Nguyen T.N.L., Mitrofanova I.V. Updating the Approaches to Farms’ Development in Vietnam: Institutional Aspect
Thi Ngoc Loi Nguyen
Volgograd State University, Volgograd, Russian Federation
Inna V. Mitrofanova
Federal Research Centre the Southern Scientific Centre of the Russian Academy of Sciences, Rostov-on-Don, Russian Federation
Abstract. Over the past 30 years of serious economic reform, structural changes in agriculture in the Republic of Vietnam have led to a decline in the number of small farms. The main purpose of this article is to reveal the features of their institutionalization by means of an overview of the main stages in farms’ operation. The results show that the structure of farms in the agricultural system of Vietnam developed under the influence of the negative trends of the 1990s, when economic conditions and policies were adequately adjusted due to self-organized production and commercial measures in the 2000s. However, even today there are problems that hinder their development, such as underdevelopment of the banking system, presence of institutional narrow spaces, technical and technological limitations, low potential of labor resources, and complicated access to sources of financing and land. The discrepancy between the structure of farms and the requirements for the development of the agro-industrial complex in the face of new challenges and risks creates obstacles and complicates the process of making effective decisions on innovation. Thus, the most important directions for the future development of farming are connected with increasing production and developing effective business support measures (including capital, labor, technology, information and market) in order to increase competitiveness and
create an institutional environment for innovative agricultural development in Vietnam.
Key words: Republic of Vietnam, economic structure, comparative advantages, farming, risks, innovations, institutionalization, government support.
Citation. Nguyen T.N.L., Mitrofanova I.V., 2022. Updating the Approaches to Farms’ Development in Vietnam: Institutional Aspect. Regionalnaya ekonomika. Yug Rossii [Regional Economy. South of Russia], vol. 10, no. 3, pp. 67-77. DOI: https://doi.org/10.15688/re.volsu.2022.3.7
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