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Agricultural Policy Monitoring and Evaluation 2019

image of Agricultural Policy Monitoring and Evaluation 2019

This annual report monitors and evaluates agricultural policies spanning all 6 continents, including the 36 OECD countries, the 5 non-OECD EU Member States, and 12 emerging economies. It is a unique source of up-to date estimates of support to agriculture using a comprehensive system of measuring and classifying support to agriculture – the Producer and Consumer Support Estimates (PSEs and CSEs), the General Services Support Estimate (GSSE) and related indicators – which provide insight into the increasingly complex nature of agricultural policy and serve as a basis for OECD’s agricultural policy monitoring and evaluation. Comprehensive country chapters and the Statistical Annex containing detailed background tables with indicators of agricultural support are available in electronic form at the publication website.

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Viet Nam

The overall level of support provided to Viet Nam’s agriculture sector fluctuates at low and negative levels, largely driven by changes in market price support (MPS). In 2016-18, Viet Nam’s producer support estimate (PSE) was negative at –5.9%. MPS varies across commodities. Producers of import-competing commodities, such as maize, sugar cane and beef, benefit from tariff protection, while producers of several exported commodities are implicitly taxed. Budgetary transfers are relatively small and include payments based on variable input use, primarily expenditure to subsidise an irrigation fee exemption, and direct payments to rice producers that are tied to maintaining land in rice production. Rice producers also benefit from a price support system based on target prices designed to provide farmers with a profit of 30% above production cost. In some years this price support system results in implicit taxation of rice producers when domestic prices are below international levels.

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