Page 78 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

Since ancient times, our grandparents have will hold a more favourable position in the
appreciated and recognized the significant markets and tend to operate more efficiently
role of agriculture, as shown in the folk song than other competitors.
“First intellectuals and second farmers, run
out of rice, then first farmers and second The comparative advantage of the
intellectuals”. Agriculture in any period is agriculture sector of Viet Nam
a pillar of stability and the measure of the • Natural resources and climate
country’s sustainability, especially when the conditions in Viet Nam are favourable
country is faced with shocks. Since Doi Moi for agriculture development, with the
(reform), agriculture has always been a solid Red River Delta in the North and the
foundation to protect the country in difficult Mekong River Delta in the South.
times. Agriculture is the foundation to help • Most Vietnamese farmers are hard-
the economy overcome the Southeast Asian working, intelligent and diligent. They
economic crisis (1997), the World financial know how to rely on the law of nature to
crisis (2008), and the Covid-19 pandemic develop production.
from 2019 to the present. In particular, food • Reasonable labour costs can create
security is always ensured, and agricultural competitive advantages for Viet
growth is maintained. Trade (import and Nam’s agricultural products in the
export) is balanced, and inflation is limited. international and domestic markets.
Unemployed people can return to the rural • Infrastructure in rural areas has
area, etc. The Strategy puts “agriculture as improved significantly in recent years.
the sustainable foundation of the country” to • Viet Nam participates in many free
determine the sector’s role in ensuring stability trade agreements such as AFTA,
and as a solid foundation in the country’s EVFTA, CPTPP, etc., which bring many
development. advantages in exporting agricultural
According to David Ricardo (1878), products to potential markets.
comparative advantage is an economy’s • Viet Nam has built a global reputation
ability to produce goods and services at a lower for rice, coffee, pepper, cashew and
opportunity cost than its trading counterparts. fisheries, although it is more about
A country is considered to have a comparative quantity than quality.
advantage in making a commodity if the cost • Favourable policies and institutional
of producing that commodity is lower than the environment support agricultural
cost of producing others. However, in many development and investment
manufacturing industries, the comparative • Viet Nam is one of the leading countries
advantage does not fully explain trade producing numerous agricultural
practices due to changes in technology and products such as rice, coffee, pepper,
globalization. A series of new interpretations cashew nuts, etc. Viet Nam has high
on trade have been proposed, including competitiveness in terms of both yield
competitive advantage. According to Michael and price.
E. Porter (1985), competitive advantage
refers to factors that allow a manufacturing
industry’s brand, product or service better
than competitors. As a result, that industry

7878 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