Summary of Doctoral thesis in Economics: Policies on improving the quality of Vietnam’s agricultural export products (Case studies for rice and coffee)

The thesis is conducted to analyze and clarify the theoretical and practical bases for developing and completing adequate policies on improvement of Vietnam’s agricultural export product quality in the regional and international integration.

PHAM VINH THANG

POLICIES ON IMPROVING THE QUALITY OF VIETNAM’S

AGRICULTURAL EXPORT PRODUCTS

(CASE STUDIES FOR RICE AND COFFEE)

Major in: Economic Management

Code: 9 31 01 10

SUMMARY OF DOCTORAL THESIS IN ECONOMICS

HANOI – 2019

Central Institute for Economic Management

Supervisor: Assoc Prof Dr Nguyen Van Nam

Reviewer 1: Assoc Prof Dr Ha Van Su

Reviewer 2: Dr Nguyen Do Anh Tuan

Reviewer 3: Assoc Prof Dr Ta Van Loi

The thesis is presented in front of the Institute’s Board of Examiners at the Central Institute for Economic Management on

The thesis can be found at:

- Library of the Central Institute for Economic Management

- National Library, Hanoi

INTRODUCTION

1 The urgency of the thesis

In recent years, Agriculture has been become “the main pillar” for the Vietnamese economic with numberous export agriculture producst with large volumne and turnover Rapid

raw products, medium-class products, low value, and weak competitiveness Although it has been improved, in general, the Vietnamese agriculture products have been facing difficulties in approaching the high demanding market on quality and food safety The forecasts show that in the coming time, technical, environmental, labor barriers will be major difficulties for export agriculture products

The positive impact of policies to attract resources to agriculture has not been effective The ability of increasing export volume is also facing challenges when most of them have developed to the threshold of both area and productivity It

is difficult for export products to maintain the growth achievement without breakthroughs in science and technology, supply chain and quality improvement

Renovation and management improvement, strengthen control of production inputs (agricultural materials, pesticides, fertilizers, animal feed), post-harvest preservation and processing, stop seeking for volume regardless of quality and other factors in competition, producing according to "market signals" are critical demands

Many aspects including the renewal, supplementation and improvement of relevant mechanisms and policies should

be considered to address the issues Therefore, the research in

“Policies on improving the quality of Vietnam’s agricultural export products (case study of rice and coffee)” brings about

both theoretical and practical implications in Vietnam

2 Purposes and significance of the thesis

The thesis is conducted to analyze and clarify the theoretical and practical bases for developing and completing adequate policies on improvement of Vietnam’s agricultural export product quality in the regional and international integration

The scientific and practical implications of the research support the development of methodologies, analysis and evaluation criteria for policies A set of completed and adequate policies on improvement of Vietnam’s agricultural export product quality shall promote the sustainable development of the agriculture

3 Structure of the thesis

The thesis is constituted with the introduction, conclusion, references, appendices and four following chapters

Chapter 1: Overview of studies on policies to improve the quality of Vietnamee export agricultural products

Chapter 2: Theoretical basis for policies to improve the quality of export agricultural products

Chapter 3: Current situation of policies to improve the

quality of Vietnamese export agricultural products (in case of rice and coffee)

Chapter 4: Solutions on policies to improve the quality

of Vietnamese agricultural exports in the coming period

CHAPTER 1: OVERVIEW OF RESEARCHES IN POLICIES ON IMPROVING THE QUALITY OF VIETNAM’S AGRICULTURAL EXPORT PRODUCTS 1.1 Overview of research

1.1.1 Overview of Vietnamese and international researches

- Firstly, researches in policies on the development of agricultural commodities for export: Nguyen Van Bich and Chu

Tien Quang (1996) has systematized and summarized the key economic policies on agriculture and rural areas

Nguyen Van Minh (2010) clarifies the content of economic policy in general and the policy of agricultural and rural development in particular, the internal relationship of economic policy with Vietnam's economic law

Rod Tyers and the WB's Advisory Group; ISGMARD (2002a), OECD's Report on Agricultural and Food Review, FAO and MARD (2000) study focuses on assessing some of Vietnam's policies on agricultural and fishery sectors; Short-term impact of policy reform

- Secondly, researches in Vietnam’s agricultural product export: The research by Nguyen Quang Huynh (2008) is a

typical case study in rice exporters The research by Shawn

Cunningham and Nguyen Van Phuc (2008) have identified the main restrictions on the development of export products, including rice Luong Xuan Quy and colleagues (2006) have stated that policies still have many inadequacies Nicholas Minot (2008) stated: Vietnam's rice production growth is mainly due to increased productivity and land turnover coefficient Dinh Van Thanh (2011); Vo Thi Thanh Loc, Le Nguyen Doan Khoi (2011); Agrifood Consulting International - ACI, (2002) examined the impact of developed countries' agricultural product standards on their ability to participate in global agricultural value

