(VOVworld)- Vietnam’s agriculture boasts great potential for investment. In recent years, thanks to government incentives, domestic economic groups have shifted their investment capital to agriculture, signaling good prospects for the national economy.
The government and the Prime Minister have paid great attention to fine-tuning policies and mechanisms to encourage enterprises to invest in agriculture and rural areas. In the last two years, the government issued two resolutions to improve the business climate. The government also approved a Project on Agricultural Restructuring in 2013 to encourage enterprises to participate in restructuring the agricultural sector and its production method.
Positive signs of enterprises’ investment in agriculture
As in other ASEAN countries, Vietnam’s agricultural sector has not attracted much investment from enterprises. According to the Ministry of Agriculture and Rural Development, private enterprises have succeeded with their agricultural investments, but their progress still lags behind the potential and the demand for development in the sector. The government has created favorable conditions to encourage enterprises to invest in agriculture. As a result, the number of private enterprises investing in agriculture and rural areas has increased from 2,400 in 2007 to 3,630 in 2013, generating 265,000 jobs. Many enterprises like Vinamilk, Minh Phu, TH Truemilk and Hoang Anh Gia Lai are pushing high-tech application and market expansion in the agricultural sector. Enterprises like Vingroup, Himlam, Viettel and the FLC groups are seeking opportunities to invest in agriculture and rural areas. Minister of Agriculture and Rural Development Cao Duc Phat said:“Restructuring the agriculture sector and the National Target Program on Rural Development are two revolutions in the agricultural sector and rural areas. To carry out these revolutions, we need the participation of all economic sectors from the central to local level with the State playing the role of creator, farmers being the hosts, and enterprises playing the key role”.
Favorable conditions for enterprises to invest in agriculture
At a conference on June 28 to attract enterprises’ investment in agriculture and rural areas, Deputy Prime Minister Hoang Trung Hai highlighted the agricultural sector’s contributions to national socio-economic development in the last 30 years of renovation. Hai said the government will invest more in upgrading infrastructure, irrigation and rural transport and encourage enterprises to invest in agriculture: “By investing in agriculture, enterprises can bring into play their creativity in production. We need to work out mechanisms to tap into their potential. It’s important to increase cooperation between Associations and enterprises”.
The Ministry of Agriculture and Rural Development has effectively implemented the project on agricultural restructuring toward increasing added value and sustainable growth. So far, the sector has put in place 12 projects on restructuring cultivation, livestock production, forestry, fisheries, processing and improving irrigation. Hundreds of groups and companies have cooperated with farmers in agricultural production.
With the government incentives, private business investment in agriculture is expected to boost the agricultural sector and improve its competitiveness.