environment, potentials,etc., they are also the issues needed to answer smoothly under development in practice of Hung Yen - Approach: The thesis is approached on economics, society, institution, envirionment, production organizatio, technology, and implemented with economic development specility CHAPTER THEORETICAL BASIS AND PRACTICAL EXPERIENCES ON RESTRUCTURING AGRICULTURAL ECONOMICS TOWARDS MODERNIZATION 2.1 Theoretical basis of restructuring the agricultural economics toward the modernization 2.1.1 Economic Theory and restructuring agricultural economics The thesis explain and clarify some relevant concepts and basic theory demontrating the process of restructuring agricultural economics Concepts: Clarifying the definitions of economic structure, agriculture, economic restructuring and agticultural economic restructuring according to that:“Agricultural economic restructuring is a process that changes the structure and internal relationships of the agricultural economics under purpose- oriented, it means that shifting a traditional and out-of-date agriculture to modern developing ones in term of adaptability, dynamy, effectiveness, comrehensive economics and society with cognition and objectivity” Basic theories: The thesis analyzes and clarifies the views and implications of some theoreties on agricultural economic restructuring, reflecting the moving from tradition to modernity such as Walter Rostow's Stages of Economic Growth; The Fei–Ranis model of economic growth by Harry T Oshima; Rural modernlization(RM); The Structural Transformation and the Changing Role of Agriculture in Economic Development: Empirics and Implications by Peter Timmer The mentioned theories draw the regular conclusions on agricultural economic restructuring towards modernization that would be the basic analysis framework for the above theories 2.1.2 Theories on agricultural economic restructuring towards modernization 2.1.2.1 Modern Agriculture and Agricultural economics structure From scientific analysises the thesis gives out the following concepts: *Traditional Agriculture *Modern Agriculture *Modern Agricultural Economics: is an overall of relationships in agriculture production (sectors, sub-sectors,etc.,),which have organic linkage with each other in term of quantity and quality, creating the balance, the hamorny, more adapting to market’s demand and current development environment (economics, politics, society, nature envorinment, technology environment,etc.,), at the same time adapting to requirement of substainable development in domestic and international integration 2.1.2.2 Restructuring agricultural economic towards modernization Restructuring agricultural economic towards modernization is a process (increasing or decreasing) on quality, scale, value, rate of agriculture sectors in deirection of adapting to market’s demands, integration, and climate change in order to create a suitable structure (sector,region,component, technology, and product) hợp lý, develope comparative and competitive advandges during agriculture development towards modernity 2.1.2.3.Popular contents and rule-based standards of restructuring agricultural economic towards modernization The polular contents and issues are that: - Must depend on market’s principle and economics - Step by step moving from out-of-date monoculture to polyculture, diversifying cultivation and animal husbandry s, developing large-scales * Moving speed of agriculture and fisheries Through Qualitative Vector Analysis, the writer quantify the moving speed of agriculture structure in period from 2010 to 2016 as follows: Table 3.1 shows unstable moving speed year by year, but on the average , the period of 2010-2016 reached 6,5% is rather high (higher than Red River Delta) Unstable speed of restructuring agricultural economics caused by limitations in organization, resources, technology, and market However, reviewing comprehensively the quality of restrure is improved, towards modernization, showed in terms of the followings: Firstly, accomulating and centralizing farmland for large-scale production construction,in particular, 92 compact production areas, 104 vast farms Secondly, having innovated production organization and promoted linkages in agriculture Creating several linkage models between enterprises and farmers as well as collectives in producing green argoproducts by VietGAP, Organic production Shifting low value cultivation and animal husbandry s to high value cultivation and animal husbandry s such as high quality rice, organic vegetables Thirdly, advanced production process VietGAP, organic agriculture are intially applied The rate of biosecurity breeding facilities increasing from 10% in 2010 to 30% in 2015 Table 3.1 Speed of restructuring agricultural