THE PRIME MINISTER

Decision No. 1342/QD-TTg dated August 12, 2014 of the Prime Minister approving the plan of action to develop agricultural machinery industry in implementation of Vietnam’s industrialization strategy within the framework of Vietnam - Japan cooperation through 2020, with a vision toward 2030
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Prime Minister’s Decision No. 1043/QD-TTg of July 1, 2013, approving Vietnam’s industrialization strategy within the framework of Vietnam - Japan cooperation through 2020, with a vision toward 2030; At the proposal of the Minister of Trade and Industry,
DECIDES:
Article 1. To promulgate together with this Decision the Plan of Action to develop agricultural machinery industry in implementation of Vietnam’s industrialization strategy within the framework of Vietnam - Japan cooperation through 2020, with a vision toward 2030, under the Prime Minister’s Decision No. 1043/QD-TTg of July 1, 2013.
Article 2. This Decision takes effect on the date of its signing.
Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related units and individuals shall implement this Decision.
The Prime Minister
Nguyen Tan Dung
 
PLAN OF ACTION
TO DEVELOP AGRICULTURAL MACHINERY INDUSTRY IN IMPLEMENTATION OF VIETNAM’S INDUSTRIALIZATION STRATEGY WITHIN THE FRAMEWORK OF VIETNAM-JAPAN COOPERATION THROUGH 2020, WITH A VISION TOWARD 2030
(Promulgated together with the Prime Minister’s Decision No. 1342/QD-TTg of August 12, 2014)
I. SITUATION
1. Position and role of agriculture, forestry and fisheries in Vietnam’s economic structure and their prospects toward 2020
In Vietnam’s economic structure, agriculture, forestry and fisheries made up 25% of GDP by 2000 and 21% by 2010. According to the 2011-2020 socio-economic development strategy, this proportion is expected to shrink to 15% by 2020. Nevertheless, since GDP itself has been growing well, the total output value of these sectors also increased to USD 78 billion in 2000 and USD 220 billion in 2010. By 2020, also according to the 2011-2020 socio- economic development strategy, to achieve the targets of per-capita GDP of USD 3,000 for a population of 96,400,000 and these sectors’ GDP proportion of 15%, their total output value must reach USD 430 billion (nearly doubled in 10 years).
The number of laborers in these sectors accounted for 65% of the total workforce in 2000 and 49% in 2010. According to the 10-year (2011-2020) socio-economic development strategy, this rate will be 30-35% by 2020.
2. Supply - demand analysis a/ 2020 forecasts
As forecast by the 2011-2020 socio-economic development strategy, the labor restructuring with a movement of the workforce from agriculture, forestry and fisheries or from rural areas to industry is foreseeable as a result of the process of industrialization in Vietnam. The total production output of agriculture also needs to increase for the reason that the population and food demand keep increasing. In addition, the maintenance and development of food export is considered a target which must be achieved. In order to continue reducing the number of laborers in agriculture, forestry and fisheries whilst scaling up their production, it is necessary to raise labor productivity in these sectors.
In that context, without special measures and policies, the said labor restructuring would apparently worsen the shortage of labor and aging of the labor force. Also, it will be more and more difficult to ensure the stable food supply for domestic consumption and export.