The costs of obtaining food security in Vietnam

Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
27  
ThE COSTS OF OBTAININg FOOd SECURITY IN vIETNAm  
By Nguyen Van Ngai1  
Global food crisis happened in 2008, supply and thus allocates a lot of resources  
all countries in the world must pay attention for food production, rice in particular, it may  
on food security. Although Vietnam is a food result in negative impacts on agricultural  
export country, food security is targeted development and the economy as a whole.  
as a priority in the process of economic Vice versa, if the country sets priority  
development. Obtaining food security will to agricultural development in terms of  
gain political and social stabilities, but it agricultural growth rate and economic  
may create negative impacts on agricultural growth, it may result in high risk in  
development and economic development obtaining food security. This study reviews  
as a whole. This paper overviews some policies related to food security in Vietnam,  
key policies on food security, analyses the analyses current food supply and demand  
current food security, projects food security and projection until 2020, identifies trade-  
in Vietnam until 2020, investigates the costs offs between food security and agricultural  
of obtaining food security and draws policy and economic development and draws  
recommendations.  
policy recommendations.  
I. Introduction  
II. Review of Food Security policies  
in vietnam  
In recent decades, food security has  
been an important ‘organizing principle’  
Even though Vietnam is a food  
in development. There are a number of export country, Vietnamese Government  
researches, aid agencies, and programmes of and Vietnamese Communist Party always  
actions have been carried out in an attempt set food security as a priority in making  
to ensure food security. The concept of ‘food policies during the process of economic  
security’ has developed over the past three development. The Tenth Congress of  
decades. Four components of food security Vietnamese Communist Party agreed that  
is widely accepted that are availability, Vietnam must plan the area for growing  
accessibility, sustainability and safety rice in order to get stable rice production  
at different levels such as international, and obtaining food security. The policies  
regional, national and household levels. supporting food security include policies  
Although Vietnam is the second leading related to rice growing such as land  
rice exporting country, food security is still policy, investments and trade policy. In  
an issue that need to be considered, not terms of land policy, in 1993 the land law  
only at national level but also household was issued allowing rice farmers to have  
and individual levels. At the national level, more autonomy in making production  
Vietnam has been trying to develop its decisions. However, in order to obtain food  
agriculture to meet the objective of food security, the government issued Decisive  
security since food security is recognized as No. 68/2001/ND-CP on 1st October 2001  
an important issue in terms of economics, that attempted to control paddy land by  
politics and society as a whole. Moreover, limiting farmers to convert their paddy  
in 2008 global food crisis make Vietnam land to other crops or other uses. In 2006,  
worried more about food security. If the Vietnamese Assembly issued Decisive No.  
countryworriestoomuchaboutfoodsecurity, 57/2006/NQ-QH11 that strictly controlled  
it gives priority on food production for self- converting from paddy land into other  
1 Nong Lam University, Ho Chi Minh City, Vietnam  
Email: nvngai@hcmuaf..edu.vn, nguyen_van_ngai@yahoo.com  
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Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
using purposes. Moreover, farmers were stop signing rice export contracts between  
also exempted from agricultural land tax. Vietnamese export companies and their  
On 18 April 2008, Prime Minister signed rice export partners. Moreover, some  
Decisive 391/2008/QĐ-TTg to check the policies supporting rice production such as  
implementation of agricultural land use research and applying new rice varieties,  
plan, rice land in particular.  
technological trainings, exemption of  
irrigation fees and encouraging rice farmers  
doing contract farming have been applied.  
Vietnamese Government has also  
supported food security by providing public  
investments in agriculture, especially in  
building irrigation system for areas growing  
rice. About 80% of irrigation investments  
has been contributed to rice production.  
Moreover, on 22 October 2004, Prime  
Minister signed Decisive, No. 184/2004/  
QĐ-TTg, to improve the irrigation system  
connecting to farmer land and rural  
transportation system. Trade policy is the  
other tool that Vietnamese Government  
applied to obtain food security at national  
level. In general, the restrictions of rice  
export such as export taxes or export quotas  
have been removed, but the government still  
has a role in management of food security  
by controlling rice export contracts based  
on the balance of domestic demand and  
supply. For example, in March 2008, when  
food price in the world sharply increased  
III. Current Food Security in vietnam  
3.1. Food supply  
Food includes staple food (rice,  
cassava, sweet potato, maize, etc.) and food  
stuffs (meat, vegetable, egg, milk, etc.).  