economics at Hưng Yên in 2010-2016 Speed (α/90) *100 1,7 Time Cosα 2010-2011 0,99963 2011-2012 2012-2013 0,99954 0,99939 2013-2014 0,99995 2014-2015 2015-2016 0,99985 0,99901 3,44 2010-2016 0,99481 6,50 2,01 2,28 0,95 2,89 Source: Database of Hung Yen Statistics Bureau 11 Fourly, up to now there are 06 collective trademarks for production strengths such as Kumquat Văn Giang, Soy sauce- Tuong Ban Mỹ Hào launching trial exportation (market survey) of Longan fruit to the U.S, Banana to China, Russia The above results have contributed to increase production value/hectare of farmland from VND 62 million/year in 2010 to VND 162,5 million/year in 2016 , higher than national averages and several provinces in Red River Delta Briefly, thanks to the typical results on restructuring agricultural economics, labour force and agricultural space are restructured possitively 3.2.2 Restructuring cultivation and animal husbandry s The fellower focuses on assessing the actual state of restructuring cultivation and animal husbandry because they are potential sectors but not explored Restructuring animal husbandry cultivation Cultivation structure has been intially shifted possively towards increasing value of vegetables, beans and ornamental plants from 18,74% in 2011 to 25,73% in 2016, and gradually reducing the value of grain production from 64,38% in 2011 down to 50,84% in 2016) In the period of 2011-2016 fresh fruit production value increased 5,27% on the average, grain production decreased correspondingly 5,1%, high quality rice area increased from 54% in 2011 up to 61,6% in 2015 Lots of high quality have been put into production such as Longan- Hung Yen, Banana -Khoai Chau, pomelo Dien- Van Giang, Orange Vinh make profit of VND180-250 millions/ha/year Initially applying science & technology, high technology, advanced process on production (VietGAP, ISOGAP, organic agriculture, drip irrigation technology, greenhouse,etc.,) brings high economic efficiency The restruring speed, calculated result shows that speed of cultivation restructuring in period of 2011-2016 trendly decreased from 5,83% to 1,67% during 2014-2015 and grew back in 2015-2016 obtained 1,91% However, on the average during 5-years from 2011-2016 , restruring speed was quite high at 13.81% 12 Table 3.4 Restructuring cultivation speed on 2011-2016 period Speed (α/90) *100 6,55 5,83 4,11 Time Cosα 2010-2011 2011-2012 2012-2013 2013-2014 0,9947 0,9958 0,9979 0,9992 2014-2015 0,9997 2,56 1,67 2015-2016 0,99961 1,91 2011-2016 0,97664 13,81 Source: Database of Hung Yen Statistics Bureau The above restructuring is very possitive, intially toward modernity because of replacing low value crops like rice by high value added crops such as fruits, ornamental plants, flowers Yet, gradually speed down year by year points out the replacement is still slow, not make a breakthrough on the restructuring Restructuring animal husbandry s In period of 2010 - 2016 pointed out the quality of restructuring animal husbandry s has been improved in terms of both quality and quantity towards centralized production, applying science & technology, GAHP production The intial results are: lean growth rate obtained over 85% (on the national average 56%), Sind-crossbred cattle reached almost 100% (nationwide 35-40%) in which the rate of crossbred cows is over 38%; raising the proportion of animal husbandry in agriculture to over 50% in 2016 (actual value), average production value increased 3,31% during 2011-2016 animal husbandry production has gradually shifted to concentrated animal husbandry and towards biosecurity (40%) average production value obtained over 3,3% on 2011-2016 period The province has established four GAHP-scale animal husbandry areas, including 49 GAHP groups, with 1000 animal husbandry producers eligible for VietGAP certification and participating in the safe food chain However, due to the small size of households, 60% of the households own 75% of the total animal husbandry production, in which 13 most of the animal husbandry production is spontaneous Up to now,9 new animal husbandry farms have been built, accounting for 12.1% * Restructuring animal husbandry speed: shown on Table 3.5 Table 3.5 Restructuring animal husbandry speed on 2011-2016 period Time Cosα Speed (α/90) *100 2010-2011 0,99629 5,5 2011-2012 0,99759 4,45 2012-2013 0,99987 1,39 2013 - 2014 0,99998 0,89 2014 - 2015 0,99999 0,56 2015 - 2016 0,99999 0,55 2011-2016 0,99663 5,22 Though the quality of restructuring animal husbandry increase, but as shown in Table 3.5, its speed was trendly down due to the below causes: - The first is that: Up to now, small-scale animal husbandry is majority (60% for small-scale animal husbandry and 40% for animal husbandry) - The sencond is: unsustainable development, uncertain