Falling Investment Despite Agriculture’s Big GDP Share
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Vietnam remains one of the world’s leading exporters of rice, coffee, and seafood, yet farmers continue to face hardship and economic instability. During the November 1 National Assembly session, several deputies warned that government investment in agriculture and rural development is far from adequate.
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Deputy Nguyễn Đăng Vang (Bình Định) highlighted that in 2009 agriculture received only 6.26% of total national investment, while contributing 20.91% of GDP.
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The share has been declining steadily: 13.85% in 2000 → 7.50% in 2005 → 6.45% in 2008 → just 6.26% in 2009.
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Vang cautioned that the ratio may drop further in 2011, reaching only about 30% of agriculture’s GDP contribution.
Low Growth and Climate Risks
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Deputy Vũ Quang Hải (Hưng Yên) reported that agricultural growth is only around 2.6%.
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He noted that if the full damage from central Vietnam’s floods were calculated, real growth would be even lower.
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Hải called for a supplementary government report detailing agricultural losses from storms and floods and urged a national strategy for flood and storm prevention.
Farmers Struggle with Volatile Prices and Rising Costs
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Deputy Võ Minh Phương (Lâm Đồng) stressed that volatile crop prices and rising input costs—fertilizers and pesticides—are eroding farmers’ profits.
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He cited Central Highlands coffee farmers, who faced months of unstable prices. Although prices recently rose above 30,000 VND/kg, farmers still worry about long-term stability.
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The widespread use of counterfeit or substandard fertilizers and pesticides further harms farmers’ incomes and crop quality.
Weak Foreign Direct Investment
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Vang also pointed out that FDI in agriculture remains extremely low:
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0.32% of total FDI in 2008
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0.58% in 2009
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Only 2.3% of total FDI from 1988–2009, even though agriculture accounted for 27.7% of the economy during the same period.
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Calls for Urgent Action
Deputy Nguyễn Hữu Nhi (Nghệ An) warned of low rural incomes and youth unemployment, stressing that Vietnam’s agricultural and rural sectors face deep structural problems.
National Assembly deputies agree that Vietnam’s agriculture urgently needs stronger investment, better FDI policies, and effective strategies for climate resilience and price stability. Without decisive action, millions of farmers will continue to face hardship despite the sector’s critical role in the economy.