Director of the Southern Institute of Agricultural Science and Technology Bui Chi Buu spoke to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about the need to invest more in agriculture in the Mekong Delta.
The Mekong Delta region is now cultivating the 2010-11 winter-autumn rice crop. Officials said that production this year would face difficulties. Is that the case?
The region has great production potential. For example, the region’s rice output was up in 2010 despite the effects of the La Nina phenomenon. However, winter-autumn production in the central region is likely to be down 70 per cent, while in the Red (Hong) River Delta it will be down 30 per cent. The time is ripe to invest more in the Mekong Delta region and recognise it as a key economic region. On the other hand, it is high time we changed our stance on agricultural investment. The Government must invest in the Mekong Delta region to offset the effects of climate change. The region cannot stand alone.
The Mekong Delta region has suffered the most from climate change. Why therefore has the Government not invested in the region? When the sea-level rises, one-third of the region’s agricultural land will vanish, seriously affecting production.
Farmers must also ensure the winter-autumn crop is not damaged by mice.
How much has the Government earmarked from the State budget for agriculture development? Is it likely to be sufficient?
Investment in agriculture traditionally accounted for 4 per cent of the total budget expense, but the Government has increased that figure to ten per cent. Scientific research accounts for 0.15 per cent of the total investment. VND700-VND1,000 billion (US$35.7-51 million) is earmarked for scientific research each year.
The Thai Government spends 40 per cent of its budget on scientific research, while Malaysia spend 60 per cent. In comparison with surrounding countries, the rate of Vietnamese investment in agriculture is too small.
Vietnamese farmers tend to think in terms of rice output per hectare rather than profit. Some farms have high yields, but costs are also high. What do you think?
Basically, we need to reorganise production but Vietnamese farmers are relatively unskilled. The agricultural sector needs to help them. Agricultural production is too scattered. But if we discuss this issue with farmers only 10 per cent will understand. We need farmers to better understand the price structure. Farmers need to know how much to invest in production to boost profit. There are many ways agricultural production can be restructured. For example co-operatives could be established.
Viet Nam plans to open up its rice market in 2011. What preparations need to be made for that?
When Viet Nam opens up its rice market, it will benefit farmers but it may harm some local businesses. However, that should be offset if foreign businesses come to Viet Nam to invest in rice production. Domestic businesses need to adjust their business strategy.
