Luận Văn Background Report For Asian Development Bank Strategy And Road Map For Agricultural Science And Technology In Viet Nam.pdf

Strategy and Road Map for Agricultural Science and Technology in Viet Nam Strategy and Road Map for Agricultural Science and Technology in Viet Nam ADB RSC C31072 VIE Background Report for Asian Devel[.]

Strategy and Road Map for Agricultural Science and

Technology in Viet Nam ADB RSC C31072 - VIE

Background Report for Asian Development Bank

March 2003

AGRIFOOD CONSULTING INTERNATIONAL

Preface

This project report1 is an analysis of the current situation, needs, and potential medium- and long-term strategies to develop agricultural research and extension in Viet Nam The report provides a long-term road map for agriculture research and extension assistance and it will be used as a basis for the development of a forthcoming ADB technical assistance, which will in turn be used as a basis for a proposed investment loan in Agricultural Science and Technology

Specifically, the study collected relevant secondary information and data on the current organization and medium- and long-term plans for agricultural research and extension The study undertook a consultative process with stakeholders to outline a vision for the future direction of agricultural research and extension, identify constraints to future development of agricultural research and extension and develop a preliminary set of strategies and roadmap for development of the research and extension system

The fieldwork for the study was carried out over four weeks in January and February 2003 The study involved the analysis of background data, key informant interviews, and focus group meetings with international NGOs, bilateral and multilateral aid agencies, government officials, and research institutes involved in agricultural research and technology in Viet Nam

The report is the result of a joint effort by the Study Team of Francesco Goletti, Dominic Smith and Tim Purcell from Agrifood Consulting International The Study Team would like

to thank all those people who assisted in providing information and help in completing the report In particular, the team would like to express their appreciation to Dr Nguyen Van

Bo, Director of the Department of Science, Technology and Product Quality MARD) for his availability and encouragement and Mr Nguyen Viet Hai from DSTPQ for his excellent support and sharing of information Translation and interpretation services were provided by Mrs Doan Bich Thuan, Mrs Duong Thi Kim Lien and Mr Nguyen Van Bang

(DSTPQ-The views expressed in this report are those of the consultants and do not necessarily reflect the views of the Asian Development Bank or the Government of Viet Nam

Francesco Goletti

President, Agrifood Consulting International

Ha Noi, Viet Nam

17 March 2003

Agrifood Consulting International

1

Table of Contents

Preface 2

Table of Contents 3

List of Tables 6

List of Figures 8

List of Boxes 9

List of Acronyms and Abbreviations 10

Executive Summary 12

1 Introduction 19

2 Background and Methodology 22

3 A Long Term Vision for Agricultural Research and Extension 24

3.1 Long Term Prospects for the Agricultural Sector in Viet Nam and the Implications for Agricultural Research and Extension 25

3.2 A Vision for Agricultural Research and Extension 28

3.2.1 Elements of Vision for Agricultural Research 28

3.2.2 Elements of Vision for Agricultural Extension 30

4 The Current Situation with Agricultural Research in Viet Nam 32

4.1 The Structure of Agricultural Research in Viet Nam 32

4.1.1 Coordination and Management 34

4.2 Programs and Projects in Agricultural Research 37

4.2.1 MOST Programs in Agricultural Research 37

4.2.2 MARD Programs in Agricultural Research 37

4.3 Funding and Financing for Agricultural Research 38

4.4 Plans, Policies and Legislation in Agricultural Research and Extension 41

4.4.1 Planning and Program Documents 41

4.4.2 Restructuring Documents 41

4.4.3 Other Relevant Legislation 42

4.5 Capacity in Agricultural Research 44

4.6 Recent Developments in Agricultural Research and Extension 45

4.6.1 ADB Policy Loan for Agricultural Sector Development 45

4.6.2 Competitive Grant System in MARD 47

4.6.3 Block Funding for Institutes under MARD 47

4.6.4 Restructuring Plans for Research Institutes under MARD 48

4.7 Issues in the Agricultural Research and Extension System 49

4.7.1 Capacity 49

4.7.2 Equipment and Facilities 50

4.7.3 Institutional Mechanisms 51

5 Constraints in the Agricultural Research and Extension System 53

5.1 Monitoring and Evaluation 53

5.2 Equipment 54

5.3 Organization 54

5.4 Methodology 55

5.5 Incentives 55

5.6 Capacity 55

5.7 Private Sector Involvement 56

6 Strategies for Agricultural Science and Technology 57

6.1 Incentives, Monitoring and Evaluation 57

6.2 Equipment and Facilities 58

6.3 Capacity 58

6.4 Organization of Research Activities 59

6.5 Private Sector Involvement 59

7 A Roadmap for Agricultural Science and Technology Investment 61

8 Conclusions 66

9 Tables 69

10 Figures 90

11 Boxes 95

Terms of Reference 97

References and Bibliography 99

Appendix A Background Document for Focus Groups 105

Appendix A.1 Research Focus Group 105

Appendix A.2 Extension Focus Group 109

Appendix B Tranche Conditions for ADB Science and Technology Policy Loan 113

Appendix C Selected Legislation 118

Appendix C.1 Decree 73/CP (1 November 1995) On the Establishment of MARD 118

Appendix C.2 Decision No 782-TTg (24 October 1996) On the Organization of Research & Development Agencies in Science and Technology 121

Appendix C.3 Resolution 120-NQ-BCS (30 November 2001) On Restructuring the Research System 125 Appendix C.4 Resolution No 16/2000/NQ-CP (18 October 2000) On Reduction of Payroll in Administrative Agencies and Public-Service Units 130

Appendix C.5 Decision 132/1999/QD-BNN-HTQT (22 September 1999) On the Management of External Fund Sources 135

Appendix C.6 Decision 40/1998/QD-BNN/VP (2 March 1998) Working Regulations of the Ministry of Agriculture and Rural Development 142

Appendix C.7 Circular 19/1999/TT-TCCP (June 30, 1999) International Cooperation and Administrative Reform 150

Appendix C.8 Decree 17/2001/ND-CP (4 May 2001) Regulation on the Management and Use of Official Development Assistance 153

Appendix C.9 Law No 21/2000/QH10 (June 9, 2000) on Science and Technology 168

Appendix C.10 Regulation N2464 QĐ/BNN-KNCN (28 June 2002) On the Selection of Research Units for 2002-2005 Research Programs 185

Appendix C.11 List of National Research Programs in 2003 194

Appendix D Details of Selected Research Organizations 195

Appendix D.1 Australian Centre for International Agricultural Research (ACIAR) 195

Appendix D.2 Australian Agency for International Development (AusAID) 206

Appendix D.3 Agricultural Genetics Institute 208

Appendix D.4 Can Tho University, Can Tho 210

Appendix D.5 Forest Science Institute of Viet Nam 213

Appendix D.6 Ha Noi Agricultural University 220

Appendix D.7 Hue Agricultural University 221

Appendix D.8 Institute of Agricultural Economics 222

Appendix D.9 Institute of Agricultural Science of Southern Viet Nam 223

Appendix D.10 National Institute of Agricultural Planning and Projection 225

Appendix D.11 National Institute of Animal Husbandry 229

Appendix D.12 National Institute for Science and Technology Policy and Strategic Studies 242 Appendix D.13 National Institute of Veterinary Research 245

Appendix D.14 Thai Nguyen University of Agriculture and Forestry 247

Appendix D.15 University of Agriculture and Forestry, Ho Chi Minh City 248

Appendix D.16 Viet Nam Agricultural Science Institute 249

Appendix D.17 Viet Nam Institute of Agricultural Engineering 253

Appendix E.1 Organization Charts of MARD 266 Appendix E.2 Organization Charts of DARD 273 Appendix F Interview Minutes and Transcripts Annex 277

List of Tables

Table 1 Global Public Agricultural Research Expenditures, 1976-95 69

Table 2 Estimated Global Public and Private Agricultural R&D Investments, circa 1995 69

Table 3 MARD Research Institutes in Viet Nam 70

Table 4 MARD Research Institutes in Viet Nam (Cont.) 71

Table 5 MARD Research Institutes in Viet Nam (Cont.) 72

Table 6 Other Agricultural Research Institutes in Viet Nam 72

Table 7 MARD Research Institutes by Sub-Sector 73

Table 8 MARD Research Organizations 74

Table 9 Public Spending on Agricultural Research in Selected SE Asian Countries, 199974 Table 10 Sources of Research Funding for Selected Institutes, 1996-1998 74

Table 11 MARD Expenditure on Agricultural Extension 74

Table 12 Research Funding in Viet Nam by Sub-Sector 75

Table 13 Research Funding in Viet Nam by Selected Agricultural Indices 76

Table 14 Government Budget for Agricultural Science and Technology - MARD Institutes 76

Table 15 Personnel and Budget Data for MARD Agricultural Research System, December 2000 77

Table 16 MARD Agricultural Science and Technology Budget, by Program, 2000 - 2003 78 Table 17 Budget Allocation for Agricultural Research Institutes, Year 2000 79

