Decision No. 1819/QD-TTg dated November 16, 2017 of the Prime Minister on approving the agriculture restructuring plan 2017 - 2020

THE PRIME MINISTER

Decision No. 1819/QD-TTg datedNovember 16, 2017 of the Prime Minister on approving the agriculture restructuring plan 2017 - 2020 

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the National Assembly’s Resolution No. 24/2016/QH14 on economic restructuring 2016 – 2020 and Resolution No. 32/2016/QH14 on improving effectiveness of the national target program for services of new rural areas associated with agriculture restructuring;

Pursuant to the Prime Minister’s Decision No. 899/QD-TTg dated June 10, 2013 approving the agriculture restructuring scheme towards improving value added and safety sustainable development;

At the request of the Minister of Agriculture and Rural development,

DECIDES:

Article 1.To issue the agriculture restructuring plan 2017 –with this Decision.

Article 2.This Decisiontakes effect on the signing date.

Article 3.Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of provincial People’s Committees and the Steering Committee for agriculture restructuring  shall implement this Decree./

For the Prime Minister

The Deputy Prime Minister

Trinh Dinh Dung

PLAN

AGRICULTURE RESTRUCTURING FOR THE PERIOD 2017 – 2020

The 15^thNational Assembly during its second meeting issued Resolution No. 24/2016/QH14 on economic restructuring 2016 – 2020 and Resolution No. 32/2016/QH14 on improving effectiveness of the national target program for services of new rural areas associated with agriculture restructuring. To implement these Resolutions, the Prime Minister hereby promulgates the agriculture restructuring plan 2017 – 2020 with the following contents:

I. OBJECTIVES

1. General objectives: sustainably develop agriculture and rural areas, increase value added, efficiency and competitiveness; improve life of farmers, reduce poverty, protect the environment and national security.

2. Specific objectives by 2020:

It is expected that:

Growth of GDP from agriculture reaches 3% per year; productivity increases by 3,5% per year; ratio of agricultural workers decreases to under 40%; ratio of trained agricultural workers reaches 22%;

Income of rural residents increases by at least 1,8 times compared to 2015; 50% co the communes meet standards for new rural areas; 15.000 agricultural cooperatives and cooperative associations operate effectively; most rural residents have access to clean water.

Climate change response and environmental protection is effective; emission from agricultural production is reduced; forest coverage reaches 42%.

II. ORIENTATION FOR THE PERIOD 2017 - 2020

1. Restructuring by product lines

Review planning, development strategy and production plans according to advantages and market demands to identify 3 categories:

- National key products (products whose export turnover is at least 1,0 billion USD, pork and poultry meat): review planning, strategy, plans and develop large-scale concentrated production areas; seek cooperation along the value chain and application of advanced technologies;

- Local key products: invest in these products according to local advantages and market demand as if national key products in a local scale; introduce policies and find solutions for increase the production scale and competitiveness in order to include them in national key products;

- Local specialties: including small-scale products having specific geographical indication, which will be develop together with new rural area development plans of rural districts and communes, according to which, each commune will have a separate specialty.

Specific sectors:

a) Farming

Keep reviewing and revising the plan for plant and product restructuring according to advantages, market demands and regional climate. Develop large-scale concentrated agricultural production areas; organize production chains for national key products; encourage clean and organic agriculture.

Enhance application of technology, use seeds that have high productivity, high quality, are adaptive to climate change; mechanize agricultural works, apply advanced processes and intensive farming; reduce the use of inorganic fertilizers and pesticides; effectively forecast and prevent pests.

Use low-productivity paddy field for other plants that have higher productivity and better market, or for aquaculture if suitable for local ecology; keep increasing the area of corn and soya-bean farms to have a stable source of raw materials for production of animal feeds; gradually reduce the total area of cassava plants; increase high-tech production of vegetables, flowers and herbs; keep developing perennial industrial plants where advantageous according to planning.

Farming value should increase by 2,0 – 2,5% per year; income per hectare by 3% per year.

b) Breeding

Review application of the breeding development strategy to each type of animal and revise it according to market demands; develop large-scale and concentrated breeding areas for key products; maintain and develop breeding households applying advanced methods combined with organic and eco-friendly breeding.

Focus of breed improvement by increasing breeds with better productivity, quality and satisfy market demands;

Develop production along the value chain and trademark development; reorganize the slaughterhouse system to ensure food safety and environmental safety; effectively monitor and control epidemics; strictly control the use of veterinary medicines and additives in breeding; put an end to the use of banned substances in breeding.

Breeding value should increase by 4,0 – 5,0% per year; income by 5% per year.

c) Fishery

Enhance offshore fishing; invest in modernizing processing and preserving equipment on fishing vessels to reduce post-harvest losses; reorganize production at sea by combining fishing, logistics, purchasing and processing at sea in association with protection and development of resources.

Develop aquaculture towards efficiency and sustainability; diversify products according to local advantages; organize production chain including breed supply, raw materials, technology, raising, processing; develop high-tech and eco-friendly intensive fish farms that applying good practice and biosafety standards.

Ensure that aquaculture of key products (shrimps, pangasius fish, molluscs, etc.) is certified; develop certain potential products (snakehead, tilapia, featherback, etc.) and marine aquaculture (lobster, marine fish, seaweed, etc.).

Aquaculture value should increase by 4,0 – 5,0% per year; income by at least 5% per year; fish production reaches 7 million tons.

d) Forestry

Sustainably and effectively manage and use natural forests; strictly implement policies on closure of natural forests; conserve biodiversity, ecology and natural sceneries. Develop combined agriculture and forestry.

Improve efficiency of cultivated forests; develop multipurpose forestry, plant forests that produce big timber, high-value timber and non-timber forest products, especially herbs. Develop concentrated material areas serving timber treatment, production of paper and planks, etc.; organize forestry along the value chain, multiple forestry cooperation models.

Develop forest environment services; sustainable forest management and issuance of certificate of timber from cultivated forests according to Vietnam’s standards and international practice.

Forestry value should increase by 5,5 - 6% per year; forest coverage reaches 42% by 2020.

dd) Sale production

Upgrade and modernize salt fields, apply technological advances to increase production of industrial salt; improve productivity and quality, decrease salt production costs; focus on advantages in the central area; multiple the clean salt production model. Salt production should reach 2 million tons by 2020.

Areas for low-quality and low-productivity salt production should be used for aquaculture or other purposes.

e) Preservation, processing and trade villages

Improve production efficiency, sale of agriculture products and diversification of products; encourage development of deep processing, fine processing and application of high technology; decrease export of raw products.

Develop ancillary industry serving agricultural production; enhance mechanization of the entire value chain of agricultural production according to local conditions, each type of plant and animal.

Develop the program “Each commune has a specialty”; associate business activities of trade villages with conservation and development of traditional cultures.

Value of process agriculture products should increase by 7 - 8% per year.

g) Irrigation, natural disaster management

Improve effectiveness of management and operation of irrigation works; upgrade in-field infrastructure; gradually apply market mechanism to management of irrigation works and services associated with rights and obligations of water users.

Develop multipurpose irrigation to serve agriculture, industry and households; prioritize investment is irrigation systems serving concentrated aquaculture and watering of key plants that have high value and regional competitiveness; invest in completion of existing irrigation systems.

Improve the legal framework and operation of central and local natural disaster management authorities; develop and implement strategies and plans for natural disaster management at various level; improve effectiveness of disaster risk management by applying modern technology to forecasting, alerting and disaster management; improve capacity of communication and community-based disaster management.

2. Agriculture restructuring by regions

Agriculture restructuring by regions is meant to utilize advantages and potential of each area and region; promote cooperation between areas in a region; mobilize and effectively use sources of funding; improve competitiveness under international integration, and effectively respond to climate change.

a)  Northern midland and mountains

Focus on advantageous industrial plants (camellia sinensis, fruit trees, herbs), high-quality paddy and local paddy that have high economic value. Develop breeding of cattle, goats, horses; develop local domestic animals to meet domestic demands; establish safe high-tech breeding areas. Protect natural forests; develop production forests and non-timber forest products; develop a largest timber production area of the country. Develop aquaculture in irrigation and hydropower reservoirs, waters along rivers and streams in association with conservation and development of valuable resources; cold water fishery products (salmon, sturgeon, etc.).

Develop medium and small irrigation systems; advanced watering methods suitable for local terrains; ensure water supply in areas where water is scarce and sloppy land; ensure effective forecasting, alerting and response to natural disasters (storm, flood, landslide, etc.).

b) Red River Delta

Focus on intensive farming; enhance application of technology and mechanization to production; increase the area of specialty paddy and high-quality paddy; develop farming of vegetables, flowers, ornamental plants, fruit trees, high technology, good practice. Develop high technology breeding along the value chain; develop high-quality breed production and disease-free breeding areas. Develop concentrated industrial aquaculture in coastal areas; focus on shrimps and molluscs; raise freshwater fish, shrimps, crab, etc., develop eco-friendly aquaculture models. Strengthen and protect protection forests of urban areas and coastal areas.

Focus on upgrading, modernization and effective operation of existing irrigation systems to serve production and households; resolve pollution of water sources of irrigation systems. Keep building and upgrading drainage works in Hanoi and other provinces in the region. Upgrade river and coastal dykes; improve natural disaster management capacity.

c) North Central Coast

Change farming structure on unproductive paddy land; change farming seasons to avoid natural disasters; establish concentrated areas of production for industrial plants (rubber, coffee, tea, pepper), citrus, peanut, sugar canes; develop specialty agriculture products having geographical indications. Develop high technology and closed loop breeding of dairy cows, beef cows and poultry. Develop the second largest timber production area of the country; strengthen and protect national parks and upstream protection forests.

Development brackish water aquaculture at estuary and coastal areas; promote intensive, high technology and biosafety aquaculture on coastal sandy soil; develop marine aquaculture and freshwater aquaculture in irrigation and hydropower reservoirs. Primary products include shrimps, molluscs, marine fish, seaweed, cobia, snapper, etc.; build marine sanctuaries and inland water sanctuaries.

Quickly complete to put into use major irrigation works, anchoring areas and fishing ports in the region; upgrade coastal and river dykes; prioritize water supply for coastal households and economic activities; apply advanced and water-saving technology to watering industrial plants, fruit plants and grazing areas serving concentrated breeding. Develop agricultural production in association with eco-tourism at major reservoirs and irrigation works.

d) South Central Coast

Focus on changing farming structure on unproductive paddy land; plant drought-tolerant trees and specialty trees (grapes, dragon fruit, mango, apple trees, etc.) according to VietGAP and EuroGAP standards, etc. Develop breeding of beef cows, goats, sheep and poultry where advantageous. Develop the third largest timber production area; strengthen upstream protection forests, especially in mountainous areas; increase area of coastal protection forests; protect and strengthen national parks and specialized forests in association with development of eco-tourism, cultural tourism and spiritual tourism.

Development brackish water aquaculture at estuary and coastal areas, freshwater aquaculture in irrigation and hydropower reservoirs; develop and protect marine and inland water sanctuaries.

Take measures for ensuring water supply in drought areas to serve life, economic development and prevention of desertification; prioritize construction and upgrade reservoirs and connection between them; complete the system of inferior channels of irrigation systems.

dd) The Central Highland (Tay Nguyen)

Take advantage of the region to plant coffee, cashew, pepper, rubber, tea; areas for intensive farming of corn; areas for concentrated and high technology flowers and vegetables. Develop high technology breeding farms for chicken, pigs, dairy cows and beef cows. Protect natural forests, national parks and wildlife sanctuaries, upstream protection forests; promote recovery and cultivation of natural forests. Development aquaculture in reservoirs of river and stream basins with traditional products such as freshwater fish, shrimps and valuable cold water fish.

Complete major irrigation works, the reservoir system and inferior channel system and assurance of water supply for production and domestic purposes.

e) The South-East

Develop advantageous industrial plants such as rubber, cashew, pepper, coffee, sugar cane and fruit trees in association with tourism development; adjust the quantity of pigs according to market demands; keep developing breeding of dairy cows. Review the processing industry and domestic consumption. Protect natural forests and conserve biodiversity; increase intensive forest planning and timber treatment. Develop aquaculture at sea, in coastal areas, around islands, in irrigation and hydropower reservoirs; main products include marine fish, giant tiger prawns, whiteleg shrimps, molluscs, special fish serving tourism, export and domestic consumption.

Review and upgrade major irrigation systems; ensure supply of water for manufacture and domestic purposes; apply advanced watering technology; keep implementing drainage measures in the region, reduce flood in downstream areas and prevent salinization.

g) The Mekong Delta

Develop production of high-quality commercial paddy by intensive farming in fertile soils. Switch to salt-tolerant plants or aquaculture in saline soils. Develop large areas for concentrated farming of high-quality fruit trees, vegetables and flower; promote agricultural production combined with eco-tourism. Develop breeding of poultry and cows, especially chickens and ducks for meat and egg.

Protect and strengthen coastal protection forests; recover and develop mangrove forests; combine forestry, agriculture and aquaculture to achieve sustainable development.

Develop intensive and high technology aquaculture in association with environmental protection; develop aquaculture at sea, around islands and in mangrove forests.

Synchronously and effectively implement solutions for control of flooding, natural disaster and climate change management, salinity control to ensure freshwater supply for households and production; prevention and management of landslide along river banks and the coast, avoid negative effects by upstream activities; upgrade coastal dykes to stabilize population and develop production.

3. Develop new rural areas in association with agriculture restructuring

Implement the national program for development of new rural areas 2016 – 2020. At least 50% of communes should satisfy new rural areas criteria by 2020. Focus on develop production and economic restructuring in rural areas; increase incomes of rural residents; organize production chain for key products of each region; respond to climate change; complete essential infrastructure of communes, give priority to poor communes and extremely disadvantaged communes.

III. PRIMARY SOLUTIONS

1. Improve awareness, create consensus about necessity and importance of agriculture restructuring among local authorities and the people, about agricultural production that is able to compete internationally and adaptive to climate change; enhance the roles and responsibility of heads of local authorities; encourage participation of social organizations to implement these policies.

2. Keep improving policies and mechanism to promote development of agriculture and rural areas; achieve objectives of Resolution No. 26/NQ-TW and other policies of the Communist Party and the State on agriculture and rural areas; facilitate access to land, funding sources and market of farmers and enterprises.

3. Review and revise strategies, planning, production scale and structure according to advantages, market demands and climate change; develop production plans according to 3 categories of products: (1) national key products (2) provincial key products (3) local specialties (each commune has a product).

4. Keep innovating and developing production models that are suitable and effective; promote and facilitate development of agricultural enterprises; innovate and develop agricultural cooperative; develop farms towards large-scale production of high quality farm produce; promote cooperation in production and sale of farm produce along the value chain and the global distribution system.

Keep expanding the scale and improve quality of training for farmer; develop human resources to serve industrialization and modernization of agriculture; transfer agricultural workers to work in industry, service and agricultural trades.

5. Intensify research, transfer and application of technology; focus on resolving inherent issues in the production chain, especially breeding technology, manufacturing, processing and sale; develop high technology agriculture to achieve productivity and quality breakthrough of plants and animals, ensure food safety, improve competitiveness and effectiveness;

Complete and apply technical standards and regulations; promote registration of protection of geographical indication and brand names.

6. Promote international integration and market development

Improve the capacity for international integration; organize assessment of impacts of international integration and publish the results for local authorities, enterprises and the people to have appropriate business plans; enhance trade promotion and market development; assist enterprises in resolving legal issues in trade disputes and reducing risks associated with international integration.

Reorganize the domestic farm produce trade system; promote use of Vietnamese products by Vietnamese people, develop trademarks and trace origins of farm produce.

Improve capacity for research and forecasting demand for farm produce; connect demand and supply; connect production areas with the distribution system; connect the domestic market and global market.

7. Keep mobilizing social resources, promote public-private partnerships (PPP) to modernize rural infrastructure; improve natural disaster preparedness and recovery, climate change adaptability and construction of new rural areas.

8. Intensify administrative reform, improve investment environment; intensify training and improve quality of human resources to increase capacity and effectiveness of central and local authorities. Improve operation of Steering Committees and assisting apparatus to accomplish agriculture restructuring objectives in association with new rural area development.

IV. IMPLEMENTATIONORGANIZATION

1. The Ministry of Agriculture and Rural Development shall:

Review and revise the scheme for restructuring of sub-sectors and fields according to the Plan for agriculture restructuring 2016 – 2020 after it is approved by the Prime Minister.

Take charge and cooperate with other Ministries, regulatory bodies and local governments in implementing the Plan; submit annual reports to the Prime Minister; revise the Plan where necessary.

2. The Ministry of Planning and Investment shall:

Advise the Government completing policies on assistance for agricultural enterprises, including policies on encouragement of investment in agriculture and rural areas (replace Decree No. 210/2013/ND-CP).

Cooperate with the Ministry of Agriculture and Rural Development in reviewing and advising the Government completing policies on economic cooperation (including policies on development of agricultural cooperatives and the scheme for development of 15.000 agricultural cooperatives; policies on assistance for cooperation in production along the value chain).

Cooperate with the Ministry of Finance in balancing funding and request the Prime Minister to provide additional mid-term funding during 2016 – 2020 for agriculture restructuring, construction of new rural areas and improvement of capacity for natural disaster management and climate change response.

3. The Ministry of Finance shall:

Consider reducing taxes and fees on manufacture and sale of farm produce, on agricultural manufacturers and traders (enterprises, farms, agricultural cooperatives, households)

Balance and increase non-business capital sources for operation of the agriculture management system, programs and projects of the mid-term plan; prioritize funding for agriculture restructuring, the national target program for construction of new rural areas, natural disaster management and climate change response.

4. The Ministry of Natural Resources and Environment shall:

Complete research and assessment and propose amendments to policies on land to the Government for submission to National Assembly for consideration in a manner that facilitates land assembly and concentration, large-scale agricultural production and management and use of agricultural land.

Research into and consult the Government about green agricultural policies, emission reduction and response to climate change, effective use of natural resources; remedy rural environmental pollution.

Cooperate with the Ministry of Agriculture and Rural Development in implementing the plan to convert 1.1 million hectares of poor protection forests into production forests according to the National Assembly’s Resolution No. 134/2016/QH13.

5. The Ministry of Science and Technology shall:

Cooperate with the Ministry of Agriculture and Rural Development in formulating polices for development, research into, transfer and application of technology to agriculture; hi-tech and organic agriculture development, and submit them to the Government and the Prime Minister.

Cooperate with the Ministry of Agriculture and Rural Development in establishing technical standards and regulations, provide guidance on application of modern management tools and processes; provide assistance in registration for intellectual property protection; managing, protecting, using and development intellectual property.

6. The Ministry of Construction shall:

Take charge and cooperate in performing its tasks; implement the scheme for construction of new rural areas in districts during 2017 - 2020 (according to the Prime Minister’s Decision No. 676/QD-TTg dated May 18, 2017); focus on providing guidance on and inspecting implementation  of regulations on solid waste management in agricultural production and rural areas.

7. The Ministry of Industry and Trade shall:

Propose policies on trade in agricultural, forestry, and aquaculture products to the Government; take actions against smuggling and trade frauds, temporary import of agricultural, aquatic and forestry products.

Request overseas trade authorities to provide information about the host countries trade policies; assist exporters of farm produce in overseas trade promotion.

Cooperate with the Ministry of Agriculture and Rural Development in market development and boost sales of agriculture products.

8. The State bank of Vietnam shall keep effectively implementing credit policies for agriculture and rural development; consider introducing practical policies to enable the people and enterprises to access funding sources.

9. Vietnamese Fatherland Front and socio-political organizations

Emphasize the roles of Vietnamese Fatherland Front and socio-political organizations in dissemination, supervision, receipt of social feedbacks, and the roles of the people in agriculture restructuring.

10. Local authorities

Assess the implementation of the agricultural restructuring plan in the area and formulate agricultural restructuring plan during 2017 - 2020 in conformity with condition and plan of the entire sector.

Organize effective implementation of policies introduced by central authorities; consider introducing local policies to improve effectiveness of agriculture restructuring.

Look for and assess local agricultural production models; propose supportive policies to multiply effective models./.

APPENDIX I

SPECIFIC TASKS UPON IMPLEMENTATION OF THE AGRICULTURAL RESTRUCTURING PLAN DURING 2016- 2020
(Attached with the Decision No. 1819/QD-TTg dated November 16, 2017 of the Prime Minister)

APPENDIX II

POLICIES TO BE FORMULATED AND IMPROVED TO IMPLEMENT THE AGRICULTURAL RESTRUCTURING PLAN DURING 2016- 2020
(Attached with the Decision No. 1819/QD-TTg dated November 16, 2017 of the Prime Minister)