Under the plan, every commune nationwide will have a tailored socio-economic framework to follow and by 2020, 50 percent of communes will meet the national standard for rural communes.

The new rural development plan will boost both culture and agriculture. The Ministry of Agriculture and Rural Development has initiated a pilot project to implement the model in 11 rural communes across the country.

Truong Tan Sang, permanent member of the Party Secretariat, said the most important thing was to transform communes into “new rural areas”, focusing on upholding the central role of the people while expanding the model nationwide.

The Ministry of Construction has asked local authorities to provide guidance to concerned agencies on planning the new rural areas.

Ho Xuan Hung, Deputy Minister of Agriculture and Rural Development, says capital has been relatively easy to raise through programmes earmarked for the development of new rural areas.

Each commune needs around VND156 billion (roughly US$8 million), of which 7-8 percent will be mobilised by the local community, 20 percent by businesses and cooperatives, 25 percent will come from production development credit loans, and 45-50 percent from Official Development Assistance (ODA).

Successful pilots

Hanoi has implemented the new rural area model at Thuy Huong commune in Chuong My district. Dao Duc Toan, deputy head of the Steering Committee, says investment in the commune last year reached nearly VND15 billion (US$800,000), with the State accounting for only VND5.5 billion, the remainder being raised through the local community and businesses.

The commune has begun upgrading raods and irrigation works, and has approved a project to produce safe vegetables over an 80-ha area. It has also relocated agricultural production from residential areas.

In addition to Thuy Huong Commune, Hanoi has also implemented projects in Song Phuong (Dan Phuong district), Mai Dinh (Soc Son district) and Dai Ang (Thanh Tri district), which will be completed by next year.

Hanoi has set a target of 45-50 percent of communes to meet the criteria for “new rural areas” by 2015.

In HCM City, the model has been implemented in Tan Thong Hoi Commune (Cu Chi district) with a total investment of VND542.6 billion ($27 million), of which 64.3 percent was raised through State funds, with the remainder made up by the local population.

Tran Van Chi, chair of the Tan Thong Hoi People’s Committee, confirms the vital role of the public and private businesses, whose participation in the programme has made the allocation of land and the raising of capital substantially easier.

Collaboration needed

According to a recent report from the Ministry of Construction, of the 9,100 communes nationwide, only 23 percent have long-term development plans.

“Some communes already have plans in place, but they’ve been out-dated by the new standards for rural areas approved by the Prime Minister in April,” says Nguyen Quang Minh, deputy head of the ministry’s Department of Architecture and Planning.

“Communal authorities are in charge of adopting an appropriate development model. Our department can offer advice based on the socio-economic situation unique to each commune, but many communal authorities remain incapable of working with us.”

According to Phan My Linh, head of the department, a consistent national framework for commmunes to follow is vital to developing a sustainable socio-economic system. “The project will boost cultural and educational levels in villages, develop rural areas, and improve the political system,” she says.