Page 33 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

09. What is “commercial
agriculture”?

According to Marxism-Leninism, historically,
two different forms of economic system have
existed: self-sufficient production (self-supply,
self-sufficiency) and commodity production.
Self-sufficient production is a system in which
commodities are produced to meet the producer’s
own consumption needs. Meanwhile, commercial
production is a form of economic system in which
commodities are produced for sale in the market.
These commodities not only meet the needs of
producers themselves but also the needs of other
consumers. Through the exchange, purchase stages, from production, harvesting, processing
and sale with consumers, and domestic and to distribution, and consumption, forming a
foreign economic organizations, earning profits stable product supply chain with a brand and
4
from production and business activities becomes product reputation . On that basis, the stages in
the primary purpose of commodity production. the agricultural supply chain will be organized
according to the principle of specialization and
Viet Nam’s agriculture has been taking professionalization by application of the same
a step toward a new development phase production process. In addition, agricultural
towards a larger scale for international products are produced in intensive farming, using
economic integration. Large-scale commercial modern technologies to achieve high productivity
production is the solution to resolve the situation and quality. As a result, commercial agriculture
of “fragmented, small, and spontaneous” will create a large volume of high-quality and
production and other problems, including the uniform goods to increase competitiveness in the
“good harvest, low prices” phenomenon, low market.
quality and unstable products, limitations of
mechanization, limitations in the application of The objective of large-scale agricultural
scientific and technological advances, difficulty commercial production is to improve the
in attracting investment in processing stages, uniformity of quality with a large number of
and in adjusting products to respond to market products to occupy specific markets; It also aims
changes quickly, etc. to create good conditions for the application
of advanced production technologies to save
In the Strategy, commercial agriculture is and lower product costs; Besides, it helps to
defined as large-scale agriculture production increase labour and land productivity; It will
where agricultural products are produced in a help to implement the best labour distribution
large and centralized area, with synchronous as well, which taking advantage of the highest
and modern production patterns to exploit experience and skills to improve economic
comparative and competitive advantages of efficiency for labourers who are participating in
the regions and the whole country. Furthermore, the agricultural supply chain.
large-scale commercial agriculture promotes the
development of cooperative relationships and 4 Vietnam Encyclopedia, Encyclopedia Publishing House, 2003,
linkages amongst actors participating in various volume 3, page 726
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Guidelines for the Strategy for sustainable agriculture and rural development 33
Guidelines for the Strategy for sustainable agriculture and rural development
in the period 2021-2030, and vision to 2050
in the period 2021-2030, and vision to 2050