Private enterprises have succeeded with their agriculturalinvestments, but their progress still lags behind their true potentialand the demand for development in the sector, a conference was told inHanoi on June 28.
Minister of Agriculture and RuralDevelopment Cao Duc Phat noted that investments by private businesses inthe area had increased by 1.9 times from 2009-13.
Thenumber of companies investing in agriculture rose from around 2,400 in2007 to 3,635 in 2013, an average growth rate of 13.8 percent per year.Private firms accounted for nearly 90 percent of the figure, creatingjobs for some 265,000 workers.
Companies such as Vinamilk,TH Truemilk, Minh Phu Seafood and property developer Hoang Anh Gia Laihave become locomotives driving high-tech application and marketexpansion in the agricultural sector in many localities.
Real estate giant Vingroup, major telecommunications service providerViettel and multi-sector business group FLC have also expressedintentions to invest in the field.
The Government hasissued specific resolutions last year and this year to speed up theimprovement of the agricultural business environment.
TheMinistry of Agriculture and Rural Development (MARD) has alsoestablished a working group with the participation of its managementagencies and 30 key enterprises to attract agricultural investments.
Despite the aforementioned increases, Minister Phat saidinvestments in agriculture remained limited and unstable. In 2014,businesses operating in this sector accounted for only about 1 percentof the total firms in the country, and more than half of them were ofsmall scale with capital of less than 5 billion VND (238,100 USD).
Representatives of the World Bank and many companies said thatbetter conditions related to land, infrastructure, taxes and fees, aswell as investment promotions and technological development should beput in place in order to attract more interest in agriculture.
Deputy Prime Minister Hoang Trung Hai said challenges have becomegreater for agricultural development as the country will enter a varietyof free trade agreements.
He said land issues, especiallysite clearance, is the biggest obstacle facing companies, and ministriesand sectors will have to scrutinise them for appropriate settlements inthe coming months.
He suggested enterprises shouldprioritise forming links with farmers instead of asking for land grants,since the growing Vietnamese population has left the per-capita area ofland for production small.
Hai said the Government wouldfocus its investments on agricultural infrastructure, includingirrigational works and rural traffic, urging the MARD-led working groupto concentrate on developing advantageous lines of products.
He urged enterprises to either team up or foster public-private partnerships.
The Deputy PM also urged agro-businesses to produce more qualityproducts and pay more attention to the interests of the community inorder to gain consumer confidence.
"The Government willcontinue to trim administrative procedures and show enterprises that weare serious about helping them to industrialise and morderniseagriculture and rural areas," he noted.-VNA
Minister of Agriculture and RuralDevelopment Cao Duc Phat noted that investments by private businesses inthe area had increased by 1.9 times from 2009-13.
Thenumber of companies investing in agriculture rose from around 2,400 in2007 to 3,635 in 2013, an average growth rate of 13.8 percent per year.Private firms accounted for nearly 90 percent of the figure, creatingjobs for some 265,000 workers.
Companies such as Vinamilk,TH Truemilk, Minh Phu Seafood and property developer Hoang Anh Gia Laihave become locomotives driving high-tech application and marketexpansion in the agricultural sector in many localities.
Real estate giant Vingroup, major telecommunications service providerViettel and multi-sector business group FLC have also expressedintentions to invest in the field.
The Government hasissued specific resolutions last year and this year to speed up theimprovement of the agricultural business environment.
TheMinistry of Agriculture and Rural Development (MARD) has alsoestablished a working group with the participation of its managementagencies and 30 key enterprises to attract agricultural investments.
Despite the aforementioned increases, Minister Phat saidinvestments in agriculture remained limited and unstable. In 2014,businesses operating in this sector accounted for only about 1 percentof the total firms in the country, and more than half of them were ofsmall scale with capital of less than 5 billion VND (238,100 USD).
Representatives of the World Bank and many companies said thatbetter conditions related to land, infrastructure, taxes and fees, aswell as investment promotions and technological development should beput in place in order to attract more interest in agriculture.
Deputy Prime Minister Hoang Trung Hai said challenges have becomegreater for agricultural development as the country will enter a varietyof free trade agreements.
He said land issues, especiallysite clearance, is the biggest obstacle facing companies, and ministriesand sectors will have to scrutinise them for appropriate settlements inthe coming months.
He suggested enterprises shouldprioritise forming links with farmers instead of asking for land grants,since the growing Vietnamese population has left the per-capita area ofland for production small.
Hai said the Government wouldfocus its investments on agricultural infrastructure, includingirrigational works and rural traffic, urging the MARD-led working groupto concentrate on developing advantageous lines of products.
He urged enterprises to either team up or foster public-private partnerships.
The Deputy PM also urged agro-businesses to produce more qualityproducts and pay more attention to the interests of the community inorder to gain consumer confidence.
"The Government willcontinue to trim administrative procedures and show enterprises that weare serious about helping them to industrialise and morderniseagriculture and rural areas," he noted.-VNA