- Finally, researches related to policies on improving the quality of Vietnam’s agricultural export products (case study of rice and coffee): Le Xuan Tao (2014); Tran The Tuan and Tran

Mai Trang (2015) have evaluated the actual situation and made recommendations to boost rice exports of the Mekong Delta.Chantal Pohl Nielsen (2003); Le Khuong Ninh, Niels Hermes and Ger Lanjouw (2002); Chantal Pohl Nielsen, Kobenhavn, (2002); Jonathan Haughton & et al (12/2004); Nicholas Minot & Francesco Goletti (2000) has given a summary of Vietnam’s rice production, especially roles of Vietnam’s rice in the international markets and specify some strongly influential trade policies on rices after the economic reform in Vietnam Hoang Thi Van Anh (2009) has discussed the fundamental issues of the global value chain and recommends some solutions to Vietnamese coffee Luong Xuan Quy (2006) has proposed and recommended policies to increase the value added

to agricultural exports Le Huy Khoi (2013) has developed the theoretical framework and value chain model of Vietnamese coffee.Nguyen Ngoc Tuan (2013) has proposed adjustments in lending methods and policies Rice.P & McLean (1999); Giovannucci, Daniele & F.J Koekoek (2003) have mentioned policies on production, processing, export and given out some recommendations Nguyen Ngoc Tuan (2013) has emphasized

on bank credit solutions for households producing the coffee ISGMARD (2002);N.E.Maurice and J.Davis (2011) have deeply studied in competitive opportunities of agricultural export products in the integration

The common points in the above projects are the research focuses on production, export and enhance the competitiveness

of the export agriculture produtcs On the analytical basis, and the situation assessment, the authors proposed the guidance and orientation on the solutions (quality improvement, competitiveness, production improvement, export Vietnamese agriculture export)

As the subject of the study are not focusing on the policies improving the quality of the export agriculture products, in some extent, those studies needs to be further discussed For example, the theoretical basis of the policies and its impacts on improving the production and exporting of the agriculture products, the advantages and disadvantages of the current policie to ensure the quality of the agriculture products in a sustainable development in the context of free trade Many new solutions are general, wwhich arre applied to all

general export items In other words, the works have not been comprehensively studied in terms of both theory and practice to the policies of improving the quality of the export agriculture products

1.1.2 Thesis’s issues not solved in published researches

- The theoretical bases for policies on improving the quality

of agricultural export products has not been detailed and completed to clarify objectives of the policies

- It lacks the clear categorization of direct and indirect policies on improving the quality of agricultural export products

in recent years;

- There are few complete, comprehensive and in-depth analyses and assessments of factors influencing on the quality

of agricultural export products

- There are few recommendations and new measures for specific commodities in the certain area

1.1.3 Focuses of the thesis

- Analysis and clarification of theoretical bases for policies

on improving the quality of agricultural export products;

- Assessment of adopted policies on the quality of agricultural export products, especially ones on influential factors on agricultural production, production process (farming methods); Postharvest food processing and preservation

- Based on theoretical and practical bases and in the domestic and international economic development and market trends of the agricultural products, the thesis has recommended some perspectives, plans and solutions develop completed and

adequate policies to improve the quality of agricultural export products

1.2 Solutions to issues of the thesis

1.2.1 Objectives of the research

* General objectives

The thesis aims at propsing orientations and solutions to improve the policies which enhance the quality of exported agricultural products This contributes to the goods export of Vietnam in the global integration context according to theoretical and practical bases of policies on improving quality of exported agricultural products of Vietnam since

(iii) To propose orientation and solutions on improving policies enhancing the quality of agricultural export products This aims at developing the export agricultural products in the context of integration

1.2.2 Reaseach questions

The thesis focuses on answering the following questions: (i) What are factors influencing on policies on improving the quality of agricultural export products based on the theoretical bases for the quality and policies? (ii) How have the policies affected on improving the quality of agricultural export products

in Vietnam in general and rice and coffee in particular? (iii) What solutions should be carried out to develop completed and adequate policies to improve the quality of Vietnam’s agricultural export products (including rice and coffee) in the coming time

1.2.3 Subject and scope of the research

*Subject of the research:

The subject of the research is policies on improving the quality of Vietnam’s agricultural export products, especially

rice and coffee

*Scope of the research:

- In term of contents: The thesis establishes a theoretical framework for evaluating the effects of policies on improving the quality of export rice and coffee, applies this theoretical framework on evaluating policies on improving the quality of Vietnam’s agricultural export products, especially rice and coffee in the period of 2010-2017, and propose solutions for the following years