This study focuses on staple food, rice in  
particular since it is a leading staple food  
in Vietnam. Staple food in Vietnam has  
significantly increased over the period of  
1986-2007 after the ‘renovation program’  
started in 1986 that conducted a transitional  
phase from the centrally-planned economy  
to a market oriented economy. As a result  
of that program, Vietnam became the third  
largest rice exporter in the world in 1989,  
behind Thailand and USA. Since 1989,  
Vietnamhasrmlyobtaineditsfoodsecurity  
at the nationallevel.The productionofstaple  
due to high international demand for food, foods has continuously increased during the  
Prime Minister announced the regulation to  
2000s (see Figure 1).  
Figure 1 : Production of Some Staple Foods, Vietnam, 2000-2007, 1000 tones  
40000  
35000  
30000  
Sweet potato  
Cassava  
25000  
20000  
15000  
Paddy  
Maize  
10000  
5000  
0
2000  
2001  
2002  
2003  
2004  
2005  
2006  
2007  
Source : GSO, 2008.  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
29  
Table 1  
Cultivated Area, production, Yield of paddy, vietnam, 1990-2007  
Cultivated  
Annual  
production  
(1000 tones)  
Annual  
Yield (tone/  
Annual  
growth rate  
area  
growth rate  
growth rate  
ha)  
*(1000ha)  
1990  
1991  
1992  
1993  
1994  
1995  
1996  
1997  
1998  
1999  
2000  
2001  
2002  
2003  
2004  
2005  
2006  
2007  
6042.8  
6302.8  
6475.3  
6559.4  
6598.6  
6765.6  
7003.8  
7099.7  
7362.7  
7653.6  
7666.3  
7492.7  
7504.3  
7452.2  
7445.3  
7329.2  
7324.8  
7201.0  
-
19225.1  
19621.9  
21590.4  
22836.5  
23528.2  
24963.7  
26396.7  
27523.9  
29145.5  
31393.8  
32529.5  
32108.4  
34447.2  
34568.8  
36148.9  
35832.9  
35849.5  
35867.5  
-
3.18  
3.11  
3.33  
3.48  
3.57  
3.69  
3.77  
3.88  
3.96  
4.10  
4.24  
4.29  
4.59  
4.64  
4.86  
4.89  
4.89  
4.98  
-
4.3%  
2.7%  
1.3%  
0.6%  
2.5%  
3.5%  
1.4%  
3.7%  
4.0%  
0.2%  
-2.3%  
0.2%  
-0.7%  
-0.1%  
-1.6%  
-0.1%  
-1.7%  
2.1%  
10.0%  
5.8%  
3.0%  
6.1%  
5.7%  
4.3%  
5.9%  
7.7%  
3.6%  
-1.3%  
7.3%  
0.4%  
4.6%  
-0.9%  
0.0%  
0.1%  
-2.1%  
7.1%  
4.4%  
2.4%  
3.5%  
2.1%  
2.9%  
2.1%  
3.6%  
3.4%  
1.0%  
7.1%  
1.1%  
4.7%  
0.7%  
0.1%  
1.8%  
Average  
(1990-2007)  
Average  
7071.1  
7427.0  
1.1%  
29087.7  
34669.1  
3.8%  
1.7%  
4.10  
4.7  
2.7%  
2.5%  
-0.8%  
(2000-7)  
Source : GSO, 2008.  
Note : * Cultivated area equals planted area times the number of crops per year.  
Reduction in cultivated paddy area  
during the year 2000s  
Paddy production nearly doubled over  
the period of 1990-2007, 19 million tones  
in 1990 and 36 million tones in 2007 (see  
Table 1). The annual growth rate of paddy  
production was about 3.8% as a result of  
1.1% increase in cultivated area and 2.7%  
increase in yield.  
