HA NOI — There is a clear income gap between the rich and the poor in rural
areas at a time when access to agricultural input materials and markets are
plagued with difficulties.
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Deputy head of the Ministry of Planning and
Investment's Central Institute for Economic Management (CIEM) Vu Xuan Nguyet
Hong made the statement at a conference held to discuss the outcomes of the
"Characteristics of the Vietnamese Rural Economy: Evidence from a 2010 Rural
Household Survey in 12 Vietnamese Provinces" held in Ha Noi
yesterday.
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Hong said that the survey indicated rural residents were
suffering from difficulties even though their incomes and living conditions had
sharply improved.
"It means that policymakers should continue to
implement support policies to benefit rural residents, " she said.
She
added the policies should help rural residents participate in the market and
further develop agricultural production.
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"The Government should provide
access to information for people who have difficulty accessing input materials
for production, " she said.
Professor Finn Tarp from Denmark's Copenhagen
University said the Vietnamese economy had improved and progress had been
made.
"Viet Nam has the ability to face various crises. However, some
people, especially those in rural areas, have not managed to respond well to the
crisis or increase their incomes, " Tarp said.
He added that agricultural
production should be increased but its proportion in the economy should be
smaller.
"Media plays an important role in rural development because we
can see from the survey that a lack of information is a challenge. To make the
right decision about what to do you need to know about prices and markets, " he
said.
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Findings from the survey show that the proportion of households
classified as poor by the Ministry of Labour, Invalids and Social Affairs has
declined significantly over the years of the survey, suggesting that conditions
have improved for the surveyed households.
"This [the number of poor
households] declined from 23 per cent in 2006 to 16 per cent last year, " said
head of CIEM's Rural Development Policies Section Luu Duc Khai, adding that
there had been a downward trend in poverty in nearly all the provinces with the
exception of Dien Bien, Khanh Hoa and Long An.
He said it was clear that
some provinces and groups remained more vulnerable than others. Large
discrepancies in education by gender and poverty status had been noted while
improvements in living conditions in terms of access to safe water and energy
usage had been observed.
"The impact of migration on rural communities
and on migrants should also be researched, " he said.
The survey also
show that the surveyed households experienced a significant increase in average
annual income levels between 2008 and 2010.
"Agriculture remained the
most important source of employment and income but poor households diversified
their income sources to a greater extent than wealthier households, preventing
them from enjoying gains from specialisation, " he said.
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The average
annual household income last year was VND80. 9 million (US$3, 950) while in 2008
the number was VND52. 7 million ($2, 570). About 28 per cent of the surveyed
households operated a non-farm household enterprise which were mostly small and
required only modest amounts of start-up capital.
Household enterprises
have become more common among rural households with the exception of former Ha
Tay, Khanh Hoa, Lam Dong and Long An provinces.
The survey found that
there was a growing trend in the proportion of rice output that was sold. The
commercialisation of agriculture could be an important mechanism for rural
households to break out of poverty.
Khai said savings and credit had also
been important mechanisms for coping with unexpected income losses
"We
find that households were better able to cope in 2010 compared with 2008 but the
poor remained the most vulnerable group. It was suggested that financial markets
were better able to assist households in coping with shocks, in particular
credit and insurance markets, but the informal sector played an important role
with informal savings, " he said.
Danish Ambassador to Viet Nam John
Nielsen said agriculture accounted for two-thirds of the country's exports with
an annual growth rate of 4 per cent.
However, he said the poverty rate in
rural areas was high. The survey was expected to provide data for policymakers
to develop measures for rural people to improve their lives.
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Hong said
the Government should develop policies to support farming households in
establishing large-scale enterprises as well as services to gather them into
bigger productions.
"The best way to make the improvements is to
accelerate production infrastructure to help farmers benefit from
commercialisation in relation to supply and demand, " said director of the
Institute of Policy and Strategy for Agriculture and Rural Development's
(IPSARD) Agriculture Policies Advisory Centre Nguyen Do Anh Tuan.
The
survey, which was first conducted in 2002, builds on the three previous surveys
and provides an insightful overview of the surveyed households over a long
period.