Tóm tắt Luận án Export development of some key agricultural products in the industrialization and modernization of Vietnam

MINISTRY OF EDUCATION AND TRAINING MINISTRY OF INDUSTRY AND TRADE INSTITUTE FOR TRADE NGUYEN THI CHI EXPORT DEVELOPMENT OF SOME KEY AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION OF VIETNAM Major: Commercial Code: 62.34.01.21 SUMMARY OF PhD THESIS IN ECONOMICS Hanoi – 2015 THE THESIS WAS COMPLETED AT THE INSTITUTE FOR TRADE – MINISTRY OF INDUSTRY AND TRADE Scientific Supervisor: 1. Associate Professor Dr. Nguyen Van Lich Institute for Trade 2. Associate Professor Dr. Hoang Van Hoan Politics Institute Zone I The thesis shall be defended before the institute-level Thesis Assessment Committee at the Institute for Trade – Ministry of Industry and Trade Address: 46 Ngo Quyen - Hanoi. At .... hour .... date .... month ..... year 201.... The thesis can be found for further study at: 1. Hanoi National Library 2. Library of Institute for Trade 1 INTRODUCTION 1. Rationale For 30 years of renovation, Vietnam’s agriculture has undergone remarkable improvements; from a country importing food in the 1980s, Vietnam has developed into one of the world’s leading countries in exporting some key agricultural products. Thanks to products diversification policy, agricultural production has made outstanding steps forward, creating a large quantity of agricultural products, and integrating in the international market. Along with the objective of successful implementation of the country’s industrialization and modernization strategies, Vietnam has been accelerating agricultural development towards large-scale production and application of sciedntific and technological advancements to production in order to improve the quality and added value of agricultural products. However, Vietnam’s agricultural exports have faced such challenges as fiercer and fiercer pressure for competition due to lower competitiveness than the world in various aspects including production capacity, processing industry, quality, price, etc., which leads to the fact that most exports are raw products, low added value, little content of science and technology, and too much difficulty in overcoming technical barriers of developed countries, etc. Our main exports are almost unknown in the international market. Meanwhile, agricultural development has been a great policy of the Party and Government of Vietnam, clearly stated in the National Party Congress Documents and the Government’s Resolutions for the objectives of modernizing agriculture and rural areas, contributing to the implementation of industrialization and modernization strategies in Vietnam, and contributing to the fulfillment of export strategy targets and socio-economic development strategy until 2020. This is also the reason for the author’s choosing the subject “Export development of some key agricultural products in the industrialization and modernization of Vietnam’ for this doctoral thesis. 2. Objectives and tasks of research Objectives of research: To clarify the scientific base (both theoretically and practically) for recommended solutions to development of export of some key agricultural products of Vietnam in the industrialization and modernization until 2020 and with a vision to 2030. 2 Tasks of research: To fulfill the objectives of research, the thesis focuses on the following tasks: First, clarifying theoretical issues regarding export development of main agricultural products in the industrialization and modernization; Second, studying experience of some countries in export development of main agricultural products and gaining lessons to be applied in Vietnam. Third, analyzing and evaluating the export development of some key agricultural products in Vietnam in recent years; and evaluating achievements, shortcomings, and their causes. Fourth, studying and analyzing the background information and prospect for exporting Vietnam’s main agricultural products until 2020 as a basis for proposing orientation and solutions at both macro and micro level for export development of Vietnam’s main agricultural products until 2020 and with a vision to 2030. 3. Subjects and scope of research Subjects of research: The thesis studies the theory and practice regarding export development of Vietnam’s main agricultural products in the industrialization and modernization. Scope of research: The thesis focuses on researching into some theories of export development of main agricultural products in the industrialization and modernization; analyzing and evaluating the current situation regarding export development of some key agricultural products (mostly rice, coffee, rubber, and aquatic products) of Vietnam; recommending some solutions to export development of Vietnam’s main agricultural products in the industrialization and modernization until 2020 and with a vision to 2030. Time: Analyzing the current situation regarding export development of some key agricultural products for the period 2003 – 2013 and recommending solutions for the period until 2020 and with a vision to 2030. 4. Methodology General methodology: The thesis is based on the methodology of the Marxism–Leninism in terms of dialectical materialism and historical materialism in combination with the Party’s and the State’s economic development orientation and policy. 3 Specialist methodology: Studying secondary documents; collecting and comparing data; consulting experts and enterprises; conducting sociological survey, consolidating, analyzing, and evaluating survey results. 