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1 INTRODUCTION Rationale Agriculture is an economic sector that plays a particularly important role in the socioeconomic development of each country It not only provides food for human needs, but also raw materials and human resources for non-agricultural activities The development of the agricultural sector will create a large market for industry and services; concurrently, it also plays an active role in increasing foreign exchange in exports and the sustainable agricultural development will greatly contribute to environmental protection In developed countries such as the US, Western Europe and Japan, although agriculture only accounts for a very small proportion of GDP (1-5%), these countries still pay great attention to the development of agriculture as their development are modern-andsustainable-oriented After four decades of reform and economic openness (since 1978), along with the overall growth of the economy, Chinese agriculture has achieved important achievements It has shifted from self-sufficiency to commodity production and has grown towards the world market and become one of the largest food manufacturing countries in the world Although it only accounts for more than 7% of the world's cultivated area, China can balance the food amount for more than one fifth (22%) of the world's population (Trinh Quoc Cuong, 2008) China can not only meet most of the domestic food demand but also achieve positive results in agricultural exports Today, the sustainable development of agriculture is a necessary requirement and a difficult task for Vietnam in the context of integration In the world market, Vietnam is facing fierce competition in agricultural products as well as being required to comply with regulations in the production and export of agricultural products proposed by WTO Vietnam and China are two countries located in Asia, despite the different size and position in the world economy, the two nations share some common features in agricultural development Concurrently, China and Vietnam also have many similarities in institutions and policies for economic development in general and agriculture in particular when both are members of WTO The similarities in economic institutions between the two countries prove that China's experience in the process of preparing for joining, negotiating and countering after becoming a member of WTO can be useful lessons for Vietnam (Le Huu Tang and Luu Ham Nhac, 2002) Therefore, the study of China's lessons and experience in agricultural development Experts stated thatt China can feed more than 20% of the world's population, while owning only 9% of the fertile land and 6.6% of the world's freshwater reserves This is possible due to increased yields of many crops, for example, rice productivity in China is 50% higher than the global average and wheat productivity is 55% According to the report by the Ministry of Agriculture of China, in 2010 the total export value of agricultural products reached 35.6 billion USD (3 times bigger than 2001), in 2011 reached 60.75 billion USD, in 2012 the total export and import turnover of agricultural products of China reached 175.77 billion USD (up 12.9% compared to 2011), of which exports reached 63.29 billion USD (up 4.2% compared to 2011) policies after their official membership in WTO can produce practical implications in both theory and reality for Vietnam in the process of enhancing the country's competitiveness, comparative advantage of the agricultural sector as well as agricultural commodities that Vietnam is and will be exporting to the world market towards a sustainable orientation Research objectives General objective: The research explained the possibility of applying experience obtained from Chinese agricultural development policies after joining WTO for Vietnam Specific objectives - Systematize literature review and the practical basis of agricultural development policies in various countries after their participation in WTO - Evaluate strengths and weaknesses as well as impacts of China's agricultural development policies after joining WTO on agriculture, synthesize the experience and lesson - Explain the possibility of applying the experience achieved from China's agricultural development policies after joining the WTO to apply for Vietnam Research object and scope 3.1 Research object The research object was agricultural development policies in China after joining WTO 3.2 Research scope The thesis studied the content of Chinese agricultural development policies after its participation in WTO However, the thesis did not study all policies (including domestic and foreign policies), only selected and focused on a number of policies related to foreign activities, specifically: - Policy for tariff and non-tariff barriers - Policy for export subsidies - Policy for domestic support - Policy to establish and complete technical barriers to trade (TBT) Research questions (i) How does WTO membership directly affect the agricultural situation and agricultural development policies in China? (ii) What are the fundamental changes in China's agricultural development policies after joining WTO? What are the impacts on China's agricultural sector? Which industry is most affected and what are the lessons learned? (iii) How Vietnam can apply the lessons and experience in China's agricultural development policies after joining the WTO? Research approach and methods 5.1 Research approach From theory to reality The study approached the system, built a research framework to analyze contents of the thesis 5.2 Research methods Analysis, synthesis, comparison and inference were used to find out the achievements as well as limitations in China's agricultural development policies; similarities and differences in commodity agricultural production between China and Vietnam, similarities and differences in the implementation of commitments with WTO Within the study, the author mainly used the comparative method to explain the possibility of applying experience learned from Chinese agricultural development policies to apply for the situation in Vietnam The research also applied historical method and logical method Specifically, in historical method, the author perceived things and phenomena according to the chronological process (through different time milestones), and the logical method enabled the author to connect all events' sequences and discover the nature of research object Periodization was also used to study more deeply and discover characteristics of objects and phenomena in specific historical periods Modeling was also utilized in building the research framework, and concurrently analyzing the cause-and-effect relationship of agricultural development policies with achievements in the agricultural sector in China in the stated period 5.3 Data collection and processing Data related to China was collected from China's Ministry of Agriculture, General Statistics Office, General Department of Customs, and Chinese Statistical Yearbook Data related to Vietnam was collected from Vietnam's Ministry of Agriculture and Rural Development, Ministry of Finance, Ministry of Planning and Investment, General Department of Customs, General Statistics Office and Vietnam Statistical Yearbook Data processing: The research used