More and more foreign investors have poured their money into Vietnam'sagriculture, a sector which was never before attractive to them. Aninsight by VietnamNet.
Great potential, great opportunity
Vietnam, with favourable weather conditions, fertile land anddiligent labour force, has great potentials for agriculture development.
The country, for the last many years, has alwaysbeen one of the biggest rice exporters in the world, thanks to which itis called the “Asian rice bowl”.
In 2012-2013, though facing big economic difficulties, Vietnam still could export 6-7 million tonnes of rice every year.
However, Vietnam’s agriculture had not attracted foreign investorsuntil recently, when they could see a clear opportunity for them toexploit the great potentials.
The opportunity has come whenVietnam opens its doors widely by becoming a member of the regional andthe world’s free trade agreements (FTA), including the imminentTrans-Pacific Partnership Agreement (TPP) and the Vietnam-EU agreement.
Once Vietnam joins the FTA playing field, thetariff barriers will be removed, which would pave the way for thecountry’s farm produce to access the world’s markets.
Japan,which well understood Vietnam’s great potentials for agriculturedevelopment, began sending its specialists to the country two or threeyears ago to learn about the feasibility of the outsourcing-basedinvestment mode, which would help settle Japanese problems once it joinsTPP.
International observers said Japan may “makecompromise” during negotiations on the tariffs on some farm produce whenit joins TPP. If so, the country would have to cooperate with thosehaving great potentials for agriculture development. Vietnam is one ofthem.
Observers have said that Vietnam will get big benefitsfrom the foreign investments in agriculture. Foreigners would bring hugecapital and modern technologies to Vietnam, the things that Vietnamneeds, to develop the agriculture production in the country.
Japanese, Israeli or Australian technologies are believed to helpfarmers have bountiful crops in the country where the soil is fertileand the weather favourable.
Especially, the foreigninvestment is believed to help popularise Vietnamese farm produce brandsin the world market. Stronger brands would surely bring more money toVietnam, thus helping it clear the “low-price agriculture” image in theeyes of the world’s consumers.
Attractive preferences promised for agriculture investors
The Ministry of Industry and Trade has released Circular No. 02stipulating that from February 7, the imported materials for domesticagriculture production (forestry, husbandry, aquaculture and saltproduction) would be listed would be exempted from the import tax – theincentives reserved for specially preferential investment projects.
Prior to that, the government issued Decree No. 210, offering moreincentives for the investment projects in the agriculture sector thanthose stipulated in the Decree 61. The big incentives aim to help callfor more investment and strengthen the resources for the agriculturedevelopment.
Investors would be exempted from the land usefee if they develop the exceptionally preferential projects inagriculture. The 70 percent land use fee reduction would be offered topreferential investment projects.-VNA
Great potential, great opportunity
Vietnam, with favourable weather conditions, fertile land anddiligent labour force, has great potentials for agriculture development.
The country, for the last many years, has alwaysbeen one of the biggest rice exporters in the world, thanks to which itis called the “Asian rice bowl”.
In 2012-2013, though facing big economic difficulties, Vietnam still could export 6-7 million tonnes of rice every year.
However, Vietnam’s agriculture had not attracted foreign investorsuntil recently, when they could see a clear opportunity for them toexploit the great potentials.
The opportunity has come whenVietnam opens its doors widely by becoming a member of the regional andthe world’s free trade agreements (FTA), including the imminentTrans-Pacific Partnership Agreement (TPP) and the Vietnam-EU agreement.
Once Vietnam joins the FTA playing field, thetariff barriers will be removed, which would pave the way for thecountry’s farm produce to access the world’s markets.
Japan,which well understood Vietnam’s great potentials for agriculturedevelopment, began sending its specialists to the country two or threeyears ago to learn about the feasibility of the outsourcing-basedinvestment mode, which would help settle Japanese problems once it joinsTPP.
International observers said Japan may “makecompromise” during negotiations on the tariffs on some farm produce whenit joins TPP. If so, the country would have to cooperate with thosehaving great potentials for agriculture development. Vietnam is one ofthem.
Observers have said that Vietnam will get big benefitsfrom the foreign investments in agriculture. Foreigners would bring hugecapital and modern technologies to Vietnam, the things that Vietnamneeds, to develop the agriculture production in the country.
Japanese, Israeli or Australian technologies are believed to helpfarmers have bountiful crops in the country where the soil is fertileand the weather favourable.
Especially, the foreigninvestment is believed to help popularise Vietnamese farm produce brandsin the world market. Stronger brands would surely bring more money toVietnam, thus helping it clear the “low-price agriculture” image in theeyes of the world’s consumers.
Attractive preferences promised for agriculture investors
The Ministry of Industry and Trade has released Circular No. 02stipulating that from February 7, the imported materials for domesticagriculture production (forestry, husbandry, aquaculture and saltproduction) would be listed would be exempted from the import tax – theincentives reserved for specially preferential investment projects.
Prior to that, the government issued Decree No. 210, offering moreincentives for the investment projects in the agriculture sector thanthose stipulated in the Decree 61. The big incentives aim to help callfor more investment and strengthen the resources for the agriculturedevelopment.
Investors would be exempted from the land usefee if they develop the exceptionally preferential projects inagriculture. The 70 percent land use fee reduction would be offered topreferential investment projects.-VNA
