Vietnam Gives Priority to Agriculture Development in 2012

In 2009, the spending for agriculture, farmers and countryside, including bonds, accounted for 35.9 percent of total expenditures. This figure was 39.3 percent in 2010 and was estimate at 39.8 percent in 2011. According to the budgetary estimation for 2012 approved by the lawmaking National Assembly, the total expenditure for agriculture, farmers and rural areas, including government bonds, will be 40.9 percent of total State budget. In particular, the value allocated directly from the State Budget channel is VND343,108 billion; the amount directly for agriculture, farmers and rural areas is VND119,480 billion; the money allocated through ministries and central agencies is VND9,138 billion; the amount added to local budgets from the central budget is VND87,633 billion; expenditures directly related to agriculture, farmers and countryside is VND166,863 billion; and the government bonds are VND24,800 billion.

 

The growth of State budget expenditures for agriculture and rural areas is always higher than the average rate. In 2010, expenses for agriculture and countryside grew 21.3 percent, while the average expense growth was 18.4 percent. In 2011, the respective figures were 34.7 percent and 24.7 percent. In 2012, the lawmaking National Assembly and the Government decided to allocate VND1,200 billion agricultural and countryside insurance programmes, increase expenditures for 62 poor districts from VND2,050 billion in 2011 to VND3,050 billion (an increase of 48 percent), raise spending for forest protection and development programme from VND715 billion in 2011 to VND1,127 billion (an increase of 57.6 percent), hike the money for aquaculture, seedling and livestock development programme from VND475 billion in 2011 to VND790 billion (a rise of 66.3 percent), and raise the expenditure for resettlement programmes from VND345 billion in 2011 to VND445 billion (a rise of 29 percent). In addition, the budget allocation also gives priority to irrigation, scientific research, interest rate offsets for the poor.

 

The pilot agricultural insurance programme for the period from 2011 to 2013 will focus on insurance against disaster and disease risks. Disaster risks include hurricane, flooding, drought, cold weather damage, frost and other risks. Epidemic risks comprise all livestock diseases like blue-ear disease, foot and mouth disease, fish disease, damage caused by brown backed rice plant hopper, rice grassy stunt virus, rice ragged stunt virus, and others.

 

This pilot programme will be applied to three types of objects. The first is rice, the second is cow, pig and fowl, and the third is tra and basa fish, black tiger shrimp, and white-legged shrimp. The rice insurance programme will be carried out in Nam Dinh, Thai Binh, Nghe An, Ha Tinh, Binh Thuan, An Giang and Dong Thap provinces. The livestock and poultry insurance programme will be applied in Bac Ninh, Nghe An, Dong Nai, Vinh Phuc, Thanh Hoa, Binh Dinh and Binh Duong provinces and Hai Phong and Hanoi cities. The fishery insurance programme will be mainly focused in Ben Tre, Soc Trang, Tra Vinh, Bac Lieu and Ca Mau provinces.

 

The State Budget will fund 100 percent of insurance premiums for poor individual farmers and households and 80 percent of insurance premiums for near-poor households. Other farmers will be supported 60 percent. Insurance companies joining this programme will also be supported with 20 percent of the premiums. The Central State Budget will allocate 100 percent of this budget for the provinces that receive additional central budget funds to balance their spending. It will support 50 percent for the provinces capable of self-financing 50 percent of spending. Provinces that can balance incomes and expenses will not receive any fund support from this pilot programme.

 

The total funding allocated for the agricultural insurance programme in 2012 proposed by the Government and approved by the National Assembly is VND1,200 billion. The Ministry of Finance is assigned to work closely with the Ministry of Agriculture and Rural Development to lead pilot provinces to expeditiously complete training and implementation plans for the programme in 2012. It will review the pilot programme and submit the results to the Government and the National Assembly for the consideration of extension or long-term plan application.