descriptive statistical method and established tables and figures New contributions of the thesis New contributions in terms of theoretical aspect (i) The thesis provided the framework construction of agricultural development policies in the context of Vietnam’s participation in WTO Specifically, the framework should include the basis to select policies, implementation of policies, performance results and application conditions (ii) The research used a combination of theoretical and practical research, interpolation and extrapolation to study the fluctuations of Chinese agriculture, evaluate the current situation of Vietnamese agriculture and the ability to selectively apply experience obtained from those policies in Vietnam after joining WTO New contributions in terms of practical aspect, new discoveries and recommendations Firstly, China's agricultural development policies had been flexibly modified to adapt to commitments with WTO, and the synchronous coordination in the implementation of those policies produced positive effects on the production and import and export of Chinese agricultural products Secondly, China's agricultural development policies after joining WTO had practical implications with Vietnam The integration into WTO produces various opportunities and challenges in the new context and Vietnam can selectively learn the experience obtained from China to establish policies, effectively apply modifications, ensure the appropriate adaption to requirements by WTO and promote comparative advantages of Vietnam's agricultural production, especially in terms of the policy implementation Thirdly, the thesis proposes the applicability of Vietnam to build agricultural development policies post-WTO: (i) Vietnam's agricultural development policies should concentrate on WTO-authorized non-tariff instruments: (ii) Entering the world's agricultural market, Vietnam should produce early warnings to respond to foreign technical barriers to trade (TBT), and improve TBT in agriculture; (iii) Domestic support policyies should be orientated towards focusing, strengthening WTO's classification tools in order for Vietnam's agriculture to sustainably integrate and reach a new height; (iv) The implementation of the agricultural development policies should have the coordination among agencies, ministries and sectors; local government should focus on perfecting production planning and the system of technical standards as well as encouraging all forms of association in agricultural production and processing Structure of the research In addition to the introduction, conclusion, list of tables, figures, list of abbreviations, list of references, list of research related to the thesis topic and appendixm, the study is divided into four chapters with the following structure: Chapter 1: Research overview Chapter 2: Theoretical and practical basis for agricultural development policies in countries after their participation in WTO Chapter 3: Current situation of agricultural development policies in China after joining WTO Chapter 4: The ability to apply lessons learned from China's agricultural development policies after joining the WTO in the context of Vietnam Limitations of the research - China's agricultural policies after joining WTO are large-scaled covering many problems Therefore, in some aspects or major issues, the thesis was unable to deeply analyzed - China is a large country having different cities and provinces with different and diverse development Due to the lack of resources for practical survey, there are still some limitations when studying and evaluating the results of policy implementation - The US-China trade war also affects China's agricultural policies, but the thesis has yet to mention all of them - Due to the author's own conditions related time and other aspects, certain shortcomings are inevitable In fact, there are a lot of research on China's agriculture before and after the country joined WTO in 2001 However, these studies by foreign athours: i Regarding China's agricultural development policies after joining the WTO, abovestated research by domestic and foreign scholars, they have not been analyzed comprehensively and systematically in terms of theoretical and practical basis These studies mainly analyzed the pratical aspect of policy implementation or adjustments of some content in these policies without analyzing the theoretical basis Some explored primary achievements of these policies, but remained to discover the limitations on CHAPTER RESEARCH OVERVIEW agricultural production or import-export as well as Chinese people’s lives ii They had yet to analyze systematically similarities and differences between China and 1.1 An overview of previous studies Vietnam in terms of economic reform and renovation process; agricultural production Regarding China's agricultural development policies after joining the WTO, there are various domestic and foreign research on this topic Based on the contents that are limited in the research scope, each aspect of these policies was studied by many authors and the implementation of agricultural development policies when the two countries J Huang et al (1999, 2001, 2002, 2004, 2006, 2007, 2011, 2013, 2014, 2015, 2017, 2018) studied changes in China's agricultural development policy after becoming a member of WTO In each research, groups of authors evaluated one or several different aspects related to Chinese agricultural policies Some authors conducted intensive research on some specific aspects such as Ni (2013), F Cheng (2008) studied on domestic subsidy policies, agricultural reforms; Martin (1999) analyzed agricultural trade policies Chen (2002) focused on the achievements of agriculture; Liu (2002) outlined the objectives and analyzed some of the WTO-linked agricultural policy adjustments Pham Thi Thanh Binh (2018) concentrated on a number of policies for sustainable agricultural development In terms of Vietnam's agricultural policies after joining the WTO, authors such as Nguyen Tien Dung (2010), Trinh Thi Ai Hoa (2007), Ngo Thi Tuyet Mai (2011), Nguyen Vinh Thanh (2010), Vu Van Hung (2013) are the ones who conducted research In each study, the authors and colleagues explored a specific topic such as agricultural export policies, agricultural product consumption policy, tariff policy adjustments and agricultural subsidies or reviews by OECD in Vietnam's agricultural policies 1.2 Comments extracted from the overview of previous studies Regarding China's agricultural development policies after joining the WTO, abovestated research by domestic and foreign scholars have not been analyzed comprehensively and systematically in terms of theoretical and practical basis These studies mainly analyzed the pratical aspect of policy implementation or adjustments of some content in these policies joined WTO; iii They had yet to evaluate inclusively from a viewpoint of economic history This means the research should be able to extract lessons about the success or limitations of China's agricultural development policies before, during and after their participation of WTO, and concurrently commentary the applicability of these lessons in the context of Vietnam Therefore, the author selected "China's agricultural development policies after joining WTO: Lessons and the applicability in the