price, hard to control, some mainly raw products slaughtered for retail reach over 60%; The percentage of processed products is low, accounting for only 4% [46] together with prices are uncertain, unstable - The third: The linkage chain model has not yet developed Currently, there is only one linkage chain (1600 milk cows) with Vinamilk company - The fourth: Hi-tec application, advanced production process as Vietgaphp in breedings are limited Up to 2016, the province has granted certificates to nearly 1,000 households in 04 GAHP areas under Lifsap breeding project in Van Giang, Van Lam, Khoai Chau and Tien Lu districts However, the number of households applying high technology and advanced production processes accounts for only 30% of total households in the province - The fifth: Service activities in agriculture are undeveloped The current 14 agricultural services (in 2016) are mainly focused on land preparation (45%), irrigation services (16.6%), pest control (1.1%), harvesting services 21%), etc., Necessary services such as agricultural extension, high technology, consulting services are very limited, thus, they not make breakthrough in the agricultural economics 3.2.3 Situation of modern factors in the agricultural economic structure of Hung Yen province 3.2.3.1 Market Impacts Conducting a survey on two groups of households Group I includes farm households, rich households, better-off households and Group II includes middle-income households and poor households The survey results show that group I has good conditions on capital and land, is easy to implement a large scale production, high technology application, advanced production process (VietGAP 13 - 17% production rate) while the rate in the second group is 3.7 - 6.5% From the above results, in the process of restructuring of plants and animals, the percentage of households shifting from the knowledge and thinking about product market of group I is 30.59%, group II is 11.50%; The percentage of households in Group I linked with enterprises is 20.54% The second group is 8.9% The number of spontaneous production households is 32.2% Consequently, the group I consumed through the linkage with enterprises is easier than the group II, most of the group II sells through traders, sells themselves leading to lower efficiency The survey with local officials showed that the restructuring trend was positive (82.7% for green production, 67.5% for high technology, GAP 34.5% market-orientated and still more than 41% spontaneous shifting households is the majority) Market access was initially taken into but inadequately, and the market potential for green farm production was very high 3.2.3.2 Accumaltating and centralizing the field land By concentrating land through land accumulation, the province has gradually overcome the situation of land fragmentation, creating favorable conditions for farmers to change production effectively Establishing the concentrated cultivation areas, animal husbandry and aquaculture, focusing on modern specialization (forming 92 production areas, 104 sample fields, 15 804 farm models, applying hi-tech production contributed to increase the value of production / hectare of cultivation from 106 million in 2011 to 162 million in 2016 is 1.5 times higher than the national average) However, the concentration and accumulation of land has some limitations such as limited accumulation area (7%), small scale accumulation (95% under ha) land is interlocked due to industrial development , urban, environmental pollution 3.2.3.3 Develope household economy, farm, new collective style and private enterprise during restructuring agricultural economics in Hung Yen * Household economy Still a major and popular form of production organization in Hung Yen (84% of rural households, 34% mainly working in farm 9.8% surveyed households have initially learned and applied some high technology in production;12,25% of households are affiliated with VietGAP, 22,78% of households associate with businesses and associate with traders 36,53% The participation rate associated with VietGAP for green production of group I is 19.5% while that of group II is 5% In general, the form of household economy still shows many limitations, the scale of land is fragmented, concentrated difficulties in group II households are "unable to rise completely independent but need to the linkage support of cooperatives, enterprises, functional agencies,etc., in production, consumption, application of new technical advances, high technology, mechanization in the production Difficulties in capital are common to the group of households II, the proportion of households borrowing capital for production obtained 22.13%, the loan ratio accounted for 29.33% of the total capital, of which 27% , 