Format | |
---|---|
BibTeX | |
MARCXML | |
TextMARC | |
MARC | |
DublinCore | |
EndNote | |
NLM | |
RefWorks | |
RIS |
Files
Abstract
Since 1986, Vietnam started to move from a centrally-planned towards a market-oriented
system. It underwent several major economic and trade reforms – a process
which is still not completed. At the same time, it also started to open its economy.
Vietnam has become a member of the ASEAN Free Trade Agreement (AFTA), signed
several bilateral trade agreements and is currently negotiating accession to the World
Trade Organization (WTO). First positive results of the reform process became visible in
the early 1990s when poverty declined to a large extent. Since then, the Vietnamese
agricultural sector has also experienced high growth and impressive export achievements.
The country changed from a food importer to one of the major exporters worldwide. The
question arises to what extent support policies contributed to this growth, especially of
the agricultural sector.
In order to answer this question, domestic and trade policies in the agricultural
sector are analysed and the market price support (MPS) and producer support estimates
(PSEs) are calculated. To account for the special conditions in Vietnam, the MPS and
PSEs are adjusted for country- and commodity-specific factors like transportation costs,
marketing margins and the quality difference of exportables (or importables) at the border
and domestically. The selected agricultural commodities for which the MPS and PSEs are
estimated include rice, coffee, tea, rubber, pepper, sugar, groundnut, cashew nut and pig
meat. These nine commodities are the main agricultural products and exportables of
Vietnam. Their shares in total output exceed 70% allowing for a generalization of the
calculated PSEs, thus roughly representing the whole agricultural sector.
The finding is that most agricultural products were taxed in the mid 1980s until
the mid 1990s. This was often due to large inefficiencies in the production and processing
of agricultural commodities, the dominance and monopoly position of the state-owned
sector, restrictive trade policies like import and export quotas and licenses, and distorted
markets and prices in the country. The domestic reform process, the opening of the economy since the early 1990s, and the shift from an import-substitution strategy towards
export-promotion, however, impacted on the gaps between the domestic and international
prices. Thus, since the mid 1990s, the support of agriculture increased - but still reaching
only rather low levels. At its peak, the %PSE for the agricultural sector was 21.4% which
is moderate compared with other countries. The low level of protection implies that
Vietnam may not face excessive difficulties in its further international integration.
This study of Vietnam is the third comprehensive review conducted within an
IFPRI project on understanding and assessing domestic and trade policies in the
agricultural sector in developing countries. The data are meant to deliver a basis for
further trade-related research to be conducted in the future.