Table 18 Budget Allocation for Agricultural Research Institutes, Year 2001 80

Table 19 Budget Allocation for Agricultural Research Institutes, Year 2002 81

Table 20 Budget Allocation for Agricultural Research Institutes, Year 2003 82

Table 21 Budget Allocation for Agricultural Research Institutions, 2000-2003 83

Table 22 Budget Allocation for Agricultural Research, Top 15 Non-Institute Organizations, 2000-2003 84

Table 23 Budget Allocation for Agricultural Research, Top 15 Non-Institute Organizations, 2000-2003 (Cont.) 85

Table 24 Budget Allocation for Agricultural Research, Top 15 Non-Institute Organizations, 2000-2003 (Cont.) 86

Table 25 Staffing Levels for Selected MARD Research Organizations, 2003 87

Table 26 Percentage of Degree Holders Engaged in Research by Sub-Sector, 1999 88

Table 27 Age Distribution of MARD Agricultural Researchers, 2000 88

Table 28 Types of Staff at NIAH, By Academic Level (1999) 88

Table 29 Age Distribution of Permanent Staff, NIAH (1999) 88

Table 30 Types of Staff at NIAH, 2002 89

Table 31 MARD Ministerial Programs Research Program Areas, 2002-2005 89

Table 32 CARD 2000 - Successful Proposals 206

Table 33 Card 2000/01 - Successful Proposals 207

Table 34 Sister Relationships between Can Tho University and Foreign Institutions 211

Table 35 Can Tho University International Cooperation Projects 212

Table 36 Details of Research Programs for FSIV, 2002 215

Table 37 Details of Conferences and Workshops Organized by FSIV, 2002 217

Table 38 FSIV Staff Training in 2002 217

Table 39 International Cooperation Projects with FSIV, 2002 218

Table 40 Training Courses for NIAH Staff, 2002 231

Table 41 Conferences and Workshops held by NIAH, 2002 231

Table 42 List of Articles Published by NIAH in 2002 240

Table 43 List of Articles Published by NIAH in 2001 241

Table 46 International Cooperation by VASI, 2002 251 Table 47 Training of VASI Staff, 2002 252 Table 48 Publications of VASI, 2002 252 Table 49 2002 National Level Research Programs for Viet Nam Institute for Water

Resources Research 259 Table 50 2002 National Level Research Programs for Viet Nam Institute for Water

Resources Research, Cont 260 Table 51 2002 Ministerial Level Research Programs for Viet Nam Institute for Water

Resources Research 261 Table 52 2002 Ministerial Level Research Programs for Viet Nam Institute for Water

Resources Research, Cont 262 Table 53 2002 International (Protocol) Research Programs for Viet Nam Institute for Water Resources Research 263 Table 54 Conferences Organized by Viet Nam Institute of Water Resources Research in 2002 263 Table 55 International Cooperation Projects with Viet Nam Institute for Water Resouces Research, 2002 264 Table 56 Viet Nam Institute of Water Resources Research Staff Training Courses in 2002 265

List of Figures

Figure 1 Implementation Steps for a Roadmap for Agricultural Science and Technology 65 Figure 2 Process for the Development of the Agricultural Science and Technology Report

90

Figure 3 Distribution of MARD Research Institutes (Headquarters) in Viet Nam 91

Figure 4 Distribution of MARD Research Institutions (Headquarters and Centers) in Viet Nam 92

Figure 5 Flow of Funds to Research Institutes from Central Level 93

Figure 6 Sources of Funding for Agricultural Research Institutes 94

Figure 7 Organization of the Forest Science Institute of Viet Nam (FSIV) 219

Figure 8 Faculty and Staffing Structure for Hanoi Agricultural University 220

Figure 9 Organization Chart for National Institute of Agricultural Planning and Projection 228

Figure 10 Organizational Structure of National Institute of Animal Husbandry 229

Figure 11 Organizational Structure of Viet Nam Institute for Water Resources Research 258

Figure 12 Organization Chart of MARD, Year 2000 266

Figure 13 Organization Chart of MARD, Year 2000, Cont .267

Figure 14 Organization Chart of MARD, Year 2000, Cont .268

Figure 15 Organization Chart of MARD, Year 2000, Cont .269

Figure 16 Organization Chart of MARD, Year 2000, Cont .270

Figure 17 Organization Chart of MARD, Year 2000, Cont .271

Figure 18 Organization Chart of MARD, Year 2000, Cont .272

Figure 19 Organization Chart of DARD – Vinh Phuc 273

Figure 20 Organization Chart of DARD – Son La 274

Figure 21 Organization Chart of DARD – Dak Lak 275

Figure 22 Organization Chart of DARD – Thanh Hoa 276

List of Boxes

Box 1 Functions and Responsibilities of the Department of Science, Technology and

Product Quality 95 Box 2 Strategies for Agricultural Research and Extension in Viet Nam 96

List of Acronyms and Abbreviations

ACIAR Australian Centre for International Agricultural Research

ADB Asian Development Bank

ASPS Agriculture Sector Programme of Support (of DANIDA)

AusAID Australian Agency for International Development

CIAT Centro Internacional de Agricultura Tropical

CSIRO Commonwealth Scientific and Industrial Research Organization (Australia) DANIDA Danish International Development Agency

DASTM Department of Agricultural Science and Technology Management (of MOST) FAO Food and Agriculture Organization of the United Nations

GOV Government of Viet Nam

HTYVN Animal Health Association of Viet Nam

IAH Institute of Animal Health

IFPRI International Food Policy Research Institute

IRRI International Rice Research Institute

JICA Japan International Cooperation Agency

MARD Ministry of Agriculture and Rural Development

MOET Ministry of Education and Training

MOF Ministry of Finance

MOLISA Ministry of Labour, War Invalids and Social Affairs

MOST Ministry of Science and Technology

NISTPASS National Institute for Science and Technology Policy and Strategic Studies SOE State Owned Enterprise

VBARD Viet Nam Bank for Agricultural and Rural Development

VLA Viet Nam Livestock Association

VLSS Viet Nam Living Standards Survey

Acronyms of Departments Under MARD

DAD District Agricultural Division

DAFE Department of Agricultural and Forestry Extension

DAH Department of Animal Health

DARD (Provincial) Department of Agricultural and Rural Development

DARDP Department of Agriculture and Rural Development Policy

DFA Department of Finance and Administration

DPP Department of Planning and Projection

DSTPQ Department of Science, Technology and Product Quality

OPD Organization and Personnel Department

Acronyms of Research Institutes Under MARD

AGI Agricultural Genetics Institute

BRDC Bee Research and Development Centre

CAMT Centre for Agricultural Machinery Testing

CLDRRI Cuu Long Delta Rice Research Institute

CRC Ba Vi Coffee Research Centre

CSCR Central Sericulture Research Centre

FCRI Food Crops Research Institute

FIPI Forest Inventory and Planning Institute

FSIV Forest Science Institute of Viet Nam

IAE Institute of Agricultural Economics

IAS Institute of Agricultural Science of Southern Viet Nam

ICARD Information Centre for Agriculture and Rural Development

ISCR Institute for Sugarcane Research

IWRP Institute for Water Resources Planning

NCIDB National Centre for Inspection of Drugs and Bio-Products

NCVESC National Centre for Variety Evaluation and Seed Certification

NIAH National Institute of Animal Husbandry

NIAPP National Institute for Agricultural Planning and Projection

NIPP National Institute for Plant Protection

NISF National Institute for Soils and Fertilizers

NIVR National Institute for Veterinary Research

NMRI National Maize Research Institute

PHTI Post-Harvest Technology Institute

RIFAV Research Institute for Fruits and Vegetables

RRIV Rubber Research Institute of Viet Nam

SFRI Southern Fruit Research Institute

SIWRR Southern Institute for Water Resources Research

TRIV Tea Research Institute of Viet Nam

VASI Viet Nam Agricultural Science Institute

VIAE Viet Nam Institute for Agricultural Engineering

VIWRR Viet Nam Institute for Water Resources Research

WASI Western Highlands Agro-Forestry Scientific and Technical Institute

Executive Summary

Viet Nam will have to make more effective use of science and technology in the future in order to promote agricultural diversification from food crops to high value crops, livestock, and fisheries, and quality improvements comparable with neighboring countries and trade competitors

The Government intends to increase investments in agricultural science and technology, focusing on the application of new technology for higher economic efficiency The Government is keen to increase the role of private research and extension and universities for a longer-term strategy in agricultural science and technology It is important to realize

at the outset that a long term vision for agricultural research and extension involves longer term periods than the current 5-year or 10-year plans of the government of Viet Nam

The needed adjustments in the research, extension, and market information systems are large and are expected to require a decade to reach a point where a major increase in the output of new technology can be expected The job will require restructuring the entire system and training a large staff, and will require a blueprint prepared at the outset by MARD staff, drawing on experienced international and domestic consultants This process will be undertaken in a proposed forthcoming Technical Assistance Project slated to commence in 2003

The current study is an analysis of the current situation, needs, and potential medium- and long-term strategies to develop agricultural research and extension in Viet Nam The study aims at providing a long-term road map for agriculture research and extension assistance and it will be used as a basis for the development of the forthcoming technical assistance, which will in turn be used as a basis for the proposed investment loan in Agricultural Science and Technology

