The rise of Vietnamese rice
- Published: 26/01/2011 at 07:05 PM
- Online news:
Vietnam now dominates rice markets in Asean with a 67.5% market share.
Vietnamese farmers richer by Kamol Hengkietisak
While Prime Minister Abhisit Vejjajiva is using tax money to implement populist policies under the new name of Pracha Wiwat, ranging from subsidising the diesel price to a non-formal debt conversion scheme, the Vietnamese government has been successful in raising farmers' income by 30% last year, wrote a Thai Rath writer.
The latest issue of Thailand Economic and Business Review from the Thai Chamber of Commerce University mentioned 10 factors that contribute to the success of Vietnam's rice exports to Asean countries in comparison to Thailand.
Not so long ago, Thailand dominated rice markets in Asean with Vietnam coming in second. But this is no longer the case. Vietnam dominates rice markets in Asean with a 67.5% market share.
Here are five of 10 factors mentioned by the academic journal.
Rice productivity per rai is greater in Vietnam, accounting for 853kg a rai on average, the fourth highest productivity in Asia after South Korea, Japan and China, but is No.1 in Asean. Thailand's rice productivity is only 447kg a rai, nearly half as much, 13th in Asia and 7th in Asean.
Vietnamese rice farmers have lower production costs. For example, a typical rice farmer in Kern Toh province in Vietnam incurs costs of 4,978 baht/rai while a typical rice farmer in Ayutthaya incurs 5,800 baht/rai, 822 baht/rai higher while a Vietnamese farmer's productivity is almost double.
Vietnam adopts a "3 Cut, 3 Up" policy to increase productivity while reducing costs. Cut the seedling varieties/chemical fertilisers/chemical pesticides. Up productivity/quality/profit. With this policy, Vietnamese farmers on average receive 15% to 20% more profits and about a 5% rise in income.
Vietnam's finance ministry is implementing several measures to reduce production costs including subsidising interest rates for buying seedlings/fertilisers, eliminating all taxes on farming machines/implements, and setting up rice production and export promotion funds.
Vietnamese farmers must receive at least a 30% profit from the sale of their paddy. Vietnam's prime minister declared this policy on March 12, 2010. Various provincial authorities would prescribe paddy prices to be sold to rice traders/millers with the aim that farmers must receive at least a 30% profit. The finance and agriculture ministries are tasked with calculating the costs in each region so appropriate paddy prices can be determined. Vietnam's government has a vision that in the long run, farmers can sell their paddy at prices two to three times higher than their production costs...
(Source: Bangkok Post, In Print section, Vietnamese farmers richer, 22-01-2011, Kamol Hengkietisak, link)
implement - put a plan into action, to make something such as an idea, plan, system or law start to work and be used นำ แผนหรือนโยบายมาปฏิบัติ
populist - a politician who claims to care about the interests and opinion of ordinary people (but nowadays the word has a negative meaning implying that this is a false claim)
debt - an amount of money that you owe หนี้
conversion - changing something into a different form
scheme - a plan that is developed by a government or large organisation in order to provide a particular service for people แผนการ โครงการ
income - money that people receive from work or some other source, used for household consumption and savings
latest issue - the copy to be published most recently
Thailand Economic and Business Review - a Thai language publication on business and economics in Thailand (Download the publication and also see blog and facebook)
factors - one of the things that effects a situation or event ปัจจัย
contribute - to make a regular payment
Not so long ago,... - a short time ago, not a long time in the past
dominated - controlled ถูกควบคุม ถูกชักใย บงการ
no longer the case - was true, but not true now
market share - the percentage of customers in a market with moany companies in it, that a company has
academic - someone who teaches at a college, or who studies as part of their job นักวิชาการ
academic journal - a publication that publishes specialized articles by professors on their research, "a peer-reviewed periodical in which scholarship relating to a particular academic discipline is published. Academic journals serve as forums for the introduction and presentation for scrutiny of new research, and the critique of existing research. Content typically takes the form of articles presenting original research, review articles, and book reviews"(See Wikipedia)
productivity - producing more with the same workers and resources (land, capital, machines, energy, fertilizer)
double - to become twice as big, twice as much or twice as many เพิ่มเป็นสองเท่า
policy - a plan of action to guide decisions and achieveoutcomes นโยบาย (See Wikipedia)
seedling - a young small plant that has grown from a seed
fertilisers - chcmicals or natural substances that help plants grow, food for plants (See Wikipedia)
pesticides - chemicals that kill insects that can harm plants
profit - money that you make from selling goods and services after all your costs have been paid กำไร
finance - to provide money for something จัดหาเงินทุนให้
ministry - a government department dealing with an area of activity กระทรวง
finance ministry - the government ministry responsible for raising money through taxes and fees for government spending and projects
implementing - turning a plan into a functioning system นำมาใช้จริง
measures - actions that are intended to achieve or deal with some problem มาตราการ
interest - payments made for the use of another's money for a period of time
interest rate - the percentage of the amount borrowed that must be paid each year as the fee or cost of borrowing
subsidising interest rates - when part of the interest rate is paid by the government (so the interest rate paid is lower)
export promotion - doing things to support and help exports from the country to increase
funds - money needed or available to spend on something เงินทุน
paddy - rice after it has been harvested from the field ข้าวเปลือก
prime - prepare so that it is ready to work ที่พร้อมดำิเนินการ
authorities - government officials, the police or people in official organisations who have the legal power to make people obey laws or rules เจ้าหน้าที่ (ตำรวจ หรือผู้มีอำนาจ)
prescribe - say what people must do
authorities - officials or organisation in charge, government
traders - people who buy and sell things
aim - purpose; goal, the thing you hope to achieve by doing something เป้าหมาย จุดมุ่งหมาย
determined - found out; discovered ระบุชี้ชัด
vision - the ability to imagine how a country, society, industry, etc. could develop in the future and to plan in a suitable way วิสัยทัศน์
About the author
- Writer: Jon Fernquest
Position: Assistent Manager Educational services