Page 79 - STRATEGY FOR SUSTAINABLE AGRICULTUR AND RURAL DEVELOPMENT IN THE PERIOD 2021-2030 AND VISION TO 2050

39. The Strategy emphasizes the
need to change thinking from
“agricultural production”
to “agricultural economic”,
so what does “agricultural
economic thinking” mean?

In the thinking of agricultural production,
the output is the goal; meanwhile, in the
thinking of agricultural economic, added value
is the goal. Shifting thinking from agricultural
production to agricultural economic means pressure and environmental protection,
changing the mindset of increasing output to aiming at more efficient agriculture.
increasing value. The thinking of agricultural Minister Le Minh Hoan summarized
production is selling what you have, and the agricultural economic thinking with
thinking of agricultural economic is selling six keywords: “Cooperation - Linkage -
what the market needs (including value, Market - Cost reduction - Quality increase
quality, food safety and hygiene, and utilities). - Diversification of processed products”.
In production, farmers rarely consider input Before selecting a certain livestock or crop for
costs but only focus on selling prices, while production, the first thing to do is that farmers
the more costs are reduced, the more profits need to cooperate to reduce costs, improve
and added values increase. High or low quality, change the farming process, apply
prices only reflect the scarcity of goods; the science and technology, and get support from
invisible hand of the market will adjust the the government. Reducing cost per unit means
price by itself. increasing profit per unit for farmers in case
Transforming agricultural thinking means the selling price is the same. The government
that Viet Nam’s agriculture will transform does not support an individual farmer but
from the competition in quantity and natural supports the infrastructure for shared use in
exploitation towards less production but one model.
economically, reducing environmental

Guidelines for the Strategy for sustainable agriculture and rural development 79
in the period 2021-2030, and vision to 2050