A road map for agricultural science and technology implies a sense of direction The road map should facilitate the identification of policies, investments, and institutions required to move the agricultural research and extension system from the current state to a desired state in the future The identification of strategies and plans also depends on the conceptualization of such desired state in the future

Specifically, the study collected relevant secondary information and data on the current organization and medium- and long-term plans for agricultural research and extension The study undertook a consultative process with stakeholders to outline a vision for the future direction of agricultural research and extension, identify constraints to future development of agricultural research and extension and develop a preliminary set of strategies and roadmap for development of the research and extension system

A Vision for Agricultural Research and Extension Systems

In consultation with stakeholders, a vision for agricultural research and extension systems

in the long term (greater than 20 years) was formulated The vision for agricultural research contains several elements:

• Research targeted towards needs of smallholder households as well as commercial farms

• Increased emphasis on research for agroindustrial enterprises

• Research catering for diversification and intensification of agriculture

• Research should cater for a modern, highly competitive agriculture Focus should be

on quality

• Research should concentrate on development of an internationally linked agriculture sector

• Research should develop standards for increased commercialization

• Research topics should be tailored to different needs

Similarly, the vision for agricultural extension contains several elements:

• Public extension services focused on disadvantaged households

• Extension services should become a comprehensive advisory service

• Increased use of farmer associations and voluntary extension services

• Facilitate access to credit

• Provide a basket of opportunities and methodologies

• Provision of unbiased advice

• Development of an adaptive, learning and accountable extension service

• Development of a private sector (user-pays) extension service

• Strengthen extension service linkages with research system and private sector

Issues in the Agricultural Science and Technology System

Capacity of Researchers and Extensionists

The capacity of researchers and extension workers can have a significant impact on the efficiency and effectiveness of the work that they undertake

A number of factors influence the level of capacity within the agricultural research and extension systems in Viet Nam These include the limited resources of the education system, limited opportunities for ongoing study and access to latest research results, limited opportunities for undertaking studies abroad and the employment structure of research institutions

In the extension system, many extension workers at the district level have a strong technical capacity in their field of specialization However, the extension worker often has

to provide advice and assistance in areas outside their field of specialization In addition, the training that many extension workers receive in vocational school or University does not generally include training on methods of extension

Equipment and Facilities

Without adequate facilities and equipment it is difficult for researchers, no matter their capacity, to effectively undertake research However, the amount and quality of facilities and equipment is highly variable between different institutions

In common with the variable distribution of facilities, the amount of equipment and the standard of equipment utilized by institutions are also highly variable Often, the provision

of equipment to institutions is linked with their involvement with multilateral or bilateral

projects, with the project including a component providing equipment to the partner institution

However, the relatively short-term and non-coordinated nature of much bilateral assistance means that in many cases, equipment provision has been linked to specific project objectives, rather than to an institutional plan for development of equipment availability

Institutional Mechanisms

The problems with institutional mechanisms have a number of significant impacts on the current operation of the system, including

• A dispersed and fragmented research system;

• Poor integration of research programs and a lack of connectivity with the rest of the world;

• Duplication of research efforts and a lack of research project priorities;

• Weak responsiveness to markets requirements and opportunities;

• Top-down approach to research and weak mechanisms for innovation;

• Limited responsiveness to the needs of farmers;

• Excessive focus on production issues rather than system or value chain issues; and

• Lack of effective networks and access to information about research results

Constraints in the Agricultural Science and Technology System

Monitoring and Evaluation

While the capacity for monitoring and evaluation is high, there are not clear incentives for evaluation to be undertaken objectively Many of the members of the committee undertaking evaluation belong to research institutes and are themselves involved in research activities Peer reviewers are under social pressures to evaluate the results of their peers favorably, as they may well have their results reviewed by the same peers The criteria and standards for evaluating research effectiveness are not clear, and are often are developed in an ad-hoc manner In the absence of clearly established criteria, evaluation of performance and monitoring becomes confused and cannot be effective

In terms of extension results, monitoring and evaluation is still focused on inputs (such as material supplies and number of training courses), rather than quality of service

Equipment and Facilities

The amount of equipment and the standard of equipment utilized by institutions and extension services is highly variable and is often linked with their involvement with multilateral or bilateral projects

However, in many cases, equipment provision has been linked to specific project objectives, rather than to an institutional plan or research system-wide plan for development of equipment availability

Extension services are chronically under funded in terms of equipment, lacking

Often the terms of reference of the research institutes and centers are not clearly defined This ambiguity of functions can lead to duplication of research efforts, with several research organizations undertaking research activities that have similar or identical programs and aims

The restructuring of the organization of the research system is constrained by the fact that there is institutional resistance within research organizations to a perceived loss of power and status that may accompany the merging process

The structure of most research organizations is overly bureaucratic, with the structure within an institute replicating the structure of MARD

Methodology

Research planning is currently a top-down process This priority-setting process has little

or no involvement of the clients of research and may result in research activities being undertaken that have little or no practical value for the agriculture sector as a whole

Incentives

The low levels of salary and the lack of opportunities for performance-based pay incentives means that staff in research institutes and extension services do not have strong incentives to perform their research and extension tasks to full capacity

Capacity

Many research and extension students are unable to benefit from learning about the latest technical and methodological techniques in their field

There are limited opportunities for researchers to develop links with overseas researchers,

or to undertake study overseas

While researchers are taught technical skills, they often have weak capacity for conducting, planning and managing research activities

Provincial extension service providers are tasked with creating their own extension materials, but often lack the capacity and resources to do this properly Further, while extension personnel are very often subject matter specialists, they often do not have formal training in extension methodologies

A Strategy for Agricultural Science and Technology

Incentives, Monitoring and Evaluation

• Implementation of an appropriate incentive structure to reward good research

• Transparent evaluation and monitoring of research

• Establishment of a monitoring and evaluation secretariat

• Establishment of monitoring and evaluation protocols for research

Equipment and Facilities

• Needs assessment for equipment and facilities

• Inventory of existing equipment and facilities

Capacity

• Needs assessment of staff capacity

Organization

• Mechanisms to improve coordination

• Strengthen procedures for developing priorities and research projects

• Incentives to increase collaboration between researchers and institutions

Private Sector Involvement

• Strengthen Intellectual Property Rights

• Encourage private sector research through tax incentives

• Private sector access to government funds through the competitive bidding process

A Roadmap for Agricultural Science and Technology

Step 1 Consultative process with policymakers and stakeholders to identify a preliminary set of desired outcomes for the change process in agricultural research and extension

Undertake consultative process with policymakers and stakeholders to identify a preliminary set of desired outcomes for the change process in agricultural research and extension These desired outcomes should be compared with the current situation in the

agricultural research and extension system

Step 2 Consultative process with policymakers and stakeholders to arrive at a preliminary identification of perceived constraints to change in the system

Undertake consultative process with policymakers and stakeholders to arrive at a preliminary identification of perceived constraints to change in the system These constraints should be categorized in terms of capacity, facilities/equipment and institutional

Step 4 Detailed inventory of facilities and equipment within the research and extension system

facilities and equipment should be based on a systemic approach, whereby the research and extension institutions are viewed as components of a complete system

Step 5 Detailed analysis of the institutional mechanisms of agricultural research and extension systems

Undertake a detailed analysis of the institutional mechanisms of agricultural research and extension systems This analysis should concentrate on identifying positive and negative outcomes of the institutional processes and identifying potential bottlenecks to improved efficiency of the system

Step 6 Detailed analysis of alternative policy options

Undertake a detailed analysis of possible alternative policy options for developing the agricultural research and extension systems These policies could include such elements

as strengthening of intellectual property rights, taxation incentives and other methods of encouraging private sector involvement in the system As part of this process, alternative options for individual and institutional incentive schemes should be canvassed, within the framework of developing an effective monitoring and evaluation system

Step 7 Consultative development of formal set of goals for the agricultural research and extension system

Based on the detailed analyses of the current situation of the system, a formal set of goals for development of the agricultural research and extension system should be developed in

a consultative manner These goals should be based on the development of an integrated system, rather than statements of desired number of projects or expenditure targets

Step 8 Evaluation of the expected levels of investment in the system

The expected levels of investment in the system (including funds from government expenditure, bilateral projects and multilateral lending) should be evaluated, to provide a basis for informed decision making about the scope for investments in the system This would include private sector investment expected to become available if adequate incentives and policies are set in place to encourage that investment

Step 9 Development of an investment framework and timetable

The information about the current status of human resource capacity, equipment and facilities and institutional mechanisms, combined with the formalized vision for the system and the information about the funds available for investment can be used as a basis to develop an investment framework and timetable Rather than necessarily concentrating on

a particular form of investment or investment in a particular institution, the framework should consist of a series of investment “packages” aimed at achieving a set systemic objective within a particular timeframe

The investment package could consist of investment in training (to increase human capacity), investment in facilities and equipment and investments designed to facilitate improvements to institutional mechanisms (such as investments to develop committee secretariats and the development of appropriate monitoring and evaluation protocols) The

objectives should be specified to give a logical progression towards achieving the ultimate vision of the research and extension system