However, during the year 2000s, paddy  
production continued increasing at slower  
growth rates, (1.7% annual growth rate). The  
slowdownofthegrowthratecanbeexplained  
by some pressures in the economy that  
reduced land areas for paddy production (see  
Figure 2), even though the yield remained at  
more than 2% increase per year.  
Figure 2: Areas Growing Staple Foods, Vietnam, 2000-2007, 1000 ha  
1000 ha  
9000  
8000  
7000  
6000  
5000  
4000  
3000  
2000  
1000  
Sweet potato  
Cassava  
Rice  
Maize  
0
2000  
2001  
2002  
2003  
2004  
2005  
2006  
2007  
Source : GSO, 2008.  
30  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
Table 2  
Changes in Agricultural Land in 2006 compared with 2001, 1000 ha  
Year  
2001  
Changes  
1000 ha  
2006  
24696.0  
9436.16  
6348.15  
4130.94  
3088.01  
14514.23  
715.11  
%
16.35  
6.27  
Total  
21224.45  
8879.06  
6064.34  
4337.75  
2814.72  
11822.99  
503.47  
3471.15  
557.1  
Agricultural land  
Annual crops  
Paddy rice  
238.81  
-206.81  
237.29  
2691.24  
211.64  
4.68  
-4.77  
9.71  
Perennual tree  
Forestry  
22.76  
42.04  
Fishery  
Source : GSO, 2007.  
Figures in Table 2 show that during non-paddy annual crops and for perennial  
the 2000s planted paddy area was reduced trees also increased during that period of  
about 1% a year in average, 4.3 million time. Low incomes in paddy production is  
ha for paddy production in 2001 and 4.1 the reason that farmers change their crops  
million ha in 2006. Farmers converted their to get higher incomes. They also use paddy  
rice land into other crops (sugarcane, fruits) land to build ponds for producing shrimp  
or fishery (shrimp and fish). The land for or fishes which can export to gain much  
fishery increased from 0.5 million ha in higher incomes.  
2001 to 0.7 million ha in 2006. Land for  
Table 3  
Cultivated paddy Area by Regions of vietnam, 2000-2007, 1000 ha  
Red  
North-  
east  
North-  
West  
Central  
North  
Central  
South  
High-  
land  
South-  
east  
Mekong  
Delta  
Year  
2000  
Country  
River  
Delta  
2121  
7666.3  
7504.3  
7445.3  
7329.4  
7021.0  
550  
562  
557  
553  
553  
136  
140  
151  
154  
158  
695  
700  
685  
683  
683  
422  
399  
401  
392  
376  
176  
186  
198  
208  
205  
526  
484  
475  
435  
432  
3945  
3834  
3816  
3773  
3684  
2002  
2004  
2006  
2007  
1196  
1161  
1124  
1111  
Change  
2007/2000  
- 645.3  
-101  
+3  
+22  
-12  
-46  
-29  
-94  
-261  
Source : GSO, 2008.  
It is noted that the reduction of of economic development. Losing paddy  
cultivated paddy land in Vietnam during land for that objective may be appropriate.  
the 2000s happened in two important paddy However, the problem is that approximately  
production regions in Vietnam, Red River 50% of land in industrial parks has not  
Delta (decreasing 101 thousands ha) (see been leased by investors. Climate change is  
Table 3) and Mekong Delta (decreasing 261 another pressure that affects the paddy land  
thousands ha). The reduction of paddy area area, particularly in the two deltas. Vietnam  
in these regions is due to the urbanization, is in the top five countries vulnerable to  
the government established  
many climate changes. If the sea level rises by  
industrial parks on the paddy land. Farmers 1 meter, Vietnam will lose 5% land, in  
have to return their land-use right to the which, Thai Binh, Hai Phong, An Giang,  
government and get some compensations. Dong Thap, Tien Giang, Vinh Long and Ca  
Industrialization is one of key objectives Mau provinces will seriously be affected.  
of Vietnamese Government in the process Vietnam paddy production will be reduced  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
31  
by 5 million tones per year due to climate paddy yield during the 2000s is 2.5 percent  
changes. (Vietnam Media, 2008).  
per annual, the law of diminishing marginal  
product in paddy production is rather clear  
over the period of 2000-2007, the yield  
increased at the diminishing growth rates.  