context of Vietnam" as the topic for the thesis CHAPTER THEORETICAL AND PRACTICAL BASIS OF AGRICULTURAL DEVELOPMENT POLICIES IN COUNTRIES AFTER THEIR PARTICIPATION IN WTO 2.1 Practical basis of agriculture development policies in countries after their participation in WTO 2.1.1 An overview of agricultural development policies 2.1.1.1 Definition Definition of Policies The term "policy" is commonly used in books, newspapers, documents, mass media and in social life All socio-economic entities have their own policies Individuals, organizations, businesses, the Party, countries, union of countries or international organizations all have their own policies Agricultural development policies Agricultural development policies are the combination of economic measures and other measures of the State (from the central to the local level) affecting agriculture and sectors and fields directly related to agriculture to achieve certain goals, with certain conditions for implementation and within a defined time limit (Pham Van Khoi, 2007) 2.1.1.2 The role of agricultural development policies in countries after their participation in WTO - Firstly, to create a legal and economic environment to encourage the development of agriculture in accordance with the objectives of each period - Secondly, to regulate and limite inappropriate development, remove negative trends in industries and at certain times - limitations of the market economy (spontaneity in production business, environmental damage, ) - Thirdly, to promote the role of democracy, encourage the combination of agricultural development with the economy, culture and society 2.1.1.3 Objectives of agricultural development policies in countries after their participation in WTO • To fulfill commitments when joining WTO • To exploit factors that benefit the country • To develop a sustainable agriculture in international integration 2.1.2 Theoretical basis of agricultural development policies in countries after their participation in WTO Theory of Comparative advantage Theory of Sustainable development 2.2 Pratical basis of agricultural development policies in countries after their participation in WTO 2.2.1 Regulations of WTO for agriculture a Open Door Policy b Domestic support policy c Export subsidies policy d Agricultural technical barriers to trade (TBT) e Veterinary, phytosanitary and food safety 2.2.2 The situation of agricultural development in each country, trends and prospects of the world agricultural market in the context of international economic integration - The situation of agricultural development of each country in international economic integration The formulation and implementation of national agricultural development policies in each period based on the targets of the industry as well as the infrastructure conditions of each country - Major trends in the world agricultural market Currently, population growth is a major challenge for the global economy It not only affects the world food security in general but also the food security in a large number of countries in particular Secondly, the world agricultural market tends to gradually shift to developing countries, especially Asian countries These countries increasingly account for a high proportion in the value chain of international trade in agricultural products Thirdly, in the world agricultural market, the import and export value of processed meat products, grease, milk of developing countries is rapidly increasingly Fourthly, the development of the world agricultural market in the future will be strongly influenced by international trade negotiations Fifthly, the fluctuation in prices of agricultural products on the world market remains at a high degree - Prospects of the world agricultural market Being able to recognize and grasp all prospects of the world agricultural market can be served as the basis for countries to formulate their agricultural development policies, based on those prospects to make appropriate decisions in developing strategies for general development of the economy Specific agricultural development policies in each country must be clearly and closely planned to ensure the production development process, to be able to meet domestic demands, and expand to the world market CHAPTER CURRENT SITUATION OF CHINA'S AGRICULTURAL DEVELOPMENT CHINA AFTER JOINING WTO 3.1 An overview of agricultural development and problems when China joined WTO 3.1.1 Some major agricultural development policies of China before joining WTO 3.1.1.1 Household responsibility policy in agriculture The agricultural and rural economic reforms in China began in late 1978, was established on the basis of household responsibility system (HRS) The HRS reforms removed land barriers and contracted agricultural land to households, mainly based on family size and the number of labors in households 3.1.1.2 Domestic output price policy and market liberalization China has gradually changed the production incentive mechanism through the decision to decentralize and adjust the price policy The first price adjustment was made in 1979 After that, the purchase price of agricultural products increased significantly since 1980 Many studies by Lin (1992), Fan (1991), Huang and Rozelle (1996), Fan and Pardey (1997) affirmed strong effects of changes in price and output in the early and final years of transition China has removed all plans to buy agricultural products such as rice, wheat, corn 10 and cotton All such products can only be bought and sold through the marketplace Annual trade, 1995-2000 Agricultural products 3.1.1.3 Rural area development policy and labor market The movement of labor from rural to urban areas is central in the country's efforts in modernization The contribution of rural enterprises (Township and Village Enterprises) to GDP increased from less than 4% (1970s) to over 30% in 1999 HTownship and Village Enterprises dominated the export sector during the 1990s (NBSC, 2001) These enterprises drew about 35% of rural workers out of the agricultural sector In addition to wage for employment in rural areas, a significant number of self-employed rural workers grew, increasing from 8% in 1990 to 13% in 2000 (De Brauw et al., 2002) 3.1.1.4 Agricultural trade policy In addition to important changes in foreign exchange policy, China carried out some fundamental reforms for the international trading system Lower tariffs and the removal of import and export barriers began to have vital effects on the trade in agricultural products of China in the 1980s Firstly, it gradually reduced the level of protectionism in agricultural commodities controlled by the State and state-owned enterprises (Huang and Chen, 1999) 3.1.1.5 Policy for the development of science and technology and agricultural infrastructure in rural areas Before the economic reform, China's agricultural investment focused on building irrigation networks and rural infrastructure After the 1970s, China invested more in exploiting and using its groundwater resources (Wang et al., 2006) Agricultural research in China was largely state-run and they often focused on food policy Most crop breeding programs focused on cereals (rice and wheat) With the motto of national food self-sufficiency, the main goal of research programs in China aimed towards high productivity 3.1.2 An overview