Faced with plunging foreign direct investment (FDI) in agriculture, theMinistry of Agriculture and Rural Development is considering newmethods to attract foreign investors to pump prime the sector with newcapital sources, the Vietnam Investment Review reported on May 27.
Despiterobust exports of agricultural products worth 28.5 billion USD lastyear, there had been an alarming plunge in FDI inflows into the sector,said Minister of Agriculture and Rural Development Cao Duc Phat at arecent workshop in Hanoi.
Fifteen years ago, FDI intoagriculture, forestry and fisheries accounted for 15 percent ofVietnam’s total FDI volumes, but the rate had plummeted to 0.5 percentover the past three years.
Nguyen Ba Cuong, Deputy Director ofthe Ministry of Planning and Investment’s (MPI) Foreign InvestmentAgency, said by the end of April this year, Vietnam’s agriculture,forestry and fisheries would attract 520 foreign-invested projects ofthe country’s total number of 16,300.
“Almost all the FDIprojects in agriculture are in the Red River and Mekong Delta regions.Remote provinces have barely attracted any FDI projects in this field.FDI projects in agriculture, forestry and fisheries mainly focus onareas with quick capital returns such as farm produce, timber and foodprocessing, animal husbandry and animal feed,” said Cuong.
NguyenVan Toan, Vice Chairman of the Vietnam Association of Foreign-investedEnterprises put the blame on sudden changes in planning and policies oflocal authorities that had contributed to the sharp decreases in FDI inagriculture.
M eanwhile, Bui Tat Thang, Director of the MPI’sDevelopment Strategy Institute said the lack of a long-term FDIattraction strategy and weak rural infrastructure still constitutedmajor barriers for FDI inflows into Vietnam’s agriculture sector.
Determinedto address the issue, Minister Phat said, “We realise that a review ofthe mechanisms and policies is required to stimulate foreign investorsinto the agricultural sector as we know it would bring about benefitsfor both businesses and farmers.”
The minister also promised tocreate a favourable agricultural investment environment, shortenadministrative procedures, cut costs and remove the inconsistenciesbetween policies and implementation.
According to Phat, in orderto encourage foreign investors in agriculture, the Ministry ofAgriculture and Rural Development (MARD) was considering allowingforeign businesses to directly procure farm produce from farmers insteadof through intermediaries.
According to the MARD, it needed tocreate large-scale domestic businesses capable of partnering withforeign firms, while at the same time improving the quality of humanresources in the sector.-VNA
Despiterobust exports of agricultural products worth 28.5 billion USD lastyear, there had been an alarming plunge in FDI inflows into the sector,said Minister of Agriculture and Rural Development Cao Duc Phat at arecent workshop in Hanoi.
Fifteen years ago, FDI intoagriculture, forestry and fisheries accounted for 15 percent ofVietnam’s total FDI volumes, but the rate had plummeted to 0.5 percentover the past three years.
Nguyen Ba Cuong, Deputy Director ofthe Ministry of Planning and Investment’s (MPI) Foreign InvestmentAgency, said by the end of April this year, Vietnam’s agriculture,forestry and fisheries would attract 520 foreign-invested projects ofthe country’s total number of 16,300.
“Almost all the FDIprojects in agriculture are in the Red River and Mekong Delta regions.Remote provinces have barely attracted any FDI projects in this field.FDI projects in agriculture, forestry and fisheries mainly focus onareas with quick capital returns such as farm produce, timber and foodprocessing, animal husbandry and animal feed,” said Cuong.
NguyenVan Toan, Vice Chairman of the Vietnam Association of Foreign-investedEnterprises put the blame on sudden changes in planning and policies oflocal authorities that had contributed to the sharp decreases in FDI inagriculture.
M eanwhile, Bui Tat Thang, Director of the MPI’sDevelopment Strategy Institute said the lack of a long-term FDIattraction strategy and weak rural infrastructure still constitutedmajor barriers for FDI inflows into Vietnam’s agriculture sector.
Determinedto address the issue, Minister Phat said, “We realise that a review ofthe mechanisms and policies is required to stimulate foreign investorsinto the agricultural sector as we know it would bring about benefitsfor both businesses and farmers.”
The minister also promised tocreate a favourable agricultural investment environment, shortenadministrative procedures, cut costs and remove the inconsistenciesbetween policies and implementation.
According to Phat, in orderto encourage foreign investors in agriculture, the Ministry ofAgriculture and Rural Development (MARD) was considering allowingforeign businesses to directly procure farm produce from farmers insteadof through intermediaries.
According to the MARD, it needed tocreate large-scale domestic businesses capable of partnering withforeign firms, while at the same time improving the quality of humanresources in the sector.-VNA
