FDI attraction for agriculture development in Vietnam

Investors in agriculture have a great opportunity to participate in the potential market with low cost, preferential procedures.

Photo by: Le Tien

According to statistics from the Foreign Investment Department, the projects to attract FDI into agriculture and agricultural machinery is now quite small, only concentrated on a number of localities specializing in seafood processing. The Department insists that we need large investors to develop organic agriculture with high technology, especially in terms of large-scale vegetables.

Overview for Agriculture of Vietnam 2018

Vietnam's agriculture is always the salvation of Vietnam, especially in the period of trade sensitivity between China and America. Therefore, in the second draft of the Department, it has proposed key measures to attract FDI into agriculture, mainly focusing on technology, agricultural machinery. The goal of the Vietnamese market is to achieve $ 5 billion in FDI by 2020 and exceed $ 8 billion after 2030. The areas that the industry is determined to attract include: production and development of plant varieties, pet; production of auxiliary materials to create high added value, production of feed supplement for animal feed production, technology of environmental treatment of livestock, production equipment breeding facilities ...; To conduct in-depth processing of agro-forestry -fishery products for production of scientific and technological content and high added value; To create mechanisms for FDI enterprises to invest in the production of veterinary drugs and plant protection drugs.

Vietnam's agriculture currently only concentrate on some regions with distinct advantages in terms of climate and soil, led by Lam Dong, with many high-tech agricultural development projects. Japan is one of the countries with large capital investment in Lam Dong. In addition, Ha Nam province has attracted capital of $ 33 million from 11 investors. The Department of Agriculture and Development in Vietnam's two most developed cities, Hanoi and Ho Chi Minh City, has been developing agriculture that applies modern technology and machinery.

The draft decree on attracting FDI inflows set by the Ministry of Agriculture and Rural Development (MARD) in 2017 to attract FDI into agriculture must be a strategic task for the Vietnamese agricultural sector. The main content of this draft is to shift investment into the sectors that Vietnam needs in the future including high-value agricultural products.

The two countries with the largest FDI inflows in agriculture are Japan and Korea. , but in the long run, the ministry want to attract more investors from other countries such as Europe and the US to diversify FDI. In order to do this, Vietnam should reform its tax exemption policies, apply modern machinery and technology and highly qualified workers in agricultural industry. Specifically, Mr. Nguyen Dang Quang, Chairman of Masan Group proposed linking to promote the agricultural production chain: "To increase the efficiency of the agricultural sector, the State should encourage and promulgate appropriate mechanisms to promote too In addition, the State needs to create a legal corridor to open up the market for agricultural products. The investment capital instead of limited to the financing of banking for individual business households as long.

Currently, the Ministry of Planning and Investment is coordinating with ministries and agencies to prepare a report on the 30-year review of foreign investment attraction, which is expected to report to the Government in October. Hopefully, agriculture sector of Vietnam will have a transparent, straightforward road of development.

To learn more about agriculture, agricultural machinery and international investors, go and find out more in Agri Vietnam exhibition which is The 2nd International Trade Show on Agricultural Machinery, Chemicals, and Products in Vietnam will return from 26th to 28th June, 2019 after its first successful launch in 2018.

Source: tapchitaichinh.vn, 31/7/2918