Land accumulation and concentration in Vietnam today: some theoretical and practical aspects

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Land accumulation and concentration in Vietnam today: some theoretical and practical aspects

Hoang Ngoc Huong - Postgraduate

Political academy

Lecturer

Faculty of marxism-leninism,

National defense academy of Vietnam

Hanoi, socialist republic of Vietnam

Abstract

The application of science and technology to production development is one of the important orientations for Vietnam's agriculture in the new period to increase productivity, ensure food security and minimize negative impacts of the climate change. Land is an important element for agricultural production, but Vietnam encounters the situation of fragmented fields. The land accumulation and concentration for production is a pressing issue. In this article, the author analyzes and clarifies the concept of land accumulation and concentration, its basic forms, thereby proposing a number of orientations to ensure land accumulation and concentration in Vietnam today.

Keywords: land concentration, land accumulation, food security, climate change, agriculture in Vietnam.

Аннотация

agriculture accumulation concentration land

Применение науки и техники для развития производства является одним из важных направлений развития сельского хозяйства Вьетнама в новый период для повышения производительности, обеспечения продовольственной безопасности и минимизации негативных последствий изменения климата. Земля является важным элементом для сельскохозяйственного производства, но Вьетнам сталкивается с ситуацией фрагментированных полей. Накопление и концентрация земель для производства являются насущной проблемой. В этой статье автор анализирует и разъясняет концепцию накопления и концентрации земель, ее основные формы, предлагая тем самым ряд направлений для обеспечения накопления и концентрации земель во Вьетнаме сегодня.

Ключевые слова: концентрация земель, накопление земель, продовольственная безопасность, изменение климата, сельское хозяйство во Вьетнаме.

Agriculture is an important part of Vietnam's economy. Agriculture generates 85% of jobs for rural residents and is a source of livelihood for 65% of the country's population [3, p. 412]. Agriculture not only participates in economic sectors, but also ensures the national food security and participation in the export market [8, p. 10-12]. However, agriculture has not really developed sustainably. The consequences of climate change and market changes pose many urgent problems for Vietnam's agricultural development today.

The agricultural model of Vietnam has grown mainly based on the exploitation of available natural resources (soil, water, organism, etc.) and chemical abuse leading to low productivity, poor quality of agricultural products and environmental pollution. Moreover, the population growth and development of industry and services along with urbanization also put pressure on agricultural land. To have a sustainable commodity agriculture, it is necessary to involve the settlement of many elements such as organizations, institutions, science and technology, labor policies and land policies. In which, the first key point in Vietnam today is land policy and State regulation in this field.

In recent decades, agricultural policies, especially land policies, have been renewed and facilitated Vietnam's agriculture to develop quite impressively. In Vietnam, due to the history, agricultural land is dispersed and divided among households. The organization of management and use of small-scale and fragmented land fund is very difficult and cannot produce concentratedly with high yield [9, p. 10-12]. Consequently, to organize and use agricultural land in a rational, economical and effective manner, while ensuring the sustainability of industrialization and modernization, it is crucial to set out practical solutions. One of the most important and practical solutions in the current period is to accumulate and concentrate land for agricultural development. The land accumulation and concentration for agricultural development are a means to increase production and enhance competitiveness, thereby helping farmers raise income and improve their lives [1, p. 2-3]. The formation of vast fields can help the application of science and technology to production, overcome the great impacts of climate change, ensure national food security and serve exports.

Land accumulation and concentration and its forms

Land accumulation and concentration are the capital accumulation in the form of artifacts in agriculture. It shows the suitability of the production relationship with the development level of the production force in the agricultural industrialization process towards commodity production and specialization in Vietnam today.

Land accumulation and concentration will create conditions for farmers and agricultural investors to change production methods and shift from small-scale and self-sufficient production to commodity production. This is also a necessary condition to apply machines and technical advances to production in order to improve productivity and production efficiency. Therefore, the process of land accumulation and concentration in commodity agricultural production is an indispensable trend in economic integration and international division of laborers [9, p. 13].

