Page 50 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

d) Have human resources and production zones established by the province
professional management team; or by enterprises who invest and develop
MARD shall assume the prime following the law. These models develop
responsibility for and coordinate with the spontaneously, not in the Government’s high-
Ministry of Science and Technology, relevant tech agricultural zone development plan, but
ministries, ministerial-level agencies, and based on the practical needs and capabilities
provincial People’s Committees submit to the of a large-scale enterprise with financial,
Prime Minister for the decision to establish managerial and technological capabilities.
and promulgate operation regulations of the These high-tech agricultural production zones
high-tech agricultural zone. are not entitled to the same policies as those
In addition to high-tech agricultural zones established by the Prime Minister but applying
established by the Prime Minister’s decision, the general policy for investment projects in
there are models of high-tech agriculture agriculture.

18. What is a “sectoral cluster”? What is the role of “sectoral clusters”

in supporting agricultural and rural development?

Concept of sectoral cluster

There are many different concepts of the
sectoral cluster. According to the concept of M.
Porter (1990) , the sectoral cluster is a spatial
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gathering of a group of businesses, component
suppliers, service providers, companies in
different related industries and organizations
closely associated with these businesses, such
as universities, research institutes, financial
investment companies in a specific sector,
they compete with each other but also perform
together the joint activities. The cluster theory
proposed by M. Porter has been widely applied in
industrial, emerging, and developing countries.
According to UNIDO’s definition , the sectoral
15
cluster is an area where businesses, specifically
small and medium enterprises (SMEs) in the
same industry, the same geographical location,
which produce and trade related ancillary goods
have similar advantages and disadvantages. cluster is the harmonious concentration of
According to the World Bank (WB), the sectoral parties, especially businesses, on adaptations,

14 Porter Michael (1990), “National competitive advantage”, Youth Publication
15 https://www.unido.org/sites/default/files/files/2020-09/Clusters_Brochure.pdf

5050 Guidelines for the Strategy for sustainable agriculture and rural development
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