of China's agricultural production before joining WTO 3.1.2.1 Agricultural production of China before joining WTO For a country with about 1.4 billion consumers with limited natural resources, China's food imports prior to WTO participation remained relatively low China was entirely selfsufficient and is a net exporter of several agricultural products, including food and beverages, animal products, vegetables, fish and seafood, tea, and fruits Table 3.1 WTO Agricultural import and export of China before joining WTO (Unit: USD billions) Annual trade, 1995-2000 Agricultural products Food & Beverage Animals and animal products Export Import Net exports 3.5 0.3 3.2 2.2 0.5 1.7 Export Import Net exports Vegetables 1.6 0.1 1.5 Fish and seafood 1.9 0.8 1.1 Cigarettes, coffee, tea, and spices 1.1 0.2 0.9 Fruits and nuts 0.4 0.2 0.2 -1.3 Cereals, food, and lean products 1.4 2.6 Seed oil, fat and oils 1.3 2.9 -1.6 Yarn, cloth, leather, and tanning4 5.5 7.2 -1.7 Fertilizer 0.2 2.8 -2.6 Other agricultural products 0.4 1.2 -0.8 Note: Preserved bakery products, food and beverage; Live animals, meat, milk, eggs, honey, and other animal products; Cereals, food and byproducts, flour and products of the milling industry; da Silk, animal hair, cotton and fabric, leather and tanning Source: ERS analysis of China customs statistics reported in Hsin-Hui Hsu and Fred Gale, China: Agriculture in Transition, USDA/ERS Agriculture and Trade Report WRS-01-2, November 2001, appendix tables and Despite the limited agricultural land, China maintained a high degree of food production thanks to its highly intensive farming techniques, two to three crops a year, and the effective use of large amounts of fertilizer and labor However, agricultural production in China showed the unsustainability due to the fact that Chinese farming relies on intensive labor and natural resources Additionally, China's farm economy was still relatively small and mainly household farming 3.1.2.2 China's growth and agricultural structure before joining WTO The trends in China's agricultural trade and economic structure over the two decades were similar to those of other developing countries prior to WTO participation Chinese agriculture has shifted in a direction which is more suitable for its resources The commitments in protocol to join WTO by the Chinese government were also consistent with the country's long-term reform plan 3.1.3 Challenges for China's agricultural sector when joining WTO Firstly, China's agricultural industry has been increasingly and deeply integrated into the world agriculture, and the guarantee of the development of China's domestic manufacturing industry has become increasingly important The second challenge for the Chinese economy is the supply-demand imbalance and the increasingly serious issue of product shortages The third obstacle is that the input cost and other agricultural production fees tend to increase rapidly 11 12 Fourthly, China has to face the imbalance in the labor and employment structure in rural areas, especially the surplus rural labor and the lack of agricultural labor structure Thirdly, they promote a more equitable distribution between urban and rural public resources, and limit the gap between the rich and the poor The fifth hindrance for Chinese agriculture is that agricultural modernization has not kept pace with industrialization and urbanization Fourthly, they are used to adjust objectives in national food security In addition to the central goal of improving farmers' incomes in recent years, the foundation of agricultural policies has been the government's primary focus on food self-sufficiency and guarantee in national food security In addition, agricultural productivity has only increased at a slow rate The pressure to increase income for farmers is increasing 3.2 Current situation of China's agricultural development policies after joining WTO 3.2.1 Chinese agricultural development strategy and perspective China's five new strategic development trends are: sustainable agriculture, smart agriculture, large production agriculture, market-based manufacturing agriculture, and genetically modified agriculture China has built seven strategic areas towards sustainable development in the context of integration including biotechnology, information technology, materials 3.2.2 Main characteristics of China's agriculture and rural areas Firstly, China's agricultural resources are relatively limited Secondly, agriculture remains the primary source of income for millions of farmers and is also the essential means of livelihood for Chinese farmers Thirdly, a large percentage of Chinese farmers still live below the poverty standard as their per capita annual net income were only 2,300 Yuan (about $339) The per capita net income of Chinese farmers in 2010 was 5,919 Yuan (about $874), less than one third of the disposable income of urban residents Fifthly, the tariff policy as well as agricultural subsidies have been implemented according to the required commitments when China becomes a member of World Trade Organization Sixthly, changes in agricultural development policies aim to actualize high-tech agriculture Additionally, China's agricultural policies aim to improve production productivity and sustainable development 3.2.4 China's agricultural development policies after joining WTO 3.2.4.1 Tariff policy and non-tariff barriers (i) Tariff policy China implemented tariff reductions along with tax exemptions to achieve a wide range of policy objectives Specific tax reductions and exemptions were determined by the National Assembly and all tax reductions and exemptions were applied on the basis of the most favored nation (MFN) (ii) Non-tariff barriers Non-tariff barriers include tariff quotas, import licenses Fourthly, with a population of roughly 1.42 billion , China is particularly concerned with domestic food security 3.2.4.2 China's agricultural subsidies policy Table 3.14 Government spending on Chinese agriculture in the period of 2000 2014 (Unit: billion CNY) Fifthly, rapid industrialization and urbanization in China has increased industrial productivity which clearly polarizes the Chinese economy Sixthly, the development of rural and social infrastructure significantly was inferior to that of urban areas and big cities (Ni, 2013) Year 3.2.3 Common characteristics in Chinese agricultural development policies Proportion General of fiscal spending spending Spending on agricultural production activities Spending on Spending Spending on Spending on social welfare on infrastructure science and and agricultural disaster construction technology and rural relief development China's agricultural development policies and adjustments in agricultural development policies can be summarized in the following aspects: 2000 123.15 7.8 2001 145.67 7.7 91.8 48.08 1.03 4.77 Firstly, they aim to accelerate the construction of a new agricultural management system based on a combination of households, cooperatives and agricultural enterprises 2002 158.08 7.2 110.27 42.38 0.99 4.44 2003 175.45 7.1 113.49 52.74 1.24 7.98 Secondly, regarding the contracting policy, ownership rights will be assigned to farmers They are encouraged to develop a production system where responsibilities and benefits are closely linked to their results 2004 233.76 8.2 169.38 54.24 