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Develop Doan Hung pomelo &Gia Thanh Persimmon Commodities & Follow Market Orientation:HUONG NGUYEN

Agriculture is a key economic sector, playing an important role in poverty reduction and hunger eradication in Vietnam. In order to maintain and develop agricultural activities, apart from investing in food plants, a vital requirement for Vietnam agriculture is how to diversify agricultural products, especially comparative fruits, and it is very essential to change the mindset of small and short cultivation practices to market-oriented goods production.

Phu Tho is a poor province in the centre of 14 provinces in the midland of the mountainous north of Vietnam. For the last few years, the State and local government has established certain policies to develop comparative advantages of the province to encourage development in agriculture, forestation where special fruits are grown. The Decision No. 99/2008/QD-TTg dated 14/07/2008 by Prime Minister has enabled Phu Tho to gradually change its agricultural structure, rural economy to production of goods which is suitable with its potential and advantages of which Doan Hung pomelo and Gia Thanh or Hac Tri persimmon...

However, in Phu Tho, the development of Doan Hung pomelo or Gia Thanh and Hac Tri persimmon is scattered without a long-term prediction and does not flexibly catch up with market changes. How to keep their origins and develop Doan Hung pomelo, Gia Thanh persimmon in goods production orientation is one of the questions which is waiting for solutions from planners, policymakers, scientists, gardeners who are households and all those who are enjoying benefit from rural agriculture of the region. For all the above reasons, the topic “Development of Doan Hung pomelo and Gia Thanh persimmon in Phu Tho province in goods production orientation”.

There are many definitions of development. Development is considered a process, a society can develop only when it satisfies basic demands. While earning per head shows the strength of social production, the development shows the distribution of property in the society and how to use that property to meet those basic demands. According to Raman Weitz, development is a continuous changing process to increase the living standards of the human and fair distribution of development achievements in the society (Raman Weitz, 1995).

From all definitions of development, we believe that development can be seen more widely than growth, it not only shows changes in quantity such as economic growth but also includes changes in the living quality of the human.

Production development is a growing process in all aspects of the production process in certain periods on both quantity and value of products or service and improvement of product structure. Production development includes development on a deep and large scale. Production development on large scale: It is to mobilize all resources for serving production activities such as an increase in area, investment capital, labour source, advanced technology and science, opening more professions, extending and establishing new firms for new products. Production development in deep scale: It is to determine and decide the system of investment, profession structure, type of profession, enhancing the application of technology and science achievements, improving productivity, labour rearrangement and use of labour source.

In general, production development on a deep and large scale is a must for overall development for all countries, all economies and enterprises whereas deep production development is more essential. During production and production development, production units (enterprises, cooperatives, households...) are to convert inputs (production factors) to be output (products).

What goods production is. Goods are produced to exchange according to demand in the market. Conditions for the development and existence of pomelo production and persimmon should be the distribution of social labour and the establishment of multi-ownership of production factors. Goods production of pomelo and persimmon is a production to fulfil the requirement of quantity, quality of pomelo, persimmon as required by the market through the process of exchange. This production runs on its own system and under laws of distribution, circulation and exchange.

Market for goods of pomelo and persimmon: This is the overall relationship to be implemented for the production of pomelo and persimmon, it is also a place to exchange, negotiate between seller and buyer to come to a final conclusion in price and quantity of products sold. The function of the market for goods of pomelo and persimmon: Realization and implementation, circulation and mobilization and information.

Analysis of the demand and supply of goods of pomelo and persimmon: Demand for goods of pomelo and persimmon is the quantity of pomelo and persimmon that the buyer can afford and be ready to buy at a certain price level in a certain period of time. Supply of goods of pomelo and persimmon is the quantity of pomelo and persimmon or other products or services that the supplier can supply and be ready to provide the market at a certain price level in a certain period of time. To sum up, understanding the market for goods of pomelo and persimmon is under the circulation of basic laws such as the law of price and value, the law on demand and supply, the law on competition.

In terms of the definition of the development of pomelo and persimmon in goods oriented production, it is an increasing process in terms of both quantity and quality of pomelo and persimmon to meet the market’s demand. Specifically, it is to extend the area for growing pomelo and persimmon, increasing the yield of these two trees in a certain period; increasing quality of these fruits to satisfy the market’s demand; it is to diversify the structure of tree varieties as planned for economic-social development of the locality ensuring the ratio of contribution to GDP, improving economic effectiveness; creating the stable connection between production and consumption; it is very essential to establish a value chain of pomelo and persimmon as well as a fair distribution of added value between factors of the industry.

On the one hand, locals should apply the basic conditions of development of pomelo and persimmon in goods oriented production. Firstly, the pomelo, persimmon has to actively redirect production, and dare to invest resources into production toward the market's demands. Secondly, the producers have to get the demand of the market information about real quantities and real prices. Thirdly, pomelo and persimmon are to be distributed by certainly consumption channels.

On the other hand, bringing to life profoundly about the details of the development of pomelo and persimmon in goods oriented production at first should be extending the area for growing pomelo and persimmon to fulfil market’s demand, this is the development in large scale. Second, changing the structure of pomelo and persimmon gardens, intensive investment in cultivation to increase the yield in order to achieve quantity and quality of product standards is to develop on a deep scale. Third, increasing economic effectiveness: The development of pomelo and persimmon is to develop to achieve increasing results in order to develop on a deep scale. Fourth, improving income and living standard of the local people: This development will have to explore and improve comparative advantages, achieving high economic outcomes, increasing income for local people and creating a better production value. Fifth, establishing an industry for fruits especially for pomelo and persimmon to be fairer in added value and more sustainable in the connection between factors of the value chain and in the community.



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