5% of households borrowed capital, the average loan size is 18.41 million dong a year mainly borrowed from friends, or material supplierl agents and deferred payment * Farm economics - Quantity: In 2011 there are 189 farms in Hung yen, up to 2016 the number o farm increased to 865 ones; in which the fastest increase is 608 farm In general, farms face many difficulties on: land consolidation (The actual land area of 0.66 in 2011 increased to 0.82 / farm in 2016), low education level of farms’s owner capital difficulties (over 80%), weak 16 linkage entrepreneurship (13,87%), in which 30% biosecurity production, 20% GAHP cultivating farm * Collectives forms and new cooperatives All over the province, there are 173 agricultural collectives operating under Law on Cooperative 2012 There are a number of new cooperatives established and operated on a basis: 1- Volunteer to contribute the capital and reorganize production towards the market; 2- Linking with enterprises to consume to sell argo-products by signing the contracts However, most of them have difficulties in capital, and shifting cooperatives to new style By June 30, 2017 there are 20 new cultivation cooperatives (12.14%), six animal husbandry cooperatives (3.5% of cooperatives) linked with enterprises in the associated size of 538.18 hectares of cultivated land, 12.04 hectares of animal husbandry The linkage output value through cooperatives is very limited,in particular in the cultivation sector is 92,128 million owned 1.58% of the total value of the industry, in the animal husbandry industry is VND 63,456 million, accounting for 0.91% * Agricultural enterprises There are only153 projects in agriculture sectors (obtained 5,6%), 0,28% of FDI enterprises The majority is small size and low-tech enterprises They have faced many difficulties on invest policy, land, capital leading to limited entrepreneurship linkages (possessing capital below 10 VND billions is over 80%, company size of 50 workers obtained 13,34% on total enterprises, 87,35% enterprises lacks of capital, on the average 10% of them applying hi-tech and 27,5% use advanced technology such as, VietGAP, GLobalGAP, HACCP and 7,5% enterprises achieving VietGap Standard certìication * The linkage situation among entitiesin agriculture - Verizontal linkages At the present, there are models of linkages betwên farmers and the enterprises, they are (1) direct linkage with farmers model, (2) the joining of cooperatives model Those models have contributed to agricultural economic restructuring towards modernization through hi-tech application, production areas, farming construction, , labour restructuring etc., Nevertheless, the linkages contracts in green argo-products production is 17 very limited Only 14 cultivation firms and 12 animal husbandry firms signing the contracts with farmers, and 4% area collected the main argoproducts joining the linkages - Horizontal linkages : the majority is free connect with each other for massive production (over 85% area) - The third is finacial linkages Most of households approach to investment capital through agents who provide materials and consume the outputs in form of buy on credit and deffered payment The agents would buy back output products with money counted on materials thay supplied before The minority of households cooperate with the enterprises in form of labour contribution and capital (not much) 3.2.3.4 Hi-tech application on agricultural economic restructuring towards modernization In period of 2011-2016 advanced production technologies have been applied on cultivation and animal husbandry (saving water on irrigation in rice production, IPM, Nanosilver, Nanocu application, VietGAP, ISOGAP, biosecurity in cultivation, GAHP, culture technology, greenhouse, etc.,) help increase productivity However, the fact shows that hi-tech application on agricuture production is very limitted, reached mainly 5-20% of total investment cost for technology The rest is low-tech Therefore, value of high quality products by VietGAP such as rice, vegetables, flowers, etc., is increasing but not much In 2015, high quality rice production value obtained 0,3068% of cultivation, biosecurity reached 18,80% of animal husbandry value 3.2.3.5.Sustainabile fact associated with environmental protection and adaptation to climate change during agricultural economic restructuring towards modernization Economics Hi-tech application, green production (organic vegetables, banana tissue culture, pigs - farm biosecurity, VietGAP fruits, etc.,) have been promoting high quality agriculture with stable consumer market, có thị trường tiêu thụ ổn định, 2-10 times higher productivity than rice production, etc., Society The linking between agicultural economic restructuring process new rural