Báo cáo: Developing an Agricultural Research and Development Priority Framework for Vietnam (July 2010)

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The primary objective behind Research & Development (R&D2) priority assessment is to determine the broad research programmes that will provide Vietnam with the greatest return on investment in R & D provided by government and other major stakeholders. Priority setting is the central issue of research and extension management. It is a complex task. It must be done in a systematic framework able to allow the results to support open and robust decision-making about research and extension resource allocation and management. The highest priority R & D is that which has the highest economic, social and environmental value to the nation. ...

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Developing an Agricultural Research and Development Priority Framework for Vietnam Workshop Economic & Policy Research WORKBOOK July 2010
2 WORKSHOP OBJECTIVES  Assess the national priorities for economic and policy research and development in Vietnam WORKING IN GROUPS All participants will be seated in mixed pre-selected groups. The majority of work will be in these groups. The composition of groups will be changed as needed throughout the workshop. There are some basic “rules” for working effectively in workshop groups:  recognise that each person’s opinion is valid  take responsibility  for contributing  for understanding  2:1 rule  criticise but after positive feedback  listen actively  use ‘and’ instead of ‘but’  express yourself concisely  keep to time  turn off mobile phones – use only during coffee and lunch breaks For each workshop session:  make sure people are allotted the task of taking notes  watch the time Economic and Policy Research Priorities for Vietnam
3 EXPECTATIONS OF WORKSHOP/PARTICIPANT INTRODUCTION [Purpose is to ensure participants know who is there, where they come from, what skills are represented, and consolidate expectations of the workshop] Group discussion Each participant  Who am I – name, affiliation, responsibility, interest/experience  What I want to happen at this workshop  What I don’t want to happen at this workshop [2 minutes per person] Tables  Pool expectations  Decide on 3 cards per table for each of wants and don’t wants Report back One person from each table to provide brief pen picture of the table (2 min per table) Facilitator collect, group, paste cards [Reporting to be on Cards to enable visualisation of the output of each session and typing of each session’s work for distribution to participants] Economic and Policy Research Priorities for Vietnam
4 STRATEGIC CONTEXT FOR ECONOMIC & POLICY RESEARCH IN VIETNAM [Purpose is to develop a common understanding of the main issues facing the agriculture economy and policy environment in Vietnam to provide the context for priority setting] Table Discussion  What are the major issues external (national and international) to the agricultural economy and policy setting environment that have important implications for the future  What are the major issues internal to the agriculture economy and policy setting environment that have important implications for the future Identify the issues and implications, recording issue and implication on different coloured cards Half tables consider external issues and half tables consider internal issues NOTES Economic and Policy Research Priorities for Vietnam
5 RESEARCH & DEVELOPMENT PRIORITIES METHODOLOGY OUTLINE OF THE PRIORITY SETTING METHODOLOGY1 INTRODUCTION The primary objective behind Research & Development (R&D2) priority assessment is to determine the broad research programmes that will provide Vietnam with the greatest return on investment in R & D provided by government and other major stakeholders. Priority setting is the central issue of research and extension management. It is a complex task. It must be done in a systematic framework able to allow the results to support open and robust decision-making about research and extension resource allocation and management. The highest priority R & D is that which has the highest economic, social and environmental value to the nation. Choices must be made about the Areas of Economic and Policy Research Opportunity (EPRO) to support, and which not to support. If there are no established priorities, then the choices made will be unlikely to produce results of maximum benefit to Vietnam. At worst, the results will be irrelevant and provide no return for the public investment involved. In addition the limited staff and resources available to undertake such research and the high level of un-scheduled requests for urgent responses to policy issues and advice from the Ministry and the Party, requires IPSARD to focus its longer term substantive research in a very few areas. Figure 1: Use of Priorities to Assist in Selection of Research Programs/Projects St St ro Em ro ng ph ng Se le Em asis ct ATTRACTIVENESS iv ph Y eE IT as m V TI is ph EC as L is SE D SE A RE Li C m IN it e d Su pp or t FEASIBILITY 1 CSIRO Australia has applied the basic model described here at corporate and division levels and it has been used in more than 60 other research organisations in Asia, Australia and New Zealand, USA and Europe. The conceptual analytic framework is based on the one published by the Industrial Research Institute, New York in 1986, viz: R N Foster, L H Linden, R L Whiteley and A M Kantrow, Improving the return on R&D-I, in 'Measuring and Improving the Performance and Return on R&D', IRI, New York (originally published in Research Management, January 1985). 2 Development includes technology development and transfer using transfer mechanisms including extension Economic and Policy Research Priorities for Vietnam