At this stage an effective system of monitoring and evaluation of research and extension should be developed This will facilitate the process of development of research and extension and will allow the progress of development to be tracked

Step 10 Adaptation of strategies and goals based on achieved results

At the conclusion of each of the series of investment “packages” the format of the term vision and the subsequent investment packages should be re-evaluated in light of the actual performance of the investment package and any changes in conditions and available investment funding

long-1 Introduction

Viet Nam’s agriculture has grown rapidly in recent decades to move the country from food deficit to food surpluses Underlying this agricultural growth were market-oriented policies, large public investments in irrigation, rural infrastructure, rural credit, and smallholder development programs To a lesser extent, agricultural research and extension investments (including input subsidies and demonstration models) have played a role in increasing the productivity of agriculture

Despite national food surpluses, widespread poverty and hunger remain; particularly in remote and mountainous regions This is because the growth of agriculture and the national economy have not adequately benefited the poor and disadvantaged

Viet Nam is undertaking policy reforms to liberalize the economy This should improve the terms of trade for agriculture and promote greater private investment However, policy reform alone will not be enough to increase agricultural growth and to make it more equitable

Policy reforms must be accompanied by appropriate investments in public goods, such as agricultural research and extension, in order to maximize the potential for growth and poverty alleviation However, the current period of policy reform is accompanied by budgetary constraints that motivate careful rationing of public investment funds, making it increasingly important to assess the economic rates of return to agricultural research and other public investments

There is a perception that there are diminishing marginal returns to agricultural research because the “easiest” gains from the Green Revolution have already been reaped through the rapid spread of high yielding varieties (HYV), leading to high levels of HYV adoption and high input use in many regions of Viet Nam (Rosegrant and Pingali, 1994; Evenson, Pray et al., 1999)

However, this perception ignores the vast literature on the contribution of agricultural research to total factor productivity, and the continuing returns to agricultural research in the post-Green Revolution era The critical importance of effective agricultural research to the development of the agricultural sector has been shown by numerous international studies2

Internationally, public investments in agriculture are declining, and increasing shares of total public expenditures on agriculture have been allocated to budgetary support to the agricultural sector, input subsidies, and transfers, rather than to productivity-enhancing investments This has been particularly so in the case of Viet Nam until recently3 The

2 See (Busch and Bingen, ; Hobbs, Bentancour et al., ; ISNAR, ; Evenson, 1968; Evenson and Jha, 1973; Kahlon, Bal et al., 1977; Nagy, 1985; Khan and Akbari, 1986; Pardey and Craig, 1989; Rubeiro, 1989; Evenson and McKinsey, 1991; Evenson and Pray, 1991; Pardey, Roseboom et al., 1991; Pray, Riberio et al., 1991; Morris, Dubin et al., 1992; Rosegrant and Evenson, 1992; Byerlee, 1993; Byerlee and Moya, 1993; Rosegrant and Pingali, 1994; Kumar, Rosegrant et al., 1995; Kumar and Rosegrant, 1997; Evenson, Pray et al., 1999; Fan, Hazell et al., 1999; Beintema and Pardey, 2001; Pardey and Beintema, 2001; Janssen, 2002; Perry, Randolph et al., 2002) as examples

3 World Bank (2000b, Annex D pg 62) notes that agricultural subsidies and transfers in Viet Nam in 1998 amounted to 195 billion dong, which is 2.25 times the amount allocated to agricultural research institutes in that year (see Table 14) Of the amount going to subsidies and transfers, 65 billion dong went to

balance between input subsidies and long-term investments will be a crucial policy question as Viet Nam proceeds with economic and agricultural reform

Given the ongoing reform process, the concern over sources of future agricultural productivity growth, and the continuing debate over subsidies and transfers versus investments in agriculture, it is important to highlight the contribution of agricultural research to agricultural productivity growth Because of the long lags between agricultural research investments and the resulting increases in production, Viet Nam’s ability to meet the agricultural challenges of the next two decades will depend critically on the investments that are made today (Pardey and Craig, 1989; Pardey and Beintema, 2001)

In addition to the need to invest in agricultural research in order to increase agricultural productivity, Viet Nam will have to make a more effective use of science and technology in the future in order to promote agricultural diversification from food crops to high value crops, livestock, and fisheries, and quality improvements comparable with neighboring countries and trade competitors

Policy reforms under the recently approved Agriculture Sector Policy Loan from ADB (Asian Development Bank, 2002b) will address constraints in agricultural research, extension, and market information and analysis Reforms in these institutions will facilitate investments in human resources and infrastructure that will enable them to contribute more significantly to agricultural growth

The Government intends to increase investments in agricultural science and technology, focusing on the application of new technology for higher economic efficiency The Government is keen to increase the role of private research and extension and universities for a longer-term strategy in agricultural science and technology

The needed adjustments in the research, extension, and market information systems are large and are expected to require a decade to reach a point where a major increase in the output of new technology can be expected The job will require restructuring the entire system and training a large staff, and will require a blueprint prepared at the outset by MARD staff, drawing on experienced international and domestic consultants This process will be undertaken in a proposed forthcoming Technical Assistance Project slated to commence in 2003

The goals of the proposed Technical Assistance Project and the ensuing investment loan are to:

1 Intensify and diversify agricultural production,

2 Increase farm incomes, and

3 Reduce rural poverty

resettlement programs, 31 billion dong to crops, 23 billion dong to livestock, and 21 billion dong to irrigation This represented 17.7 percent of total current expenditures and 4.2 percent of total public expenditures in agriculture in 1998 According to World Bank (2000b, Annex D pg 61), current expenditure in 1998 consisted

of expenditures on goods and services (64 percent), salaries and wages (15 percent), subsidies and

1 Conducting a detailed needs assessment of agricultural research, extension, market information, and associated planning institutions; and

2 Preparing an investment project, which will support the policy and institutional reforms being implemented under the Policy Loan

The current study is a 2-month analysis of the current situation, needs, and potential medium- and long-term strategies to develop agricultural research and extension in Viet Nam The study aims at providing a long-term road map for agriculture research and extension assistance and it will be used as a basis for the development of the forthcoming technical assistance, which will in turn be used as a basis for the proposed investment loan in Agricultural Science and Technology

Specifically the study aims to collect relevant secondary information and data on the current organization and medium- and long-term plans for agricultural research and extension, undertake a consultative process with stakeholders to outline a vision for the future direction of agricultural research and extension, identify constraints to future development of agricultural research and extension and develop a preliminary set of strategies and roadmap for development of the research and extension system The study also aims to build consensus among policy makers and stakeholders as related to the direction of development of agriculture science and technology

The outline of the report is as follows;

Section 2 provides a background to the report and outlines the methodology undertaken Section 3 presents some long term prospects for the agricultural sector in Viet Nam and the implications for agricultural research and extension (Section 3.1); the section also provides elements of a vision for agricultural research and extension system over the longer term (Section 3.2)

Section 4 outlines the current situation in agricultural research and extension in Viet Nam This covers the structure of the research system (Section 4.1), current national programs and projects in agricultural research (Section 4.2), funding and financing mechanisms (Section 4.3), plans polices and legislation (Section 4.4), staffing levels and capacity in agricultural research (Section 4.5), recent developments (Section 4.6) and issues in agricultural research and extension (Section 4.7)

Section 5 outlines the constraints in monitoring and evaluation systems, equipment, organization and structure, incentives, and capacity

Section 6 provides several strategies to overcome the constraints, and finally Section 7 provides a roadmap

The appendices to the report contain the background documents for the focus group discussions (Appendix A), details of the ADB Agricultural Science and Technology Policy Loan Tranches (Appendix B), selected legislation (Appendix C), details of selected research institutes (Appendix D), Organizational charts of MARD (Appendix E) and minutes of interviews conducted with key informants and focus groups (Appendix F)

2 Background and Methodology

The development of the agricultural science and technology strategy and roadmap document was carried out over a two month period and followed a six stage process (see Figure 2):

1 Collection of relevant background documents, legislation and up-to-date data

2 Individual Consultative Meetings with Key Research and Extension Experts

3 Preparation of background documents on agricultural research and extension

4 Participatory Meetings with Key Experts in Research and Extension

5 Preparation of the Draft Report Document

6 Preparation of Final Report Document

These steps are now described in detail

Collection of Relevant Background Information

In the first stage of the study, key documents relating to the theme areas were collected and consulted Relevant legislation, policy documents and background data were also collected The appendices to this report contain summarized relevant data and also contain originals and translations of key policy documents and legislation

Individual Consultative Meetings with Key Research and Extension Experts

A total of 35 individual meetings were held with selected key research and extension experts (both national and foreign) in order to discuss their views on the current status of research and extension, visions for future development, constraints and possible strategies to achieve goals Details of the outcomes of the individual consultative meetings are presented in the annex to this report (see Appendix F)

The involvement of policy makers and experts in the policy formulation process is a critical component of the policy development process By involving key stakeholders in the development process, the final output of the study can be seen to be derived from a participatory process involving an open dialogue and consensus

