The Fourth FAS Annual Lecture, featuring Dr Cao Đức Phát, Chair, Board of Trustees of International Rice Research Institute (IRRI), the renowned international agency that led the green revolution efforts in South and Southeast Asia, was held on March 29, 2023, at the De Nobili Hall, St Joseph’s University, Bengaluru. Over 120 participants, including senior researchers, young scholars, and students, from various parts of Bengaluru and beyond attended the event. The lecture was organised by the Foundation in association with IRRI and St Joseph’s University.

Outlining the comprehensive reforms that led to a spectacular agricultural growth in Vietnam, Dr Phát said that agriculture continues to be the primary source of livelihood for more than 60 per cent of the rural population in Vietnam. The sector holds great significance in the economic and social development of Vietnam, with farmers diversifying from rice to various high value crops, such as horticultural crops, in recent years. From food shortage and a farm sector dominated by poor farmers four decades ago, the reforms transformed Vietnam into a leading exporter in several agricultural commodities and lifted a large number of farm households out of poverty. In the background of these reforms lies the agricultural land policies brought about by the Vietnamese State that helped the farmers of the country gain access to land-use rights.

The state initiated a series of reforms, termed Doi Moi in Vietnamese, in the end of 1980s. The broadly market-oriented reforms replaced the earlier state-controlled system and included changes in land policy, pricing of agricultural commodities, and restructuring of existing institutions. Although land continues to be a national property, the reforms helped farmers gain long-term operational rights over land holdings. This incentivised farmers to improve agricultural production. Subsequent reforms on extending the term of use led to more productivity-enhancing investments in land.

Vietnam’s agricultural sector could also take advantage of the multilateral and bilateral trade agreements to gain access to international markets. The state has established legal mechanisms, which while encouraging market institutions also ensures that no monopolies or trusts are formed in the economy. The existing cooperative structure moved away from a situation of undertaking all farming decisions to taking up operations that individual farmers would not be able to undertake, such as water control and disease management. This provided more autonomy to farmers.

Along with public institutions, several public services were also restructured in Vietnam. The government invested greatly in development of rural infrastructure, including roads and irrigation systems, with the support from international donors. There were also substantial investments in public research and extension networks. These, coupled with market incentives, encouraged farmers to adopt new inputs and technologies for improving farming.

Dr Phat also highlighted some of the challenges that characterise the development process in Vietnam today. He stressed on the necessity for further improving productivity, efficiency, and farm incomes to arrest the widening rural-urban divide. Furthermore, he emphasised on the environmental implications of modern agricultural practices, and the climate-change risks that the country will face in future. He mentioned that the impact of rising sea level would lead to an increased ingress of saline water in the Mekong Delta, and would cause severe flooding in other areas.

Building on the challenges that he identified, Dr Phát concluded his address by sharing the possibilities for Vietnam’s future as a developed nation. He noted that, while the share of agriculture in GDP would decline in future, it will remain a vital source not only for employment and income, but for building a basis for the country’s sustainable development. To complete this process and to build a sustainable agriculture, he felt that there should be an emphasis on fine-tuning the market mechanisms and on emphasising the importance of modern technologies and innovations in that process.

Professor Madhura Swaminathan from the Indian Statistical Institute Bangalore Centre and a trustee of the Foundation for Agrarian Studies presided over the lecture. After the lecture, she invited Professors Venkatesh Athreya and R. Ramakumar, noted development economists, to give their remarks. The discussants pointed out the conditions in Vietnam before it started the reforms. The abolition of feudal landlordism and a stronger state investment guided the reforms process. A comparison with India, and the question of reforms, they highlighted, should be seen in this context.

The question and answer session that followed discussed details of land policy, pathways for sustainable agriculture keeping intact incomes, forests cover, and genetically modified crops in Vietnam.