1.56 8.59 2005 245.03 7.2 179.24 51.26 1.99 12.54 Data from 2019 76.69 41.45 0.98 4.04 2006 317.3 7.9 216.14 50.43 2.14 18.2 2007 431.83 8.7 180.17 141.58 13 14 2008 595.55 9.5 226.01 207.28 2009 725.31 9.5 267.92 272.32 2010 857.97 9.5 342.73 335.03 2013 1,300 2014 1,400 Source: China Statistical Yearbook on the Countryside and China Rural Statistical Yearbook 2011 China's "green box" policy - Policy for direct subsidies for cereal farmers - Environmental protection support policy - The scale and extent of China's green box policy (Table 3.15) • Amber box policy • - Comprehensive policy for agricultural input subsidies - Policy for purchase subsidies of agricultural machines Policy for subsidies of seeds and plant diversification - Minimum purchase price policy The scale and extent of China's amber box policy (Table 3.19a, b) According to WTO's announcement on China, the budget for "amber box" policy of this country increased to 78.86 billion Yuan in 2008, accounting for about 1.5% of total agricultural output This “amber box” policy was provided for seven main agricultural products including wheat, rice, corn, soybeans, cotton, canola and pork Amber box policy was measured and conceptualized through aggregate measurement of support, in which China's final AMS commitment being zero Therefore, the maximum possible amount for China's amber box policy was at the minimum level (de minimis) China's commitment to WTO establishes a minimum of 8.5% of production value for tradedistorting subsidies • China's policy for export subsidies Before joining WTO, China offered export subsidies for corn and rice with the figures being respectively 368 yuan per ton in 1999 and 378 yuan per ton in 2001 However, after joining WTO, China was forced to stop applying export subsidies to comply with the organization's commitments 3.2.4.3 Policy for designing and completing commercial technical barriers to trade in agriculture (TBT) TBT had become the primary means and a form of superior protection for domestic trade China when joining WTO had to face many challenges in terms of breakthroughs in foreign technical barriers and protection of the domestic market • Major technical barriers to trade for China's exports (1) Technical standard barriers (2) Packaging and labeling (3) “Green Barriers” • China's responses to overcome technical barriers to trade Firstly, China developed a strategy for the implementation of standardization, constructed a solid technical regulation and standard system to ensure sustainable development Secondly, they proactively established and improved the mechanism to warn about TBT Developed countries and some developing countries all seriously followed the monitoring and study of TBT measures by trading partners and some had even build their own warning mechanism for TBT Thirdly, China focused on bilateral, multilateral and regional cooperation mechanisms to facilitate trade activities 15 16 Table 3.15 China’s green box policy Unit: Billion CNY Year General Service 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 109.1 121.2 145.0 151.4 154.3 165.6 172.7 200.8 280.2 355.7 232.2 250.1 326.8 416.7 462.1 493.5 596.9 606.8 Reserve of food Domestic food security subsidies 47.6 53.8 59.7 53.1 54.5 42.1 44.1 50.4 54.2 57.9 69.5 77.0 35.8 41.9 56.9 78.1 151.5 114.5 2.6 2.4 0.7 0.4 0.2 0.1 0.1 0.1 0.05 0.06 0.06 0.01 0.04 0.06 0.07 0.06 0.09 0.06 Income support 11.6 13.2 14.2 16.0 23.6 17.0 16.3 18.2 18.1 18.4 26.2 21.7 163.3 Disaster Pension Environmental relief programs programs 5.0 5.3 6.0 6.0 10.9 9.3 11.5 13.2 20.7 55.4 29.9 58.4 42.9 47.5 46.2 40.3 70.3 80.6 4.08 3.07 3.82 3.47 3.10 3.88 7.1 12.7 17.5 26.2 21.6 61.6 48.4 55.8 60.1 68.9 91.2 90.4 85.4 93.4 98.2 104.4 121.7 123.5 Regional support programs 12.9 12.5 13.5 14.9 16.4 18.1 19.5 22.0 26.6 32.0 37.5 42.3 51.6 65.9 80.5 90.4 117.9 220.4 Description Total amount of green box policy 184.3 207.9 242.3 252.1 258.0 308.5 309.6 356.5 457.9 593.6 477.5 534.6 564.82 686.67 766.23 836.4 1,083.2 1,313.2 Source: China’s notification to the WTO (1999-2001, 2002-2004, 2005-2008, 2009-2010, 2011-2016) Total of PS AMS Corn Cotton Beef Peanuts Pork Canola Rice Potatoes Sheeps Soybean Sugar Wheat 2011 Production AMS Value Table 3.19b China’s amber box policy (Million CNY) 2012 2013 2014 Production Production Production AMS AMS AMS Value Value Value Protocol specification AMS (PS AMS) 7,324 18,820 474 415 4,598 7,063 8,103 363 255 3,581 3,911 5,049 9,109 40,609 460 415 5,088 8,834 10,628 374 259 5,789 6,543 12,990 Total of NPS AMS 103,697 Input subsidies 84,596 Purchase support for agricultural 19,101 machines Surcharge (-) TOTAL AMS 376,390 157,450 229,900 97,490 1,222,540 64,940 526,010 134,910 171,320 65,350 64,490 248,250 AMS 2015 Production Value 442,450 51,970 475,520 75,077 479,170 107,701 431,490 147,780 40,440 142,200 31,212 130,930 30,528 104,140 265,360 462 318,470 468 351,970 471 362,360 112,530 416 112,500 416 107,020 416 106,100 1,243,590 1,037 1,256,060 770 1,229,760 765 1,285,970 80,960 12,040 83,060 6,812 85,780 2,001 80,240 571,490 41,745 601,460 37,935 619,300 38,350 612,910 137,690 404 141,320 365 148,580 346 154,130 201,000 547 229,470 261 237,770 261 208,690 64,080 2,660 61,690 7,583 60,210 6,580 53,760 68,590 264,100 9,644 289,160 22,298 307,690 19,025 313,150 Non protocol specification AMS (NPS AMS) 132,449 133,346 134,592 133,532 109,146 109,124 10,910 107,996 23,303 24,222 25,482 25,536 AMS 2016 Production Value 57,166 16,844 119 73 27,793 59 60 7,347 19,539 433,720 79,010 298,700 1,413,340 66,170 627,100 141,360 219,170 53,390 300,560 25,759 97 25,662 Source: China’s notification to the WTO 2011-2016 17 3.3 Evaluation of China's agricultural development policies after their participation in WTO and theirimpacts on agriculture After joining WTO in 2001, the prosperity of foreign trade played a very important role in the "take off" of Chinese economy, which made China become the second largest economy in the world, only after the US 3.3.1 Evaluation of the implementation of China's agricultural development policies after joining WTO 3.3.1.1 Achievements (i) China carried out effectively its commitments which met WTO's requirements The roadmap of China's tariff reduction met WTO's requirements; the tariff reduction rate was also conducted in accordance with all the commitments when China joined WTO Export subsidies were eliminated after China officially became a member of the WTO since 2001 (ii) China's agricultural subsidy policies placed a great emphasis on developing agricultural infrastructure and flexibly using "amber box” tools Data from the "Green Box" policy and China's Three Rural Issues proved that, after joining the WTO, China had always increased its investment in a fairly synchronous manner in infrastructure in general and agricultural infrastructure in particular Road traffic system, rural traffic, irrigation systems had always been China's top priorities (iii) China obtained remarkable achievements in agricultural production management and organization Organization forms of agricultural production had been developed in a more diversified manner Vertical management in agricultural production increased rapidly and the scale was also expanded (Zhen & Xiangzhi, 2014) The agricultural service system was also been significantly improved 3.3.1.2 