Hanoi: Agricultural development policies lack real-world effectiveness

The linkage of production, harvesting, and consumption of agricultural products is susceptible to disruption

According to the report issued by the municipal authorities of Hanoi, the average growth rate of the agricultural sector in Hanoi during the period of 2016-2020 amounted to 2.53 percent. Subsequently, from 2021 to 2022, it experienced a growth rate surpassing 3 percent. The primary objective is to ensure a consistent annual growth rate of 2.5-3 percent for the 2021-2025 term.

The city as a whole boasts 285 advanced technology-driven agricultural production models, along with 2,167 products classified under the “One Commune, One Product” (OCOP) program, all of which have received ratings of three stars or above, bringing Hanoi to the forefront nationwide. Furthermore, noteworthy attention has been given to the operation of agricultural service cooperatives, gradually yielding positive outcomes.

Over the past time, the predominant focus of incentivizing and supporting policies for agricultural development has concentrated on several key areas, including consultation and vocational training support, technical training for production and managerial expertise, facilitation of regional production infrastructure construction, agricultural project development assistance, direct support across various stages of production and agricultural product consumption, credit support, market development facilitation, and agricultural product consumption linkages.

Despite the achievements realized, certain limitations and challenges persist. At present, the Hanoi Department of Agriculture and Rural Development is actively implementing 11 specialized agricultural planning initiatives. However, owing to the rapid pace of urbanization, the majority of these plans have undergone modifications, adjustments, with overlapping and some plans having yet to be executed.

In 2012, Hanoi endorsed a comprehensive plan until 2020 encompassing the establishment of a system for livestock and poultry slaughter and processing facilities throughout the city. The primary objective of this plan is to meet 85-90 percent of the local demand, ensuring that livestock and poultry meat undergoes slaughter, preservation, and processing in concentrated industrial slaughter and processing facilities. The target set for the year 2020 was just realized by 60-65 percent. Ultimately, the plan aspired to phase out the operation of small-scale livestock and poultry slaughter establishments.

Despite subsequent revisions undertaken in 2013, 2014, and 2017, the intended objectives could not be fully attained by the year 2020. To date, only 11 out of 29 centralized livestock and poultry slaughter facilities are operational, accounting for a mere 37.93 percent in accordance with the plan. The remaining 18 facilities have yet to receive investment for construction or attract potential investors. Additionally, numerous industrial, semi-industrial, and manual slaughter facilities continue to operate below their maximum capacity. For instance, Vinh Anh slaughterhouse located in Thuong Tin district has invested in modern slaughter lines but functions at a mere 15-30 percent of its designated capacity. Similarly, Foodex facility in Dan Phuong district has temporarily suspended its slaughter operation, while Minh Hien slaughterhouse in Thanh Oai district has resorted to semi-industrial slaughter practices in order to sustain its operations.

Many industrial slaughterhouses are operating below their capacity

In addition to the slaughter planning, the city has also introduced a list of concentrated agricultural production areas. However, inadequacies still persist. For instance, Gia Lam District was designated as an area for fruit cultivation, planting guava in Dong Du Commune and orange in Kieu Ky Commune. Numerous alterations, adjustments, updates, and supplements are needed to align these plans with the overall construction plan of the capital city and ensure their compatibility with the practical landscape of agricultural and rural development in the locality.

Moreover, the integrated models along with the agricultural production-to-consumption chain in Hanoi still see persisting challenges. Specifically, out of the 145 chains formed according to the seven prescribed forms of chain linkage in the Government’s Decree No.98/2018, 46 are established under the category of “production organization and harvesting linked to agricultural product consumption.” Nonetheless, empirical evidence reveals that this form of linkage lacks sustainability, leading to the disruption of contractual agreements.

To illustrate, when the market prices surpass the agreed-upon prices, producers opt to bypass intermediary businesses and directly sell their products on the market. Conversely, when market prices fall below the agreed-upon prices, businesses refrain from purchasing goods from producers, thereby resulting in severed chain linkages. From 2020 to the end of 2021, 13 linkages have ceased their operation, all of which are in this particular form of linkage.

Phung Thi Hong Ha, Vice Permanent Chairwoman of the Hanoi People’s Council, emphasizes the urgent need of perfecting the existing plans and establishing key regions and forming staple products. The implementation of agricultural and rural development policies must be timely, systematic, and efficacious to foster significant advancements.