6 In the past the research and development program is driven by MARD staff using an allocative process. In the future MARD will fund research under an open and contestable process without bias. The aim is to improve the efficiency and effectiveness of investment into research and to develop a research environment that encourages a high degree of innovation. Under this process MARD will clarify the priorities for research investment and define the broad outcomes expected that investment. The research providers will submit research proposals and budgets that will contribute to achievement of these outcomes. In a “perfect world” those projects that offer the best value for money will be supported. There is a range of methodologies available for R & D priority setting. Selection of the most appropriate methodology for Vietnam is driven by: 1. The need to use a consultation process that involves a large number and diverse range of stakeholders; 2. The need to develop ownership of priorities amongst MARD and research institute staff, farmers, exporters, processors and marketers. 3. The absence of detailed and reliable statistical data on production, profitability, and markets and the absence of research on the impact of policies and on the key drivers of new and more effective agricultural policies; 4. The need to move from R & D focussed on production and subsistence/food security to R & D emphasising an empowering policy environment the generate improved agriculture sustainability, profitability, quality, marketing and commercial systems; 5. The need to use an objective process that evaluates the likely economic, social and environmental benefits to Vietnam; 6. The capacity to undertake appropriate research. An important principle is to implement the process and learn from experience, doing what make sense rather than worrying about academic perfection. THE METHODOLOGY Specific principles about priority setting include:  Consider areas that are easily related to the benefits from research (the purpose of the research) not research disciplines – in this case defined as Economic & Policy Research Opportunities (EPRO)  These areas should be mutually exclusive and collectively exhaustive, consistently based, forward looking and manageable in number  Linked to and consistent with the research financing the process  Criteria are independent  The criteria used should consider: o The potential economic, environmental, social, institutional and scientific benefits from successful research o The context within which research products and services will be used o The state of development of required research tools and techniques and the health of appropriate disciplines o The availability of research skills and infrastructure  Importantly, priorities are relative; the lower the priority of an area the greater the selectivity in choosing projects within them, as illustrated in Figure 1. Economic and Policy Research Priorities for Vietnam
7 The model recommended for use in Vietnam is a five-step process. 1. Define broad Economic & Policy Research Opportunities (EPROs) at the sub-sector level 2. Prioritise EPROs at the sub-sector level 3. From the results of the sub-sector prioritisation establish priorities at the sector level (these may combine some of the sub-sector level priorities into a larger grouping. 4. Undertake Sector level research prioritisation 5. Prepare workshop reports and a National R&D Investment Portfolio and Policy Statement EPRO Definitions In the case of the EPROs several workshops and iterations on the number and coverage of EPROs were facilitated within IPSARD. Initially there were 17-18 broad EPROs but these were reduced as more work and areas of duplication and areas outside the thematic area of agriculture and rural development were eliminated.. From the results of these workshops a sector set of EPROs was prepared and these are contained in this workbook (Data Sheets) and in a second workbook where data and information has been analysed according to the research priority setting framework (discussed below).. EPROs were to be defined in terms of goal, scope and coverage. The goal describes the results expected from all the research in the EPRO - e.g. for commodity research the goal defined was “To develop the capacity for market analysis and forecast, to improve competitiveness of major Vietnamese products in domestic and international markets and to use that capacity as a basis for providing commodity policy advice, including food security, to Government.” EPRO Priorities The model used to form Research priorities is relatively simple. It asks participants to evaluate the overall merit of Research investment in each EPRO, in terms of Attractiveness to Vietnam and its Feasibility in Vietnam. A scoring scheme is used to compare and rank the EPROs. Scoring is an effective way to allow a group to take all factors critical to the decision into account in a logical and open way. The relative scores for each EPRO are developed in structured group discussions in terms of four independent criteria. These are: 1. Market & Production Potential Benefits for Vietnam 2. Factors Working For & Against Achievement of Potentials 3. Potential Contribution of R & D to Development 4. R &D Capacity Within Vietnam The relationship between these four criteria is shown in the assessment framework below. Economic and Policy Research Priorities for Vietnam
