General Assessments 2015: Agriculture, Natural Resources And Environment

      By 2010, agriculture's share of gross domestic product (GDP) was 20%  but is declining, while output is expanding and the sector remains a key contributor to exports (accounting for 25% of export value) and employment (70% of rural households). Although agriculture is increasingly becoming a part-time activity, the sector continues to provide a safety net for rural people in Viet Nam. Rice continues to dominate production. From 1990 to 2008, the area under rice cultivationgrew by about 20%, but national production almost doubled. By 2008, in addition to 6.6 million hectares (ha) of rice, over 3 million ha are planted in perennial crops, and over 2.1 million ha in  annual crops.
     There is significant regional diversity in the country’s farming systems, and numerous resource-based challenges to production  (including climate change).  Rapidly emerging  environmental problems are highly complex. Lowland  challenges  include  floods, droughts and susceptibility to catastrophic weather events such as typhoons, while upland challenges include poor soils, difficult terrain and high levels of erosion. Conversion of land to urban and industrial uses further reduces the already limited amount of arable land (28% of the total) and contributes to small average farm sizes. Groundwater levels are declining, and 
industrial contamination of land and water resources is increasing. Despite a strong reforestation program, the remaining natural forests are being degraded and lost at a steady rate. Viet Nam’s high level of biodiversity is  threatened,  and consequently the survival of many  species  may increasingly be at risk. Anticipated climate change impacts include: (i) flooding and salinity intrusion in the lowlands, and increased droughts during the dry season; (ii) increased 
temperatures, leading to increased water needs for agriculture; (ii) variable stream flows; (iv) increased incidence and prevalence of pests and diseases; (v) changes to planting patterns and cultivation calendars; (vi) increased forest fires; and (vii) rising sea levels, which may potentially reduce rice production by 7%, and will reduce mangrove areas. Farm incomes are  often  supplemented by livestock production, which may make up a large part of household incomes. Forestry accounts for only 1% of 2008 GDP, although it plays  a crucial  role in environmental stability and ecological sustainability. Fisheries constitute about 4% of GDP, with aquaculture production by the private sector growing rapidly. Agriculture trade growth has been substantial, but remains dominated by 
commodities.