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If this thesis manages to find out solutions to improvement ofagricultural land use efficiency in Phu Tho Province, it will become an useful reference document for not only Phu Tho Provi

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TRADING INVESTMENT THE VIETNAM INSTITUTE FOR DEVELOPMENT

STRATEGIES

¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯

TRAN QUYET CHIEN

AGRICULTURAL LAND USE EFFICIENCY IN PHU THO

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HANOI- 2020

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THIS WORK IS COMPLETED AT THE VIETNAM INSTITUTE FOR DEVELOPMENT STRATEGIES

Scientific supervisors:

1 PROF PHD NGO THANG LOI

2 PHD CAO NGOC LAN

Reviewer 1: Assoc Prof, Dr Bui Van Huyen

Reviewer 2: Prof Phd Nguyen Thanh Do

Reviewer 3 : Assoc Prof, Dr Tran Nguyen Tuyen

The thesis will be defended before the Thesis Assessment Council of the State at the Vietnam Institute for Development Strategies

At: Dated 2020

The thesis may be further referred at:

- The National Library of Vietnam

- Library of the Vietnam Institute for Development Strategies

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In fact, it is now essential to research agricultural land useefficiency in Phu Tho GRDP per capita of the Province only equals

to 78% of the average GRDP per capita of Vietnam whereasGRDP/capita of provincial rural areas only equal to about 55% of theaverage GRDP per capita of the whole Province So how to increaseGRDP per capita of the Province? In Phu Tho Province, ruralpopulation accounts for about 80% of total population of theProvince, 87%-88% of which are engaging in agriculture Most oflocal people engaging in agriculture live on agricultural production

If this thesis manages to find out solutions to improvement ofagricultural land use efficiency in Phu Tho Province, it will become

an useful reference document for not only Phu Tho Province but alsoNorthern mountainous provinces and other provinces nationwide andact as a valuable reference document for development researchinstitutes and higher education institutions in agriculturaldevelopment in Vietnam

Consequently, the author chooses "Agricultural land use efficiency in Phu Tho Province" as a topic of the doctoral thesis in

development economics

2 Research aims and objectives

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2.1 Research aims: Propose solutions to improvement of

agricultural land use efficiency during agricultural and ruraldevelopment towards efficiency and sustainability in Phu ThoProvince in a scientifically reasonable manner

2.2 Research objectives: In order to achieve given aims, the thesis

focuses on completion of the following fundamental scientificresearch objectives: (1) Develop theoretical background and learnthrough practical experience on agricultural land use efficiency toapply to research of this issue in Vietnam (2) Assess actual state ofagricultural land use efficiency in Phu Tho Province during 2010

- 2018 period to identify strengths, weaknesses and reasons forlimitations and shortcomings (3) Propose solutions to improvement

of agricultural land use efficiency in Phu Tho Province towards2030

3 Research object and scope

3.1 Research object: Research object is agricultural land use

efficiency in Phu Tho Province, including research of agriculturalland and agricultural land use efficiency in the Province in detail

3.2 Research scope: a) For science: Research theory and practice,

current and future agricultural land use efficiency; clarify sometheoretical issues such as concepts, attributes of agricultural land useefficiency and assessment criteria for agricultural land use efficiency

At the same time, specify current state, orientation of agriculturalland use and agricultural land use efficiency in Phu Tho Province;then propose solutions to improvement of agricultural land useefficiency in Phu Tho Province towards 2030 b) For time: Currentstate from 2010 to 2018 and forecast to 2030 Forecast for a 12-year

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period (2019 - 2030) is necessary because the biological cycle ofcrop varieties is about 7 - 8 years whereas it takes imported goodcrop varieties 2-3 years to stably develop For space: Phu ThoProvince and agricultural development zone (possibly includingspecialized farming area and concentrated raw material growingarea).

4 Research framework

The thesis author proposes a research framework applicable to the thesis topic as shown in figure 1 below:

Figure 1: Research framework of the thesis

Source: Proposal of the author

Research theories

of agricultural

land use

efficiency

Analyze actual state of

agricultural land use

efficiency in Phu Tho

Province and other

localities

Forecast issues arising from socio- economic development context of Phu Tho Province for efficient

agricultural land

agricultural development orientation

Solutions to improvement of agricultural land use efficiency in Phu Tho Province (Based

on research aims

of the thesis)

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5 Research approaches and methods

Systemic approach, theoretical to practical approach,intersectoral, interzone approach and cause and effect approach areapplied throughout the thesis

In order to complete the thesis, the author uses commonmethods such as systemic analysis method, statistical analysismethod in combination with use of graphs, charts, maps, comparisonmethod, expert method, policy analysis method, forecast method,SWOT method and field survey method