8 The relative rankings and positions of the EPROs are important. They indicate the best “areas” for research and/or extension investment. When the priority-setting group represents researchers, extension workers and academics, farmers, politicians and the agricultural industry and other stakeholders, the methodology ensures that the best recommendations possible at the time are made. An example of the outcome of the priority setting process Figure 1. Plot of attractiveness versus feasibility for a hypothetical set of eight EPROs showing their priority rating on the basis of their return to Vietnam. RETURN FROM R&D FOR EACH AREA OF RESEARCH OPPORTUNITY 100 90 8 1 80 70 3 60 5 Attractiveness 50 40 6 7 30 4 20 10 2 0 0 10 20 30 40 50 60 70 80 90 100 Feasibility In Figure 1, two EPROs (# 1 and # 8) score the highest for both attractiveness and feasibility. They are located in the top right hand corner of the graph. They warrant strong research and extension emphasis, and are the highest priority group of EPROs. Those located more towards the centre of the graph (# 3, # 5, # 6 and # 7) warrant selective research and extension emphasis and can be classed as moderate priority. The two with low scores for both attractiveness and feasibility (# 2 and # 4) justify only limited support and have a low priority. EPROs # 3 and # 5 have similar attractiveness scores, but EPRO # 5 scores higher on feasibility. In this hypothetical example the lower feasibility score for EPRO # 3 occurs because the skills available to carry out the research and or extension are considered to be inadequate. When the necessary skills are acquired, the two EPROs would otherwise be equal claimants for research Economic and Policy Research Priorities for Vietnam
9 resources. Attractiveness is determined by factors other than research and extension, such as markets, profits, employment, social and cultural benefits, so while EPROs # 5 and # 7 have similar feasibility scores, # 5 is more attractive, and could be allocated more resources for research and extension. Economic and Policy Research Priorities for Vietnam
10 AREAS OF RESEARCH AND DEVELOPMENT OPPORTUNITY (EPRO) A Preparation workshop identified EPROs for the Economic & Policy Sub-sector. The following areas selected comply with the principles that research areas to be compared are mutually exclusive, collectively exhaustive, consistently based, forward looking, and manageable in number. It is important also that they are independent of organisational structure, easily reflect the benefits from successful research and are not discipline-based. The areas for comparison are essentially areas of research and development opportunity (EPRO) from which benefits will arise. In summary the areas are: EPRO 1. Commodity Research, Market Analysis, Forecast & Policy Analysis EPRO 2. Natural Resources & Rural Environment Management EPRO 3. Research, Technology Development and Transfer Delivery Systems for Agriculture and Rural Development EPRO 4. Social Security for Rural People and Sustainable Poverty Reduction EPRO 5. Climate Change EPRO 6. Rural Development EPRO 7. Impact of International Economic Integration and Market Access to the Vietnam Agricultural Trade Economic and Policy Research Priorities for Vietnam
11 PRIORITY ASSESSMENT CRITERIA The purpose of Vietnam’s research effort in agriculture policy, fisheries, forestry and livestock is to maximise the return to Vietnam through income generation and environmental and social benefits. It follows that priorities should be assessed in terms of Potential Impact and Feasibility. PRIORITIES FRAMEWORK Potential benefits Potential impact Likelihood of uptake Max return to Vietnam through income generation, environmental Scientific & social benefits potential Feasibility Research capacity The criteria are defined as follows: Potential impact  Potential benefits • maximum additional benefits for Vietnam (economic, environmental, social) from successful research  Likelihood of uptake of results • likelihood of the results of successful research being utilized by Vietnam Feasibility  Scientific potential • scope for growth in knowledge in the relevant scientific fields and improvements in research tools and techniques  Research capacity • Vietnam’s ability to competitively assemble research teams to deliver research outputs to users Economic and Policy Research Priorities for Vietnam