5. New contributions of the thesis - The thesis has clearly systematized, analyzed, and interpreted the theoretical background of export development of main agricultural products in the industrialization and modernization. In particular, based on the theoretical background, the thesis has identified basic contents regarding export development of main agricultural products in the industrialization and modernization as a basis for establishing a theoretical framework on export development of main agricultural products in the industrialization and modernization. - By means of systems of documents and actual survey data, and analyzing tools such as Export Specialization Index (ES), Trade Intensity Index (TI), etc. The thesis has pointed out market prospects, the trend of trade flows shifts, and the possibility to develop export of some of Vietnam’s main agricultural products up to now. This shows that, export development of Vietnam’s main agricultural products is highly potential. This is the basis for orienting policy on export development of some of Vietnam’s main agricultural products in the coming years. In addition, the Thesis has also analyzed situation of conditions regarding human resources, commercial infrastructure and conditions on mechanisms and policies, application of technologies to production and establishment of links in development of exporting a number of key agricultural products. Accordingly, the Thesis has also identified shortcomings and clearly interpreted their causes in the export development of such products. - The thesis has consolidated and forecast the prospect for exporting some of Vietnam’s main agricultural products until 2020. On that basis, the thesis provides the orientation for export development of some key agricultural products in the new context of industrialization and modernization, and recommends specific solutions to developing export of main agricultural products until 2020. 4 6. Organization of the thesis Apart from the Introduction, Overview of Research Works, Conclusion, List of References, and Appendix, the body of the thesis is divided into three following Chapters: Chapter 1: Theoretical background of export development of main agricultural products in the industrialization and modernization. Chapter 2: Current situation in export development of some of Vietnam’s main agricultural products over 2003-2014. Chapter 3: Recommended solutions to export development of some of Vietnam’s main agricultural products in the industrialization and modernization until 2020. OVERVIEW OF RESEARCH WORKS In the intensive globalization of the world’s economy and the rapid development of science and technology, competition among the world’s agricultural products is becoming tougher and tougher, and export development of main agricultural products has received great attention and studied both in and out of the country. Export development of main agricultural products in the industrialization and modernization does not merely refer to the development in export scale and turnover, but also requires continuous improvement of export quality through application of scientific and technological advancements to production and improvement of added values of the value chain of agricultural exports. However, to my knowledge, there has so far been no systematic and comprehensive research work on export development of Vietnam’s main agricultural products in the industrialization and modernization. 5 RESEARCH CONTENTS AND RESULTS CHAPTER 1 THEORETICAL BACKGROUND OF EXPORT DEVELOPMENT OF MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRALIZATION AND MODERNIZATION 1.1. GENERAL ISSUES OF INDUSTRIALIZATION, MODERNIZATION, AND EXPORT-ORIENTED INDUSTRIALIZATION 1.1.1. Definition and contents of industrialization and modernization 1.1.1.1. Definition of industrialization and modernization Industrialization is the process of changing the development modality of one’s economy. The economic development modality consists of two facets (two aspects): infrastructure (including technical capacity), and operational mechanism. 1.1.1.2. Contents of industrialization (1) Industrialization is the process in which industry is separated from agriculture and transforms itself into large-scale industry. (2) Industrialization causes change to technical background of social manufacturing. (3) Industrialization enhances capital accumulation and concentration accompanied by expanded re-manufacturing. (4) Industrialization is associated with the development of the system of factories and enterprises in the market economy. (5) Industrialization is associated with agricultural development and urbanization. 1.1.2. Export-oriented industrialization and modernization Export-oriented industrialization is aimed at: (1) Promoting comparative advantages in international labor division; (2) Opening the market to attract direct investment and external capital and technical support in order to create competition and boost export; (3) Making the most of resources to boost export. Implementation of export-oriented industrialization normally comes in two phases. Phase I: Achieving high growth rate due to utilization of plentiful labor for low costs and medium-level techniques in exports production. Cheap labor is a comparative advantage. In Phase II, high growth rates are still maintained due to utilization of large capital and high- 6 level techniques for export of industrial goods. Exports in this Phase require application of advanced technology. 1.1.3. New characteristics of industrialization and modernization The market economy following the trend of integration and globalization helps facilitate industrialization based on promotion of comparative advantages and intensive participation in the international labor division. Industrialization should be based on cutting-edge science and technology, and implemented towards sustainable development. Industrialization and modernization should contribute to strengthening internal capacity of the economy and external technological acculturation. 1.2. EXPORT DEVELOPMENT OF MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION 1.2.1. Overview of main agricultural products 1.2.1.1. Definition of agricultural products a. Definition of agricultural products According to the economic structure of Vietnam, agricultural products are often understood in a broad sense, including products from agriculture (crops production, livestock breeding, fishery, forestry, and salt industry). b. Definition of main agricultural products Main agricultural products are locally produced agricultural products which are more economically productive than other agricultural products, which have a broad, stable, and permanent market for consumption (for a relatively long period of time), which are influential in other products, and of which export value accounts for a large proportion in the total export turnover of a country. 1.2.1.2. Primary characteristics of main agricultural products (1). The value chain of the agricultural products is not always continuous and often changes quickly. (2) Affected by weather, epidemics, and food safety. (3) Inconsistent in quality. (4) Characteristics in product processing and preservation. (5) Value composition of agricultural products. ( 6) Characteristics of the market of agricultural exports. (7) Lack of compatibility in information of quality of agricultural products provided to consumers. (8) Protection of agricultural products within the country. 