Limitations (i) The value of domestic support measures to agriculture remained low (ii) Some policies had distorted the market (iii) During the implementation process, China still violated some of WTO's commitments (iv) The design of the agricultural policy system still had some limitations 3.3.2 The impacts of China's agricultural development policies after joining the WTO on agriculture 3.3.2.1 Positive impacts i Domestic subsidy policies contributed to increasing resources for agricultural development and overall growth, promoting the development of agricultural science and technology ii The policies increased the value of agricultural output, and China can provide food for one-fifth of the world's population 18 Table 3.21 Some results of China's agricultural development policies in the period of 2000-2018 Year Agriculture spending (109 CNY) 2000 462.18 2,253 26.95 2001 452.64 2,366 27.90 2002 457.06 2,476 30.59 2003 214.42 430.70 2,622 40.36 2004 262.62 469.47 2,936 51.42 2005 297.53 484.02 3,255 56.29 2006 351.72 498.04 3,587 63.48 2007 431.83 501.60 4,140 78.10 2008 595.55 528.71 4,761 99.16 2009 725.31 530.82 5,153 92.13 2010 857.97 546.48 5,919 121.96 2011 1,049.77 571.21 6,977 155.62 2012 1,228.66 589.57 7,917 175.70 2013 1,379.9 601.94 8,896 186.69 2014 1,517.8 607.03 10,488 236.0 2015 1,758.8 621.44 11,421 226.6 2016 1,877.6 616.25 12,363 225.1 2017 1,908.9 661.60 13,432 262.0 657.89 - 172,2 2018 - Total food production (106 tons) Net income per capita of farmers (CNY) Total import-export turnover of agricultural products (109 CNY) Source: Chinese Agricultural Yearbook; Statistical tables, chapter 8, WTO, FAO STAT iii Sub-policies in the "green box" policy, especially the increase in investment in science and technology along with the urbanization process, had promoted the transformation of Chinese agriculture, the form of production organization in a more positive and modern orientation iv The removal of tariff and non-tariff barriers of China towards the world market helped China expand their import and export markets, boosting import and export turnover v Agricultural support policies, income subsidies and increased investment in agricultural spending in China contributed to hunger eradication, poverty reduction and farmers' income improvement vi Policies for investment in science and technology development, infrastructure development, design and completion of agricultural technical barriers to trade (TBT) promoted competitiveness and comparative advantage for Chinese agriculture vii Environmental protection policies and the process of completing agricultural technical barriers 19 to trade (TBT) change China's habits in agricultural production in a positive direction Through evaluation, some remarks about China's agricultural development policies after joining China can be drawn Group of sub-policies under "green box" policy had the most considerable effects on production outcomes and the country's achievements Notably, policies for science and techonology development as well as for infrastructure played an important role in agricultural achievements They are followed by rural subsidies and consultancy, In addition, amber box policy, particularly such as input subsidies, support for agricultural machines or price support also contributed to China's achievements in agriculture Concurrently, China's agricultural development policies after joining WTO also focused on promoting comparative advantage and were associated with the goal of sustainable development The comparative advantage of Chinese agriculture was the labor-intensive sector They could increase the export of products from labor-intensive industries such as seafood, fruits, vegetables and silk These were also products that China had had a trade surplus for many years Additionally, they also imported products with less comparative advantage such as oilseeds and vegetable oils (J Huang et al, 2018) Also, after joining WTO, China's agricultural development policies had aimed at a sustainable agriculture This is clearly shown through policies such as infrastructure development, science and technology research and development, and environmental policies These policies made China's total factor productivity (TFP) in agriculture being quite high, accounting for an average of 83% of agricultural growth (compared to about 83% in Thailand and 92% in Malaysia) (Date of Institute of Strategy and Policy for Agriculture and Rural Development - IPSARD Vietnam and World Bank - WB) 3.3.2.2 Limitations (i) The unequal distribution of programs for subsidies, investment and application of science and technology in different fields of agriculture and regions had led to the difference in development levels between regions and groups of resident and therefore increased income inequality (ii) Many challenges still remain in the economy (iii) In the economy, there is an imbalance between supply and demand of agricultural products 3.4 Lessons learned from China's agricultural development policies after joining WTO 3.4.1 WTO Agricultural development policies should have the flexibility and adaptability in fulfilling commitments with WTO Flexibility is shown in changes, adjustments in tariff policies, non-tariff barriers or government subsidies for agriculture For example, China pledged not to subsidize exports of any kind after joining WTO Instead, the country's government increased domestic subsidies through income insurance, pension programs, interest rate or three rurals, in order to limit 20 damage for their inferior fields in agriculture when joining the world market 3.4.2 Agricultural development policies should focus on sustainable development and continuously improve competitiveness in integration After joining WTO, China's agricultural development policies always orientated towards the sustainable development Specific policies can be listed as policies for investment in science and technology development, green agriculture, and policies to improve income for farmers, or policies to protect the environment Concurrently, those policies also aimed to improve competitiveness through increasing agricultural labor productivity or accelerating agricultural and rural industrialization 3.4.3 Agricultural development policies should orientate towards a sustainable development and continuously improve competitiveness in integration To fulfill commitments opening the agricultural market in accordance with WTO rules for all members, China implemented a roadmap of tariff reduction and non-tariff barriers Goods in countries around the world, especially WTO members entering the Chinese market have become more diversified, which created a large supply source for the world's most populous market And in the context of free trade and deep integration into the world economy, China paid great attention to its comparative advantage 3.4.4 Agricultural development policies should take advantage of the WTO's preferences and grace, and at the same time pay attention to minimizing the limitations and negatives arising in the WTO integration Special offers by WTO for developing countries can help countries to reduce poverty, create jobs and integrate into the global trading system In China, there was an imbalance in food supply and demand To overcome this challenge, China's agricultural policies recently