construction to improve villagers’ livelihood, culture and 18 spirit contributing to reduce household poverty rate to 6,81% Environment Application of hi-tech, reduction of plant protection drugs, bio animal husbandry,etc.,help protect the environment but limited 3.2.3.6 Modernizing the public utility Hung Yen agricultural and rural infrastructure have been step by step invested and modernized, but lack of synchronization and linkage with transport and irrigation, electricity, commercial infrastructure, processing facilities especially after land consolidation 3.3 General assessments and issues on Hung Yen agricuture economics restructuring as direction of modernization 3.3.1 General assessments on Hung Yen agricuture economics restructuring 3.3.1.1 Achievements Firstly, agricuture economics structure has been shifting on the right way, walking the first step towards modernization The second, renovating the production organization, forming specialized areas, large-scale production of commodities The third, Market access through trade promotion activities, brand building, geographical indications of goods in the process of restructuring agricultural economy in the province initially interested The four, There have been positive changes in the application of advanced production processes, high technology production of green agricultural products with high technology to ensure food safety and hygiene associated with ecological environmental protection The Fifthly, planning work, restucturing projects are concerned 3.3.1 The limitations, weaknesses and causes Firstly, speed of restructuring and production value are slow and unstable, low production value proportion in green argo-products with lowtech and low competitive capacity Secondly,production specialization and centralization have existed many constraints and shortcomings Thirdly, Farms, cooperatives, VietGAP group, agricultural enterprise are in small quantity, small scale, obsolete technology, etc., Linking together the four houses is loose 19 The fourth, limited market access capacity,limited hi-tech application Fifthly, poor policies and operation of linkage production chain Sixthly, low labor productivity, undeveloped and unbalance rural labor market b) Causes of the weaknesses and limitations * Subjective Causes The first, low quality of both direct and indirect human resources does not meet he need of shifting process The second, agricuture planning work and planning control are still weak and limitted The third, lack of synchronization in policy mechanisms The fourth, the investment policies and activities for restructuring process still have many and shortcomings and modicum b) Objective Causes Firstly, existing decentralized agriculture land and poor activities on land cause slow restructure process Secondly,urbanization and industralization have been growing quickly causing the pollution in province Thirdly, infrastucture, specifically connecting infrastructure for trade (logistics, reservation, quality control ) is not very attentive The fourth, consumer market for green and organic argo-products after restructuring is undeveloped, it’s not encourage the enterprises, the individual shifting production towards modernization The fifth, poor rural industry and services 3.3.2 The issues on restruturing agricultural economics towards modernization - Existing land decentraliztion is conflicted with the requirement of land consolidation, contructing specilized production areas in a large-scale for restruturing agricultural economics - Developing the consumer market for green and organic argo-products after restructuring - Constraints on consistency, quality, suitability of agriculture planning work with character and requirement of restructuring process - Quality of labour forces and investment capital have been still limitted 20 in comparision with the restructuring process requirements - Restructuring process requires to innovate production organization, appply hi-tech, and advanced production process in order to create the variaty of green argo-products for market’s demand - To solve synchronizedly the weaknesses of agricultural and rural, infrastructure system, obsolete service system which can not catch up with shifting towards modernization - Solving the conflict between shifting production of green argoproducts and weakness in quality according to quality standard and food safety - Solving arising problems during linking process between agricuture with processing industry and handicraft villages at rural area - Concerning about ecological environment protection issues during restructuring agricultural economic towards modernizaton CHAPTER ORIENTATIONS AND SOLUTIONS FOR HUNG YEN RESTUCTURING AGRICULTURAL ECONOMICS TOWARDS MODERNIZATION 4.1 