In the general context of the country and agriculture industry, the international co-operation activities implemented by Ministry of Agriculture and Rural Development have contributed the important part to the achievements in agriculture and rural sector of Vietnam.

With regards to Official Development Assistance (ODA) in the period of 10 years (1993-2003), Ministry of Agriculture and Rural Development has mobilized a large amount of capital for the development demand of this industry. The Ministry has signed the agreements with 41 donors for 181 development projects which have the total fund of USD 1.77 billion. Of which, nearly USD 700 million are non-refundable fund. ODA for agriculture and rural development sector accounts for 8.23% of the total ODA for the whole country. The distribution of ODA in agriculture and rural field has reached the balance among sectors.

In agriculture sector, there are 59 signed projects with the total fund up to more than USD 627 millions (of which, USD 117 millions are non-refundable fund). In forestry sector, there are 69 signed projects with total fund of more than USD 296 millions (of which, nearly USD 214 millions are non-refundable fund). In irrigation sector, 33 projects have been signed with total fund of more than USD 712 millions (of which, USD 242 million are non-refundable fund). There are 21 projects with the total fund of more than USD 135 millions (of which, USD 92 million are non-refundable fund in rural development (including projects of management capacity building and public administration reform).

Up to now, Ministry of Agriculture and Rural Development has established bilateral relationship with nearly 30 nations such as Australia, Japan, France, Germany, Denmark, the Nethelands… The Ministry has also established the multilateral relationship with nearly 20 international organizations such as Asian Development Bank (ADB), World Bank (WB), European commission(EC), Organization of Petrol Exporting Countries (OPEC), United Nation Development Program (UNDP), United Nation Children’s Fund (UNICF) and many other non-Government Organizations. The ODA forms and the project structure have become more and more diversified and plentiful, which better meets demand for the development of agriculture and rural sector in Vietnam.

During the period of 1998 - 2003, agriculture and rural development sector received 781 FDI projects with the total registered capital up to USD 3.8 million. On average, this sector attracted nearly 50 projects with USD 200 millions per year. In general, FDI projects in agriculture sector were medium and small scale ones and mainly based on local material source. Foreign investment has mainly concentrated on areas which have favorable conditions such as South East (54%) and less focused on the mountainous areas in the North (4%), Red River Delta (5%), North Central Coast (5%), Central Highland (4%) and Cuu Long River Delta (13%).

The ratio of foreign investment into agriculture and rural sector is quite low compared to other national economic industries. By the end of 2003, 5,424 FDI projects have been granted investment license with total registered capital of USD 54.8 billion in the whole country. Of which, 4,376 FDI projects are still in valid with the total registered capital of USD 41 billions. Agriculture, Forestry and Fishery accounted for 13.6% in terms of numbers of projects and 7% in terms of registered capital.

After 10-year integration process, international relationship activities have made positive contribution to the integration of the industry in particular and the country in general such as joining in ASEAN Food Security Fund and contributing to ASEAN Rice Reserve Fund for emergency (Vietnam contributed 14,000 ton among the total of 87,000 ton); participating in ASEAN Free Trade Area (AFTA) – one of the most important conventions with the goal of reinforcing trade activities among ASEAN countries

Trade and investment co-operation activities through ASEAN have reached new development steps especially export of agricultural products to ASEAN countries’ market such as Indonesia, the Philippines, Singapore. Of which, the quantity of rice, coffee, forestry products, fruits and vegetables enjoyed the highest increase. Up to now, more than 30 enterprises in the form of 100% foreign owned and joint-venture from ASEAN countries have invested in agriculture sector, mainly focused on processing of agricultural and forestry products, livestock and feedstuff manufacturing with the total investment capital of more than USD 430 million (accounting for 22.8% of total FDI capital of Vietnam)

Besides signing the Memorandum on Animal –Plants Quarantine with America, agriculture and rural development sector also participated in Vietnam’s negotiation for joining WTO; negotiating about Agriculture Convention (tax, free tax, domestic support and export subsidy) and Convention of Plant-Animal Quarantine; preparing for the establishment of Information and SPS Question and Answer Bureau; preparing procedure for officially joining International Plant Protection Convention (IPPC) and International Union for Protection of New Varieties of Plant (UPOV)

In the past ten years, together with the steady development of the country in international economic integration, Ministry of Agriculture, by their external activities, have coordinated with businesses which operate in agricultural and forestry products import-export in order to access, exploit and penetrate into some markets, especially long-term markets for agricultural products such as rice, tea, rubber, sugar, cashew nut, coffee, pepper…. This helps agricultural products import-export businesses access and exploit some large markets such as Iraq, The Phillipines, Cuba for rice; Iraq, Russia for tea; India for cashew nut; Russia, China, Iraq, Iran for rubber, Russia for meat; EU and Russia for coffee .