6 New contributions of the thesis

a) Theoretical and academic contributions: The thesis showsthat agricultural land use efficiency is represented by agriculturaldevelopment efficiency and nature of agricultural land use efficiency

is agriculture value added and earned value of crops and commodityper hectare of agricultural land in one year or many years.Agricultural land use efficiency is composed of cultivationefficiency, animal husbandry efficiency and agricultural serviceefficiency The thesis specifies nine factors affecting agriculturalland use efficiency (and emphasizes role of provincial authorities,production structure, agricultural land use structure, agriculturalproduction) and determines a criteria kit for analysis of reasons andsituation of agricultural land use efficiency in the Province in thecontext of Vietnam

b) New findings and proposals resulting from research andsurvey result of the thesis: The thesis provides a scientificbackground to the State management agencies in Phu Tho Province

in planning agricultural development guidelines, reforming

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agricultural land use structure of Phu Tho Province (by specifyingstrengths, weaknesses, reasons for successes and limitations,shortcomings in agricultural land use in recent years) and proposesfive groups of solutions to improvement of agricultural land useefficiency in the future The thesis puts considerable emphasis onsolutions to improvement of State management efficiency of localauthorities, reform of agricultural land use structure, and reform ofagricultural production structure in association with modernizationand development of agricultural production forms (especially,development of agricultural product value chains, agricultural andindustrial complexes and hi-tech agricultural parks, etc)

7 Structure of the thesis

Besides Introduction, Conclusion and List of referencedocuments, appendices, the thesis is composed of 04 chapters asfollows:

CHAPTER 1 LITERATURE REVIEW RELATED TO AGRICULTURAL LAND USE EFFICIENCY

Following research requirements on theories and practicalexperience for the thesis, the author reviewed 90 documents andchose two major issues, including 1.1 Overview of agriculture andagricultural development efficiency and 1.2 Overview ofagricultural land and agricultural land use efficiency, for researchpurposes of the thesis

The literature review shows that land use efficiency generallyhas a closed relation with agricultural land use efficiency.Agricultural land is a major issue and it has been researched by manyscholars Scholars generally agree that agricultural land is the type of

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land used for agricultural production development (agriculturalproduction is an economic system including cultivation, animalhusbandry and agricultural services) Efficient use of agriculturalland is a compulsory requirement of each country Many scholarsagree that agricultural land use efficiency and agriculturaldevelopment efficiency have the same meaning Many researchworks regarding agricultural development efficiency clearly statethat agricultural production efficiency is the relation betweenoutcome and costs for agricultural development in a definite term.Although this statement is quite general from viewpoint regardingresult of a specific activity, it is a good thought that is applicable tothis thesis This thesis also applies published research resultsregarding some assessment criteria for agricultural land useefficiency such as output value, added value per hectare ofagricultural land, labor per hectare of agricultural land Besides, theauthor identifies unsatisfactory issues from researches of scholarsand issues that need further research in this thesis (to be specified inchapter 2).

CHAPTER 2:THEORETICAL BACKGROUND REGARDING AGRICULTURAL LAND USE EFFICIENCY IN THE PROVINCE

AND PRACTICAL EXPERIENCE

2.1 Theoretical background regarding agricultural land use efficiency

2.1.1 Agricultural land use efficiency

Agricultural land is the type of land that is directly used foragricultural development Agricultural production activities areperformed on this type of land, including cultivation and

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development of animal husbandry (including aquaculture) forproduction of agricultural products and commodities and satisfaction

of people's demand as well as production of materials for processingindustry development The land used for agricultural production isnot similar to the land used for forestry production Consequently,the thesis considers that it is inadvisable to include the land used foragricultural production in the land used for forestry production

In order to provide a systemic view, the author gives anoverview of agriculture and presents grounds for explanation ofagricultural land use issues

Figure 2.1: Theoretical graph on reform of agricultural land use structure in stages

Source: The author

Agricultural land use efficiency is shown by agriculturalproduction development efficiency because production outcome onlyresults from agricultural production activities and leads toagricultural land use efficiency

Viewpoint reagrding agricultural land use efficiency mustnot be separate from general theory of development efficiency asdifference between achieved outcome and paid costs In otheraspects, it shows added value, amount of commodities generated by

Current agricultural land use

structure

Future agricultural land use structure Subjects of change (farmers)

Market and technologies Efficiency

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agricultural production on one hectare of agricultural land.Agricultural development efficiency is one of components ofsocio-economic development efficiency and one of elements ofagricultural development efficiency and it shows productionefficiency on one hectares of agricultural land.

