Fruits and Vegetables in Vietnam - International Food Policy ...

gave them the contacts and marketing information to obtain contracts. In some cases, smaller private
traders supply Vegetexco with the produce for export.
6 Land-use planning
Since the introduction of the contract system in 1981 and particularly since the doi moi
reforms of the late 1980s, Vietnamese farmer households have been given increasing freedom to make
their own production decisions and to profit (or lose) as a consequence of those decisions. In spite of
this trend, the government retains an ability to “plan” agricultural production in the sense of setting
and pursuing production targets for specific commodities. An important part of this process is landuse
planning. Authorities at the district and provincial level prepare land-use plans that specify which
areas are appropriate for which crops. These plans, often produced with technical assistance from the
National Institute for Planning and Projection (NIAPP), take into account national goals for specific
commodities.
The implementation of these plans takes the form of various positive and negative incentives.
Until recently, some changes in land use, such as switching from rice to another crops, were simply
illegal. Other changes in land use were encouraged through the provision of subsidized goods and
services:
• Technical assistance from the extension service can be focused on farmers who wish to
change their cropping pattern in a way that is consistent with the land-use plan.
• The provinces have funds with which to subsidize fertilizer, seed, and other inputs for
farmers that cooperate in helping to meet production targets.
• It is not possible to obtain a loan from the Vietnam Bank for Agricultural Development
(VBARD) unless the purpose of the loan to expand production in a way that is consistent
with the production targets in the plan.
Until recently, national regulations prevented the conversion of riceland to the production of
other crops with the idea of maintaining a minimum rice output thought to be necessary for national
food security. These regulations prevented farmers from switching from rice to other crops,
particularly fruit trees.
In the late 1990s, following eight consecutive years of substantial rice exports and a sharp
decline in world price of rice, the idea of diversifying out of rice and into high-value commodities
such as fruits and vegetables became more acceptable. This shift in attitude culminated in the change
of policy regarding riceland conversion. Currently, the national government does not require that the
provinces prevent the conversion of riceland to other crops, but it does not require the provinces to
allow farmers to convert riceland either. Instead, it allows local authorities some discretion in the
implementation of riceland conversion.
Chapter 8. Role of government Page 8-16