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Project “Study on policy recommendations to support for development of small and medium enterprises in agricultural sector and rural areas – phase II + III ”
28 | 02 | 2011
Department of Rural Institution is an research unit under the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD).

Department of Rural Institution is an research unit under the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD). Our function is to do research and propose policies for rural institutions development to the Government & Ministry of Agriculture and rural development ; analyze and assess the impacts of the policies on rural institutions’ development. We also have the function of supporting, advising and providing services related to developing forms for rural and ariculture enterprises, cooperatives, farms, households, etc. We have been executed many researches and offered advice for policies formulation to support the development of rural institutions.

Vietnam is a country with an economy based essentially on agriculture, the transformation of economic structure to open economy - services, industrialization, urbanization now take places at a high level . Therefore, the use of a part of agricultural land in the investment, construction projects of urban areas is inevitable. This is inevitable process of development of an economy that is moving, therefore, it promotes partly labor restructuring from agriculture to other non-agricultural forms.
After land acquisition, the living of many farmers become more difficult. They lack employment and income of these households has decreased. It is shown that in the area which land is withdrawn, only income of 13% of households has increased; this of 47% of the households has not changed, but about 40% of househouse have income decrease.

In normal, when land is recovered for industry, compensation of State (if that land is used to build infrastructure or public objective), or Enterprise (if that land for construction of factories) to farmers is in cash. However, people use this money inefficiently. Most of them use the land compensation money to build and repair their house or purchase expensive property (Follows research results of Mekong Economic Research, 2007 and of MARD, 2007). So after land acquisition, farmers fall in unemployment.

Another option which enterprise have recently applied is: Instead of paying land compensation money to farmers, enterprise have paid compensation to the farmers by buying shares of the enterprise. Each year, enterprises pay dividends to farmer. It is thought that not only farmers do not lose money but every year they still have money to live (income shares).

However, this solution is also facing many difficult issues that need to be removed. For example, farmers may understand what is the stake and shares? Or in this case, if the enterprise is in loss or bankruptcy, shares of farmers must be addressed? Similarly, when companies pay compensation in stock, if farmers wish to transfer shares to another person, then how that procedure will be done?whether it is the same as the transfer of other common shares?

The loss of agricultural land on a large scale has caused pressure not only on the stage of employment, but in the long term, this will cause the situation that people fall into a panic - "loss of livelihood." Therefore, to ensure in long-term social security, stability and jobs for local people after the loss of land is essential. In fact, there is a little information on the use of land compensation in different purposes, the models/contestants of capital contribution of people to other services (cooperative services, companies providing urban services, etc.), as well as reports, information about the restructuring of labor structure from agriculture to other occupations after land acquisition.

However, in the development context of Vietnam, a country with more than 70% of the population engaged in agricultural production, the application of this mechanism should be undertaken cautiously, step by step, and must be piloted in some typical regions. All these problems need to be studied, clarified and policy solutions must be supported for both enterprise and famers, making them be able to come closer together such as creating new attractions to investors  investing in rural areas.

In the context of the project “Study for policy recommendations to support for development of small and medium enterprises in agricultural sector – phase 2 and 3” funded by Spanish government, the Division of Rural Institutions has conducted a research activity on “Study to proposal of mechanism converting from direct monetary compensation to forms of equity investment in areas of changing the usage of agricultural land to other purposes” in order to propose mechanism and solutions using land acquisition compensation, to help farmers whose land is recovered can contribute capital to the enterprise, to invest and develop non-agricultural activities, especially types of services in place to transform sustainable livelihoods, to improve incomes and create jobs for people whose land is recovered in the area of urbanization, industrialization.

To support effectively for the research activity, the Division of Rural Institutions needs to recruit 02 expert for supporting and  report writing. 