12 PRE-WORKSHOP ASSESSMENT OF EPROs [Purpose is to undertake a preliminary assessment of the relative priority of EPROs against Potential Impact and Feasibility criteria to enhance the level of discussion during the workshop] 1) Read Data Sheets for all EPROs  Carefully read all the Data Sheets (attached as a separate document) to obtain an overview of all seven EPROs  Make brief notes in the margins of the things from your own views and experience you think are important for the on-going Research program for each EPRO. 2) Prepare individual preliminary EPRO Scores i) Refer to the SWOT analysis for each EPRO Instructions for preliminary scoring ii) Participants should score each EPRO before coming to the workshop and make note of their reasoning to support their arguments in discussion. Space is provided in the workbook against each EPRO.  Step 1 - For each criteria in turn, read the evaluation sheet for each of the EPROs, starting with Potential Benefits (refer to page 13 of this workbook)  Step 2 – Now, in your view select the highest EPROs and then the  Step 3 – Now, score the HIGHEST EPRO 7, and the LOWEST EPRO 1. Finally, score the MEDIUM EPRO’s from 2 to 6. The aim of the evaluation is to examine the relative differences between EPROs, so a wide spread of scores is desirable. A low score does not mean that an area is unimportant – it just means that in your view it is less important than the others.  Step 4 – repeat the process for the next three criteria  Step 5 – Having recorded your scores and reasoning in the Workbook for the four criteria, transfer your scores to the consolidated score sheet and bring it with you to the workshop. All scores will be tabulated and made available at the workshop. The purpose behind this procedure is to achieve as much discrimination between the EPROs as possible. We are interested in exploring the relative differences between EPROs. It is important to remember that priorities are RELATIVE. A low score does not mean that an area is unimportant per se. However, when resources are limited, decisions need to be made about where to focus the effort to achieve the greatest impact for Vietnam. NOTES: Economic and Policy Research Priorities for Vietnam
13 ASSESSING POTENTIAL BENEFITS [Purpose is to provide an assessment of the relative Potential Benefits from each of the EPROs] Potential Benefits reflect maximum additional benefits for Vietnam (economic, environmental, and social) from successful research Potential benefits increaseThe larger the size – The faster the economic growth – The greater the reduction in costs – The higher the research intensity – The greater the positive environmental and social impact – The greater the spillover benefits Procedure: Table groups  Discuss potential benefits arising from each EPRO using preliminary scoring to initiate discussion  Record on cards the major points that arise during discussion of each EPRO – especially new and corrected information – different people at the table take responsibility for different EPROs  Report and post issues  Each participant to re-score each EPRO  Scores collected NOTES Economic and Policy Research Priorities for Vietnam
14 POTENTIAL BENEFITS - PRELIMINARY ASSESSMENT AND SCORING Please complete your preliminary evaluation before coming to the Workshop Score EPRO Arguments and Questions 1-7 Reasons supporting your score; issues arising from data and evaluation sheets 1: Commodity Research, Market Analysis, Forecast & Policy Analysis 2: Natural Resources & Rural Environment Management 3: Research, Technology Development & Transfer Delivery Systems For Agriculture & Rural Development 4: Social Security For Rural People And Sustainable Poverty Reduction 5: Climate Change 6: Rural Development 7: Impact Of International Economic Integration And Market Access To The Vietnam Agricultural Trade Economic and Policy Research Priorities for Vietnam
15 EPRO 1: COMMODITY RESEARCH, MARKET ANALYSIS, FORECAST & POLICY ANALYSIS 1.1 National Goal or Purpose To develop the capacity for market analysis and forecast, to improve competitiveness of major Vietnamese products in domestic and international markets and to use that capacity as a basis for providing commodity policy advice, including food security, to Government. 1.2 Research Scope 1. To construct an effective database and monitoring system for market information and for food security for strategic agriculture commodities. 2. To built a group of agricultural commodity experts to do commodity market analysis and forecast, especially for policy analysis of MARD, as well as to provide consulting service for local authorities and business organizations 3. Conducting in-depth analysis and demonstration model of market change at macro level in short term and long term, in order to help in forecasting and planning work of MARD, local authorities and agri-business organizations. 4. Provide timely information and awareness of commodity analysis results via policy discussion forum, market outlook conference, publications to assist the public and private sector to develop stable and profitable markets. 1.3 Coverage The priorities are for the domestic and export products are rice, coffee, rubber, and aquatic sector (shrimp and catfish). To a lesser extent and mainly for the domestic market pig production could be a lower level priority. 2. ATTRACTIVENESS TO VIETNAM 2.1 POTENTIAL IMPACTS ON STAKEHOLDERS  While the growth in agriculture production has been impressive the potential for further input driven growth in total value is limited by reduction in agricultural land and environmental impacts associated with higher inputs.  A focus on quality and sound market opportunities is likely to provide the greatest impact for continued growth in the contribution of agriculture to Vietnam’s GDP.  Investment decisions, but producers, processors and exporters based on sound market analysis for key commodities, rather than centralized planning based on production targets is likely to improve the long term returns on investments for all stakeholders.  Market analysis both on the supply-demand side and in relation to price and quality is likely to the competitiveness of Vietnam’s agricultural products in both the domestic and international marketplace.  Policies developed on the basis of sound research and forward projections especially in market forecast for the supply and demand of agricultural products are likely to provide national and individual benefits to all other market actors, including those Economic and Policy Research Priorities for Vietnam