- In term of duration: The data will be studied in the period

of 2010-2017 and data and orientation forecasted up to 2020 and 2030

- In term of space: The thesis investigates the effects of policies on improving the quality of Vietnam’s rice and coffee for exports

1.2.4 Approach and methodology

Approach:

- System approach enables to fully and comprehensively research and solve issues from both theoretical and practical

- Methods of collecting, processing and analyzing information: Secondary data are collected from various sources (General Statistics Office, General Department of Customs; Summary Report of Agriculture, Industry and Trade; Commodity Industry Association The questionnaire was designed for the general audience (experts are civil servants, State officials, independent experts, businesses, associations) Collected results are processed by Exel software

- Method of systematization and generalization; interpolation and extrapolation: To analyze the rationale and situation of the policy in the process of opening and international integration; Clarifying weaknesses, causes of the situation, the need to complete policies

- Statistical and analytical methods: Used to clarify the impacts of mechanisms and policies on export agriculture products

Figure 1 1: Analysis of effects of factors and policies on the

quality of agricultural export products

Source: By the author

CHAPTER 2: THEORETICAL BASES FOR POLICIES ON

IMPROVING THE QUALITY OF AGRICULTURAL

EXPORT PRODUCTS 2.1 Definitions

2.1.1 Quality of agricultural export products

The quality of Vietnam’s agricultural export products

reflects the workmanship, grade, appearance, physical and

chemical properties of agricultural commodities in conformity

Complete and adequate policies

Domestic

market

Giá cả

Quality of agricultural export products

Policies with

direct effects

Internal, external and input factors

Foreign markets

Policies with indirect effects

with standards and requirements regulated by a particular importing country

2.1.2 Policies on improving the quality of agricultural export products

Under the theoretical and practical approaches, policies on

on improving the quality of agricultural export products is defined as a comprehensive concept of viewpoints, guidelines, strategies and measures promulgated and/or adopted to operate and manage the production processes (namely production, harvesting, preservation and processing), transportation and consumption of agricultural products to enhance their quality and meet the standards and requirements regulated by importing countries from time to time

2.2 Objective and content of policies on improving the quality of agricultural export products

2.2.1 Objective of policies

Every policy aims at a certain objective in particular time However, the overall objective of policies is to improve the quality of agricultural export products in order to increase the export turnover, enhance the competitiveness of Vietnam’s agricultural export products

2.2.2 Description of policies

- The effective and efficient utilization of agricultural resources including soils, water, plant and animal genes, natural conditions and others;

- Enhancement of supplies of various agricultural commodities in term of both quality and quantity with reputable brands and high competition in the international markets;

- Promoting researches and applications of scientific and technological advancements and achievements in the agriculture

in order to increase the productivity, give new competitive advantages in products, lead the markets and form new demands

2.3 Classification of policies

Policies are classified into categories of production, harvest preservation, intensive processing and consumption of

post-of agricultural products, and market policies

2.4 Process of policies on improving the quality of agricultural export products

Each policy on improving the quality of agricultural export products includes the following procedures of planning, making, implementing, assessing and amending

2.5 Assessment of the impact of policies

2.5.1 Objective and description of assessment

The assessment of any policy of both the central government or local authorities should be thoroughly and comprehensively considered in addressing a particular urgent issue posed in business practices The assessment is based on the comparison between the actual results of policy implementation and objective of such policy; between positive and negative impacts; and between costs and benefits of the policy In principle, a standard set of assessment criteria should be drawn

up for the certain policy

2.5.2 Assessment criteria

The assessment criteria are varied for each group of policies, or even for a particular policy In the scope, the thesis has

proposed a general set of the assessment criteria including Relevance; Synchronism; Possibility; Effectiveness and efficiency

2.6 Foreign experience in planning and implementing policies to improve the quality of agricultural export products and lessons for Vietnam

The following necessary lessons can be drawn from other countries (including Thailand, Brazil, the Netherlands, and

India) with similar experiences and conditions Firstly, synchronizing the infrastructure; Secondly, making the State’s general and comprehensive guidelines and policies; Thirdly,

paying special attention to roles of international organizations and institutions, industry associations and supporting

organizations, NGOs; Fourthly, implementing policies on

supporting and enhancing the capacity of the State management

staff in agriculture and rural areas; Fifthly, regarding product

quality as a top priority and taking advantages of the

information technology to enhance the market access; Sixthly,

highly emphasizing on increasing the value added of agricultural export products in the development policies and strategies in order to thoroughly exploit international

agricultural advantages; Finally, increasingly attract foreign

direct investments in the agricultural sector

CHAPTER 3: THE ACTUAL SITUATION OF POLICIES

ON IMPROVING THE QUALITY OF VIETNAM’S AGRICULTURAL EXPORT PRODUCTS (CASE STUDY

OF RICE AND COFFEE) 3.1 A brief of the quality of agricultural export products