Ministry of Agriculture and Rural Development usually organizes and participates in domestic and international exhibitions in order to introduce products and creates conditions for Vietnamese businesses to contact foreign businesses for exchanging information and signing import-export contract.

Among the total of 287 ODA projects in the past 10 years, more than a half of these projects are technical co-operation ones, accounting for 15% of total ODA fund. This shows the fact that: from the starting point as a country which had to ask for the external support and go abroad for studying to the country which can export products, export grey matter and have a team of qualified scientists acknowledged internationally.

Agriculture and Rural Development Sector has positively participated in South – South Program of United Nation Food and Agriculture Organization (FAO). Up to now, the Ministry has signed expert co-operation agreements in agriculture field as follows: Vietnam - Senegal - FAO tri-lateral convention signed in 1996: 100 Vietnamese experts and technicians have come to work in Senegal in planting rice, vegetable, fruit trees; breeding chicken, duck, pig, bee; fish aquaculture and catching, irrigation programming, processing rice, vegetable and fruits, dried fish and fish source and rural socio-economic; Vietnam - Benin - FAO tri-lateral Convention signed at the end of 1998: 19 experts and technicians have come to study in Benin; Vietnam - Madagascar – FAO tri-lateral Convention signed at the end of 1999 : 18 experts and technicians in agriculture field have been selected and gone to work in Madagascar.

In the past 10 year, Agriculture and Rural Development sector has recruited and exported more than 5,000 labourers, of which, more than 40% to Korea and Kuwait. The remaining have been sent to Japan, Laos and Taiwan. Agriculture and Rural Development International Co-operation Division has also participated in Inter-Government Committee and Mekong Co-operation assignments.

The amendments of law on protection and development of forest in 2004

Stepping into new millennium, the socio-economic development situation of our country has undergone many changes. In this context, many regulations in former law on protection and development of forest prove to be unsuitable to the present situation and can not meet the development demand of the country. Therefore, the amendment and supplementation of the law on protection and development of forest is very necessary in order to meet the need of reality, to reinforce State management capacity in protecting and developing forest; protecting legitimate rights and benefits of forest owners, contributing to the development of socialism-oriented market economy and international integration process of our country.

The law on protection and development of forest in 2004 has many new items which have been amended and supplemented to conform with our socio-economic conditions in industrialization and modernization process:

Firstly, The Law has clearly defined the application scale, applied objects, forest owner, forest ownership and exploitation.

With regards to application scale (Article 1), the Law has applied to domestic households, Vietnamese citizens who settle in oversea countries, foreign organizations and personnel (Article 2). The forest owners defined in The Law (Article 5) are domestic organizations, households and personnel who rent land for afforesting, rent forest from the State and the State acknowledges the forest use right as well as recognizes the afforested production forest land use right. Vietnamese citizens who settle in oversea countries, foreign organizations and personnel who have investment projects in forestry sector and rent forest, rent land for afforesting from the State are also recognized as forest owners. The Law also regulates that the State has the rights in determining the forest under their ownership and regulating the benefits from forest through financial policies. The State empowers the forest owners through the forms of forest allotment, forest lending, acknowledgement of forest use right, receipt of forest transfer from other forest owners.

Secondly, The Law regulates the principles of protection and development of forest (Article 9), policies of the State on protection and development of forest (Article 10) and also supplements many normative acts, regulations in the laws which have been recently promulgated since 1992

Thirdly, The Law also defines in details the rights and obligations of each type of forest owners towards forest or land for afforesting allotted by the State. The Law also reflects the fair play for all economic sectors. The difference among forest owners mainly stem from allotment mechanism, the type of allotted forest, the legal status of forest owners in law relationships. On the basis of clearly defining the forest use right, rights and obligations of forest owners, the responsibility of forest owners over allotted or rent forest in terms of managing, protecting, preventing forest fire, eliminating harmful organics. The Law creates favorable conditions and moving force for forest owners to invest in forestry production and trading as well as forest protection and development.

