THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT
THE GENERAL DEPARTMENT OF STATISTICS
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 69/2000/TTLT/BNN-TCTK
Hanoi, June 23, 2000
 
JOINT CIRCULAR
GUIDING THE CRITERIA FOR DETERMINATION OF FARM ECONOMY
 
In recent years the farm economy has vigorously developed in almost all localities across the country, forming a new production model in our agriculture and countryside. Due to a lack of uniform regulations of the ministries and central branches on the farm criteria, the localities have set forth by themselves farm criteria on the basis of the nature of commodity production, the scale of land acreage, cattle heads, etc. to make statistics on the farm economy in their localities or regions. As a result, such statistics are not really precise and the borderline between the household economy and the farm economy is not clearly defined, thus causing difficulties for the evaluation of the real situation and the formulation of policies on farm economy. The Government has issued Resolution No. 03/2000/NQ-CP of February 2, 2000 on farm economy. In furtherance of the Government’s Resolution, the Ministry of Agriculture and Rural Development and the General Department of Statistics hereby jointly provide the following guidance on the criteria for farm economy:
I. SUBJECTS AND PRODUCTION BRANCHES TO BE CONSIDERED FOR FARM ECONOMY DETERMINATION
Households of farmers, retired State workers and employees and armymen, various types of urban households and individuals engaged in production (including agriculture, forestry and aquaculture) or agricultural production as the major activity and the provision of non-agricultural services in rural areas as sidelines.
II. SPECIFIC CHARACTERISTICS OF FARM ECONOMY
1. The farms’ objective is to produce agricultural, forestrial and aquatic commodity products on a large scale.
2. The extent of concentration and specialization of production conditions and elements is markedly higher than that of the production by farmers’ households, which is reflected in the production scale in terms of land, cattle heads, labor and the value of agricultural, forestrial and aquatic commodity products.
3. Farm owners are those who have knowledge and experience in directly administering production, know how to apply scientific-technical advances and new technologies to production, employ family labor and hire non-family labor, conduct production activities with high efficiency and earn incomes much higher than the household economy.
III. QUANTITATIVE CRITERIA FOR FARM ECONOMY DETERMINATION
To be determined as a farm, a household engaged in agricultural production, forestry or aquaculture must achieve simultaneously the two following quantitative criteria:
1. The average yearly goods and services output value:
- From 40 million VND or more, for northern and central coastal provinces;
- From 50 million VND or more, for southern and Central Highland provinces.