16 involved in the supply chain, in making decisions of production, trading, processing etc.  Planning for and improving the efficiency of utilization of infrastructural capacities is likely to be improved through development and regular updating of market forecasting and analysis.  Collection of farm-based data and information through monitor farms for major farming systems, not only provides real time data and information on important farming systems, but also enables measurement of the health of the rural sector and could provide the basis for more practical social and rural development policy advice.  Sound forecasting and projections on Vietnam’s comparative advantage in the market place and likely longer term trends could avoid short term decision making based on short-term market instability, thereby improving the quality of investment decisions for all actors in the supply/value chain.  Exporting and processing enterprises would benefit from accessible market information for logistics planning and infrastructure investments.  Farmers could more effectively invest resources in the longer-term and avoid “boom and bust” cycles if they are aware and confident of longer term market prospects,  This research also directly affects the process of hunger degradation and poverty reduction through improving agricultural income of rural population, as well as indirectly influence to environmental quality improvement through more sustainable cultivation system, and social impact by increasing product quality by well- regulated pesticides and fertilizer degree to meet the requirement of export products).  The food crisis in Asia and problems in other food (maize) and farm input markets (oil and fertilizers. in particular) demand a robust rice market monitoring system which will be able to provide the right signals. Knowledge of existing market policies, behaviours of rice producers, traders, distributors, and marketers etc. will be important in helping provide a reliable market system. And it should also provide the response to policy-makers to improve the industrial development.  Improved information and analysis for policy formulation will generate significant benefits to the rural sector and the economy as a whole  Improved information on market situations and price movements on inputs and outputs could lead to better production planning and reduce unfair pricing for inputs and outputs. NOTES: Economic and Policy Research Priorities for Vietnam
17 EPRO 2: NATURAL RESOURCES AND RURAL ENVIRONMENT MANAGEMENT 1. EPRO DEFINITION 1.1. National goal or purpose To develop a legal framework and policy environment to enhance (i) the sustainable and efficient use and management of natural resources in the agricultural sector and (ii) healthy environment in rural areas to ensure the sustainable agriculture and rural development; and (iii) to reduce the adverse impacts of agricultural production on natural resources and the rural environment. 1.2. Research Scope To construct an effective database and monitoring system for natural resources use  in the agricultural sector and rural environment; To conduct research to estimate the mutual relationships between agricultural  production and natural resources use and the environment in short term and long term through quantitative techniques such as experiments, environmental evaluation, cost benefit analysis, bio-economic models, general equilibrium models and qualitative techniques such participatory rural assessment, case study, etc. To study strategy/approach for the MARD and the government to maintain optimal  natural resources use and management and healthy rural environment; and To provide timely information and knowledge of these above research results via  policy discussion forum, conference, publications to assist the public and private sector to develop their working plan and strategy. 1.3. Coverage The focus includes: Land use and management in agricultural sector and rural areas;  Water use and management in agricultural sector and rural areas (irrigation and  drinking water); Agro-biodiversity conservation; and  Rural environment protection.  2. ATTRACTIVENESS TO VIETNAM 2.1. Potential impacts on stakeholders Beneficiaries Benefits  An optimal use of natural resources for total agricultural sector and rural areas, Vietnam secure the capacity of natural resources for long term use.  Contribute to improvement of human health, productivity and environmental condition. Contribute to the sustainable economic development  Mitigation of losses caused by climate change’s impacts in agricultural sector and rural areas. Contribute to the sustainability of people livelihood and economy.  An optimal use of natural resources for each industry (crops, husbandry, Agricultural aquaculture) in agricultural sector in specific geographical regions. Contribute to and rural improvement of agricultural productivity, food security and share of agricultural development Economic and Policy Research Priorities for Vietnam
