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Effects of Trade Liberalization on Agriculture in Vietnam: Institutional and Structural Aspects by Nguyen Trung Que

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Effects of Trade Liberalization on Agriculture in Vietnam: Institutional and Structural Aspects by Nguyen Trung Que The CGPRT Centre The Regional Co-ordination Centre for Research and Development of Coarse Grains, Pulses, Roots and Tuber Crops in the Humid Tropics of Asia and the Pacific (CGPRT Centre) was established in 1981 as a subsidiary body of UN/ESCAP. Objectives In co-operation with ESCAP member countries, the Centre will initiate and promote research, training and dissemination of information on socio-economic and related aspects of CGPRT crops in Asia and the Pacific. In its activities, the Centre aims to serve the needs of institutions concerned with planning, research, extension and development in relation to CGPRT crop production, marketing and use. Programmes In pursuit of its objectives, the Centre has two interlinked programmes to be carried out in the spirit of technical cooperation among developing countries: 1. Research and development which entails the preparation and implementation of projects and studies covering production, utilization and trade of CGPRT crops in the countries of Asia and the South Pacific. 2. Human resource development and collection, processing and dissemination of relevant information for use by researchers, policy makers and extension workers. CGPRT Centre Working Papers currently available: Working Paper No. 38 Effects of Trade Liberalization on Agriculture in India: Institutional and Structural Aspects by Ramesh Chand Working Paper No. 39 Effects of Trade Liberalization on Agriculture in Thailand: Institutional and Structural Aspects by Kajonwan Itharattana Working Paper No. 40 Effects of Trade Liberalization on Agriculture in Vietnam: Institutional and Structural Aspects by Nguyen Trung Que Working Paper No. 41 Effects of Trade Liberalization on Agriculture in Indonesia: Institutional and Structural Aspects by Erwidodo Working Paper No. 42 Effects of Trade Liberalization on Agriculture in China: Institutional and Structural Aspects by Jikun Huang and Chunlai Chen Working Paper No. 43 Effects of Trade Liberalization on Agriculture in China: Commodity Aspects by Jikun Huang and Chunlai Chen Working Paper No. 44 Effects of Trade Liberalization on Agriculture in Pakistan: Commodity Aspects by Muhammad Ramzan Akhtar (Continued on inside back cover) Effects of Trade Liberalization on Agriculture in Viet Nam: Commodity Aspects The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area of its authorities, or concerning the delimitation of its frontiers or boundaries. The opinions expressed in signed articles are those of the authors and do not necessarily represent the opinion of the United Nations. WORKING PAPER 52 Effects of Trade Liberalization on Agriculture in Viet Nam: Commodity Aspects Nguyen Trung Que and Nguyen Ngoc Que CGPRT Centre Regional Co-ordination Centre for Research and Development of Coarse Grains, Pulses, Roots and Tuber Crops in the Humid Tropics of Asia and the Pacific CGPRT Centre Jalan Merdeka 145, Bogor 16111 Indonesia © 2000 by the CGPRT Centre All rights reserved. Published 2000 Printed in Indonesia National Library: Cataloguing in Publication Nguyen, Trung Que Effects of Trade Liberalization on Agriculture in Viet Nam: Commodity Aspects / Nguyen Trung Que and Nguyen Ngoc Que -- Bogor: CGPRT Centre, 2000. xix, 64 pp.; 25.5 cm. -- (Working paper series; No. 52) Bibliography: 1 p ISBN 979-9317-07-X 1. Viet Nam – Trade, free and protected 2. Viet Nam – Agriculture – economic aspects I. Title II. Nguyen, Ngoc Que III. Series 382.710.959.7 Table of Contents Page List of Tables ........................................................................................................................... vii List of Figures ......................................................................................................................... ix Abbreviations .......................................................................................................................... xi Foreword .................................................................................................................................. xiii Acknowledgements ................................................................................................................. xv Executive Summary ................................................................................................................ xvii 1. Introduction 1.1 Background ............................................................................................................... 1 1.2 Objectives of the study ............................................................................................. 2 1.3 Overview on state policy for the commercial sector ................................................ 2 1.3.1 Privatization and domestic market liberalization policy .................................. 2 1.3.2 Banking, monetary and exchange rate policy .................................................. 3 1.3.3 Tax and fee policy ............................................................................................ 5 1.3.4 New policies of the Government of Viet Nam during 1996-1998 ................... 6 1.3.5 The impact of entering into AFTA, APEC and WTO ..................................... 7 1.4 Infrastructure development ....................................................................................... 8 1.4.1 Development of the transport sector ................................................................ 8 1.4.1.1 Land transport ...................................................................................... 8 1.4.1.2 Railway transport ................................................................................. 9 1.4.1.3 Waterways transport ............................................................................ 9 1.4.1.4 Airways ................................................................................................ 11 1.4.2 Development of the electric power sector ........................................................ 11 1.4.3 Water resources system .................................................................................... 12 1.4.4 Telecommunications system ............................................................................ 13 2. Analysis of Selected Exportable Agricultural Commodities 2.1 Government policies on the selected agricultural commodities ............................... 15 2.2 Rice ........................................................................................................................... 16 2.2.1 Area and production ......................................................................................... 16 2.2.2 Rice milling ...................................................................................................... 17 2.2.3 Trade ................................................................................................................ 18 2.3 Coffee ....................................................................................................................... 20 2.3.1 Area and production ......................................................................................... 20 2.3.2 Trade ................................................................................................................ 21 2.3.3 Coffee processing technology .......................................................................... 21 2.4 Rubber ...................................................................................................................... 22 2.4.1 Area and production ......................................................................................... 22 2.4.2 Trade ................................................................................................................ 22 2.5 Tea ............................................................................................................................ 22 2.5.1 Area and production ......................................................................................... 22 2.5.2 Trade ................................................................................................................ 23 2.6 Groundnut ................................................................................................................. 24 2.6.1 Area and production ......................................................................................... 24 v 2.6.2 Trade ................................................................................................................ 24 2.7 Effects of the economic crisis on selected commodities ........................................... 24 2.8 Recommendations to enhance farm product production and consumption ............... 25 2.8.1 The potential for production of farm products ................................................. 25 2.8.2 Objectives and major indicators of the target .................................................. 25 2.8.2.1 Food crops ............................................................................................ 26 2.8.2.2 Coffee ................................................................................................... 27 2.8.2.3 Rubber .................................................................................................. 27 2.8.2.4 Tea ....................................................................................................... 27 2.8.2.5 Groundnut ...........................................................................................
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