Overview
Agriculture is a key focus of Vietnam’s economic development; however, private businesses have been reluctant to strongly engage with the agricultural sector. The number of registered enterprises operating in agriculture is disproportionally small, as is private investment into the sector. This is negatively affecting total factor productivity growth in agriculture, which is expected to decline further. The Vietnamese government has introduced a series of policy initiatives aimed at promoting private investments and business activity in agriculture. The most recent initiative, articulated through the Decree 57, was designed to support the development of emerging agricultural entrepreneurs, in order to harness the inventiveness and competitiveness of private enterprises.
This SRA evaluated the operational effectiveness and adequacy of Decree 57, to identify any misalignment between the policy design and the behavioural responses by the private sector, to recommend possible improvements to the decree, and to propose future policy directions for evidence-based agricultural policy in Vietnam.