With regards to land allotment to hamlet inhabitants community, the Law has officially acknowledges the role and position of hamlet inhabitants community in managing, protecting and developing forest.

Fourthly, The Law also regulates some new mechanisms such as forest renting, forest evaluation, forest auction, registration for forest use right, the ownership for afforested production forest; the financial resource for forest protection and development as well as fund for forest protection and development so that the forestry production and trading activities can adapt to socialism-oriented market economy in the new period

The mechanism of forest price is a progressive one which is suitable to market economy

Fifthly, the Law regulates that the forest programming, protecting and developing plan must conform with the land programming, land use plan, the socio-economic development master plan and forestry development strategy. This contributes to reinforcing the effectiveness and efficiency of State management on protection and development of forest

Sixthly, The law also regulates the decentralization among Ministry of Agriculture and Rural Development which takes responsibility before the Government in implementing State management function in nation-wide protection and development of forest with local Government authority of all levels, especially the Village People’s Committee. People’s Committee is the State management agency, the State owner of all forests which are in the form of whole population’s ownership. Village People’s Committee is responsible for managing and making usage plan for forest which have not been allotted or lent.

The Law also clearly regulates the decentralization on protection and development of forest among Ministry of Resource and Environment; Ministry of Public Security, Ministry of National Defense, Ministry of Culture and Information and other related inter-ministerial agencies.

Seventhly, the Law supplements many new regulations on forest development and usage (Chapter IV) as the principles for developing and using for each type of forest (Article 45, 49, 55) and regulates the organization and management of protection forest, special usage forest and production forest. For afforested production forest, the exploitation age has been regulated clearly. The discrimination between the ownership of forest owner and the ownership of the State is very clear so that the new regulations will be made reasonably.

Eighthly, The Law supplements the regulations in order to define and reinforce the functions, rights, obligations and policy mechanism for forest management force. The policy mechanism and obligations for rangers have been specifically defined.

The Revised Law on protection and development of forest is the revised legal documents aiming at preparing the necessary legal procedure for stable management, protection and development of forest. The legal norm in the revised Law are applied equally to all organizations, households, personnel from all economic sectors; foreign organizations and personnel; Vietnam citizens who settle abroad to invest in forestry sector in Vietnam. The law on protection and development of forest (in 2004) has been considered and commented by representatives of National Assemble Term XI, many domestic organizations and personnel, international experts and oversea organizations so that it has been amended and supplemented in conformity with the demands of the country in industrialization and modernization process and the development of socialism-oriented market economy. The Law on protection and development of forest 2004 will come into effect in April 1st, 2005

The development of Vietnam breeding in the renovation process

In the past ten year, the output value of breeding sector has reached high growth rate of about 5.2% per year while the total output value of the whole agriculture industry has only reached the average growth rate of 4.5% per year. It means that the average growth rate of the output value of breeding sector is higher than that of agriculture industry. Especially in 2003, the growth rate of breeding sector was 8.5%; cultivation: 3.2%; forestry: 1.1%; fishery: 9.5%. The ratio of breeding sector in the whole agriculture industry has increased from 17.9% in 1996 to approximately 20.5% in 2002 and gradually become one of the important large-scale goods production sector in agriculture industry.

Moreover, the quality of livestock and poultry herd, the average sold quantity and the ratio of lean pork, the average dairy production of milk cow, the annual average egg production of chicken have been improved. Therefore, the domestic breeding production has basically met the consumption demand of the society this time.