shifted from intensively supplying to focusing on satisfying domestic demand This change had reduced the pressure on Chinese agriculture (Huang et al., 2017) China also aimed at relying on science and technology to overcome the limitations existing in agricultural production and promote this industry to thrive in the new context CHAPTER THE APPLICABILITY OF EXPERIENCE LEARNED FROM CHINA'S AGRICULTURAL DEVELOPMENT POLICIES AFTER THEIR PARTICIPATION IN WTO FOR VIETNAM 4.1 Some of Vietnam's agricultural development policies after joining WTO 4.1.1 The context of Vietnam's agriculture when joining WTO 4.1.1.1 Agriculture with small production is dominant and scattered 4.1.1.2 The competitiveness of Vietnamese agricultural products in the world market is very low 4.1.1.3 The application of science, technology and agricultural mechanization remains at a low degree 4.1.1.4 Approach of subsidies in developed countries around the world 22 21 Table 4.4 Vietnam's amber box subsidy (unit: billion VND) 2007 4.1.1.5 The low-income and disadvantaged groups tend to have negative effects 4.1.1.6 Vietnam's agriculture unsustainably develops 4.1.2 An overview of Vietnam's agricultural development policies after joining WTO 4.1.2.1 Tariff policy Vietnam has announced its tariff reduction schedule and the Vietnamese government has adjusted the annual tariff according to the roadmap Until now, tariff policy adjustments in the agricultural sector have basically met the requirements of the international economic integration process 4.1.2.2 Agricultural support policies (i) Export subsidy policy In the process of preparing for WTO participation, Vietnam has made basic adjustments to gradually conform to the participation's commitments Immediately after joining WTO, Vietnam eliminated all forms of subsidies (ii) Domestic support policy - "Green box" policy Compared to the previous period, the structure of support measures has changed For example, in the past, infrastructure services, which used to occupy a large proportion, have declined This shows that other measures have been paid more attention and applied more flexibly - “Amber box” subsidy policy As a group of "conditional subsidies", countries must comply with their obligations as committed and in accordance with the general provisions by WTO Since joining WTO, the Government of Vietnam has actively supported this group of policies From 2007 to 2013, especially from 2009, the amber box subsidy has increased dramatically: from 712 billion VND to 1,632 billion VND (2008), 9,972 billion VND (2009), 10,609 billion VND (2010), 14,914 (2011) and reached 20,500 billion (2013) Description AMS PS AMS 130 Rice Corn Peanuts Vegetables Coffee Sugar cane Cotton Pepper Cashew Grapes Tea Buffalos and cows Pigs Poultry 104 20 0 Non PS AMS 581 De minimis 2008 AMS 2009 De minimis 260 9,468 998 365 2,083 711 286 14 4,551 187 63 0 1,372 Support for irrigation power compensation Irrigation fee support 574 Other support Surcharge (-) Support for the transport of agricultural inputs from the Delta to the highlands and from the highlands to the Delta Exemption of irrigation fees Total of AMS 712 1,632 AMS De minimis 6,953 15,471 1,424 539 8,313 21,622 2,954 236 1,099 3,811 2,173 848 900 1,024 1,951 144 206 1,069 447 173 1,909 9,906 3,217 3,018 De minimis 6,878 1,180 824 820 387 20 2010 AMS 2,041 823 287 1,158 378 719 64 200 1,038 537 3,731 2011 AMS De minimis 10,578 21,630 3,101 3,967 2,564 1,209 2,303 205 2,065 10,715 3,480 3,287 938 313 1,115 762 638 129 431 2,238 727 4,337 2012 AMS De minimis 11,913 25,244 2,876 4,219 3,609 1,702 3,242 288 2,182 11,322 3,677 6,905 826 298 781 368 701 62 212 1,102 658 2013 AMS De minimis 16,266 23,335 2,763 4,332 3,095 1,459 2,780 247 2,190 11,361 3,689 7,108 982 404 682 322 613 54 864 4,482 756 4,203 4,234 2 23,193 3,074 4,430 3,126 1,474 2,808 249 2,124 11,023 3,579 264 185 274 138 169 2,754 9,972 3,546 10,609 4,063 14,914 4,063 16,116 4,063 20,500 Source: Vietnam’s notification to WTO (2007-2008, 2009-2013) 23 24 4.2 Evaluation of Vietnam's agricultural development policies after joining WTO and their impacts on agriculture 4.2.1 Evaluation of the implementation of Vietnam's agricultural development policies after joining WTO 4.2.1.1 Achievements (i) In the process of implementing agricultural policies, Vietnam has met the requirements of WTO and membership commitments (ii) Vietnam's domestic support value in recent years has increased (iii) Vietnam's types of agricultural subsidies are quite diverse 4.2.1.2 Limitations (i) The amount of investment is not large enough to create changes in infrastructure to meet the requirements of developing "large-scale agricultural production", especially in concentrated production areas (ii) The support degree of Vietnam's government remains low (iii) Vietnam's support measures lack diversity and are small-scaled (iv) During the implementation process the agricultural policies, there are still some points that are not in accordance with WTO commitments 4.2.2 Impacts of Vietnam's agricultural development policies after joining WTO on agriculture 4.2.2.1 Achievements (i) The policies have increased resources for investment in agricultural development (ii) They promoted agricultural economic restructuring towards commodity production, modern (iii) Income of agricultural and rural areas has been improved 4.2.2.2 Limitations (i) The policies have increased Vietnamese agriculture's dependence on the volatility of the world's agriculture and economy, making the production structure unstable and increasing risks (ii) There is a disparity between investment and development in different regions, which increased the rich and poor gap (iii) Foreign agricultural products are imported at low prices, making it difficult for domestic agriculture 4.3 The applicability of experience learned from China's agricultural development policies after their participation in WTO for Vietnam 4.3.1 Similarities and differences between China and Vietnam when joining WTO 4.3.1.1 Similarities - China and Vietnam have similarities in institutions and economic management mechanism, both of them moved from centrally planned economies to developing market economies - The integration roadmap and results are relatively similar, although the degree is different - In the years preceding the reform, the two countries both faced great difficulties that made their reforms more urgent - Both countries are aiming for a sustainable agriculture in the context of international economic integration 4.3.1.2 Differences - China developed and opened the economy earlier than Vietnam, which affected the agricultural commodity production - China's population size, agricultural production scale, and market size are much larger than that of Vietnam - China's agricultural support policy with more and stronger resources, a better and more synchronous infrastructure than Vietnam's - China's agricultural industrialization is earlier and more developed than that of Vietnam 4.3.2 Recommendations for the applicability of experience learned from China's agricultural development policies after their participation in WTO for Vietnam 4.3.2.1 Agricultural trade policies focus on non-tariff instruments allowed by the WTO 4.3.2.2 Response, design and completion of technical barriers to trade (TBT) in agriculture 