The Role of Agriculture in Vietnam's Economy
  • Category: Economics , Food , Science
  • Topic: Agriculture

Vietnam is a developing country that relies heavily on agriculture for the growth of its economy. Unfortunately, despite the significant contributions made by farmers, many of them still live in poverty. With a population of almost 98 million people, 65.6% of which live in rural areas in 2019, agriculture plays a critical role in the national economy, accounting for 24% of GDP and nearly 30% of export value. Farmers, therefore, hold an essential position in Vietnam's agriculture sector. However, due to natural disasters, competition, financing policies, and lack of education, farmers face several difficulties, which puts them in a vulnerable and precarious position.

Factors Affecting Farmers:

Agricultural mechanization has split farmers into two groups- those who own their land and those who work as tenants for wealthier landowners. These farmers encounter various challenges, and natural weather disasters and competition top the list. Despite the country's tropical climate being conducive to agriculture, Vietnam faces numerous natural catastrophes each year, such as floods, storms, and drainages. In particularly difficult regions, farmers experience lost harvests, deepening their poverty and debt. The author evaluates each region's unique challenges to discover whether the government or farmers have found solutions to these problems.

In addition to natural disasters, farmers also worry about worms and golden apple snails that ruin their harvest. These creatures pose threats both from nature and humans, particularly from neighboring countries that vie for global agricultural product exports, such as China. In 2018, Chinese traders bought a considerable amount of apple snails from the South of Vietnam at an exorbitant price without explanation and suddenly discontinued the merchandise. This left many apple snails in fields, damaging harvests and destroying farmers' livelihoods. Additionally, while Vietnamese farmers possess admirable qualities, such as honesty and candor, they are often victims of industrial wars waged by neighboring countries. The author aims to investigate if the government has policies in place to protect these farmers.

Reasons for Low Conditions:

Farmers' economic outlook in Vietnam often depends on whether they inherited land or work as tenants. Those with inherited land face exploitation by unscrupulous merchants who make unreasonable demands. They manipulate farmers to accept poor returns for their hard work. On the other hand, farmers who work as tenants often face financing policies that work against them. Financial institutions hesitate to provide loans to these farmers as their assets have little value, leaving them vulnerable to early loan repayment. Without government support, they sell their crops at low prices during poor harvests to meet loan payment deadlines.

Conclusion:

Vietnam's transition from a central-command economy to a market-based economy has significantly improved its agriculture sector. The Triangle pillar positions policy, designed to encourage farmers to adopt advanced technologies in their agricultural practices to compete globally, has been instrumental. However, farmers' lack of finance education undermines their efforts to manage capital borrowed from financial institutions, leaving them vulnerable to exploitation. Despite the challenges, agriculture remains a crucial sector of the economy, and farmers' contributions are vital to the country's development, requiring protective policies to support their growth and development.

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