Can the agricultural miracle last? Nothing illustrates Vietnam's remarkable turnaround better than its farm sector. In the mid-1980s, with farm collectivisation going horribly wrong, the country was on the brink of famine. But by the early 2000s Brazil, the world's largest exporter of robusta coffee, was astounded to find itself being overtaken by a country most of its people had barely heard of. More recently, Vietnam has surpassed India as the world's second-largest rice exporter after Thailand. Reuters Watching the profits grow Vietnam's farmers have become important competitors in all sorts of agricultural produce, from nuts to peppers to rubber. They are even selling tea to the Indians. Its fishermen and foresters are also doing well by feeding the world's growing demand for seafood and timber (though not always sustainably). Vietnam's exports of farm, forest and fisheries produce rose by 21% last year, to $12.5 billion, and further growth is expected. The success of Vietnam's economic transformation is often measured by the falling share of agriculture in the country's gross domestic product. Industry and services are indeed growing even faster than farming and absorbing its surplus labour. Agriculture, forestry and fisheries now provide barely half of all jobs in Vietnam, compared with over two-thirds only ten years ago. Even so, over 70% of the population still live in the countryside, so a successful rural economy will remain the key to maintaining Vietnam's impressive progress on cutting poverty. Vietnam's agricultural miracle was achieved by a simple but powerful device: the invisible hand of Adam Smith's free market. Having snatched the land from the people in the disastrous collectivisation, the government gave it back to them (evenly shared among households) on longish leases, starting in the late 1980s. This was similar to China's agricultural reforms around the same time, which also greatly reduced poverty by giving small farmers exclusive rights to work their plots. However, in China the freehold of the land remains vested in local collectives, without a clear indication of who represents them. That allows unscrupulous local officials to sell land to developers from under the feet of farmers. In Vietnam the freehold remains with the central government, so such problems are rarer. Click here to find out more! Creating large-scale and equitable land ownership