The selection of key policy makers and experts was carried out by Agrifood Consulting International and the Department of Science, Technology and Product Quality of MARD (DSTPQ), the counterparts for the study Policy makers and experts were selected on the basis of their roles as key government officials or international experts from internationally funded programs in Viet Nam

Preparation of background documents on agricultural research and extension

and one covering extension) to form the basis of discussion in participatory meetings The background documents contained discussion points on the following:

1 Future Vision

2 Current Status

3 Constraints to achieving vision

4 Possible strategies to overcome constraints

Participatory Meetings with Agricultural Research and Extension Experts

Three participatory meetings were held with key experts The first of these meetings, on the topic of extension was held at the representative office of Agrifood Consulting International The subsequent two meetings on agricultural research (one with MARD policymakers and one with representatives of Research Institutes), were held in a meeting room at DSTPQ The lists of experts who attended these meetings are presented in Appendix F

The agenda for the participatory meetings followed a standard process:

1 Introduction and Outline of Process

2 Future Vision

3 Current Status

4 Constraints to achieving vision

5 Possible strategies to overcome constraints

Each step in this process was nominally scheduled to last half an hour, with the entire process lasting three hours The visions, views of current status, main issues, constraints and recommended policies developed by this participatory process are included in this report

Preparation of the Draft Report

On the basis of the background information collected, individual consultative interviews and participatory meetings, a draft report outlining visions for the future development of research and extension, current status of the systems, constraints to future development and possible strategies for achieving the vision was prepared A summary document was also created, and translated into Vietnamese The draft report, along with the translated summary document, was sent to all the experts involved in the consultative process for their comments and suggestions

Preparation of the Final Report

On the basis of comments received by the key experts involved in the consultative process, the final report was prepared

3 A Long Term Vision for Agricultural Research and Extension

A road map for agricultural science and technology implies a sense of direction The road map should facilitate the identification of policies, investments, and institutions required to move the agricultural research and extension system from the current state to a desired state in the future The identification of strategies and plans also depends on the conceptualization of such desired state in the future This section of the paper presents some elements of the vision for agricultural science and technology in Viet Nam Once this vision is formulated then the analysis will move further to characterize the current situation, discuss the constraints along the way from the current situation to the vision, and finally identify strategies to overcome the constraints

It is important to realize since the outset that a long term vision for agricultural research and extension involves longer term periods than the current 5-year or 10-year plans of the government of Viet Nam This is so for different reasons

First, the capacity building needed to implement the vision requires the training of skilled researchers Typically, such training implies not only the acquiring of academic credentials (for example a Ph.D taking 5 years study after bachelor degree), but also acquiring the capacity for identifying research issues and managing research projects independently, a process that will also take 5 years Another 10 years are often needed to see the fruits of this capacity

Second, numerous studies in several countries highlight the gestation lags between research efforts and results that are transferred into useful technologies4 This has been the case often for basic research, but it is the case also for applied research including plant and animal breeding, biotechnology, and special fields such as forest research Third, structural transformations of agriculture in Viet Nam are posing new challenges for agricultural research and extension The continuing market orientation of the economy, the increasing integration with international markets, and the industrialization of agriculture imply that the agricultural research and extension system will have to redefine its role and functions in the future, and be able to accommodate the emergence of different providers (both public and private) of research and extension system Again, this transformation will not come overnight and will require strategies that facilitate the transformation

The realization that the development of agricultural science and technology in Viet Nam is

a long-term process does not imply that no tangible results should be expected in the medium term In fact, even in the past, agricultural science and technology in Viet Nam have contributed to growth, but other factors such as increase in inputs (labor, land,

irrigated land, chemicals, seeds) and policy changes associated with doi moi have been

the major engine of growth (Nguyen Ngoc Que and Goletti, 2001) However, in the future,

it is expected that science and technology will be the main contribution to growth For this

to be case, the contribution of science and technology is expected to increase even in the medium term if appropriate mechanisms are set in place consistently with a long term

4 See (Evenson, 1968; Evenson and Jha, 1973; Kahlon, Bal et al., 1977; Nagy, 1985; Khan and Akbari, 1986; Pardey and Craig, 1989; Evenson and McKinsey, 1991; Evenson and Pray, 1991; Pardey, Roseboom

new investments, policies, and institutions will be borne only over the longer period

3.1 Long Term Prospects for the Agricultural Sector in Viet Nam and the Implications for Agricultural Research and Extension

The form of a vision for agricultural science and technology (research and extension) in Viet Nam will depend on the long-term prospects for agriculture in Viet Nam5 The long- term prospects for agriculture in Viet Nam will likely contain several elements and features including the following:

Labor force in Agriculture will still be large (perhaps more than 50%) but the share

of Agriculture in GDP will be much smaller than today (perhaps decline to 10%)

While the exact proportions of labor force participation in agriculture and the share of agricultural GDP in the future are under debate, especially given current government policies to reduce these proportions down, it is likely that agriculture in Viet Nam will be still characterized by a large agricultural labor force and a declining share of agricultural GDP6 Importantly, the composition of agricultural GDP will change; with a higher level of income derived from non-traditional agricultural production activities and agro-industrial enterprises

Given the large share of labor in agriculture, agricultural technology development should take into account labor intensive practices and avoid shifting to fully capital intensive practices Given a large population in rural areas, the pressure on natural resources will be larger The extent of pressure on natural resources will depend to a large extent on the environmental policies that are put in place now and the changing attitudes of people towards the environment and sustainable land use activities Consequently, the importance of research on sustainable use of resources will be more significant than is currently the case, especially in the context of problems faced by people in remote and mountainous areas and the particular problems faced by disadvantaged groups

Farms will still be predominantly small (less than 1 ha) Many will still rely on traditional practices and indigenous knowledge Even though considerably less than today, poverty in rural areas will still be a problem and affect the lives of a large number of households

While trends in farm size are difficult to predict; increasing population in rural areas will be countered by increasing opportunities for off-farm work and migration to urban areas, farms will still be small, and will need to support a larger population Small farm sizes will imply that research and extension has to facilitate diversification and intensification towards higher value-added and high-value products and agro-industrialization in rural areas Intensification of rice production to ensure food security will require a smaller part of the total cultivated area Higher productivity will come from a diversification into other

5 See (World Bank, 2001) for a similar vision for agricultural research and extension in Viet Nam

6 To put these figures in regional perspective, it is worthwhile to look at Indonesia and Thailand, two rice economies like Viet Nam that have matured to the status of lower-middle income group These two economies grew at a remarkable rate of nearly 7 percent per year over the two decades from 1970 to 1990, but the share of the labor force engaged in agriculture fell only 11-16 percent during this period This suggests that Viet Nam will continue to be predominantly a rural economy for a long time and that any long-term growth strategy must take into account rural areas

products, development of post-harvest systems, and the integration of smallholders with agro-enterprises The sustainability and environmental consequences of alternative production systems will need to be carefully researched

While the majority of farms will still be small, the development of large farms will necessitate the development of research and extension systems that cater to different farm sizes as well as different groups of people

Poverty will be an important factor to take into consideration when developing a strategy for research and extension Increasing populations, a still large agricultural labor force and predominantly small farm sizes will imply a greater proportion of agricultural laborers who are landless and also those who are engaged in off-farm work This implies that research and extension strategies will need to cater for these vulnerable groups

Viet Nam will be more integrated with the world economy through both international (WTO) and regional agreements (AFTA, APEC)

Integration with world markets will provide greater opportunities for Viet Nam agriculture to access larger and rapidly growing international markets However, greater challenges will also arise, as a consequence of increased competition from the rest of the world

Changes in international agricultural protection regimes, notably the planned removal of

EU agricultural subsidies in 2013 will have major implications for the Vietnamese agricultural sector, not only in terms of increased opportunities for exports but also in terms

of the impacts on the domestic market

Research and extension will have to assist in increasing the competitiveness of agriculture and providing information about market opportunities Urban and international markets will

be more demanding in terms of specific consumer requirements and standards related to safety, appearance, convenience, and quality of products

Increasing consumer awareness of the issues surrounding pesticide and fertilizer use will result in an increased demand for organically grown food which may be linked with increasing demand for traditionally grown products This has positive implications for traditional variety preservation which will have to be balanced against producer demands for higher yields

In order for research to assist farmers and enterprises to meet these higher requirements, the quality of research has to improve Globalization will impose higher standards not only for products but also for research This will be the case for research leading to improved technology in production and post-production It will also be true for socio-economic research that will assist Viet Nam to argue successfully in trade disputes7

Until now, agricultural research has been oriented almost exclusively to the production of

“high and sophisticated technology” (công nghệ cao, công nghệ tiên tiến), often imported from outside and sometime adapted in a way inappropriate to local conditions Even though this approach has brought considerable benefits, it has also been unable to address the problems of people in remote and mountainous areas and those who belong

7 As the recent dispute about catfish with the US shows, Viet Nam requires an articulate response to the

modern technology but could greatly benefit from indigenous knowledge and some traditional practices.