Conceptually, land concentration is the increase in the size of agricultural land through association, cooperation, transformation or lease of land use rights of other land users without changing the land use rights of households, individuals and economic organizations. Land accumulation is the increase of agricultural land area of land users through the form of transfer or capital contribution with land use rights of other land users.

These two concepts are often associated with each other. The similarity between them refers to the process of increasing the size of land area for a certain economic purpose. However, there are fundamental differences between them. Land accumulation is a process by which an individual accumulates by buying or other methods to acquire more land, while land concentration is the association of many pieces of field of many different owners into a large field model for production [5]. The basic goal of land accumulation is to increase the land area to own more, while the goal of land concentration is to create a large land area for production or business but without losing the ownership rights of land contributors to this process.

In a market economy, land accumulation and concentration are a must. It is a requirement for specialization in production, as well as facilitation of the application of machinery and technology to a larger agricultural production [2, p. 22-31].

Land accumulation methods are market (purchase and sale), inheritance and donation. In particular, transaction is the most basic land accumulation method. Land is always a special commodity and allowed to be traded on the market. Private ownership is the basis for forming and securing property rights to land [4]. Moreover, landowners can inherit from the previous generation or be given and legalized by the government to inherit and donate to ensure their ownership or land use rights. The long-term land accumulation may create inequality in land ownership: there will be landowners and landless farmers. To minimize this inequality, all governments have announced the policy on land limit which prescribes the maximum level that an individual can own.

Land concentration methods are quite diverse, depending on the purpose and scale of economic activities, such as land concentration to build household economy, develop farm economy, form production cooperatives and establish large agricultural enterprises. In Vietnam, there are basically forms of land accumulation, namely leasing land use rights; associating land for production; changing fields; and accumulating fields.

Land use right lease is the purchase of land use rights for a definite period of time as agreed. The land lessor loses ownership and receives income (money or farm produce) from the tenant. This is a fairly common practice in rural areas of Vietnam. Some landowners will lease land if they have no cultivation demand or cultivation result which are less than the rent [3, p. 420].

Cooperative production is the way in which farmers with land cooperate with each other in a cooperative form to create a larger land area. A large field is a condition for farmers to cooperate with enterprises and participate in their production chain [7; 3, p. 420].

Field exchange is the form by which landowners exchange with each other based on negotiation to create fields with larger area for cultivation. Field exchange often happens spontaneously and is also a common practice in rural areas of Vietnam [7; 3, p. 420].

Land accumulation - parcel exchange is a method of accumulating several small parcels into a larger one. Farmers involved in this process do not lose their land ownership, but the land area may change. The change of land area depends on the nature and value of the parcels when exchanged with each other. Land accumulation - parcel exchange is a rather complicated form, usually conducted by a community and under close supervision from the authority. In other words, accumulation and exchange of agricultural land parcels is the rearrangement of small and scattered agricultural land parcels into new larger parcels associated with re-planning internal traffic and irrigation in order to facilitate the organization of production and the application of mechanization in agriculture.

Factors affecting the process of land accumulation and concentration

The first driving force behind the process of land accumulation and concentration is the factor that markets the land and output of farm produces. If the business profits from land use are getting higher and higher, it will accelerate the process of land accumulation and concentration. However, agriculture is a manufacturing industry that requires large and long-term investment, low prices of farm produces, low profits, risks of agricultural production and slow capital recovery. Consequently, there is a lack of attractiveness to draw investment in agriculture. This is a factor that slows down land accumulation and concentration [10].

Besides, it is necessary to take into account factors related to culture - tradition. For Vietnam in particular and East Asian countries in general, land is an important livelihood asset and has been transmitted for generations [2, p. 23]. This also affects the land accumulation and concentration process.