The breeding method has dramatically improved. Over 5,000 farms which breed milk cows, cows raised for food, poultry, sows, pig raised for food have been recently established. At present, there are 2,355 private sow breeding farms; 2,260 poultry breeding farms, 583 farms which breeding milk cows and cows raised for food in the whole country. Especially, the model of large scale private farm applying advanced science –technology with high economic effect has appeared such as some pig farms with over 500 sows, some milk cow breeding farms with over 1,000 cows and some poultry breeding farms with over 10,000 ones

According to statistics forecast, the population of Vietnam has been increasing. The average growth rate of population of Vietnam in 2005 is 1.51% and 1.28 in 2015. Therefore, up to 2010, the population of Vietnam is about 89 million people. According to the calculation of international strategy makers, in developing countries from now to 2020, the average growth rate of pork consumption is 2.8%; beef consumption is 2.8%; poultry meat is 3.1% and dairy is 3.3% while the growth rate of income per capita is 6.1%. Therefore, the demand for breeding products will dramatically increase in Vietnam. According to statistics forecast, up to 2010, the annual rate of meat consumption per capita in Vietnam will be 40 live weight kilograms. Therefore, the total output of live weight meat at that time must be 3.8 million tons. According to this tendency, the egg consumption per capita at that time will be 100-120 eggs.

Some difficulties and obstacles in breeding sector

The serious shortage of material for feedstuff in breeding sector

The growth rate of material production for feedstuff in our country can not keep pace with the growth rate of industrial feedstuff manufacturing. According to Forecast made by Forestry and Agriculture Extension (presently Agriculture Agency), up to 2010, the demand for starch feedstuff for breeding is estimated to be about 19-22 million tons provided that the agricultural economic mechanism shift in the direction with the objectives given by the Government and the food productivity still maintains stably at the rate of 33 million ton of rice and reach 5-6 million ton of cereals (mainly maize), the domestic production of feedstuff only meets about 70% of the demand.

The market of breeding products still exist many difficulties

In the development tendency of the socio economy, the people’s income increase and this leads to the growth of consumption. In the context of integration trend, Vietnam foodstuff processing industry has many opportunities to introduce products to oversea markets and increase the quality of products to initiatively dominate domestic market.

The breeding products of Vietnam still have many limitations in terms of quality, price. Vietnam is also lack of processing establishments which can meet the requirements of veterinary and foodstuff hygiene, there is lack of investment capital for breeding technology innovation, especially in household and private sector. The disease is still the potential danger for livestock in the innovation process.

In order to bring into play the advantages and overcome the above said difficulties, the period of 2005-2010, breeding sector of Vietnam will focus of solving the following main problems:

- To develop the large and medium scale pig farm in the direction of commercial livestock

- To develop the industrial poultry breeding in combination with breeding in the form of leaving wander in garden

- To breed milk cow at areas where have comparative advantages.

- To develop breeding other livestock like goat, sheep, rabbit.. to meet the market demand and to bring into play the comparative advantages of ecological areas

- To increase domestic manufacturing of feedstuff

- To step up slaughtering and processing industrial products which meet the international standards.

Vietnam strives for increasing the livestock herds in the period from 2003 to 2015 as follow: the pig herds will increase from 24.706 million ones in 2003 to 46.5 million ones in 2015; poultry from 239 millions ones to 520 million ones ; cow from 4.39 million ones to 5.4 million ones. The production of live weight meat will increase from 31.71kg/per capita/year in 2003 to 40kg/per capita/year in 2015; egg from 60 ones/per capita/year in 2003 to 95 ones/per capita/year in 2015.

International Agriculture exposition Agroviet - 2004

International Agriculture Exposition Agroviet – 2004 was held from November 19th to 20th, 2004 at Agriculture –Rural Development Marketing and Exposition Centre in Hanoi with the theme " Vietnam Agriculture – Integration and Development".

130 enterprises in Vietnam and other 10 nations in the world (America, China, Australia, Indonesia, Thailand, India, Austria, the Netherlands, Denmark, German, Israel) attended the AGROVIET – 2004 to introduce their products:

New plants, poultry and animal varieties with high productivity, good quality and some specialties with high value;

Some products as achievements from science –technology researches in agriculture industry and other service industries for agricultural production, some advanced technology application models in agricultural productions;

·Processed products: food and foodstuff; fruits, confectionery, sugar, dairy, alcohol, seafood..

·Handicraft fine arts

·Products from agricultural mechanics products, some equipments used in harvesting, protecting, pasteurizing, deodorizing…

Besides, there was also area for introducing achievements in rice research and production of Vietnam on the occasion of "The year of food in the world".

AGROVIET – 2004 was really the exchange place for domestic and foreign businesses in order to expand market, increase co-operation activities and also one of the important marketing activities of Agriculture Industry in 2004.