Deputies questioned Minister Phat over farmers incomes and living conditions as well as the gap between people living in urban and rural areas, especially ethnic minority people.

In his reply, Minister Phat said there have not been detailed statistics of farmer’ incomes compared to that of people living in urban areas. But, in fact, there is a high risk that the gap in incomes and living conditions between urban and rural areas is widening. The Party and Government have taken many measures to overcome the situation by exempting farmers’ contributions, preventing diseases and natural calamities and implementing a series of programmes to develop agriculture in rural areas.

Minister Phat said, as a result, farmers have reaped bumper crops in 2007. However, due to the great impact of natural calamities and diseases farmers actual incomes are only increasing slowly. The government is developing new projects to support the agricultural sector and farmers nationwide.

Deputy Nguyen Ngoc Dao from Hanoi questioned Minister Phat over programmes to improve farmers living conditions in the international integration period as well as new strategies to develop agriculture and quickly close the gap between rich and poor.

Minister Phat said that Vietnam’s WTO membership will offer more opportunities in new markets but this also creates further competitiveness among Vietnamese farmers. Therefore, the agricultural sector should focus on producing different kinds of farm products. The ministry will providing guidance for selecting new high-yield varieties of rice, improving food hygiene and safety and promoting offshore fishing.

Minister Phat added that the ministry targeting the development of agriculture and rural areas towards modernization and industrialization. It will do its best to complete the draft by November 30, 2007 and submit it to the National Assembly for approval by March 30, 2008.

Regarding the issue of fallow rice fields, Minister Phat attributed this to difficulties in land and infrastructure while the industrial and service sectors have developed strongly, generating many high-income jobs. To solve the problem, Minister Phat said it is necessary to create better conditions for farmers to improve the efficiency of production in their rice fields by introducing new varieties and advanced technologies and also improving the infrastructure. On the other hand, it is important to adjust policies to develop the industrial sector in rural areas.

He added that farmers living conditions have also depended on many other factors. Therefore, Minister Phat should continue to develop the education, health service and other sectors, emphasizing that the best strategy for poverty reduction and hunger elimination is to develop human resources, especially education in rural areas.

Also at today’s session, Minister of Finance Vu Van Ninh received 18 questions from NA deputies about a number of introduced measures to control market prices and accelerate the pace of disbursement of capital construction and investment.

For nearly one hour and a half, Mr Ninh only answered 13 out of 18 questions raised by NA deputies. However, NA Chairman Nguyen Phu Trong concluded that the Minister of Finance’s answers were thoroughly prepared and provided full information and data.

According to Mr Ninh, it is very difficult to forecast this year’s price levels as the world market has also seen unexpected price fluctuations. On the other hand, the State will advise price control measures to keep up with the development of the market economy. If the Government fails to adjust prices on the market, the State will compensate for losses.

In regards to the price of electricity, Mr Ninh said this is a big problem for the Government’s price control roadmap while Vietnam still has to import electricity from China. However, the Government will work out effective solutions to ensure power requirements for daily use and industry are met.

Concerning the price of aviation services, Mr Ninh said the government will not decide but will allow the aviation sector to adjust prices to appropriate levels.