Recommendations to promote and accumulate field land in Vietnam

For this process to happen quickly, it is necessary to create a solid legal mechanism and appropriate state policies. The land policies of the State will have the effect of promoting or limiting the process of land accumulation and concentration of the people. To enhance the efficiency of agricultural land management and use, Vietnam needs to implement some specific orientations as follows:

Develop rural land market together with the labor market.

One of the reasons for the underdevelopment of the rural land market is due to limited supply resulted from the psychology of keeping land as a risk security. Therefore, the development of the land market in rural areas must go hand in hand with resolving the labor market. Once workers participate in the market, pay more salaries and are less dependent on informal labor, then the psychology of land holding will be removed and result in the land supply for the market.

To accomplish this, it is necessary to reduce labor from agriculture to serve non-agricultural activities in rural areas. Develop service economy in rural areas and create suitable jobs with the skills and qualifications of rural workers. Develop industrial and urban areas without arable land to attract labor, without losing agricultural land. Furthermore, it is necessary to build and form high-tech agricultural zones to ensure the modern agricultural development.

Continue to improve and renew land policies.

The State management and regulation on land issues play a very important and decisive role.

Complete the operational mechanism for the land use right market. The State should create a favorable mechanism for land use right transactions to be legal, convenient and easy to limit and eliminate underground transactions, lack of transparency and tax evasion.

Fully acknowledge the agricultural land market. It is necessary to apply market prices to the conversion of agricultural land use purposes. The compensation prices for the recovery and sales of agricultural land must be close to the market prices.

Ensure the legal corridor for land accumulation and concentration. Land use rights need to be strengthened and reclaimed. The legalization and issuance of land use right certificates to entities that have accumulated and converted land. This is a condition for farmers to mortgage and access credit loans for production. To accomplish this, the State needs to improve and reform administrative procedures related to land.

Encourage enterprises to invest in agriculture to form the agricultural value chain. Allow enterprises to participate in accumulating land for agricultural development. However, the policy needs to ensure that enterprises focus on agricultural land but do not convert the use purpose to non- agricultural land to gain profit from land price differences.

Conclusion. Ownership and efficiency of land use are always farmers' top concern in particular and agriculture in economic development in general. In Vietnam, land policies have been adapted to suit the country's economic transition [6, p. 239-302]. The accumulation and concentration of agricultural land have helped form new land use types which can bring about greater efficiency and raise competitiveness, thereby helping farmers increase income and improve their lives. The formation of vast fields can help the application of science and technology to production, overcome the great impacts of climate change, ensure national food security and serve exports.

References / Список литературы

1. Dao The Anh. Report on practical research on land consolidation and exchange in some provinces and proposing policies on land accumulation to improve land use efficiency in the Red River Delta, Vietnam Academy of Agricultural Sciences. Hanoi, 2004.

2. Do Kim Chung. Land market in Vietnam's agriculture: Current situation and policy orientation // Economic Research, Institute of Economics, 2000. № 260. Pp. 21-31.

3. Do Kim Chung. Land accumulation and concentration: Theoretical and practical basis for the development of commodity agriculture in Vietnam // Vietnam Agricultural Science, 2018. № 16 (4). Pp. 412-424.

4. Ho Xuan Hung. A number of solutions on land accumulation and concentration. Scientific conference "Land accumulation: gain and loss?". Held by Vietnam Rural Magazine on May 29, 2017. Ho Chi Minh City, 2017.

5. Le Canh Dung. Land accumulation and economic efficiency by land size in rural areas of the Mekong Delta: case study in An Giang province // Journal of Science Can Tho University, 2010. № 15A. Pp. 293-302.

6. Pham Van Dung. Ensure food security in Vietnam today // Journal of Science Vietnam National University, Hanoi, 2017. Vol. 33. Issue 4. P. 10-16.

7. Central Institute for Economic Management. Forms of agricultural land accumulation and concentration: problems and solutions. Hanoi, 2017.

8. Central Institute for Economic Management. Report analyzing factors affecting land fragmentation and impacts in Vietnam. Hanoi, 2011.

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