Improving technology and investments are  
considered as main reasons for achievement  
Achievement in high paddy yield  
As above discussed, even though  
paddy land area has been decreasing but  
paddy production still keeps increasing, the  
achievement in high paddy yield is a reason in high paddy yield.  
for that. The average annual growth rate of  
Figure 3: Yield of Paddy and Maize, Vietnam, 2000-2007, 100kg/ha  
60  
50  
40  
30  
20  
10  
0
Rice  
Maize  
2000  
2002  
2004  
2006  
2007  
Source : GSO, 2008.  
Growing paddy in the Red River lower, 5.06 tones per ha in 2007 (see Table  
Delta results in highest yield in Vietnam, 4). Therefore, increasing paddy production  
5.67 tones per ha in 2007, while Mekong in Vietnam by improving yield in Mekong  
Delta is a leading region for growing Delta is very potential.  
paddy in Vietnam but the yield is still  
Table 4  
paddy Yield by Regions of vietnam, 2000-2007, tones/ha  
Red  
River  
Delta  
North-  
east  
North-  
west  
Central  
North  
Central  
South  
High-  
land  
South-  
east  
Mekong  
Delta  
Year  
Average  
2000  
2002  
2004  
2006  
2007  
4.24  
4.59  
4.86  
4.89  
4.98  
5.43  
5.64  
5.78  
5.81  
5.67  
4.00  
4.22  
4.47  
4.54  
4.56  
2.95  
3.27  
3.63  
3.80  
3.64  
4.06  
4.51  
4.93  
5.10  
4.74  
3.98  
4.28  
4.71  
4.91  
5.09  
3.32  
3.25  
3.95  
4.29  
4.19  
3.19  
3.47  
3.75  
3.91  
4.24  
4.23  
4.62  
4.87  
3.91  
5.06  
Source : GSO, 2008.  
3.2. Food demand  
feed, processing for food and reserves to  
stabilize the market fluctuation as needed.  
Of which, seed, human consumption and  
animal feed are considered as necessary  
demands that cannot be missed. The foreign  
Demand for food includes domestic  
demand and foreign demand. Domestic  
demands consists of demand for seeds for  
reproduction, human consumption, animal  
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Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
demand refers to exports to the world security. However, Vietnam is a low income  
markets for foreign exchange earnings. A country, an increase in incomes leads to  
country just exports food as there is food changesin componentsofdailydietthatshift  
surplus after meeting domestic demands.  
to consume more food stuffs and less staple  
food, rice in particular. Rice consumption  
per head reduced from 156 kg/person/year in  
1992 to 120 kg/person/year in 2006 (GSO,  
2009). In average, the rice consumption  
decreases about 1.7% per annual as a  
result of increase in incomes that eases the  
pressure on food demand due to population  
growth. People will consumption more  
food stuff, meat in particular. According to  
the study of Pham Thi Lan Anh, Pham Van  
Hoan and Nguyen Duc Minh (2009), meat  
consumption per head increased 5 times  
over the period of 1985-2005 or about 24%  
increase per annual (see Figure 5) and 4.5%  
over the period of 2000-2005. If the demand  
for meat continues increasing, the supply of  
meat must increase to meet increasing meat  
demand, and therefore, as a consequence  
the demand for rice to produce animal feed  
Domestic food demands  
Human consumption and animal feed  
are two main sources of rice consumption in  
Vietnam, 66.4% and 24.3%, respectively. As  
manyAsian countries, rice is a daily food for  
Vietnamese people. Since 1989, domestic  
rice production has met human consumption  
in Viet Nam. Vietnamese people just  
consume about 54% of total rice production.  
Thus, Vietnam has firmly obtained its food  
security at the national level.  
Rice consumption in Vietnam depends  
on population and components of daily diet.  
Population growth in Vietnam was about  
1.6% per annual, average in 1986-2005  
(GSO, 2008), thus, rice consumption must  
be increased by the same percentage if there  
is no change in the components of daily diet.  