I. EXPECTED RESPONSIBILITY PER EACH EXPERT
1st expert: In charge of 2 subjects (1 & 2)

1.1. Subject 1: "Assessing the current situation of reclaiming and compensating of agricultural land in the provinces and identifying drawbacks of the existing compensation mechanism with the aim of drawing lessons for better future application"
• Comment on interview / survey / PRA questionnaire for local authority at all levels and enterprises on the mechanisms, compensation methods of land acquisition, results and limitations of these methods in the studied areas.
• Comment on survey questionnaire on views / reviews of people whose land is reclaimed on the advantages and disadvantages of the current land compensation mechanism, aspirations and needs of these people when they engage in business with the value of land use right.
• Assess the current situation of land reclaimation and compensation in provinces.
• Review mechanisms for land compensation and analyze limitations of these mechanisms in provinces
• Draw lessons for better future application
• Write a report

1.2. Subject 2 : "Assessment and analysis on typical cases of success and failure in the capital contribution by the value of land use right - Lessons and recommendations."
• Comment on interview questionnaire for groups of local authority on the socio-economic situation and conditions, job opportunities for people whose land is reclaimed, degree of support and supporting programs of local authorities.
• Comment on interview questionnaire for enterprises / organizations who organize non-agricultural activities in the models of success and failure in the studied areas to understand the process of land acquisition and capital contribution with land use right, results achieved, successes, failures and their causes.
• Comment on interview questionnaire for farmers who participate to non-agricultural activities in models of success and failure in the studied areas to understand the process of land acquisition and capital contribution with land use right, results achieved, successes, failures and their causes.
• Assess and analyze typical cases of success and failure related to land contribution with the value of land use right
• Draw lessons for better future application
• Recommend policies to build successfully models of capital contribution with the value of land use right
• Write a report

2rd Expert: In charge of 2 subjects (3 & 4) 
2.1. Subject 3:
"Studying and evaluating potential development of non-agricultural services in areas being reclaimed and opportunities/conditions of investors (land-lost farmers) on capital contribution with the value of land use rights”
• Comment on survey questionnaire to assess the situation and ability to participate in various types of non-agricultural services of farmers in the studied areas after land acquisition.
• Comment on survey questionnaire / evaluation of potential services organized by land-lost farmers or enterprises / organizations.
• Assess the ability of non-agricultural services development in the areas affected by land acquisition and land use conversion in provinces.
• Assess  the situation of participation and organisation of land-lost farmers in these services
• Assess the potential of capital contribution with the value of property right in the areas reclaimed
• Assess the dynamics of the people involved in the process of structural change and economic transformation mechanism from agriculture to industry and services.
• Write a report

2.2. Subject 4 : " Analyzing the shortcomings of the current legal framework and policies which are both supporting and limiting people’s ability to make capital contribution in the form of land use right value"
• Comment on interview questionnaire for managers at all levels on the limitations of the legal framework
• Comment on PRA questionnaire on the limitations of the legal framework.
• Gather and review current legal texts encouraging or limiting the ability to contribute capital with the value of land use right of farmers.
• Analyze the limitations of the legal framework and policy factors affecting the ability of capital contribution with the value of land use right of farmers.
• Write a report

II. EXPERT’S REQUIREMENT
• Master degree (or higher) in economics, agricultural economics, trade or relevant...
• An expert should have 5-10 years working experience (at least 2 years of working experience) in agricultural economic analysis and research
• Fluency in English
• Possess both team-work and independent working skills.

V. WORKING MECHANISM
1. Working time
Each expert is recruited to work within 28 days (8 hours/day), allocated in the months from now to April 2011.

2. Salary

The expert will enjoy the salary based on the EU-UN cost norm, with income tax included. 

Interested candidates can send a cover letter, CV in English, an action plan and copies of relevant degrees no later than 15/03/2011 to:
Ms. Pham Thi Phuong Mai
Project SMEs,  Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD), 16 Thuy khue, Tay Ho, Ha Noi
Email: thechenongthon.ipsard@gmail.com
Tel: 04 3 7282591  Fax: 04 3 9711062
Only short-listed candidates will be contacted



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