Domestic & International impact on Hung Yen restructuring agricultural economics towards modernization 4.1.1 International impact 4.1.2 Domestic impact 4.2 Perspectives and orientations on Hung Yen restructuring agricultural economics towards mosdernization 4.2.1 Several perspectives on Hung Yen restructuring agricultural economics towards modernization Firstly, Hung Yen restructuring agricultural economics must be implemented in a close relationship and in line with overal planning for socio-economic development and regional planning, promoting its competitive advantages Secondly, Hung Yen restructuring agricultural economics must ensure to make good settlement of the relationship between economic efficiency, social efficiency, ecological environment efficiency and 21 responding to the climate change Thirdly, Hung Yen restructuring agricultural economics must be comply with the market mechanism, in line with each area, each sector; focusing on support shifting for the key competitive agro-forestry products Fourthly, promoting Hung Yen restructuring agricultural economics by science and technologybằng khoa học công nghệ high quality human resources and the investment of potential enterprises The last but not least, organizing and managing the production in chain on the basis of developing key factors’ possitive effects in which private enterprises and FDI firms play an important roles 4.2.2 Several prior orientations for Hung Yen restructuring agricultural economics in the direction of modernization by 2025 and future vision by a) Restructuring agricultural economics in the direction of paying much atttention to plants and animals with high economic value and competitive avantages on market b) Orientation about hi-tech application in animal husbandry and cultivation c) Building agricultural production areas in a large-scale based on the foundation of advanced science and technology d) Orientation about the organization and management for business product chain, value chain with important role of the enterprises e) Orienting to improve the quality of human resources in order to make basic changes in cognition and capacity of shifting production towards modernizaton; f) Orienting the investment capital sources 4.3 Some main solutions on accelebrating the agricultural economic restructuring towards modernization by 2025 and future vision by 2030 4.3.1 Solution on Land It’s requested to remove land difficulties to accelebrate the concentration of land in order to get better on meeting the requirements of restructuring agricultural economics in province 4.3.2 Solution on extending and developing market Market, specifically market of organic products and hi-tech products is the key factor determining the success of restructuring agricultural 22 economic towards modernizaton 4.3.3 Measurement on promoting research on applied science and technology transfer, especially hi-tech application on agrculture 4.3.4 To renew, to complete the producing organizations in the linkage chain of production entities during the restructure agricultural economic processing in province It’s the priority to encourage and to make convenient conditions to attract both private enterprises and FDI firms, especially strategic investors having financial strength and tecnology It should have benefit policies to encourage producers to join the linkage chain 4.3.5 Measurement on attracting investment capital and Environment solution Mobilizing, attracting domestic investment capital (State budget, enterprises, credit institutions, individuals), and foreign investments (FDI, ODA, NGOs,etc.,) Mobilizing, attracting domestic investment capital (state budget, enterprises, credit institutions, individuals) and foreign investments (FDI, ODA, NGOs,etc), giving priority for enterprises having clean production and high-tech application the farming, Industry needs to apply high technology, environment-friendly process (VietGAP, SRI, "3 increases decreases", " right, decrease") reduce the usage of artificial fertilizer, plant reservation chemical substance build the basins to keep plant reservation chemical Substance in the field The individual cattle industry needs to apply technology in treating the cattle waste, build the gathered cattle areas which is safe from epidemic diseases, implement the propaganda on the epidemic diseases well To cultivation it’s necessary to apply high technology, green production process (VietGAP, SRI “ 3I3D - ICM”, “IPM - 1R5D”, etc.,), decreasing to use chemiscal fertilizers, plant protection drugs,etc.,building xây dựng pesticide stocks in the fields For animal husbandry industry, applying hi-tech to clean small wastes, building safety centralized ranches preventing epidemic, spreading out environment protection 4.3.6 