Farmers harvest rice in southern Tay Ninh Province. Agriculture gained a growth rate in gross domestic production of 3.13 per cent each year from 2011-15. — VNA/VNS Photo Duc Hoanh

HA NOI (Biz Hub) — The State invested some VND611 trillion (US$27.4 billion) in agriculture and rural areas during 2011-15, 1.83 times higher than the previous five-year period.

This was revealed in a Government report on public investment in agriculture and rural areas.

The report, presented to policymakers during the second session of the 14th National Assembly (NA), said the NA and the Government had many preferential policies for investment activities using funds from the State budget. They also called on investment from society for agriculture and rural development.

From 2012 until today, the Government issued policies to enhance efficiency of public investment activities for agriculture and rural areas, including policies on encouraging development of enterprises' investment activities in the sectors and supporting them.

Of the total VND611 trillion invested in agriculture and rural areas during 2011-15, VND221.5 trillion came into the agro, forestry and fisheries sector, while VND389.5 trillion was used for development of socio-economic restructuring and poverty reduction.

The capital for the National Target Programme on Building New Rural Areas during 2011-15 reached VND851.4 trillion, including VND266.8 trillion from the State budget, VND435 trillion from credit, VND42.2 trillion from enterprises and VND107.4 trillion from people and the community.

Credit for agriculture and rural areas gained an average growth rate of 20 per cent per year in the period, higher than the credit growth rate of the economy at 18.5 per cent, the report said.

The total outstanding loan of the agriculture and rural sector by August 2016 reached VND900 trillion. There were special credit programmes for re-cultivation of coffee trees, support for aquaculture, reduction of losses after exploitation of fisheries and the application of high technology for producing export products.

Agriculture gained a growth rate in gross domestic production of 3.13 per cent each year during 2011-15. The average income of rural residents reached VND2.2 million per capita per month in 2015 and the percentage of poor rural households was reduced to 8.2 per cent last year from 17.4 per cent in 2011.

However, the report highlighted the problem of high debt in capital construction, noting 53 out of 63 provinces and cities were bearing debt. Total debt of these localities reached VND15.3 trillion (US$685 million) with some of them becoming insolvent.

The report said rural infrastructure funding mainly came from the State budget, official development assistance and government bonds. Agriculture and rural areas have not mobilised much funds from people and the private economic sector because policies have been not attractive enough, while administrative procedures have been too complicated.

Appraisement and supervision for efficiency after investment have not been paid enough attention, and there was not enough capital for maintaining construction after investment.

The report recommended that the State enhance supervision for implementation of public investment policies for agriculture and rural areas to ensure the efficiency of the policies.

The NA should complete institutional changes and policies on agriculture, farming and rural areas, and public investment for them to be turned into reality, it said. — VNS