Population growth imposes the pressure on  
human rice consumption and thus on food must be higher.  
Figure 4: population,vietnam, 1988 – 2007, million people  
90.00  
80.00  
70.00  
60.00  
50.00  
40.00  
30.00  
20.00  
10.00  
0.00  
1988 1990 1992 1994 1996 1998 2000 2002  
Source : GSO, 2008.  
2004 2006  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
33  
Figure 5: Changes in Consumption of food - stuffs, vietnam  
1985 - 2005,(Kg/person/year)  
Vegetables  
Fish  
Meat  
Egg and milk  
250  
200  
150  
100  
50  
203  
214  
171  
180  
69.9  
62.8  
30.2  
52  
51  
50  
40.1  
13.7  
10.3  
13.6  
0
2.9  
1.7  
1985  
1990  
2000  
2005  
Source : Vietnamese Institute of Nutrition  
Source : Pham Thi Lan Anh, Pham Van Hoan and Nguyen Duc Minh, 2009  
Exports  
the growth rate of rice supply, the volume  
of rice exports has been increasing over  
years (see Figure 6). Asian countries such  
as Philippines, Indonesia and Malaysia are  
Vietnam has become a food export  
country since 1988, just after two years  
implementing the ‘renovation program’.  
Because the domestic demands have the main rice importers of Vietnam.  
increased at the slower rate compared to  
Figure 6: Rice Export, vietnam, 1986 – 2007, 1000 tones  
6000  
5000  
4000  
3000  
2000  
1000  
0
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006  
Source : GSO, 2008.  
Iv. projection of Food Security in  
vietnam Until 2020  
as the average rate during the period of  
2000-2007. The number of crop per year  
is expected to be unchanged, 1.8 crops per  
year. In order to meet increasing demand  
with decreasing paddy cultivated area, the  
yield must be raised. Keeping 2.5% yield  
increase per annual until 2020 is proposed.  
Inthedemandside, threenecessarydomestic  
demands, which are seed, animal feed and  
In order to understand how food  
security in Vietnam until 2020, some  
assumptions of rice supply and rice demand  
must be proposed. In the supply side, planted  
paddy area are expected to decrease 1%  
per annual with the assumption that land  
for producing paddy continues decreasing  
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Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
human consumption, must be projected. projected to increase by 4.5% per annual.  
Paddy demand for seed is based on the In 2020, Vietnam will need 11 million tones  
projected cultivated area and the unchanged of paddy for animal feed that is about a half  
amount of paddy seed per cultivated ha. The of human consumption. In conclusion, the  
projected human consumption is based on necessary demands (seed, animal feed and  
the forecasted population growth and rice human consumption) in 2020 will be about  
consumption per person per year that is 31 million tones, if there is no change in  
expected to be 1.7% decrease per year. The supply (35.8 million tones in 2007), there  
amount of paddy for human consumption are only 4 million tones left for the other  
in 2020 will be about 20 million tones. In demands such as reserve, processing and  
order to project the amount of paddy for exports) in 2020. If taking above projected  
animal feed, over the period of 2000-2005, paddy supply and necessary demands  
the meat consumption increased by 4.5% together, Vietnam will have 11.71 million  
per annual in average as studied by the tones left for reserve, processing and  
Vietnamese Institute of Nutrition. Thus exports in 2020.  
the demand of paddy for animal feed is  
Table 5  
Balancing paddy demand and Supply, 2020  
2007*  
85.2  
4.10  
7.20  
4.98  
35.8  
2010  
88.5  
3.98  
7.16  
5.35  
38.32  
2015  
93.6  
3.78  
6.80  
6.02  
40.96  
2020  
Assumptions  
1. Population (million people)*  
2. Planted paddy area (million ha)  
3. Cultivated paddy area (million ha)  
4. Yield (tone/ha/crop)  
98.6  
3.59 1% decrease per annual  
6.46 1.8 crops per year, unchanged  
6.78 2.5 % increase per annual  
43.77  
5. Supply (million tones)  
6. Necessary Demands (million tones)  
- Seed  
1.10  
6.4  
1.09  
7.26  
1.04  
8.90  
0.99  
- Animal feed  
10.90 4.5% increase per annual  
1.7% decrease in rice consumption per  
person per annual  
-Human consumption  
19.97  
8.33  
19.79  
10.17  
20.02  
11.00  
20.17  
7. Balance (million tones)  
(Reserve, process and exports)  
11.71  
Source : Estiamted  
Note : * Adapted from Chu Tien Quang, 2008.  