Educate, Attract and Improve human resources for hi-tech agriculture development It’s necessary to determine training objectives, education content and 23 format, education sites, which match with the demand of restruturing agricultural economics towards modernization 4.3.7 Solution on planning work It is necessary to focus on reviewing, adjusting and supplementing the agricultural production planning, animal husbandry planning, regional planning, sectoral planning , to ensure the uniformity without contradiction each other The planning must be done up to the commune level, regularly updated, supplemented and adjusted accordingly 4.3.8 Solution on innovating and completing the mechanism and policy to promote restruturing agricultural economics towards modernization Innovating some policies such as Land policy, Credit policy, the linkage between Hung Yen’s agriculture with other provinces in Red River Delta, especially Hanoi Capital, Investment policy, Tax policy, etc., CONCLUSION Restruturing agricultural economics towards modernization in Hung Yen province is an urgent move in this new context In recent years, Hung Yen has taken a long stride, step by step modernizedly developed However, compared with the goal and requirement of modern and substainable agriculture development, it has just taken the first step, not yet made a breaktrough and not met the basic demand of an orgarnic, green agriculture Based on theory and practice, the thesis also analyses, assess the reality of restruturing agricultural economics towards modernization in Hung Yen province in term of market, production organization, technology, etc., confirming initial successes, constraints, weaknesses, and explaining the causes and drawing solutions in order to accelerate the shift of agricultural economy towards modernization in the coming time Based on the international and domestical analysis in general, Hung Yen province particularly, from the perspectives of the Party and State, provincial development orientations, the doctorate fellower also proposes his perspectives, orientations, and solutions for accelebrating restruturing agricultural economics towards modernization by 2025 and future vision by 2030 24 SOURCES OF PROJECT PUBLICATIONS RELATED TO THE THESIS [1] Hoang Minh Duc (2017), “Orientation of restructuring agricultural economic struture toward modernization in Hung Yen province”, Jounal of SocioEconomic Information & Forcasting, No.144 in Dec 2017, p.24-p.29 [2] Nguyen Dinh Long, Nguyen Thi Hai Yen, Hoang Minh Duc (2017), “Agriculture Development toward modernization, application of high technology associted with restructuring Vietnamese Agriculture”, Jounal of Regional Substainable Development – Vietnam Academy of Social Sciences, Volume 7, No.2 in June 2017 p.17-p.25 [3] Hoang Minh Duc (2016), “Promotion of agricultural economics restructuring toward modernization in Hung Yen province”, Jounal of SocioEconomic Information & Forcasting, No.128 in Aug 2016, p.29-p.36 [4] Hoang Minh Duc (2016), “New approach to agriculture restructuring and some directions for Vietnam”, Jounal of Socio-Economic Information & Forcasting, No.1 in Jan 2016 p.50- p.53 [5] Hoang Minh Duc (2015), “Agriculture restructuring in current context: International xperiences and Lessons drawn for Vietnam”, Jounal of Socio-Economic Information & Forcasting, No 118 in Oct 2015, p.7-p.13 [6] Hoang Minh Duc, Le Thi Thương, Ho Bach Tuyet (2016), “CNC Agricultural Development – Indispensable direction of Vietnamese Agriculture in the International Integration”, Jounal of Socio-Economics, No.167 in Aug 2016, p.40-p.44 [7] Hoang Minh Duc, Luu Minh Huyen (2016), “Status of Agriculture, Forestry And Fisheries Enterprises of Vietnam in the integration background: Opportunities and Challenges”, Jounal of Finance and Business Admnistration Finance and Business Admnistration University No.4 in Dec 2016, p.38-p.42 [8] Hoang Minh Duc, Luu Minh Huyen, “Opportunities and Challenges of Vietnamese Agriculture Development in the international integration background”, Jounal of Science and Technology - Hung University of Technology and Education, No on Dec 2015, p.82-p.87 Yen ... status of restructuring agricultural economics of Hung Yen province toward modernization, propose the perspective, orientation, and key solution for restructuring agricultural economics of Hung Yen. .. practical experiences in restructuring agricultural economic towards modernization Chapter 3: The true state of restructuring agricultural economic towards modernization in Hung Yen province Chapter 4:... on Hung Yen restructuring agricultural economics towards mosdernization 4.2.1 Several perspectives on Hung Yen restructuring agricultural economics towards modernization Firstly, Hung Yen restructuring