Developing an Agricultural Research and Development Priority Framework for Vietnam Economic & Policy Sub-Sector Workshop Data and Information Sheets: Economic & Policy Research Opportunity (EPROs) EPRO 1: COMMODITY RESEARCH, MARKET ANALYSIS, FORECAST & POLICY ANALYSIS EPRO 2: NATURAL RESOURCES AND RURAL ENVIRONMENT MANAGEMENT EPRO 3: RESEARCH, TECHNOLOGY DEVELOPMENT AND TRANSFER DELIVERY SYSTEMS FOR AGRICULTURE AND RURAL DEVELOPMENT EPRO 4: SOCIAL SECURITY FOR RURAL PEOPLE AND SUSTAINABLE POVERTY REDUCTION EPRO 5: CLIMATE CHANGE EPRO 6: RURAL DEVELOPMENT EPRO 7: IMPACT OF INTERNATIONAL ECONOMIC INTEGRATION AND MARKET ACCESS TO THE VIETNAM AGRICULTURAL TRADE July 2010 EPRO 1: COMMODITY RESEARCH, MARKET ANALYSIS, FORECAST & POLICY ANALYSIS DATA SHEET ARDO DEFINITION 1.1 National Goal or Purpose To develop the capacity for market analysis and forecast, to improve competitiveness of major Vietnamese products in domestic and international markets and to use that capacity as a basis for providing commodity policy advice, including food security, to Government 1.2 Research Scope To construct an effective database and monitoring system for market information and for food security for strategic agriculture commodities To built a group of agricultural commodity experts to commodity market analysis and forecast, especially for policy analysis of MARD, as well as to provide consulting service for local authorities and business organizations Conducting in-depth analysis and demonstration model of market change at macro level in short term and long term, in order to help in forecasting and planning work of MARD, local authorities and agri-business organizations Provide timely information and awareness of commodity analysis results via policy discussion forum, market outlook conference, publications to assist the public and private sector to develop stable and profitable markets 1.3 Coverage The priorities are for the domestic and export products are rice, coffee, rubber, and aquatic sector (shrimp and catfish) To a lesser extent and mainly for the domestic market pig production could be a lower level priority Introduction Vietnam is an agriculture based country with more than 73 per cent of its population residing in rural areas In the past few years, owing to the special attentions of the Party and the Government, together with the reform (Doi Moi), rural livelihood has been gradually improving and the poverty rate decreasing Vietnam is now the second largest rice exporting country in the world Rice is the main crop produced in Vietnam and its level of production is closely linked to farm incomes and rural development Rice production plays an important role in food security in Vietnam During the economic reform process, the agricultural sector has grown at more than 4.5% annually for many years Vietnamese agriculture has been shifting to commodity production based on the exploitation of advantages on diverse biological resources Food, aquaculture livestock, vegetable, fruit and industrial crop production has grown significantly Food production (including paddy, corn, cassava and sweet potato) has increased annually In the period from 1996-2001, total food production has increased from 31.48 million tons to 39.43 million tons (equivalent 5.05% per year) In 2002-2006, production rose further from 43.1 million tons to 48.9 million tons (2.69% per year) At the same time there has been increased competition for land and water uses between rice production and industrial crops or other uses as industrialization continues in the Vietnamese economy Between 2001 and 2007, more than 500,000 hectares (1.2 million acres) of farmland had been converted into industrial parks So far in 2008, 125,000 hectares of rice fields have been lost According to MARD, the total export turnover of agricultural sector up to October 2008 is estimated to reach 13.6 billion USD, up 25.7% over the same period last year, in which agricultural products reached 7.4 billion USD, up 42.5%; fisheries reached 3.8 billion USD, up 24.2%; forestry products reached USD 2.46 billion, increased by 16.7% In the same time, the agriculture sector had products with turnover of over billion USD (fisheries, rice, forestry products, coffee and rubber) out of 11 products that reached value of over billion USD of the country However, agricultural markets in 2008 also witnessed many unexpected changes During mid year, world food prices increased sharply and stayed at a peak of 300% over the same period of 2007 and then dropped For example export rice prices reached a high of around US$800/ton in 2008 resulting in sharp increases in domestic rice to a high of about 20,000VND/kg (or US$1.3/kg) in late April 2008 During 2009 export prices have declined A similar situation happened with meat products and industrial crops such as rubber, to early 2009, the price of rubber (1,500 USD per ton) decreased almost 50% compared with the peak in 2008 (2900 USD per ton) The stabilization of food prices is important because rapidly increasing food prices will reduce purchasing power In 2007 food prices have increased 14.6% In early 2008, food prices increased sharply, leading to the share of food reaching 43% in total household expenditure Among Vietnam’s agriculture products, rice (15%), aquaculture (30%), coffee and rubber account for 80% of total annual export turnover Together with meeting domestic demand, agricultural exports have also grown quickly, both in quantity and value For the past two decades, Vietnam has become one of the world’s biggest agricultural exporting countries, including rice, coffee, cashew nut, pepper, rubber, tea, aquaculture, etc Exported agricultural and forestry products account for 30-35% of total agricultural production Exporting ratios by sectors are about 20% for rice, coffee 95%, rubber 85%, cashew nut 90%, tea 80%, and pepper 95% Some Vietnamese agricultural products have confirmed their leading positions in the world market (e.g rice, coffee, cashew nut, pepper, and fishery products) Markets for Vietnam’s agricultural products have been expanded, besides traditional markets (e.g China, ASEAN, Russia and Eastern European countries); Vietnam has initially entered such potential markets as Middle East, EU, the USA and Africa Vietnam is moving quickly to market economy and integrating into global economy Demand and supply of agricultural products fully depend on market forces, rather than on top-down decision as it was in central State economy The change from planning based on centrally derived production targets to producers, processor and exporters planning based on market opportunities will take time, but without reliable market forecasts is unlikely to happen Thus, it is necessary to have study on market analysis and forecast, which would assess comparative advantages, then provide guidance and create motivation for market forces to restructure the production and market system based on comparative advantage While moving to market economy, Vietnam’s agriculture faces a lot of challenges, especially the issue of supply surplus in many agricultural commodities e.g coffee, dairy, vegetable, sugarcane etc Farmers are very vulnerable to price fluctuations caused by over-supply or poor quality and in the absence of sound market forecasts cannot adjust their production systems to minimize risk of poor returns and capitalise on improving market opportunities Many commodities (e.g fish products like shrimp and catfish, rice, coffee, pepper, and cashew nut etc.) fail to forecast market demand and unexpectedly face surpluses or deficits Farmers often follow short-term market signals, shifting among commodities, causing big losses for themselves and for the economy As a result, investors have difficulties and uncertainties in investment in processing factories, for instance in cases of