The structure of the Viet Nam economy will be characterized by a greater number and proportion of private enterprises The corporate sector (registered private enterprises) will be the driving force of the economy and Small and Medium Enterprises (SME) will constitute the bulk of the corporate sector

There will be a greater proportion of the agricultural sector (and labor force) involved in post-harvest processing activities as well as agro-enterprises Therefore, research and extension will have to respond to the needs of not only farmers but also of agro- enterprises Therefore, there will be an opportunity for integrating research and extension with industry and for the private sector to contribute to financing a share of the research and extension budget

The linkage between input provision and credit provision by government extension services will be weakened and farmers will be able to access credit and inputs from other sources For example, credit providers will be able to offer different types of loans to different types of farmers There will be a greater role for private research and extension services and an increase in farmer organizations providing extension and input/output market services

While the private sector will be more demand driven in developing and disseminating new technologies, the increase in the private sector providing research and extension services will necessarily be accompanied by the promotion of those products sold by the private sector There will be a greater role for public research and extension services in providing unbiased advice, as well as providing research and extension services to those groups of farmers (the disadvantaged and those in remote and mountainous regions) for whom the private sector cannot provide appropriate technologies Moreover, there will be an increasing public role for research activities that preserve bio-diversity and monitor the environmental impact of proprietary technology that displaces local varieties and breeds Farmers will be more organized and able to demand services as well as provide their own The role for public research and extension agencies will be in facilitating the effective working of these groups in identifying their own issues as well as providing their own solutions The role of research and extension will be more towards collecting and distributing knowledge and looking at the agricultural sector from a farming systems perspective Extension workers will evolve from subject matter specialists to generalists and information brokers able to link farmers with different providers of technological solutions, market information services, and financial services

This implies that research and extension systems will need to adopt new approaches, linking with formal and informal farmer organizations in the provision of research and extension to farmers themselves Formal extension services may have to “pull back” and try to help facilitate farmers to do extension themselves This also implies that farmers should become more proactive in their dealing with research and extension systems and become more discerning and demanding of better services

Both the labor force and farmers will have a higher level of education than today, particularly in rural areas However, in the absence of explicit government efforts to improve access to education in remote and mountainous regions and for particular

disadvantaged groups there may be an increase in the education gap despite an overall increase in the education level

A more educated labor force and increased access to multiple sources of information will put the current approach to extension and transfer of technology under pressure Extension will need to adopt new methods; feedback from farmers will be more informative; farmers will be more informed and have higher expectations As a consequence, research and extension will have to come up with new ways to produce innovations at a higher level

The proportion of Government Budget spent on Agriculture will decline The public budget for Agricultural Research will still be limited, but the private sector might become a significant source of funds for agricultural research

The planned reduction in subsidies, direct support to farmers (such as demonstration kits, capital investment in irrigation), and support to SOE engaged in agriculture (mostly through easy access to state credit and free access to assets like land) will free a large amount of the agricultural budget to be spent on other activities, including agricultural research and extension However, this will have a short term impact on expenditure patterns which will not persist into the longer term In the longer term a lower public budget for agriculture will imply that growth for agriculture will rely less on hardware (for example irrigation projects) and more on software (new technologies and methods of production and post-production, innovation and human resources) A limited public research budget will necessitate a more efficient and effective use of resources The balance between basic and adaptive research in Viet Nam will continue to be biased towards adaptive research

3.2 A Vision for Agricultural Research and Extension

Policy makers and stakeholders in the agriculture sector in Viet Nam have a vision for the future of the agricultural research and extension systems This vision contains many elements that are desired to create systems that deliver results appropriate to the structure and form of the agricultural sector of the future

3.2.1 Elements of Vision for Agricultural Research

Research targeted towards needs of smallholder households as well as commercial farms

Research in both the private and public sectors should be targeted to the needs and abilities of both households and commercialized farms Research agendas should be developed in a bottom-up participatory manner, leading to appropriate strategies being developed for provinces, regions and the whole country

Increased involvement of private sector in research

The research system in the future will consist of both public and private research activities With increased certainty of contracts, and strengthened intellectual property rights, the

developing countries it was 5.5 percent (see Table 1 and Table 2) For Viet Nam in the future, it is possible that 40 percent of funding will come from the private sector

Private and Public Research will cater for different clients

Private sector research will be targeted towards advanced and commercialized clients who have the ability to pay for services Public research will concentrate on the needs of poor households in rural and mountainous areas who do not have the ability to pay for private sector services

Increased emphasis on research for agroindustrial enterprises

The future agricultural research system will be oriented increasingly towards the needs of the agro-industrial sector, as the importance of processing will increase, while the contribution of agricultural primary production activities to GDP will likely decrease

Research catering for diversification and intensification of agriculture

Off-farm income will have a greater importance to rural people in the future With more people in the rural areas, income increases will come from diversification and intensification of activities in the rural areas with higher value per land unit The research system of the future should recognize this However, research should aim at intensifying lowland and upland agriculture without destroying the environment

Research should cater for a modern, highly competitive agriculture Focus should

be on quality

Agricultural research in the future should be oriented towards the development of an agricultural sector that is modern, sustainable and highly competitive in international markets Agricultural research in Viet Nam should be able to generate advanced agricultural technology and to reduce the technological gap relative to neighboring countries, especially China and Thailand Research should focus on the development of a sector oriented toward quality, rather than quantity in production

Research should concentrate on the development of an internationally linked agriculture sector

Applied agricultural research should concentrate on the development of a sector that is linked to national and international markets and that is increasingly commercialized, while recognizing that the smallholder sector is still likely to play a large role in the sector

Research should develop standards for increased commercialization

An increasing focus of research systems should be to develop standards and strengthen intellectual property rights in order to facilitate greater linkages between the agricultural sector and increasingly discerning urban and international markets

Research topics should be tailored to different needs

Research in water resources should concentrate on sustainable development of resources, upgrading of irrigation systems and the development of a market system for

water

Research in biotechnology should aim to create genetic modifications to plants for high productivity and durable resistance to disease/salinity Biotechnology research should also aim at developing high quality bio-pesticides that will eliminate the use of chemical pesticides in Viet Nam

Research organizations should identify their roles in an integrated agricultural research system Some organizations will have a comparative advantage in providing new research technologies; others should concentrate on applied and adaptive research These latter organizations should strengthen their coordination and linkages with other research organizations, both domestically and internationally, in order to increase their ability to access new technologies in a timely fashion

3.2.2 Elements of Vision for Agricultural Extension

Public extension services focused on disadvantaged households

Public sector extension services should become focused on the needs of disadvantaged households in the rural areas Disadvantaged households include a number of different groupings (poor households, ethnic minorities, female headed households, households with lack of knowledge)

Extension services should become a comprehensive advisory service

Extension services will change focus from input promotion to a comprehensive advisory service providing practical advice on a farming systems basis, including marketing and financial advice The types of advice provided and the technologies promoted should be dependent on the needs and abilities of the clients of the service

Increased use of farmer associations and voluntary extension services

Extension services will provide support to increase the role of farmers in extension (in terms of access to extension, driving the demand for extension services and providing grassroots extension) rather than farmers just being passive receivers of information There will be increased use of farmer associations and voluntary extension organizations

to provide front line extension services Public sector extension services should be involved in both promoting and creating farmer associations and voluntary extension organizations

Facilitate access to credit

Extension will have a greater role in facilitating access to finance Public sector extension will have a role in providing advice while private sector could have a role in both providing credit as well as advice In terms of microfinance, there should be a removal of subsidies

on credit in order to increase the availability of credit

Provide a basket of opportunities and methodologies

not limited to) the use of participatory methodologies

Provision of unbiased advice

Advice provided by public sector should be factual and neutral, rather than concentrating

on promoting the adoption of new technologies

Development of an adaptive, learning and accountable extension service

The public sector extension should be able to adapt, be a learning organization and be accountable Evaluation of success of extension programs should be objective and adaptable, and not be based only on quantitative measures of technology adoption

Development of a private sector (user-pays) extension service

The private sector will become increasingly involved in providing extension services to households and commercial farms who demand services and have the capacity to pay for such services Private sector extension services will be targeted to providing appropriate advice in response to client demands

Strengthen extension service linkages with research system and private sector

Extension services will have strong linkages with the research system, whereby the extension service acts as an information conduit, passing information to research about research needs and also transmitting the results of research to households The linkages with other organizations, both national and international are greatly strengthened

Extension service providers from the public sector, NGOs and the private sector see themselves as part of an “extension network” and coordinate their activities to provide maximum benefits and efficiency to various clients

4 The Current Situation with Agricultural Research in Viet

Nam

4.1 The Structure of Agricultural Research in Viet Nam

The present system of agricultural research in Viet Nam is a product of restructuring and reorganization over a long period of time In 1996, the research system was reorganized according to three principles (ANZDEC, 2000b):

1 Keeping or merging some institutions and a continuation of their full state funding (both salary and research funds);

2 Moving some institutions or centers under control of SOEs and gradually reducing direct state funding to these centers; and

3 Identifying some institutes to become independent self-financing organizations within 5 years (if unable to become independent, these would be dissolved.)