4.3.2.3 Domestic support policies towards strengthening the "green box" tool, especially agricultural science and technology research, and flexible use of the "amber box" instrument Promote and strengthen support tools in the "green box" policy Flexibly use support tools in the “Amber box” policy - Support for agricultural machine support - Support for finance, access to investment capital, credit, interest rate Firstly, it is necessary to support WTO's principles WTO allows subsidies accounting for up to 10% of the industry's GDP (WTO only prohibits support for market distortions) Secondly, the government should support the development of infrastructure, farming and farming techniques, improve agricultural science and technology research and application; make direct payments for producers, carry out marketing and shipping subsidies Thirdly, it is essential to improve the quality of the agricultural human resource Fourthly, it is essential to narrow the gap between urban and rural incomes and living standards 4.3.2.4 Agricultural development policies should be associated with sustainable development goals in international integration In order for Vietnam's agricultural products to strengthen their position in the world market and ensure the sustainable development of agriculture in the context of integration, the Government should implement these following tasks: - Develop master and specific plans for agricultural development - Strengthen communication, orientation and promotion of production and farming areas according to VietGAP - Strenghen information transparency, promote the application of "traceability" and geographical indications, focus on building agricultural product brands - The State, together with businesses, should promote market research and forecast in order to make timely adjustments and limit losses for the society - The State should increase the concentration of land, form large-scale specialized production areas To sum up, in order for Vietnam's agriculture to flourish in the future, the promulgation and synchronous implementation of the policies are inevitable Only when there is consistency in the policy system, the effectiveness of the implementation process can be promoted However, when the economy is still underdeveloped and small-scaled, the financial strength as well as the 25 ability to attract investment sources in agriculture remain low, the application of lessons learned from developed countries are not easy and not all tools can be immediately implemented Nevertheless, in the long-term strategy, sustainable and modern agricultural development is inevitable Therefore, the Vietnamese government is required to make more efforts to help the agriculture expand and thrive CONCLUSION Joining WTO is a historic event for all countries as the organization is considered as a global "playing field" with many international rules and practices As members of WTO, nations (including China and Vietnam) not only have opportunities but also face huge challenges from the global economy In this context, in order to maximize national interests, all countries must make certain efforts in their increasingly deep integration into the world economy, especially with the agricultural sector that is considered to be sensitive in the context of integration By studying China's agricultural development policies after joining WTO, the author was able to resolve these following contents and provide these contributions: New contributions in terms of theoretical aspect (iii) The thesis provided the framework construction of agricultural development policies in the context of Vietnam’s participation in WTO Specifically, the framework should include the basis to select policies, implementation of policies, performance results and application conditions (iv) The research used a combination of theoretical and practical research, interpolation and extrapolation to study the fluctuations of Chinese agriculture, evaluate the current situation of Vietnamese agriculture and the ability to selectively apply experience obtained from those policies in Vietnam after joining WTO New contributions in terms of practical aspect, new discoveries and recommendations Firstly, China's agricultural development policies had been flexibly modified to adapt to commitments with WTO, and the synchronous coordination in the implementation of those policies produced positive effects on the production and import and export of Chinese agricultural products Secondly, China's agricultural development policies after joining WTO had practical implications with Vietnam The integration into WTO produces various opportunities and challenges in the new context and Vietnam can selectively learn the experience obtained from China to establish policies, effectively apply modifications, ensure the appropriate adaption to requirements by WTO and promote comparative advantages of Vietnam's agricultural production, especially in terms of the policy implementation Thirdly, the thesis proposes the applicability of Vietnam to build agricultural development policies post-WTO: (i) Vietnam's agricultural development policies should concentrate on WTO-authorized non-tariff instruments: (ii) Entering the world's agricultural market, Vietnam should produce early warnings to respond to foreign technical barriers to trade (TBT), and improve TBT in agriculture; (iii) Domestic support policyies should be orientated towards focusing, strengthening WTO's classification tools in order for Vietnam's agriculture to sustainably integrate and reach a new height; (iv) The implementation of the agricultural development policies should have the coordination among agencies, ministries and sectors; local government should focus on perfecting production planning and the system of technical standards as well as encouraging all forms of association in agricultural production and processing 26 Vietnam and China are both located in Asia with similarities and differences in economic development in general and agriculture in particular Therefore, despite having a smaller economic and market size than China, with a fast integration speed, large openness, Vietnam can learn to apply the experience learned from China's agricultural development policies after joining WTO in the new context It can be summarized as: (i) focus on WTO-allowed non-tariff instruments, (ii) response, design and improvement of agricultural TBT, (iii) domestic support policies in the direction of strengthening the "green box" tools, flexible using "amber box" tools, (iv) the agricultural development policyies should always be associated with the goal of sustainable development ... commentary the applicability of these lessons in the context of Vietnam Therefore, the author selected "China's agricultural development policies after joining WTO: Lessons and the applicability in the. .. apply lessons learned from China's agricultural development policies after joining the WTO in the context of Vietnam Limitations of the research - China's agricultural policies after joining WTO. .. DEVELOPMENT POLICIES AFTER THEIR PARTICIPATION IN WTO FOR VIETNAM 4.1 Some of Vietnam' s agricultural development policies after joining WTO 4.1.1 The context of Vietnam' s agriculture when joining WTO
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