tea, sugarcane, cassava and dairy processing Experience of leading countries in agriculture development e.g USA, EU, Australia and Japan provide valuable lessons The USA has Economic Research Service (ERS) under Ministry of Agriculture; Australia has Australian Bureau of Agricultural and Resource Economics (ABARE) directly under the Government with thousand of staffs Especially ABARE, which has 300 experts work on management and quality control issue of products Countries like USA, EU and Australia focus on quality control and increasing value added of agriculture products rather than to stimulate supply Forecasting also includes prediction of total crop production, based on reliable on-farm data Collection of farm-based data could provide information on the health (input and output costs, profitability, investment levels etc) of the agriculture sector Analysis of this data and information could provide valuable inputs into advice on policies for the agriculture sector including policies relating to food security, both at the national and local level The five-year plan on agriculture and rural development (2006-2010) indicates an action plan with focus on the development of high value commodity crops, livestock products and forestry plants toward yield and production improvement The plan also clearly states orientation on growth rate, production, added value, the share of agricultural commodities, etc in order to push the development of these commodity sectors This is considered the key task in the action plan on the agricultural sector Therefore, it can be said that commodity development with key solutions of policy reform, institutional, organizational and public investment improvement are the first important assignments of the sector This project really matches with the above target Operational Environment 3.1 Political and Legislative Environment Apart from Decree No issued at the central government meeting in July 2008 on the target of developing comprehensive agriculture orienting to modern, sustainable and massive commodity production, Vietnam has not yet issued policies or comprehensive strategies on a particular agricultural commodity or on the investments in commodities related to future or stable or sustainable markets Policy intervention is mainly through related policies which may directly and indirectly affect the commodity sector These include major policy groups on production support, land and trade and supporting agriculture production policies such as science and technology, credit and agricultural extension Much of the legislation relates to Vietnam’s obligations to international agreements These are important, but they relate to the ability to trade (export and import) rather than what to trade and how to empower producers, processors and exporters of Vietnamese product to be competitive while being profitable Examples of related policies include: Policies on production support  Decree No 225/1999/QD-TTg dated December 10, 1999 on crop and forestry varieties and breeding during the period 2001 – 2005 and Decree No 17/2006/QD-TTg dated January 20, 2006 on continuous implementation of Decree 225/1999/QD-TTg till 2010  Decree No 129/2003/ND-CP (2003) relates to exemption of agricultural land use and the latest Decree 115, 2008 allowed the abolishment of irrigational fees  Decree 05/2005/QD-BNN dated January 20, 2005 sets standards of agricultural commodities or agricultural products which are produced and traded under MARD’s supervision  Decision No 391/QD-TTg (April 2008) on the review and inspection of the management and use of land for the five years to 2010, with a focus on rice fields in particular  National Food security of Vietnam and vision to 2030: (Pending)  Government’s Decree of Rice Land Management: (Pending 2008) Land policies The Land Law 2003 stimulates that all land area belongs to the entire people, representing by the State with five main responsibilities: (i) Formulate land use zoning and land use plans; (ii) Decide land use quota and duration; (iii) Grant land use rights to land users; (iv) Collect taxes related land use; and (v) Determine land prices Land users are allocated with land for long-term and stable use and are granted seven rights of land use: transfer, exchange, lease, inheritance, mortgage, donation, and use of land as capital contribution Besides, land users have to (i) farm appropriate crops and rotations; (ii) pay attention to land fertility maintenance; and (iii) pay taxes and fees on agricultural land Current taxes related to agricultural land in Vietnam include (i) tax on agricultural land use, (ii) tax on land use rights transfer, and (iii) tax on land over the land limit In 2003, the Government promulgated a legal regulation exempting most farmers from paying agricultural land use tax until 2010 Specifically, the following land policies are related to agricultural production:  Decree 09/2000/NQ-CP of the Government issued in June 2000 stipulates the stabilization of about million of irrigated for rice production and ineffective rice land types (compared to the national average level) are allowed to transfer to other more effective crops  Decree No 03/2000/NQ-CP of the Government dated February 2, 2000 on farming economy stipulates policies on land allocation, lease, transfer of land use right in order to encourage cultivated land concentration, agricultural development toward farming scale, facilitating the development of material production for focused commodities Trade policies To meet requirements of the Agreement of Agriculture (AoA) the Vietnamese Government has issued the following policies aimed at formulating a certain discipline in agricultural trade and support policies and avoiding the use of policies that distort the world trade of agricultural products  Decision No 1042/QD-BTM issued by the Ministry of Trade on 29 June 2007 on lifting bonus for export achievement This decision is to implement Vietnam’s WTO commitment to remove export subsidies  Law No 20/ 2004/ P L- UBTVQ H11 on 29 April 2004 on anti-dumping of goods imported into Vietnam  Decision No 02 /2008/QĐ-BCT dated 21 Jan 2008 on the plan on development of machinery industry for agriculture in 2006-2015 with vision towards 2020  Decision No 104/2008/QD-Ttg dated 21 July 2008 on export tariff on rice and fertilizer  Decree No 39/2006/QĐ-BTC dated 28 July 2006 on tariff on export and import goods This decree mentions all kind of goods imposed with export tariff, of which only some agricultural products are included in compliance with AoA Sanitary and Phyto-sanitary Agreement (SPS): Relevant international organizations or WTO members are responsible for the definition of SPS measures and Vietnam is obliged to meet importing countries SPS requirements The following legal documents and policies have been issued:  Decision No 04/2008/QD-BNN on 10 January 2008 on the functions and cooperation of Vietnam’s SPS enquiry points  Law No 12/ 2003/ P L- UBTVQ H11 dated 26 July 2003 on food sanitary measures  Decree No 149/2007/QD-TTg dated 10 Sep 2007 on the implementation of a national plan for food sanitary measures  Law No 18/2004/PL-UBTVQH11 dated 29 April 2004 on animal health service  Decree No 33/2005/ND-CP dated 15 March 2005 on the implementation of Law No 18/2004/PL-UBTVQH11  Law No 36/2001/PL-UBTVQH10 dated 25 July 2001 on plant protection and inspection Technical Barriers to Trade Agreement (TBT): The TBT agreement is relevant for technical regulations covering all specific characteristics of a product, such as size, design, operation, package, and label Decision No 0975/QD-BTC issued by the Ministry of Finance on 15 February 2008 is on the approval of a project on technical support after WTO entry- phase This is to evaluate current status and give solutions to obstacles and difficulties in implementing WTO commitments