7 1.2.2. Contents of export development of main agricultural products in the industrialization and modernization. 1.2.2.1. Definition of export development of main agricultural products in the industrialization and modernization In the industrialization and modernization of Vietnam until 2020, it is advisable to pay attention to improvement of growth quality. Therefore, for main agricultural products, attention should be paid to qualitative transformation apart from quantitative increase. On that basis, it can be understood that export development of main agricultural products in the industrialization and modernization includes both extensive and intensive development. 1.2.2.2. Extensive export development of agricultural products Referring to the concentration of resources in expanding export scale, reflected through improvement in quantity and export turnover; expanding export scale includes market development, customer development, and product development. 1.2.2.3. Intensive export development of agricultural products: Referring to the application of science and technology to production in order to create qualitative change in agricultural exports, reflected through improvement of quality of main agricultural products, change of export modalities, transformation of exports structure, and improvement of resources utilization capacity in order to create stable development and greater added values as well as to ensure harmonized implementation of environmental protection and social welfare. 1.2.3. Evaluation targets for export development of main agricultural products 1.2.3.1. Evaluation targets for extensive export development of main agricultural products (1). Export growth rate. (2) Market diversification. (3) Product line diversification 1.2.3.2. Evaluation targets for intensive export development of main agricultural products (1). Revealed Comparative Advantage Index (RCA). (2) Export Index (Rex). (3) Export Specialization Index (ES). (4) Trade Intensity Index 8 (TI). (5) International Specialization Index (LI). (6) Environmentally safe and friendly. 1.2.4. Factors affecting export development of main agricultural products in the industrialization and modernization. 1.2.4.1. Product quality The quality of agricultural products as a factor that boosts export development has to comply with normal standards and ISO standards, and be certified and awarded ISO certificates by international organizations. 1.2.4.2. Time of appearance in international markets The timely appearance in the market upon request by customers brings even greater added values to exporters than reduction of production and processing costs does. 1.2.4.3. Service quality Outstanding service quality of exports in comparison with competitors. 1.2.4.4. Brand quality Brand has become an indispensable factor to ensure business effectiveness in the modern economic context. Brand quality creates prestige and reputation for products, thus strengthening trust from customers. 1.2.4.5. Supporting policy The Government’s macro policy and impacts are the basis for our production and export of agricultural products to take firm steps in the future in the international market. 1.3. EXPERIENCE OF SOME COUNTRIES IN EXPORT DEVELOPMENT OF MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION 1.3.1. Thailand’s experience in export development of rice Thailand’s experience in improving export effectiveness and joining the global rice value chain includes: (1) Determining its brand through quality of exported rice, (2) Providing supportive services to entities involved in the rice value chain, (3) Improving added values of exported rice, and (4) diversifying exported rice products. 1.3.2. China’s experience (1) Paying attention to promoting strengths of each locality and increasing export of main agricultural products produced by means of new 9 techniques. (2) Attracting overseas investment to develop production and export of main agricultural products. (3) Making breakthroughs in policy on agricultural and rural development in China, for example, quickly reducing taxes to attract investment in agriculture, developing hi-tech industrial zones, applying cutting-edge technologies, and, most recently, applying lessons from the ‘Three Rural Issues’ Policy in the new rural development with the ‘two open, one adjusted’ orientation. The new rural policy includes encouragement of agricultural production and improvement of farmers’ rights. 1.3.3. Brazil’s experience in export development of coffee (1) Enhancing the Government’s roles of regulation and support in export development of coffee. (2) Revising coffee production mechanism in line with market demand and developing coffee products. (3) Paying attention to improving coffee quality and types of specialties from production stages. (4) Developing a stable local consumption market as a basis for expanding the market overseas. 1.3.4. Malaysia’s experience in export development of natural rubber (1) The Government’s role of regulation and support in export development of rubber. (2) Accelerating production and export development of rubber products with high added value. (3) Strengthening competitiveness of rubber products in the world’s market through development of implementation research activities. 1.3.5. Lessons learnt for Vietnam (1) Enhancing development and management of agricultural planning; and supporting agricultural and rural development in order to create the basis for agricultural products for export development. (2) Transforming agricultural structure towards improvement of added values in the agricultural output value chain. (3) Effectively supporting farmers without violating WTO commitments. (3) Strengthening trade promotion and brand development. (5) Strengthening the State’s role of macro regulation in relevant aspects. (6) Developing a strategy on export development of some key agricultural products at both national and enterprise level. (7) Continuously renovating marketing networks and developing production – consumption – export channels. 10 CHAPTER 2 CURRENT SITUATION IN EXPORT DEVELOPMENT OF SOME OF VIETNAM’S MAIN AGRICULTURAL PRODUCTS OVER 2003-2014 2.1. CURRENT SITUATION IN PRODUCTION AND PROCESSING OF SOME OF VIETNAM’S MAIN AGRICULTURAL PRODUCTS 2.1.1. Identifying Viet