The projection of paddy production 2020, Vietnam will have only 0.11 million  
in 2020 must depend on the assumption of tones of paddy for reserve, processing  
2.5% increase in paddy yield per annual and exports in 2020. Vietnam will face  
that is the average rate over the period of with the food insecurity at the national  
2000-2007. However, in order to achieve level. Therefore, under the pressure of the  
that assumed rate is not easy that depends decreasing paddy area, in order to obtain  
on many factors. Figures in Table 6 provide food security, Vietnam must look for  
the projection of necessary demands, supply strategies to increase the paddy yield.  
and balance by different scenarios of yield,  
2.5%, 2%, 1.5%, 1%, 0.5% and 0% increase in vietnam  
per annual. The important signal is that if  
the paddy yield is unchanged from now to region, rice in daily diet is a Vietnamese  
v. Costs of Obtaining Food Security  
Like several Asian countries in the  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
35  
Table 6  
Supply, demand and balance of paddy by yield assumptions,  
vietnam, until 2020, (million tones)  
Assumption  
increase in yield  
of  
2007  
35.80  
2010  
38.32  
2015  
40.96  
2020  
43.77  
Supply  
2.5% per annual  
2.0% per annual  
1.5% per annual  
1.0% per annual  
Demand (seed, animal feed and human)  
Balance (reserve, exports, processing)  
Supply  
27.47  
8.33  
28.15  
10.17  
37.79  
28.15  
9.64  
29.96  
11.00  
39.49  
29.96  
9.53  
32.06  
11.71  
41.27  
32.06  
9.20  
35.80  
27.47  
8.33  
Demand (seed, animal feed and human)  
Balance (reserve, exports, processing)  
Supply  
35.80  
27.47  
8.33  
37.25  
28.15  
9.10  
38.05  
29.96  
8.09  
38.85  
32.06  
6.79  
Demand (seed, animal feed and human)  
Balance (reserve, exports, processing)  
Supply  
35.80  
27.47  
8.33  
36.72  
28.15  
8.57  
36.63  
29.96  
6.67  
36.54  
32.06  
4.47  
Demand (seed, animal feed and human)  
Balance (reserve, exports, processing)  
Supply  
35.80  
27.47  
8.33  
36.18  
28.15  
8.03  
35.23  
29.96  
5.28  
34.31  
32.06  
2.25  
0.5% per annual  
0.0% per annual  
Demand (seed, animal feed and human)  
Balance (reserve, exports, processing)  
Supply  
35.80  
27.47  
8.33  
35.65  
28.15  
7.50  
33.87  
29.96  
3.91  
32.17  
32.06  
0.11  
Demand (seed, animal feed and human)  
Balance (reserve, exports, processing)  
Source : Estimated.  
tradition, after any generous meal without impose some costs in terms of economic  
rice, Vietnamese people feels that they have development in Vietnam. Agricultural  
not finished the meal. Rice is a staple food growth, industrial growth and household  
that cannot be substituted. If food security  
is a problem in the world, rice security is an  
Vietnamese issue. Obtaining rice security  
must be considered as a first priority for  
political and social gains, and in turn  
economic stability. As discussed above, in  
order to meet the objective of food security,  
Vietnam must focus on the supply side since  
the increasing demand cannot be reduced.  
There are two options for increasing paddy  
production that are the expansion of paddy  
incomes may be negatively affected by the  
obtaining food security.  
The option that increases the paddy  
yield is rather difficult since the yield in  
Vietnam is currently high. There are some  
constraints in increasing the yield including  
technological and economic constraints.  
The rice production is, of course,  
characterized by the law of diminishing  
marginal product. Getting higher rice yield  
needs high level of inputs and investments  
land areas and improving yield. Those that may not be efficient.  