on distribution, franchise, goods inspection, logistics, and trade agencies Trade related Aspects of Intellectual Property Rights (TRIPS): The agreement obliges members to protect inventions of products and processes It covers all intellectual property rights with instruments to protect authors, investors, brands and names against imitation and reproduction Plant varieties and geographical indications relating to agriculture are also covered in this agreement The following provisions oblige WTO members to introduce intellectual property rights for plant varieties and geographical indications  Law No 50/2006/ QH11 dated 29 November 2006 on intellectual property rights  Decree No 104/2006/ND-CP dated 22 September 2006 on intellectual property rights for plant varieties, wine and spirits  Decree No 54/2000/ND-CP dated 13 October 2000 on trade secrets, geography Besides WTO agreements, Vietnam has signed the some regional agreements that can affect agriculture, such as AFTA/CEPT, US bilateral trade agreement, AFTA- China, and AFTAKorea All these agreement basically focus on reducing import tariff and other trade and nontrade barriers to bind all members open up their markets for imported goods General documents at central level relating to agricultural production and export  Decision No 69/2007/QD-TTg issued by the Prime Minister on 18 May 2007 on the development plan on processing industries for agricultural and forestry products until 2010 and vision towards 2020  Decision No 27/2007/QD-BNN of the Ministry of Agriculture and Rural Development dated 12 April 2007 on management regulations of the national plan on the development and implementation of bio-technologies in agriculture until 2020  Law No 05/2007/QH12 dated 21 November 2007 on product quality This provides regulations on quality of export products in general and binding that all exporters have to follow this law and other international and regional commitments  Decree No 151/2006/ND-CP dated 20 December 2007 on regulating national credit for investment and export  Decision No 08/2007/QĐ-BTC dated March 2007 on interest for credit for investment and export In general, besides positive effects, policies related to agricultural commodities are mainly situational and passive, often issued at time of crises (rice crisis, coffee, food safety, animal inputs, etc.) Commodity policies are mainly support for production, and specific regulations relating to Vietnam’s international agreements which impact largely on access to global markets, agricultural subsidies, product quality and specific sanitary and phyto-sanitary requirements There is little comprehensive policy along the chain of a specific commodity: planning, forecast for investment, production organization, input materials, production, processing, trade, quality control, risk management, and support for end consumers Policy formulation process is reactive and is generally not on a scientific basis and does not have proper consultation of many relevant stakeholders such as policy makers, researchers, private sector, farmers, etc As a result, market forecast of agricultural commodities as the basis for policy formulation is really necessary Economic Environment Planning based on production areas and yields with a focus on exports risks creation of an imbalanced sectoral structure Farmers are encouraged to invest in strong export commodities such as coffee, pepper, cashew nut, rice, and tiger prawns Weaker sectors such as livestock, poultry, and forestry products, with large and often unfulfilled domestic markets not seem to receive sufficient support Investment in strong export sectors are large often without due regard to markets Supply, often of low quality, has quickly exceeded demand for some crops with surpluses in crops such as coffee, rice and catfish in recent years having significant impacts on producer’s livelihoods At the same time, investment and competitive advantage in local consumption-oriented sectors/product is reduced increasing the risk of loss of domestic markets through intense competition from imported goods Farmers are the weakest actor in the value chain: Compared to other market actors, farmers benefit the least from the value chain Though current policies all give priority to farmers, no policy is really suitable Some policies give “in-kind” support rather than method support to encourage farmers Value added along the value chain mostly comes from processing, packaging, advertising and marketing stages while almost Vietnamese farmers can access to raw production This is particularly true to small-scale farmers or those living in remote and mountainous areas Social Environment  Transfer of agricultural land for industrial purpose impacts on poverty and labour as farm families are forced to look for non-farming jobs According to estimates of the Ministry of Social, War Invalids and Labour, on average, 1.5 labour of one farmer household is unemployed as their production land is revoked while most of them are not well educated and vocationally trained  Farmer’s decisions on farming systems they use and the mix of farm products is restricted by designation of land use for specific crops, such as rice While this may provide some assurance of food security, it is also likely to significantly impact farm household income, through inability to switch to higher value production systems  Modelling work will identify impacts on income distribution of agricultural land use and transfer as well as trade liberalization at regional and sectoral levels, will assist in identifying vulnerable groups and the development of policies to support them This will help the Vietnamese Government clearly identify problems and purposively select social welfare policies, avoiding expenditures on ineffective sectors R&D Information Main Research Areas Research on demand – supply of agricultural commodities  A study on methodology for supply and demand of the rice sector1 describes the application of geographical information system (GIS) and modelling in analysing the balance of supply – demand of rice for seven ecological zones of Vietnam The important outputs include (i) identification of areas of comparative advantage for rice production; (ii) methodologies for improved estimation of rice yields and total production and forecasting demand for each ecological region including some provinces; (iii) estimation that with a rice area of million hectares, and projections of domestic demand that Vietnam can maintain exports of 2-4 million tons/year with a price decline by 20% resulting in exports close to the 2m tons/year; (iv) Household demand for rice in 2010 with the rate of urbanization of 33% will be about 13.8 million tons Price variation of rice will increase or decrease consumption of rice by about million ton  Trends for livestock development in Vietnam2 are impacted by instability and high prices of meat, high cost of animal feed, high price of breeding, and ineffective veterinary services Output is limited by low income, low meat quality, incomplete standards and system, lack of information, and lack of distribution system for consumption It also indicates the role of government in creating a legal corridor, management of quality standards, safety and hygiene of food that are very important and necessary to be improved to strengthen their role in supporting the promotion of the livestock sector  Domestic consumption of coffee3 sector, using survey data based on standard of living indicate an increasing demand for coffee, especially in urban areas of Vietnam Research on competitiveness  In 2002, Nielsen3 conducted a research on rice sector of Vietnam on the international market, summarizing the production, structure and commercial trends of the international rice market and an evaluation of current policies for rice, especially the policies relating to market access, export subsidies, use of GMOs and domestic support in other countries Chu Thai Hoanh (IRRI), Dang Kim Son (ICARD) and the colleagues from the University of Wagenningen Vu Trong Binh and Lucy Lapar (ILRI) (2203) "Hinders for participating in input and output markets of livestock in Southeast Asia: the case of Vietnam." 