However, the implementation of the re-organization scheme has run into several difficulties related mainly to problems in identifying which centers to merge, the resistance of some centers to be cut-off from state funding, and the resistance of some SOEs to be stuck with

an under-funded research center

The present system of agricultural research in Viet Nam has not changed significantly since the Master Plan Report in 2001 (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001) Currently, the government

is considering a proposal to restructure the research system, SOEs under MARD, and the departmental organization of MARD itself It is hoped that this proposal will go a significant way towards addressing current concerns about the operational weaknesses in the research system

This proposal is actually in two parts Firstly, there is the reorganization of the departments under MARD, an update of Decree 73-CP (1 November 1995) (see Appendix C.1) Amongst other things, this will replace the current Policy Department (DARDP) with a department of new cooperatives and enterprise development (merely an emphasis on certain sections under the old departmental structure (see Appendix E.1) when the proposed move of the water resources section to the new Ministry of Natural Resources takes effect The second part is still under negotiation, but concerns the reorganization of the research institutes under MARD Currently Party Board Resolution 120-NQ-BCS (30 November 2001) is the guiding resolution on the matter (see Appendix C.3), but it has yet

to be formally approved

The present system of agricultural research in Viet Nam consists of 37 institutions and 12 agricultural universities/technical colleges under the control of five ministries (Asian Development Bank, 2002b)

There are three main types of agricultural research and development institutions in Viet Nam (DANIDA, 2001):

under the control of government agencies

2 Universities and other higher education departments that perform research as part of their normal activities

3 National Institutions for research which are not directly under an individual government ministry or agency

MARD, MOST and MOET are the three main ministries with involvement in agricultural research programs In principle, all major research activities are coordinated, initiated and financed by MOST However, MOST delegates most of the work to the appropriate line ministries; i.e MARD and MOET and their various institutions Most agricultural research carried out by MARD; in 32 Institutes and 113 Sub-Institutes/Centers around the country (see Figure 3, Figure 4 and Table 3 to Table 5) Over 20 other research and teaching organizations are also involved in agricultural research (see Table 6)

Of the 32 institutes under MARD, 17 were created in the last 20 years and four as recently

as 1997-1998 (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001) As shown in Figure 3 and Figure 4 the geographic distribution of the research facilities under MARD is highly centralized Figure 3 indicates that 21 institutes have their headquarters in Ha Noi and 3 in Ho Chi Minh City The other 8 research institutes are located in smaller towns, but often rather close to Ha Noi or Ho Chi Minh City As shown in Figure 4 and Table 3 to Table 5 the research institutes may have centers (or locations) in other parts of the country, but often these are also located close to Ha Noi and Ho Chi Minh City; 47% of all locations are in Ha Noi and another 15% are in Ho Chi Minh City

Research Institutes and Centers under MARD have differing mandates depending on their relationship to their “parent” organization and depend on both the initial establishment and the evolution of their roles (see Table 8) Institutes can be of two types:

1 Scientific Research Institutes (e.g NIAH, NIPP, NIVR)

2 Planning Institutes (e.g NIAPP, FIPI, IWRP)

While centers are of 3 basic types:

1 Evaluation, Regulation and Quality Control Centers (e.g NCIDP, NCVESC)

2 Centers established by SOEs, with all expenditure including salaries paid by the SOE concerned (e.g Ba Vi CRC)

3 Centers established as sub-units of individual institutes, especially in another location (denoting a particular autonomy compared with a Department or Unit), (e.g Southern Viet Nam Forest Science Sub-Institute, Cau Hai Silvicultural Experimental Research Centre, and Lam Dong Silvicultural Experimental Research Centre which are all sub- units of the Forest Science Institute of Viet Nam)

Some centers belonging to research institutes do not do research (either basic, applied, or adaptive) but are concerned with technology transfer, diffusion and extension services (for

example the Forest Industry Experimentation and Technology Transfer Centre which is part of FSIV)

Research Institutes and Centers under MARD can be classified as belonging to one or more of 7 different commodity or thematic groupings (see Table 7) Within the Crops and Crop Protection grouping there are institutes and centers devoted to research on food crops, industrial crops, fruits and vegetables as well as supporting centers (involved in biotechnology, testing and certification, crop protection and soil science)

4.1.1 Coordination and Management

The Master Plan for Agricultural Research outlines the coordination and management of the agricultural research system under MARD (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001, pp 35- 36) Responsibilities are shared between DASTM at MOST, and DSTPQ, OPD, and DFA

at MARD These departments report to three different Vice-Ministers while the various directors of research institutes report directly to the Minister of Agriculture The Master Plan (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001) notes that this coordination is somewhat passive, responding more to the budget cycle and pressures from outside rather than taking an active role in defining the future of agricultural research Administrative and bureaucratic procedures absorb most of the energy

Funding for the agricultural research institutes is provided by MOST, but the institutes are administered by MARD Within MARD, DSTPQ has overall responsibility for coordination, priority setting and funding allocations (see Box 1) DSTPQ consolidates the proposals of the different research institutes, then prepares the budget request and forwards this to MOST As part of its task, DSTPQ is responsible for safeguarding the quality of the proposals and the detection and elimination of overlap or duplication This coordinating and monitoring role is performed by sub-sector, across the relevant institutes or units DSTPQ does not have a mandate to look at the National Programs, which makes it difficult

to coordinate activities both between the National and Ministerial Programs, as well as between sub-sectors (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001)

In addition, MARD co-ordinates major international co-operation programmes between Vietnamese institutes and foreign partners The research institutes can freely engage in joint projects (less than US$1million/year) funded by foreign partners Consequently, DSTPQ has little role in overseeing these international co-operation programmes unless they exceed US$1million

Cooperation and coordination among domestic and international scientific institutions is usually carried out through one or more types of activities (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001,

pg 36):

1 Coordinated implementation of projects on special themes and subjects according to mutually agreed contents

4 Exchange of scientific and technological information through thematic conferences and seminars and expert exchange

Apart from research projects designed by, or in collaboration with, international organizations, research programs and projects are designed according to national priorities through the government, MARD and MOST

4.1.1.1 National Agricultural Research Programs

MOST influences the direction of agricultural research through its national agricultural research program At present, it is not known how and to what extend the recommendations of the Master Plan will influence the work of MOST (DANIDA, 2001) In 1996-2000, MOST ran an agricultural research program composed of 14 national projects These projects are drawn up by project advisory committees consisting of specialists on the subject matter and are reviewed at MOST by a national committee with leading agricultural scientists The national committee provides guidelines on the amount of funding and on the orientation of the different projects The national projects are evaluated

by means of scientific meetings with an evaluation committee In case the results of a project are very poor, MOST may decide to cut funding (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001)

After research proposal modification and approval by MOST, the resources are then channeled to DFA which distributes the funds to the institutes DFA exercises administrative but not scientific control over the use of the resources As the original research proposals are formulated by the individual research institutions, reflecting their needs and potentials, cross-institutional and interdisciplinary co-operation is not naturally encouraged Furthermore, the present management system may lack possibilities for reflecting comprehensive national research priorities (DANIDA, 2001; Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001)

4.1.1.2 Ministerial Agricultural Research Programs

Apart from research programs identified and implemented through MOST, MARD has its own research programs Since 2002, MARD has implemented research through two types

of programs; Ministerial Programs and Other Research (Regulatory and Other Research Programs) There are 7 Ministerial Programs:

1 Plant and Animal Breeding Program

2 Irrigation and Water Resources Program

3 Agro-processing Program

4 Environment and Natural Disaster Program

5 Economic Policy and Marketing Program

6 Northern Mountainous Region Program

7 Central Coast Region Program

As Table 16 shows, MARD finances approximately 72 percent of the research funding going to the agricultural research system (the remainder being funding from MOST) Of this, approximately 64 percent is funded through the 7 Ministerial Programs

As noted in the Law on Science and Technology, (Law 21/2000/QH10, 9 June 2000) Research Area priorities are determined by the Government As such, there is little, if any, scope for changing the focus of the Ministerial Program areas However, within these broad program areas there is significant scope for setting research project priorities Since

2002, this has been addressed through the formation of Program Steering Committees who identify and fund research projects under a competitive grants system Currently, the total amount of funding disbursed through the competitive grant system is VND 62.5 billion (see Table 16)

For each Ministerial program there is a steering committee of 15 experts, including a Chairman and Secretary from Department of Science, Technology and Product Quality (DSTPQ) of MARD Most of the experts come from the research institutes under MARD, with some academics invited to participate The procedure for disbursing funds under the competitive grant system is as follows:

1 Suggestions are collected by DSTPQ from all sources to develop research topics under the program areas

2 For each program, the steering committee decides on the list of project topics, objectives and expected outputs

3 Approval for the projects to be included in the competitive grant system is obtained from the Minister or Vice Minister

4 DSTPQ makes an announcement of the topics, objectives and expected outputs, and this is circulated to research institutes, centers and universities

5 Detailed project proposals are received from institutions These include methodology for conducting of the research project

6 For each program, the steering committee secretary convenes a selection committee meeting where applicants present their research proposals The research institutes are normally excluded from participating in the selection committee

