The investment capital for agriculture, rural areas and farmers in the 2006-2011 period totalled over 432.7 trillion dong, equivalent to 50 percent of the total investment capital sourced from the State budget and government bonds. In addition, the State also prepared backup funds worth 7-8 trillion dong a year, mostly used to tackle the consequences of storms and flooding.

Furthermore, farmers also enjoyed agricultural tax exemption and reduction worth more than 2 trillion dong per year. Some 8 trillion dong sourced from the lottery every year was prioritised for infrastructure development in rural areas, said the report on public investment in agriculture, rural areas and farmers released in Hanoi on Wednesday.

The report said such investment capital was not commensurate with up to 70 percent of Vietnam’s population living in rural areas. However, many national target programmes and supporting programmes for agriculture, rural areas and farmers have failed to achieve their goals and caused much waste.

For example, under the migration and settlement programme for ethnic minorities carried out in 2007, a household in Lai Chau was financed as much as 1 billion dong, equal to the central budget fund for a remote commune for a year.

Laws and polices for agriculture, rural areas and farmers also expose multiple shortcomings, such as the regulations on farmland use terms, land ownership and land use rights.

The Saigon Times - April 24, 2012