36  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
Table 7  
Comparison of staple food production with the others  
(million vNd/ha, constant prices in 1994)  
vegetables,  
Staple Food  
Fruits  
Fishery  
beans  
8.14  
8.71  
9.19  
9.62  
9.67  
10.39  
9.28  
1.30  
2000  
6.57  
6.69  
7.16  
7.29  
7.54  
7.61  
7.14  
1
10.81  
10.50  
10.17  
9.69  
33.93  
33.58  
34.60  
35.27  
37.43  
40.51  
35.89  
5.02  
2001  
2002  
2003  
2004  
9.85  
2005  
10.44  
10.24  
1.43  
Average  
Index, staple food=1  
Source: Estimated by using data of GSO (2006 and 2008)  
Reserve or expansion of land for agricultural uses such as building industrial  
paddy growing to meet the objective of food parks, golf and etc. has been criticized by  
security may lower the agricultural growth. many people. If because of worrying rice  
In general, land productivity of rice is much security, the government stops that land  
smaller than that of other crops. Based on the converting, the cost is too high. It will  
official data of GSO, it is estimated that one affect the process of industrialization and  
hectare of land for producing vegetables, slowdown positive structural change and  
sugar and beans, for fruits and for fishery thus economic growth.  
is equal to 1.30, 1.43 and 5.02 times as that  
for paddy production, respectively (see  
Table 7). Thus, shifting land from non-  
paddy production to paddy production  
will result in lower land productivity and  
smaller agricultural production. Over the  
period of 1990-2007, the average growth  
rate of agricultural sector was about 4%  
per annual, while the average growth rate  
of paddy production was 1.1%, particularly  
it became negative for the period of 2000-  
2007 (-0.8%). Moreover, if the government  
prohibits farmers to change their crops from  
paddy to other crops to reserve paddy land  
for the purpose of rice security, the value  
of agricultural production is difficult to  
For an exported food country like  
Vietnam, obtaining food security by  
restricting exports in order to maintain  
domestic consumption will result in lost  
export revenue and foreign exchange  
earnings (FAO, 2008) that happened in  
Vietnam in the first months of 2008 as the  
global food crisis occurred. It is also noted  
that although Vietnam is enjoyable with  
its rice exports but the contribution of rice  
exports to total exports is still limited. The  
agricultural exports contributed about 15%  
of total exports, but exports of commercial  
crops such as rubber, coffee, pepper and  
cashew nut play crucial role. Fishery  
exports have been playing important  
increase and in turn, the agricultural growth role in recent years, if the government  
attempts to keep paddy land that may lead  
to negative impacts on fishery exports and  
thus on total exports.  
is negatively affected.  
The strategy to meet the objective  
of food security creates negative impacts  
not only on agricultural growth but also  
on economic growth in general. The  
The other negative impact of rice  
security at national level may be food  
problem of converting paddy land to non- insecurity at the household level. Small  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
37  
farm households keeping their small rice animal feed and middle-quality varieties  
farm may not lead them to a low income with middle-yield should be grown for  
family who cannot access to food and thus human consumption.  
the food insecurity at household level.  
Global food crisis generates more  
vI. Conclusions and policy benefits than harms for Vietnamese  
Recommendations  
agricultural sector and economy. Because  
Vietnam has been a net food export country,  
it benefits from high international food  
price as a result of global food crisis. Food  
insecurity in the world is an opportunity  
for Vietnam obtaining food security at both  
national and household levels. Vietnamese  
rice farmers get benefits from higher price  
and thus they do more investments and get  
higher yield that results in more supply  
and positive impacts on food security at  
national level. Poor rice farmers now get  
There is a trade-off between obtaining  
food security and economic development in  
Vietnam. The increase in food demand as  
population pressure is unavoidable. In order  
to meet increasing demand, rice supply must  
beincreasing. Inordertoincreasericesupply  
to obtain food security, political and social  
stability can be achieved, but some negative  
impacts on economic development occur.  
