Only 1% of firms invest in agriculture: minister
HÀ NỘI –
Only one per cent of total enterprises in Việt Nam have invested in
agriculture, and 55 per cent of these are small scale, capitalised at under
VNĐ5 billion, said Minister of Agriculture and Rural Development
Nguyễn Xuân Cường.
Most of these
investors had not undertaken professional investment activities and not
applied hi-tech and state-of-the-art equipment in their projects, he told
business representatives at a dialogue on investment organised in Hà Nội by
the Việt Nam Chamber of Commerce and Industry and the Ministry of Agriculture
and Rural Development (MARD). They had also not cooperated with scientists
and farmers in the production chain. The result was high production costs,
low competitive ability and inefficiency in investment
For their part, business
representatives called on the State to initiate more specific
and preferential policies to draw investment to agriculture.
Cường said the
Government had preferential policies in taxes, credit, land and training to
encourage investment in agriculture and the rural sector. It had also
developed high-tech enterprises in the agricultural sector and enforced
regulations on public private partnerships (PPP) in agriculture and the rural
area.
As a result, he
said, the number of enterprises investing in agriculture increased from 2,397
in 2007 to 3,640 in 2015 and to 4,080 in the first nine months of this year,
Cường said, adding that many investors had gained by investing in hi-tech for
agriculture.
However, the
ministry also noticed that the development of investment in agriculture was
unstable and that great potential for more investment in the sector was not
being tapped, he said. Those enterprises that do invest in agriculture had
encountered difficulties such as weather and limitations in land, credit and
tax policies.
Đinh Cao Khuê,
chairman of vegetable and food exporter Đồng Giao Export Food JSC, said
agriculture was one of the sectors with a trade surplus, but it had few
support policies. For instance, enterprises found it difficult to obtain land
for developing agricultural projects.
Thái Hương,
chairwoman of TH Group, said ministries and sectors had not come together to
support enterprises in investment activities for agriculture. She urged the
MARD to propose policies for agriculture with support from other ministries
and sectors.
Khuê also
suggested the state should offer preferential loans at five per cent for farm
product processing enterprises to build factories, buy equipment and machines
and grow trees, instead of the high interest rates of eight and nine per cent.
Thái Hương said
the state should choose goods which have an advantage in competition on world
markets, with specific preferential policies such as development of the best
rice variety. The state should also set standards for farming products
that meet international standards.
At present, the
ministry has promoted the restructuring of agriculture to improve the value
of farming products and achieve sustainable development in agriculture. One
of the restructuring solutions has been to attract more investors, especially
for building up chains from production to processing and consumption.
Minister Cường
said many large enterprises, such as TH Group, Dabaco, Vingroup and Hòa Phát,
have invested in the sector to promote development.
The Government, for its part, had focused on
improving the investment environment and encouraging enterprises to invest in
agriculture, Cường said, promising a breakthrough soon in preferential
policies to instill confidence among investors, especially in hi-tech and
clean farming.
Viet Nam News
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Thứ Ba, 6 tháng 12, 2016
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