Figure 2.2: Graph on implication of agricultural land use efficiency

Source: The author

+ Agricultural land use efficiency is considered in factorsforming agricultural production so agricultural developmentefficiency is generally a system composed of cultivation efficiency,animal husbandry efficiency and agricultural service efficiency.However, it is very difficult to separate agricultural serviceefficiency on agricultural land from agricultural service efficiency onresidential land

It is regularly required to generally consider efficiency ofthree components of agricultural development efficiency, includingcultivation, animal husbandry and agricultural services duringanalysis of agricultural development efficiency

Agricultural land use

efficiency

Efficiency for agricultural land users

Efficiency for related persons

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Figure 2.4: Agricultural development efficiency and its components

Source: The author

+ Agricultural land use efficiency will be changed in time,space, from bottom to top and at discretion of people

2.1.2 Factors affecting agricultural land use efficiency

Agricultural land use efficiency much depends on manyfactors, including more significant factors and less significant factorsand factors that can be changed during development period In thecontext that market economy, globalization and green developmenttrend will dominate, based on new thinkings and viewpoints, thethesis author presents factors affecting agricultural land use

efficjency in the following order of importance: (1) The State and the State management of agricultural land use;(2) Agricultural product market;(3) Input factors for agricultural development; (4) Agricultural technologies and scientists;(5) Other persons directly related to production of agricultural products;(6) Agricultural production organization;(7) Geographical position; (8) Climate change; (9) Non-agricultural investment.

Agricultural

development

efficiency

Cultivation efficiency

Animal husbandry efficiency

Agricultural service efficiency

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2.1.3 Assessment of agricultural land use efficiency

Based on theoretical and practical clarification, the authorproposes two groups of criteria mainly used for assessment ofagricultural land use efficiency in provinces of Vietnam

a) Group of criteria for analysis of agricultural land useefficiency, including four main criteria:

(1)Productivity per hectare of agricultural land (Agriculture

value added on one hectare of agricultural land) (H 1 );

(2) Agricultural labor productivity (H 2 );

(3).Percentage of agricultural products (H 3 );

(4) The average added value of agricultural per farmer (Snd)

b) Group of criteria for analysis of reasons for and situation

of agricultural land use efficiency, including three criteria:

(1) Agricultural land use structure (T d );

(2) Investment in agricultural development, the author

considers that it is necessary to analyze three main criteria asfollows:

- Rate of agricultural investment to total social investment

(Hn);

- Agricultural investment structure (Hi);

- Growth rate of investment capital for agricultural

development (Td);

(3) Percentage of trained agricultural labors (T đ ).

2.2 Empirical experience

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Domestic and international case studies allows the author tolearn lessons about improvement of agricultural land use efficiency

in Phu Tho Province, in detail:

- High agricultural land use efficiency requires agriculturaldevelopment based on high technologies, regular reform ofagricultural land use structure based on market requirements.Scientific researches on modern agricultural technologies andagricultural production organization are important solutions toefficient agricultural development in general and efficient agriculturaluse efficiency in particular

- The State plays an important role in efficient agriculturalland use It will be difficult to develop agriculture if there is nosatisfactory support from the State to agricultural manufacturers,regardless of such manufacturers are large or small

- Countries generally pay more attention to added value perhectare of agricultural land in assessment of agriculturaldevelopment and agricultural land use efficiency

CHAPTER 3 ACTUAL STATE OF AGRCULTURAL LAND USE EFFICIENCY IN PHU THO PROVINCE DURING2010–2018

PERIOD

3.1 Overall assessment of factors affecting agricultural land use and agricultural development of Phu Tho Province in recent years.

Applying SWOT method as specified in Chapter 2, the authorincludes factors in two groups for easy reference to and identification

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of factors affecting agricultural land use in Phu Tho Province andgives some fundamental comments as follows:

3.1.1 Favorable factors:

a).Phu Tho Province is located in a very favorable position

for trading and supply of high-quality agricultural products to Hanoiand provinces in the Red River Delta and this position will wellfacilitate cooperation development of the Province in the future

b).Viet Tri City of Phu Tho Province is home to festivals and

this facilitates development of high-quality agricultural products andfood for tourists

c) Phu Tho Province has great potential and prospects for

development of agro-forestry development

d) Phu Tho Province currently plans development of 7

industrial parks and 26 industrial clusters and this is a prerequisiteforinvestment and development of agricultural product processingindustry

In general, potential and strengths for commodity agriculturedevelopment of Phu Tho Province are quite great but have not beenefficiently promoted

3.1.2 Main difficulties in agricultural production of Phu Tho Province

- Purchasing power for agrocultural products is not quitehigh, especially for high-quality and clean agricultural products

- Agricultural land area is limited and the averageagricultural land area per capita of Phu Tho Province is only equals

to 63%-64% the average one of Vietnam On the other hand,

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