2005, Tran Thi Quynh Chi and Muriel Figue  Research on the competitiveness of Robusta coffee industry of Vietnam4 concluded that the competitiveness of Vietnamese coffee in the past is based on cheap labour, high productivity through more fertilizer and irrigation, and infrastructure development policies for all stakeholders involved in production, processing and consumption of coffee Recent trends in the coffee market have shown that it will be hard to maintain the high competitiveness of Vietnamese coffee as the market trend is towards high quality, organic and clean products together with increasing concern for GAP and environmental impacts Research on the impacts of world trade integration  Nielsen (2003)5 listed trade policies which have direct impacts on Vietnamese rice sector: (i) Removal of the quota on rice export and import of fertilizer is likely to increase the effectiveness of resource allocation within the economy (ii) Land policy and land allocation - measures which restrict the change of agricultural land use purposes create obstacles for production and export and control of agricultural diversification activities through adjustment of land use allocation will reduce comparative advantage and the socio-economic benefit of different partners (iii) Preferential trade agreements with EU – potential trade partners of Vietnam are unlikely to be beneficial for rice production and export of Vietnam as they place Vietnam in a competitive playing field with all exporting countries to the EU  A Study on trade liberalization in the livestock industry6applied general equilibrium modelling to assess the impact of trade liberalization indicated that (i) In general, trade liberalization would not have negative impacts on Vietnamese livestock industry as the volume of meat trade internationally would be low; (ii) impacts of international trade liberalization, such as price shocks are likely to be low as Vietnam is self-sufficient in pork and poultry with relatively low consumption of beef; (iii) exemption and reduction of import tax on materials for animal feed processing on the development of the industry, especially pig and poultry raising is likely to benefit the domestic livestock industry  One of the negative impacts of trade liberalization and increasing dependence on export is the variation in domestic price7.as price uncertainty not only makes farmers vulnerable but also affects those in processing industries and some traders Coffee prices peaked to a historic high in 1990, causing overproduction and thus dropping prices which resulted in a serious impact on the livelihood of coffee growers, particularly those in Daklak province – the biggest coffee area in Vietnam With low world prices and evolving globalization and trade liberalization, farmers especially the poor, will be the most vulnerable Cao Bang Hoang, Tran Thi Quynh Chi, et al (2004) Chantal Pohl Nielsen, University of Copenhagen and Dannish Food Economic Research Institute, “Vietnamese rice policies: reform and opportunities for the future”, Asian Economic Journal, No 17, 2003 Institute of Agricultural Economics and the Agricultural University (2005) funded by the Capacity building Enhancement Fund for Vietnam (CEG), Australia ICARD and Oxfam (2002) Commodity value chain research  A comprehensive study of the rice value chain in Vietnam8 concluded that (i) Vietnam suffers from a lack of and infrastructure environment and policy mechanism to enhance food security, decrease rural poverty and increase income from exports; (ii) Methods for creating value for the rice industry include increase productivity, especially in the mountainous areas, remote areas and increasing production and export of special rice with high quality The role of the state sector in direct investment in productivity increase should be only limited to irrigation supply, infrastructure strengthening and policies and the private sector should develop specialty and high value markets In addition, investment in the rice industry should be combined with policies on crop diversification to solve the problem of rural poverty  A comprehensive study9 on livestock market actors such as producers, feed traders and processors, meat traders, meat processors, consumers, retailers and veterinary agencies analysed demand for meat and calculated price elasticity in Hanoi and Ho Chi Minh City Research on commodity supply forecast  A study10 on forecasting long-term supply of main coffee regions in Vietnam using Vintage model a analysed the impacts of various factors (coffee prices, inputs prices, tree age and productivity etc.) on coffee supply The research makes specific predictions of coffee supply of each province in the research area Key issues  Lack of data sources (data and image) to fully analyse the market by time series and to regularly update Although there have been a number of sources of market information this is only conducted under projects, hence it is not possible to maintain long-term stability and research units not have a mechanism to exchange and use information effectively  Market information is merely on price – mainly retail price – other important information for market analysis such as market differentiation, comparative advantage, trends in markets and future opportunities is often available, but rarely incorporated into commodity research  Information collected has not met all the demands of commodity market research, particularly the information needed to assess supply and demand of the goods  Timeliness of information on strategic commodities collected by the down-to-commune vertical hierarchy General Statistics Office often means that prediction of crop yields are not available until well after harvest time, which does not support sound investment decisions by producers, processors and exporters  Vietnam has not yet been able to build scheme and development planning based on the study of the competitiveness and comparative advantages of the main commodities – among the local regions as well as between Vietnam and other countries  Research for market analysis of some strategic goods is available but not yet comprehensive and does not come into details of the international market, tastes of the potential markets, Agrifood Consulting International (2002) International Food Policy Research Institute (IFPRI) and the Ministry of Agriculture and Rural Development (MARD) (2001) "Selecting livestock policies to promote rural income diversification and growth in Vietnam” 10 Tran Thi Quynh Chi et al (2007) 10 - Decision no 69/2007/QĐ-TTg issued by Prime Minister on 18 May 2007 on the development plan for processing industries for agricultural and forestry products until 2010 and towards 2020 - Decision no 27/2007/QĐ-BNN issued by Ministry of Agriculture and Rural Development dated 12 April 2007 on management regulations of national plan for development and implementation of bio-technologies in agriculture until 2020 - Law no 05/2007/QH12 on product quality dated 21 November 2007 This provides regulations for quality of product export in general and binding that all exporters have to follow this law and other international and regional commitments - Decree no 151/2006/ND-CP dated 20 December 2007 on regulating national credit for investment and export - Decree no 56/2005/NĐ-CP dated 27 April 2005 on agricultural and aquaculture expansion - Decision no 08/2007/QĐ-BTC dated March 2007 on interest for credit for investment and export - Decision no 29/2007/QĐ-TTg