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Only 1% of firms invest in Vietnamese agriculture

Staff Writer |
Only one percent of total enterprises in Vietnam have invested in agriculture, and 55 percent of these are small scale, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

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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 Hanoi by the Vietnam 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.

Cuong 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, Cuong 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.