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Abstract

This paper summarizes two country-specific studies which examine the degree and changing patterns of incentives to domestic agriculture in Malaysia and Vietnam. Malaysia stands out in the developing world for its long-standing commitment to maintaining a relatively open trade and investment policy regime. However excessive assistance given to paddy farmers remains a major distortion in agricultural incentives. Market oriented reforms in Vietnam began in the late 1990 with attempts to unshackle domestic agriculture, and reforms in this areas have been wide-ranging, with the exception of excessive assistance provided to sugar cane producers. The impressive reform outcome in agriculture has played a pivotal role in sustaining the momentum of reforms, assuring the continuation of market-oriented reforms. However, remain a major anomaly in the incentive structure.

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