Keeping or expansion of paddy land for food  
securitywilldampenagriculturalgrowthand  
thus economic growth as a whole, because of more incomes from their small amount of  
forgone high land productivity of the other  
crops. Lower land productivity for paddy  
production cannot improve incomes of poor  
rice farmers that result in food insecurity  
at the household level. Because of food  
security, preventing from the using paddy  
land for the purpose of industrialization  
may harm the industrial development and  
thus economic development as a whole.  
rice selling. Higher international rice price  
will bring more foreign exchanges from  
the some volume of rice exports. However,  
high prices of food my lead to difficulties  
in macroeconomic management that affects  
economic growth in the short run and in the  
long run. Higher prices of food significantly  
influence consumer price index (CPI)  
because food expenditures share about 47%  
of Vietnamese consumersbasket. High CPI  
leads to inflation that may be a problem for  
macroeconomics.  
Regarding to the issue of food security  
in Vietnam, this study recommends some  
policies as follows. The government should  
set a priority on increasing the paddy yield  
rather than regulating changes of land areas.  
If the paddy yield is not increased, the food  
security may achieve until 2020, however,  
the problem will become serious after  
2020. Increasing paddy yield is not simple,  
it requires a lot of investments. Improving  
technology must be considered as a decisive  
strategy, biotechnology in particular.  
vII. References  
Chu Tien Quang, 2008, San Xuat Lua Gao  
va Van De An Ninh Luong Thuc o Viet  
Nam [Rice Production and Problems  
of Food Security in Vietnam], Bao  
cao Hoi Nghi Khoa Hoc Kinh Te, 27-  
28/11/2008, Hanoi.  
FAO, 2008. The state of food insecurity  
icatalog/ inter-e.htm  
General Statistical Office (GSO), 2007.  
Statistical Yearbook 2006, Statistical  
Publishing House, Hanoi.  
General Statistical Office (GSO), 2008.  
Statistical Yearbook 2007, Statistical  
Publishing House, Hanoi.  
Since there are different types of  
demand for rice, the strategy of variety  
selection becomes important issue. In  
general, a high-yield variety usually results  
in low quality and vice versa. High-quality  
varieties must be applied for rice exports,  
while high-yield varieties are grown for  
38  
Ho Chi Minh City Open University Journal of science- No. 1(1) 2011  
GSO, 2009. ‘Consumption expenditure and  
consumption expenditure for living’,  
extracted from Vietnam Household  
gso.org.vn  
Nguyen T. Song An and others, 2001.  
Household Food Security in the Tu  
Giac Long Xuyen. Research Project,  
Code: B99-22-50.  
cao%20tham%20luan%20Bo%20  
Y%20te%20(Mr.Hoan).doc  
Trang Thu Huy Nhat and Tran Quang  
Van, 2008. ‘Food security and rural  
development’ in Bases for Territory-  
based Rural Development in the  
Southeast Region, Vietnam, Nguyen  
Van Ngai and Le Thanh Loan  
(eds.),VNU-HCM Publisher, Ho Chi  
Minh City.  
Nguyen Van Sanh (2005) ‘Food Security,  
Livelihood and Rural Development’, TrungTamTin vaTu lieu, CIEM, 2008. Dam  
A Report at a Workshop on Food  
Security in Vietnam in Nong Lam  
University, October 2005.  
Bao An Ninh Luong Thuc The Gioi va  
Viet Nam [Obtaining Food Secrity in  
the World and Vietnam]. http://www.  
ciem.org.vn/home/vn/home/InfoList.  
jsp?area=1&cat=124:bang  
Pham Thi Lan Anh, Pham Van Hoan and  
Nguyen Duc Minh, 2009. ‘Nguy Co  
Mat An Ninh Thuc Pham do Bien Vietnam Media, 2008. ‘Vietnam co nguy co  
Dong ve Tu Nhien va Kinh Te Xa  
Hoi [Risk of losing foodstuff security  
due to Natural and Socio-economic  
vn/Information%20Service/Report/  
Plenary%20Meeting%20Report%20  
17-11-2008/Group%203/Bao%20  
mat 5 trieu tan thoc do bien doi khi hau,  
[Vietnam can lose 5 million tomes of  
paddy per year due climate changes]’,  
pdf 12 trang yennguyen 3620
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