dated 28 February 2007 on setting up and regulating the fund for aquaculture - Decision no 10/2006/QD-TTg dated 11 January 2006 on the development plan for aquaculture until 2010 and towards 2020 - Circular no 19/ 2004/ CT-TT g dated June 2004 on solutions for development of wooden processing industry and export Legal documents to implement WTO agreements with regard to agricultural production and export AoA - Decision no 1042/QD-BTM issued by the Ministry of Trade on 29 June 2007 on lifting the incentives for export achievement This decision is to implement the Vietnam’s WTO commitment to remove export subsidies - Law no 20/2004/PL-UBTVQH11 on 29 April 2004 on anti-dumping of imported goods into Vietnam - Decision no 02 /2008/QĐ-BCT dated 21 Jan 2008 on the plan for development of machinery industry for agriculture in 2006-2015, towards 2020 - Decision no 104/2008/QD-Ttg dated 21 July 2008 on export tariff on rice and fertilizer - Decree no 39/2006/QĐ-BTC dated 28 July 2006 on tariff on export and import goods This decree mentions all kind of goods imposed export tariff, of which only some agricultural products are included and comply with AoA agreements TBT - Decision no 0975/QD-BTC issued by the Ministry of Finance dated 15 February 2008 on the approval of project on technical support after WTO entry- phase This is to evaluate current status and give solutions for obstacles and difficulties in implementing WTO commitments on distribution, franchise, good inspection, logistics, and trade agencies SPS 100 - Decision no 04/2008/QQ-BNN on 10 January 2008 on functioning and cooperation of Vietnam’s SPS enquiry points - Law no 12/2003/PL-UBTVQH11 on food sanitary measures dated 26 July 2003 - Although this was issued before WTO entry, it is currently applicable - Decree no 149/2007/QĐ-TTg dated 10 Sep 2007 on implementing a national plan for food sanitary measures - Law no 18/2004/PL-UBTVQH11 on animal health service dated 29 April 2004 - Decree no 33/2005/ND-CP dated 15 March 2005 to implement Law no 18/2004/PLUBTVQH11 - Law no.36/2001/PL-UBTVQH10 dated 25 July 2001 on plant protection and inspection - Decree no 410/QD-BTC dated 23 July 2008 to establish enquiry points for plant and animal inspection - Decree no 99/2005/QD-Ttg dated May 2008 to establish a nation enquiry point for plant and animal inspection - Decree no 02/2007/ QD-CP dated 05 January 2007 on plant protection and inspection TRIPS - Law no 50/2006/ QH11 dated 29 November 2006 on intellectual property rights - Decree no 104/2006/ND-CP dated 22/9/2006 on intellectual property rights for plant varieties, wine and spirits - Decree no 54/2000/ND-CP dated 13/10/200 on trade secrets, geography a3 Legal documents to implement regional trade agreements Vietnam and AFTA As CEPT focuses on import tariff, legal documents concerning CEPT put effect on agricultural produced imported into Vietnam, not Vietnam’s agricultural export Only some legal documents on regulating certificate of origin issuance can help Vietnam export products enjoy preferential when entering ASEAN market - Decision no 1420/2004/QĐ-BTM dated October 2004 - Decision no 016/2007/QĐ-BTM dated 10 July 2007 - Decision no 001/2007/QĐ-BCT dated 27 August 2007 - Decision no 007/2007/QĐ-BCT dated 24 October 2007 Vietnam and South Korea - Decision no 02/2007/QĐ-BTM on 08 February 2007 & 005/2007/QĐ-BCT dated October 2007 on issuance of certificate of origin to enjoy preferential under trade agreements between ASEAN & South Korea Vietnam and China 101 - Decision no 12/2007/QĐ-BTM on 31 May 2007 & 23/2007/QĐ-BTM on August 2007 on issuance of certificate of origin to enjoy preferential under trade agreements between ASEAN & China - Decision no.70/2005/QĐ-TTg on April 2005 on instructions to settle trade disputes between ASEAN & China - Decision no 023/2007/QĐ-BTM dated August 2007 on plan for development of export and import between Vietnam and China during 2007-2015 B Legal documents for specific agricultural products b1 Aquaculture - Decision no 01/2007/QĐ-BTS dated 13 February 2007 on inspection of aquaculture products exported to Canada and USA - Instruction no 03/2006/TT-BTS on 12 April 2006 implementing Decision no 10/2006/QDTTg dated 11 January 2006 - Decision no 71/2001/QĐ-BNN dated 29 June 2001 on implementation of some technical and material assistance for agriculture and aquaculture expansion - b2 Legal documents for cashew nuts - Decision no 120/1999/QĐ-TTg dated 07 May 1999 on approval of plan for cashew nut development until 2010 - Decision no 39/2007/QĐ-BNN dated 02 May 2007 on approval of plan for cashew nuts until 2010 and towards 2020 2.2.2 Economics environment (Including Market) WTO and other economic organizations’ entry will offer a much bigger market for domestic agricultural producers and exporters Producers will have an opportunity to increase production and diversify products to meet regional and world demands For example, tea producers can promote production as many international consumers prefer Vietnamese tea Exporters can get benefits from the entry because they are treated and can compete equally in the world economy This is very different from the past when exporters were facing many difficulties due to high tariffs and non-trade barriers Farmers will also benefit because they are provided more detailed information about world market trends, changes in tastes, characteristics and prices Enterprises who have limited capital to invest into modern technology and lack of experience when dealing with international partners may face significant difficulties in competitive world markets Farmers, who not follow required production quality criteria, will not be able sell their products to certain markets Vietnam’s exports of agricultural products such as rice, coffee, rubber, pepper and cashew nut, account for a considerable proportion of agriculture exports but most of these are raw products and are exported indirectly, so the prices as well as profit are reduced This is mainly due to the fact that agriculture exporting enterprises lack of information on policy and importing countries’ market 2.2.3 Social environment Although agriculture contributes only 1/5 of GDP, this is the key economic activity creating jobs and income for a large number of Vietnamese households Agriculture exports play an important 102 part in the national trade balance, household income and use of labour in Vietnam Any movement in Vietnam’s importing markets or world market may have direct impact on labour, job, income and living standard of Vietnamese households Improved export performance is likely to increase farm incomes and reduce rural poverty Economic integration, hence, will be spill-over benefits on the social aspects of rural areas, as improved market access will help farmers to sell their products on world markets and improve their profitability This will contribute to the poverty eradication process of Vietnam because most poor people live in rural area and are involved in agriculture production 2.2.4 Technical Issues There is little information in Vietnam on international trade policy and developments in world agricultural markets due to a limited number of research and market analysis service providers Moreover, there’s little added value on the implications for Vietnam in the information that has been provided One of the key reasons is the shortage of technical infrastructure as follows (i) Knowledge on building a database on trade and policy (ii) Analysis and quick report skills (iii) Analytical tools such as the Computable General Equilibrium (CGE) Models and reporting templates, etc 2.3 Current Practices Reviewing current policies and previous research related topics have shown that basically the domestic legal framework conforms to the trade agreement between Vietnam and other members However, there are a number of important issues that need to be addressed  Domestic support policies for selected products and markets, taking full advantages of and in compliance with AoA  Detailed instructions for implementing SPS, TBT, and TRIPS, targeted at key export markets  World standard certification and border protection systems and procedures  Marketing and communication on agricultural promotion  Foreign Direct Investment in agriculture Key stakeholders include all actors involving in the value chains of agricultural exports, namely farmers, collectors, input suppliers, processors, exporters; and those who are involved in agricultural production and export process such as commodity associations, certifying bodies, boarder protection agencies, researchers and government KEY ISSUES - International economics integration o Impacts of developments in trade negotiations in either the WTO or FTA framework directly or indirectly involving Vietnam; o Implications for Vietnam’s agricultural trade, export competitiveness and the domestic economy; o Timely analysis to support decision making by the Government; and o Information dissemination to stakeholders, exporters and producers - Market access 103 o Lack of market research for major current and potential markets, covering the development of market share, local taste, local regulations, the competitiveness of Vietnamese agricultural exports in comparison with products of competitors in these markets, market potential (include projections of main development trends) => Lack of strategy for major markets o Lack of guidelines to apply needed practices, for example GAP, GMP to cope with SPS and TBT regulation in overseas markets such as the EU and Japan o Lack of policies to take full advantages of AoA o Lack of mechanism to cope with highly fluctuating world prices - Domestic supply o Lack of long-term planning of production and market development o Stakeholders lack of information about markets o Backward technology o Weak vertical and horizontal links o Weakness of commodity associations o Yet to take into account environmental issues (overuse of antibiotic for aquaculture, overuse of pesticide for crops and forest devastation, etc.) R&D INFORMATION 4.1 Main research area There are many studies and research reports on the implications of Vietnam’s accession to the WTO and ASEAN/AFTA in general and on agriculture in particular However, as Vietnam has joined ASEAN for a longer period, there are more studies on the implications of the accession to AFTA than for the WTO entry Contents Available ASEAN (AFTA) X FTAs (ACFTA) X WTO (Vietnam’s accession) Not available or lack of sources X WTO (Doha) X FTAs (Japan, Korea, Chile, Australia, New Zealand, etc.) X While different methodologies have been applied, almost all of the previous studies have been focused on evaluating the competitiveness of agriculture and agricultural products The conclusions are that the integration to ASEAN/AFTA has opened up the opportunity for agricultural exports However, there is also a challenge for agriculture to increase its competitiveness as well In 2000, the research “Competitiveness of the Agricultural Sector of Vietnam: a Preliminary Analysis in the Context of ASEAN and the AFTA” by FAO and MARD gave a detailed 104 description of tariff reduction under AFTA and evaluated qualitatively the competitiveness of some agricultural products including rice, meat, fish and coffee However, as quantitative analysis was not incorporated in the research, the impact on competitiveness is seen as being unclear In 2002, ISG-MARD carried out two studies The first is “Impact of Trade Liberalization on some Agricultural Sub-sector of Vietnam: Rice, Coffee, Tea, and Sugar” As its name implies, this study was focused on AFTA entry effects on four main agricultural sub-sectors of Vietnam by using partial equilibrium model And the study concluded that exports of rice, coffee, tea when joining AFTA changed positively in both volume and prices, but sugar sector encountered many difficulties The second is “Evaluation of potential impacts on Vietnam’s Agriculture during Implementation on AFTA” This study rated the competitiveness of Vietnam’s agriculture in comparison with other AFTA members Both studies affirmed that AFTA accession was good for agricultural exports by focusing on strength of Vietnam agriculture, but still did not pay much attention on potential weaknesses that may affect future exports like processing methods and future investment strategy, etc The most recent and detailed research is “Competitiveness of Main Agricultural Products in the Context of AFTA”, done by the Centre for Rural Progress The research provided an overview about agricultural production and exports of Vietnam, ASEAN, and the world By using both qualitative and quantitative (GTAP) methods, it gives a very detailed picture of AFTA effects on rice, pepper, tea, breeding, and pineapple – five main agricultural products Strength of this study is that it was focused on the competitiveness and made comparison among competitiveness of the five concerned products with that of other world and regional exporters Finally, it concluded that AFTA entry brought benefits to Vietnam’s agriculture through increased export turnover and higher export surpluses Among ASEAN countries, Vietnam is likely to receive the biggest social benefits due to trade integration Regarding the WTO accession implications, as there has been nearly two years since integration, only a few studies have been carried out so far Moreover, most of the prevailing studies have covered the evaluation of WTO impacts on Vietnam economy in general, only limited number of surveys and research are focused on the impacts on agriculture and agricultural exports specifically Nearly all the studies used a qualitative, rather than quantitative, approach Like ASEAN/AFTA, the WTO entry is seen and forecasted to have positive influence on Vietnam agriculture (Vietnam Agriculture Annual Report 2007 & Chung (2008)) except a sceptical view by Dr Wiemann Basically, almost all studies state that the WTO entry helps promoting agricultural exports with increased export turnover, more export markets and higher export surpluses In the future, the WTO accession paves the way for agricultural development to catch up with the world (Hiep 2008) The forecasted impacts are same as ones concluded by ABARE (2006): the more trade reform, such as higher domestic support cuts, agricultural tariff production, the more benefits countries in the Cairns group can get For example, gross value of production in agriculture of the Cairns group will increase by 5% in 2016 The percentage increases for Australia, New Zealand, Argentina, and Brazil are estimated to be around 4.9, 7.4, 5.6, 11.9% respectively However, when looking into the WTO entry, authors pay more attention on bad effects and challenges that WTO may bring other than ASEAN/AFTA The reasons is firstly, WTO is an international organization, thus, the market and opportunity brought by it are more complicated than regional ones like ASEAN Secondly, the WTO entry has bound Vietnam on much more 105 strict obligations than AFTA According to researchers, challenges are many, including, but not limited to severe competition from other world producers and exporters, price and quality pressure Week competitiveness of agricultural products will cause losses of Vietnam when entering the world market (Chung, 2008) World prices and trading practices are big barriers for agricultural producers and products because they are much different from that of Vietnam and difficult to follow However, the most severe challenge is the SPS and TBT restrictions (Vietnam Agriculture Annual Report 2007) Since late 2006, aquaculture export has faced many issues relating to sanitary and phyto-sanitary regulations and technical regulations, resulting to mass reduction on export volume to Russia and Japan market The “food” sector in general is likely to face similar challenges for entry into high priced markets Back to Dr Wiemann’s study, although he states that the WTO entry is a basic step to approach to the world market and further assist Vietnam in promoting its exports, he points out that there are many substantial changes that Vietnam has to meet in order to get benefits from WTO Changes should be done in the core of Vietnam’s agriculture, from agricultural structure, information provision, agricultural research to credit scheme, social security, and vocational training for farmers, and agricultural products’ competitiveness When finding out appropriate ways to reform agricultural sector in Vietnam, Japan may be a very good example Comparing with Vietnam, Japan enjoy less favourable climate, cultivated land, and rural labour conditions, but with its solutions, targeted at solving these issues, Japan succeeded in agricultural reform (ABARE 2006) In conclusion, current researches and studies have given a rather clear picture about AFTA and WTO effects on Vietnam agriculture and agriculture export However, further studies on WTO and AFTA entry’s implications using quantitative method should be implemented to better prove the picture And topics should be covered include: - Market access o Strategy for major markets based on research covering the development of market share, local taste, local regulations, the competitiveness of Vietnamese agricultural exports in compared with products of competitors in these markets, market potential (include projection of main development trends) o Guidelines to apply needed practices, for example GAP, GMP to cope with SPS and TBT regulation in overseas markets such as EU, Japan o Policies to take full advantages of AoA, especially the green box measures o Mechanism to cope with highly fluctuating world prices, e.g the application of agricultural insurance - Domestic supply o Long-term planning of production, market development, taking into account broad issues such as food security, natural resources preservation, environmental protection, etc o How to improve the competitiveness of agricultural commodities, including but not limited to bringing updated market information to producers, encouraging the application of advance technology in production, processing, transporting, etc o How to improve vertical and horizontal cooperation in agricultural production, strengthening the role of commodity associations 4.2 Major research providers 106 This subject of market access and domestic supply is completely new for IPSARD researchers, and just some researchers have learnt about CGE in general and GTAP in particular, few could use these models for agricultural market analysis This is also true for other domestic research institutes Presently, Information Centre for Agriculture and Rural Development (AGROINFO) is the only unit in IPSARD provides information on international economic integration AGROINFO has established analysis team according to Vietnam’s key commodities AGROINFO’s staff are trained in basic domains (economy, marketing, foreign trade etc.), able to use foreign languages and produce periodical publications (weekly, monthly, quarterly and annually) on some selected commodities (such as rice, meat and rubber) AGROINFO has also built up a database on prices, trade and policy, etc However, AGROINFO staff number is small and weak in skills of collecting and analysing information on international economic integration, especially on foreign markets and Vietnam’s partners in bilateral and multilateral trade agreements The existing databases on agricultural trade and policy have a number of shortcomings There have been few information products and their dissemination channels are in need of improvement It is clear that capacity development in Vietnam will require significant collaboration from international agencies such as: ERS/USDA, ABARE, IFPRI, FAPRI, etc Capacity development involving Domestic and regional market-commodity specialists and Foreign market-commodity specialists are priorities Within Vietnam: Departments under MARD, VCCI, General Department of Customs also have some capacity SWOT ANALYSIS Strengths International economics integration  Vietnam membership of international (WTO) and regional organisations (ASEAN/AFTA, APEC,) and participation in bilateral agreements sets the platform for international economics integration  After Vietnam’s accession in WTO, there has been increased attention to information on international economic integration  Vietnam is a large agriculture exporter and has some potential competitive advantages (rural labour, climate etc) Weaknesses International economics integration  Shortage of up-to-date information and difficulties in checking the reliability  Policies to date are generic and provide orientation, but details on implementation particularly in relation to agriculture products is weak  Few studies on strategic issues in agriculture, such as competition in local and export markets for agricultural products  Lack of ability to undertake analysis  Lack of historical data for comparison  Support from international organizations   Information on international economic integration is available on the internet and from international organizations Lack of specialized groups by markets, partners and competitors  Lack of rapid and efficient dissemination tools  Lack of a specialized group capable of quick policy collection and analyses on international economic integration Market access Market access 107  Research tools (market research tools, econometrics models, general or partial equilibrium models), are available  Increasingly international cooperation enables information and data exchange  Stakeholders increasingly aware of the need of doing market research and applying them into their business   Flexible policy adjustments  Lack of policies to take full advantages of AoA  Lack of mechanism to cope with highly fluctuating world prices   Lack of guidelines to apply needed practices, for example GAP, GMP to cope with SPS and TBT regulation in overseas markets such as EU, Japan  Domestic supply Lack of market research for major markets, covering the development of market share, local taste, local regulations, the competitiveness of Vietnamese agricultural exports in comparison with products of competitors in these markets, market potential (include projection of main development trends) => Lack of strategy for major markets Weak commodity/industry associations to address market needs for volume, quality and continuity of supply Domestic supply Major Vietnam agricultural commodities have been competitive and Vietnam is among the top exporters of rice, coffee, pepper, cashew-nut, rubber, tea, wood products, etc with little support from the government in compared with other sectors and with the counterparts in other regional countries  Lack of long-term planning of production, market development  Development of producer organisations, integration with processors and exporters is not well advanced  Stakeholders lack of information about market  Small-scale production could support quick adaptation to market changes  Backward technology  Weak vertical and horizontal links  Vietnamese farmers are diligent  Weakness of commodity associations  Climate is suitable for agricultural development  Yet to take into account environmental issues (overuse of antibiotic for aquaculture, overuse of pesticide for crops, forest devastation, etc.)  