18 sector sector in total Vietnam’s GDP  Contribute to the sustainable development of agricultural sector and rural areas  Mitigation of agricultural production losses due to natural disaster and climate change (coastal zones and MR Delta).  Improvement of investment effectiveness for natural resource and rural Central and environmental management local  Rural social and political uncertainties authorities  Achievement of environmental services with higher quality Farmers  Equitable and market priced land transfer mechanisms are likely to improve efficiency of land use, investment in agriculture, selection of more profitable enterprises  Improvement of their income from agricultural production: thanks to natural resources use sufficiency, farmers can improve the productivity of rice and other crops, husbandry and aquaculture production;  Improve their health and environmental condition  Reduced expenditure of dealing with disease out-break, serious pollution treatment  Mitigation of impacts caused by climate change (Coastal zones and MR Delta). Maintain food security, and export revenue.  Provision of policy commendations on natural resource and rural environment IPSARD management for agricultural and rural development sector for MARD  Capacity to incorporate natural resources and environment related issues in policy intervention  Improvement of staff’s capacity in natural resources and environmental research issues  Establishment of a sufficiently database of natural resources and environment which could be use for other studies in the future  A network with natural resources and environment research and management institutions NOTES: Economic and Policy Research Priorities for Vietnam
19 EPRO 3: RESEARCH, TECHNOLOGY DEVELOPMENT AND TRANSFER DELIVERY SYSTEMS FOR AGRICULTURE AND RURAL DEVELOPMENT 1. EPRO DEFINITION 1.1 National Goal or Purpose To develop a legal framework and policy environment to enhance the quality, access and impact agriculture services that are responsive to stakeholder needs, is market driven and cost effective (i.e. delivers good Return on Investment) 1.2 Research Scope 1. Analysis of current policies related to the management of the MARD ARD research and development delivery systems and the identification of areas for reform 2. Analysis of the impact of current policies promoting technology development and transfer (including fit with market demand) and the potential for alternative technology development strategies that will meet stakeholders’ needs 3. Recommendations on the scope of regulatory and process reform that will achieve the national goal. 1.3 Coverage The focus is agriculture research and extension services provided by the state, social and political institutions, and enterprises (state owned or private) at the national and grass-roots level but should also take into consideration other similar rural service delivery systems such as: (i) other production services for rural actors (irrigation, plant and animal health); (ii) (ii) social services (healthcare, electricity, water, education, etc.) and (iii) (iii) business services (credit, tourism, etc.). 2. ATTRACTIVENESS TO VIETNAM 2.1 Potential Impact Implementation of improved policies will increase the returns on investment in  research and extension through: Improved relevance of research and extension from focusing activities in priority  areas that better meet the end user needs Competitive research and extension contracting systems will lead to better  implementation proposals and improved outputs/outcomes The ability for a range of research and extension service providers, including non  public sector agencies and through greater mobilisation of existing organisations (Mass and NGOs) will lead to higher quality service provision and improved value for money Contribution from users of research and extension services to the costs will  significantly improve the relevance and impact of service delivery, particularly Economic and Policy Research Priorities for Vietnam
20 for services that provide significant improvements in farm family livelihoods and for applications with commercial or industry impacts Development of industry contributions to the cost of research will significantly  increase resources, improve relevance and impact of research and lead to more rapid improvements in competitiveness of specific agriculture commodities Output based contracts for extension delivery is likely to improve the adoption and  impact of transfer of technology Movement from funding research institutions to funding research outputs is likely to  significantly change the way the research agenda is developed and the level of research overheads Development of the S&T market and protection of intellectual property rights will  assist in strengthening research providers through providing non-government sources for income Introduction of levies on exports and use of levies for industry development  including research and technology transfer should assist competitiveness of agriculture exports Improved contribution from research and science will enable Vietnam scientists to  integrate more effectively into the international science community and hasten the adaptation of international knowledge into the Vietnam environment Development of research priorities will provide a guide on future needs for scientific  capacities and training needs NOTES: Economic and Policy Research Priorities for Vietnam