7 The Selection Committee decides the successful research proposals and announcements are made for each program

This process is generally conducted over a 2-3 month period, commencing in the second half of the year and with the announcements being made before the end of the year for the successful applicants for funding in the following year

There are several critical links in this competitive grants system:

1 The composition of Steering Committee is made up of subject matter experts; usually from the universities or research institutes

a As the Steering Committee is comprised of subject matter experts, there is limited external consultation in the identification of research needs

bidding for research funding

2 There are no formal mechanisms in place for research needs identification, nor are there any mechanisms for research prioritization

3 The composition of the Selection Committee is restricted to non-MARD individuals and organizations, in order to avoid a conflict of interest in the selection process However, this means that there are a reduced number of competent people who are able to assess the merits of each proposal

4 Bidding institutes are allowed 20 minutes to present their proposals This is not enough time to assess expensive and complex proposals

5 The Steering Committee has the responsibility for research needs identification, selection of institutes, and monitoring and evaluation of research programs As the committees only formally meet once or twice a year, it is up to the Chairman and Secretary from DSTPQ to conduct the monitoring and evaluation of each program With limited staff at DSTPQ, and staff having responsibility for multiple research programs, there are very little resources for monitoring and evaluation

4.2 Programs and Projects in Agricultural Research

4.2.1 MOST Programs in Agricultural Research

There are currently 41 National level research projects being undertaken by research institutes under MARD These fall under either the National Independent Program, the National Program, or the National Projects8 These programs/projects have been assigned specific projects to them for the 2002-2005 period Details of the projects under each program area are given in Appendix C.11

4.2.2 MARD Programs in Agricultural Research

There are 7 Ministerial research programs under MARD, together accounting for 64 percent of total agricultural research funding These programs have been assigned specific projects to them for the 2002-2005 period Details of the projects under each program area are given in Appendix C.10

Plant and Animal Breeding Program

This is the largest ministerial research program, with 49 projects assigned to various institutes These projects include research into food and foodstuff plants, fruit and vegetables, forest tree seeds, animal breeding and prebasic and basic seed production

Irrigation and Water Resources Program

19 projects have been assigned to various institutes under the irrigation and water resources program These projects include research into flood control and safety, upgrading of river and irrigation management systems and application of new materials

8 These names come from the direct translations of the Vietnamese names, and their distinctions are not entirely clear

and technology in irrigation works Of note is Research Project 3.4 “Research roadmap on industrialization and modernization Vietnam irrigation by the year 2020” by VIWRR, which indicates that at least some institutes are developing roadmaps for a long term vision for agricultural development

Agro-processing Program

A total of 11 projects have been assigned to various institutes under this program These projects include research into wood processing, livestock product processing for export and appropriate technologies for product quality improvement in grains

Environment and Natural Disaster Program

A total of 13 projects have been assigned under this program Projects include research into plant protection, development of databases and mapping, environmental control of intensive livestock production and flood mitigation measures

Economic Policy and Marketing Program

A total of 10 projects have been assigned in this program area including research on export markets, research on development policies and research on small and medium enterprise development in rural areas

Northern Mountainous Region Program

A total of 9 projects have been assigned under this program These include research into appropriate development of fruit, vegetable and livestock raising, research into water resource allocation and research into agricultural technology transfer techniques

Central Coast Region Program

A total of 7 projects have been assigned under this program These include research into sustainable agriculture development, research into agroforestry and aquaculture and research into high quality plant production for export

4.3 Funding and Financing for Agricultural Research

Since the Viet Nam Public Expenditure Review in 2000 (World Bank, 2000b) and the Master Plan for Agricultural Research in 2001 (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001), Government investment in agricultural research and extension has increased significantly

In 2000 public expenditure in the agricultural research sector was only 3.2 percent of total public expenditure on agriculture, only 0.19 percent of total government spending, and 0.15 percent of agricultural GDP (Ministry of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001) As Table 9 shows, this is less than other countries in South East Asia spend on agricultural research However, as Table

9 shows, the amount spent on agricultural research in Viet Nam in 2000 was a significant increase in the amount spent in 1999 Combined with other data in Table 14, this indicates that government expenditure on agricultural research has grown significantly in the past few years Table 13 indicates that agricultural research funding has increased as a proportion of agricultural GDP, gross value of output, and on a per capita basis In addition, there has been an increasing expenditure on forestry and livestock research Funding is channeled from MOF, through MOST and then to MARD where it is dispersed

1 National Budget

a MOST (National Research Programs)

b MARD (Ministerial and Other Research Programs)

2 Local (Provincial Budget)

3 International Projects

4 Other Funds (Income Generation Projects)

The funding from MOST under the National Programs is spread amongst most research institutes under MARD In contrast, funding under the Ministerial Programs goes to selected institutes This has been the case particularly since 2002 under the competitive grants scheme (see Table 17 to Table 24)

Other sources of funds (Local, International, and Commercial Activities) are presumably a large component of the research organization budget but very little is known about the size

of these funding flows International projects do not have to be approved at the central level unless the size of the project exceeds US$1 million annually Even when this is the case, MARD is not necessarily informed of the amount of funding going to the international versus the domestic components of the project

In terms of local funding, institutes can arrange research projects with local (provincial) authorities, the details of which are not necessarily sent to MARD One of the largest components of research organization budget comes from income generation projects or commercial activities These have been allowed under Decision 68/1998/QD-TTg (27 March 1998) and many research organizations devote a significant amount of time and resources to the commercialization of their research As Table 10 shows, from 1996 to

1998 (prior to the implementation of Decision 68/1998/QD-TTg (27 March 1998)), several research institutes obtained approximately 54 percent of their funding from the Central Level, 25 percent from the Local Level, and 22 percent from Other Funding sources

Commercial activities of research organizations include sales of seed, crossbred animals, and vaccines; direct outputs of their research activities However, research organizations are also involved in the production of food crops, cash crops and animal products The importance of this income source is more difficult to assess because MARD does not collect information on it While research organizations are supposed to reserve 30 percent

of their revenue from commercial activities for research activities, 60 percent for salaries and bonuses, and 10 percent returned to the government as tax, there are no mechanisms

in place to audit research organization revenues Consequently, while it is generally agreed that for some research organizations revenues from commercial income generation activities outweigh government budgetary allocations, there are no data available to quantify these amounts

For the Food Crops Research Institute (FCRI) the estimate is that the gross income from commercial activities is roughly 1.4 times the total funding received for research (DANIDA, 2001) At FCRI, it was estimated that in 2001 only 40 percent of staff were concerned with research activities and at NIAH the estimate was that 44 percent of the staff were involved

in research activities (DANIDA, 2001)

In terms of agricultural extension funding, most expenditure is on operating costs, of which the majority is spent on input subsidies The next biggest expenditure items are demonstration models and salaries for extension workers As Table 11 shows, expenditure

on extension reached 27.6 billion dong in 1999, compared with 80.5 billion dong on research in the same year (see Table 12) However, there has been a rapid increase in the extension budget since 1993 (the establishment of the extension service) and a significant expenditure in the State budget on input subsidies (not included in Table 11 data) (Ministry

of Agriculture and Rural Development and Food and Agriculture Organization of the United Nations, 2001)

Table 12 shows the expenditure on agricultural research by subsector Research on food crops has been the biggest area for expenditure, although the data indicate that expenditures in this area have been declining while expenditure on livestock, forestry and water resources research have been increasing These areas are priority areas for government funded research, especially since the start of the 2000-2005 plans

Prior to the Year 2000, expenditure on salaries constituted the largest budgetary line item for research institutes (see Table 14) While absolute expenditure on salaries have increased, particularly in the 2002 and 2003 budgets, the overall research budget has increased proportionally more, so that on a percentage basis, salaries only constitute 38 percent of the research budget in 2003 As Table 14 shows, funding from MOST has remained fairly static, while funding from MARD under the Ministerial Programs has increased significantly As a consequence, as a proportion of budgetary outlays, MOST funding has declined in significance while Ministerial funding is the largest component of the research budget

Examination of the overall budget for research institutes gives the impression that salary costs are quite high (even though presently less than the 50 percent of budgetary costs prior to 2000) Consequently, the implications are that research institutes should spend less on salaries and divert more funds to actual research programs However, Table 15 indicates that only 8 out of 29 institutes had salary expenditures greater than 50 percent of total expenditures in 2000 As Table 19 shows, in 2002 only 8 out of 32 institutes had salary expenditures greater than 50 percent of total expenditures9 This indicates that there are significant differences between institutes not captured by the overall summary data

Table 16 presents budgetary data for 2000-2003 by program area These indicate that National Program funding through MOST comprises around 11-12 percent of total funding going to the research institutes under MARD The majority of the funding is through the Ministerial Programs (32 percent of total funding) and other research funding through MARD (8 percent of total funding) The funding from the Ministerial Programs is allocated through the competitive grants process, while the other research funding is allocated to individual research institutes according to priorities set by MARD

In Table 16, the large amount of funding allocated to the Plant and Animal Breeding Program under the Ministerial Projects gives an indication of research area priorities for MARD

Table 17 to Table 24 present data on funding for each research institute by program area Just over 60 percent of total funding goes to 8 research institutes In 2002 these were: