Resolution No. 53/NQ-CP 2019 solutions to encourage enterprises to invest in agriculture effectively

THE GOVERNMENT           No. 53/NQ-CP

SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness         Hanoi, July 17, 2019

RESOLUTION

On solutions to encourage and promote enterprises to invest in agriculture effectively, safely and sustainably

THE GOVERNMENT

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

Pursuant to the Resolution No. 142/2016/QH13 dated April 12, 2016 of the National Assembly on the 2016-2020 socio-economic development plan from 2016 to 2020;

Pursuant to the Resolution No. 69/2018/QH14 dated November 8, 2018 of the National Assembly on the socio-economic development plan for 2019;

Pursuant to the Resolution No. 26-NQ/TW dated August 5, 2008 at the 7^th Plenum of the 10^th Central Executive Committee on farmers and rural areas;

Based on the opinions of the Government Members and the Prime Minister's conclusions at the Conference “Promoting enterprises to invest in agriculture” dated August 27, 2018,

RESOLVES:

I. ASSESSMENT OF THE SITUATION

Over the past time, the growth rate of the agricultural sector has been quite good. Productivity, quality and efficiency are constantly being improved. Currently, Vietnam has firmly ensured national food security and become the second largest exporter of agricultural products in Southeast Asia and the 15^th largest exporter in the world with 10 groups of agricultural, forestry and fishery products with export turnover of over US$ 1 billion, including 6 items with turnover of over US$ 3 billion.

The important achievements mentioned above result from the issuance of proper and effective policies by the Party and the State; from determination and efforts of the Government, institutions in the agricultural sector, farmers and rural areas; from the application of different types of agricultural production organizations such as enterprises, cooperatives, cooperative groups, farms, household economic models; in which, enterprises are the “pillar” and “motive force” in promoting the development of agricultural production value chains towards large-scale commodity production, scientific and technological application, and advanced efficiency, competitiveness and development of Vietnamese agricultural brands.

The reality shows that the State needs to have policies for enterprises to cooperate with agricultural sector institutions, promote the accumulation and concentration of land, create the most favorable conditions for large-scale agricultural production, mechanize agricultural production, apply new and advanced technologies in agriculture, produce high quality agricultural products, greater value added, be able to participate in global value chains; create a position to build a national brand of Vietnam Agriculture, mobilize social resources to invest in developing agricultural and rural infrastructure and agricultural support services, and create a vibrant competitive environment in agriculture.

Currently, many enterprises and large corporations have paid attention and implemented investment projects in the agricultural sector, including the world's leading enterprises in shrimp, Pangasiidae, rice, coffee, etc. The system of enterprises operating in the agricultural and rural sector has been formed with over 50,000 enterprises investing in the agricultural sector, including production, processing and consumption of agricultural materials, agricultural products and services for agricultural development, of which about 10,200 enterprises directly invest in developing agricultural, forestry and fishery production.

However, the development of enterprises in the agricultural sector is still modest compared with the potential and development advantages. The number of enterprises investing in the agricultural sector currently accounts for only 8% of the total number of enterprises nationwide, of which agricultural, forestry and fishery enterprises account for 1%. The main form of agricultural production is still in the form of production households with more than 9.2 million households producing at a very small scale. The scale of enterprises is mainly small and super small, accounting for 96% of enterprises investing in agriculture. Labor productivity in agriculture is limited, only about 38% of the average labor productivity in the whole country and lower than most countries in the region. The level of science and technology of enterprises is still low. The application of science and technology and the national and international quality standards are still limited; only 5% of agro-forestry and fishery enterprises are VietGAP certified and equivalent. Consumption market is not sustainable. limited product consumption channels with large retail distributors are limited. The number of enterprises participating in the production of the value chain is still small. The technical and quality barriers of the international market are increasingly strict. The situation of food safety violations still occurs; this is the competition of unhealthy agricultural production. The communication is not effective when reflecting some violations that unintentionally create the effect of boycotting Vietnamese agricultural products because of food hygiene and safety issues, affecting the production and business activities of enterprises investing in agriculture.

Vietnam's agriculture still has a lot of potential and opportunities to exploit particularly land, human resources and opportunities in the period of industrial revolution 4.0. Therefore, in the coming time, the people and the business community must work together to bring Vietnam to the world leading position in agricultural products.

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