Weather forecasting activities for production still be weak 108 Opportunities Challenges International economics integration  In the integrated world, there are continuously emerging issues required backing research to support policy responses  Broader market access and theoretically less unfair trade affairs  The newly promulgated Resolution on agriculture, farmers and rural development marks the leaders’ appreciation of the role of the sector and could entail more investment and enabling environment  Improving analysis of impacts on agriculture as part of international trade negotiations  Provide information support for modelling analysis on international trade issues and impacts  Improve stakeholder understanding of important international trade issues  The state and donors are ready to provide resources for support International economics integration  Overcoming non-tariff barriers  Conflicts of interest amongst members of international and regional organisations  Farmers’ institutions are weak so they are in weak position in policy dialogue  Build up a mechanism to attract concerned staffs to focus on relevant activities  Redesign the information collecting system to ensure the reliability of information  Obtaining support from international organizations to improve the capability of analyzing international economic integration developments  Limited skills in Vietnam for analysis of issues relating to economic integration for agriculture products Market access  Focus on key markets and good market opportunity analysis  Potential to further address rural poverty through development of quality production systems and access to higher priced markets  Improvement, coordination and development of confidence internationally and domestically on certifying bodies for SPS  Promotion, publicity and general acceptance of key requirements to maintain and improve market access  Improved market research to target production and value adding to market needs Market access  Retaining competitiveness through quality control  Leaky boarders  Other countries would possibly protect their agricultural production in many way, especially by technological barriers  Collaboration from other domestic agencies (General Department of Customs, VCCI, etc.)  Competition amongst domestic producers and exporters in the same markets Domestic supply  Development of domestic support policies that take advantage and are in compliance with international requirements Domestic supply  Lack of long-term agricultural land use planning, farmers are lack of incentives to invest in production, which could harm our competitiveness  Increasing foreign direct investment in rural areas, production and value adding  109 Difficult to get information on competitors in oversea markets Reference Agroinfo, Vietnam Agriculture Annual Report 2007 and Outlook for 2008, February 2008 Assoc Prof Dr, Hoang Phuoc Hiep, The WTO Agenda and its Impact on Vietnam’s Agriculture, Ministry of Justice, 2008 ABARE research report 06.11, The Cairns Group, Catalyst for Agricultural Trade Reform, September 2006 ABARE research report 06.24, Japanese Agriculture, Forces Driving Change, December 2006 ABARE research report 07.7, Trade Implications of the 2007 US Farm Bill Proposals, March 2007 ABARE research report 07.3, Australian Commodities, September Quarter2007 ABARE research report 08.6, Changing Food Consumption and Imports in Malaysia, August 2008 ISGMARD, Evaluation of Potential Impacts on Vietnam’s Agriculture during Implementing CEPT under AFTA, January 2002 ISGMARD, Impact of Trade Liberalization on some Agricultural Sub-sectors of Vietnam: Rice, Coffee, Tea, and Sugar, February 2002 10 Dr Jurgen Wiemann, The WTO Agenda - Challenges and Opportunities for Vietnam’s Agriculture, Institute for German Development, 2008 11 Ministry of Agriculture and Rural Development and Ministry of Fisheries/ FAO, Hanoi, The competitiveness of the Agricultural Sector of Vietnam: A preliminary analysis in the context of ASEAN and AFTA, October 2000 12 MUTRAP II, Report on Agricultural Trade Policies and Vietnam’s WTO Commitments on Agriculture, April 2007 13 Prof Angang Hu, Tentative Evaluation of China’s Accession to WTO: Impact on World Trade Growth Pattern (2000-2005), January 2006 14 The Center for Rural Progress, Competitiveness of some Main Agricultural Products within the Context of AFTA, August 2005 15 Tong Van Chung MA, The impacts of WTO on Vietnam’s Agricultural Sector, Faculty of sociology, USSH, 2008 16 UN Country Team Vietnam, The impact of International Economic Integration on Agricultural Development in Vietnam, April 2002 110 Annex Export turnover Table Annual Agriculture Export Turnover (million USD) Year Total 2001 4400 2002 4600 2003 5100 2004 7100 2005 7700 2006 10600 2007 12600 Quarter I/2008 3200 Table Export Turnover of some Agricultural Products and to some key markets (million USD) Year Aquaculture Wood product Coffee Paddy rice Rubber Cashew nuts Vegetable & Fruit Pepper Bamboo and rattan Tea 2001 1,816 340 391 590 166 152 344 91 75 78 100 253 61 43 31 18 23 11 29% 65% 10% 26% 21% 5% 25% 7% 14% 16 60 44 5% 15% 1% 1% 29% 1% 6% 3% 1% 15 54 44 147 12 4% 1% 1% 33% 29% 43% 10% 16% 2% Europe US China 111 Asia 207 51 380 112 51 204 49 43 53 61% 13% 64% 68% 34% 59% 53% 57% 67% 17 23 249 28 10 26 - 5% 6% 42% 17% 0% 3% 29% 0% 3% 41% 8% 9% 13% 4% 3% 8% 2% 2% 2% 2,022 428 322 726 268 209 221 109 92 82 102 195 44 51 46 23 39 12 24% 60% 6% 19% 22% 10% 35% 8% 14% 45 39 10 72 17 10% 12% 1% 4% 34% 3% 15% 5% 3% 24 98 46 126 13 6% 1% 0% 36% 22% 57% 5% 14% 1% 257 53 579 192 56 187 26 46 48 60% 16% 80% 72% 27% 84% 24% 51% 58% 23 20 292 54 14 - 5% 6% 40% 20% 1% 3% 13% 0% 3% 44% 9% 7% 16% 6% 5% 5% 2% 2% 2% 2,200 592 505 720 378 277 152 105 106 58 162 306 34 79 57 29 35 13 12 27% 61% 5% 21% 21% 19% 33% 12% 21% 116 73 11 100 16 10 20% 14% 0% 3% 36% 5% 15% 9% 2% 23 16 57 71 16 4% 1% 0% 4% 21% 47% 2% 15% 2% 247 81 462 251 68 140 25 50 27 42% 16% 64% 67% 25% 92% 24% 47% 47% ASEAN % of total agriculture export value 2002 Europe US China Asia ASEAN % of total agriculture export value 2003 Europe US China Asia 112 ASEAN 15 31 389 39 21 11 - 2% 6% 54% 10% 2% 14% 11% 0% 3% 43% 12% 10% 14% 7% 5% 3% 2% 2% 1% 2,408 1,139 616 947 597 425 178 148 138 92 386 417 71 114 89 36 54 16 18 34% 68% 7% 19% 21% 20% 37% 12% 20% 319 89 17 178 15 27 24 28% 14% 0% 3% 42% 8% 18% 17% 2% 47 20 364 72 30 16 4% 1% 2% 61% 17% 17% 1% 11% 4% 359 72 457 450 88 97 24 44 40 31% 12% 48% 75% 21% 55% 16% 31% 43% 37 25 318 21 20 11 - 3% 4% 34% 3% 2% 11% 8% 0% 3% 34% 16% 9% 13% 8% 6% 3% 2% 2% 1% 2,739 1,563 736 1,407 804 502 236 151 140 97 Europe 468 331 23 132 129 49 60 78 23 US 567 98 - 25 157 13 29 22 China 69 12 526 100 42 - 18 Asia 434 87 686 625 121 129 21 64 42 29 31 617 19 21 10 3 36% 20% 10% 18% 10% 7% 3% 2% 2% 1% 3,358 1,933 1,217 1,276 1,286 504 259 183 174 100 505 608 44 216 126 52 78 99 23 26% 50% 3% 17% 25% 20% 42% 57% 23% % of total agriculture export value 2004 Europe US China Asia ASEAN % of total agriculture export value 2005 ASEAN % of total agriculture export value 2006 Europe 113 US 744 166 28 167 18 30 26 38% 14% 0% 2% 33% 7% 16% 15% 2% 101 17 13 856 97 35 5% 1% 1% 67% 19% 13% 0% 3% 8% 543 134 786 560 116 130 46 29 49 28% 11% 62% 44% 23% 50% 25% 17% 49% 31 51 701 31 29 17 6 2% 4% 55% 2% 1% 11% 9% 3% 6% 32% 18% 11% 12% 12% 5% 2% 2% 2% 1% 3,752 2,116 1,817 1,460 1,360 641 298 243 196 113 30% 17% 14% 12% 11% 5% 2% 2% 2% 1% China Asia ASEAN %of total agriculture export value 2007 % of total agriculture export value 114 ... (i) Formulate land use zoning and land use plans; (ii) Decide land use quota and duration; (iii) Grant land use rights to land users; (iv) Collect taxes related land use; and (v) Determine land... (i) Formulate land use zoning and land use plans; (ii) Decide land use quota and duration; (iii) Grant land use rights to land users; (iv) Collect taxes related land use; and (v) Determine land... and communal levels Land user, rights and duties of land users  Rights: Land users were allocated land for long-term and stable use and were granted seven rights of land use: transfer, exchange,