Vinh Phuc: Boosting Investment in Agriculture and Rural Sectors

3:25:35 PM | 19/6/2015

To contribute significantly to the restructuring of the agricultural sector towards sustainable development, Vinh Phuc has attracted hundreds of businesses and investors to invest in the agricultural sector.
Businesses play an important role in the process of creating agricultural value chains. The facts show that linkages of production and marketing between enterprises and farmers in recent years have helped stabilise outcomes of the farmers and raise the living standards. Japfa Comfeed Company has invested in Vietnam since 1996; the company has an animal feed factory and a chicken farm in Vinh Phuc, with total investment of over US$12 million. After more than 18 years, the company has raised its investment to more than US$60 million, including five factories operating in the field of breeding, animal feed production, and processing of livestock poultry, livestock and livestock products for export in provinces of Vinh Phuc, Long An, Hoa Binh, Thai Binh and Binh Thuan. Particularly, the chicken farm in Vinh Phuc provides millions of chickens to the market every year. With a closed farming system for hatchery, breeding livestock and animal feed processing and application of modern poultry farming technologies, the company has helped improve the lives of livestock producers.
According to statistics, currently, Vinh Phuc has more than 100 enterprises operating well in the field of agriculture, forestry and fisheries, and only 30 percent of products from pork, eggs, poultry, fisheries and likewise were distributed to slaughterhouses and stores.
Attracting investment in agriculture and rural areas is still difficult because these are high-risk areas. Meanwhile, mechanisms and policies of the government in this field is not strong enough. Land management mechanism is still controversial; the land for agriculture is fragmented, which caused major obstacles for the development of large-scale production and application of advanced techniques. Quality of rural labour is limited; the labour has not met high-level requirements of the companies. There remains a lack of a true cooperative that represents for farmers and enterprises in production; the market is unstable, causing difficulties for the production, processing and consumption. And the business is facing the toughest problem of how to get the right agricultural production scale.
To encourage and attract business investment in the agricultural sector and rural areas, Decree 210 of the Government was implemented to encourage enterprises to invest in agriculture and rural development through exemption or reduction of land use and fee payable to the State budget; supports of VND2-5 billion for investment projects in poultry and slaughterhouses, high-yield dairy projects, waste disposal, transportation, electricity, water, buildings, grassland and equipment purchasing. Besides, Vinh Phuc also issued a number of mechanisms and incentives including meetings and discussions to remove difficulties for enterprises to invest in this field. Specifically, along with reforms in social infrastructure and human resource training, administrative procedures are put on top. The duration of business registration procedures have been reduced from 15 days to 5 days or even less than 3 days. Regarding the consolidation of agricultural land, the Provincial People's Committee has allowed businesses to reach an agreement with the farmers to rent their lands in 5 or 10 years and encouraged the farmers to contribute their lands for join projects with enterprises. It is expected that the province will support land rents of VND5-6 million (equivalent of US$250 and 300) per year for organisations and individuals to overcome difficulties and adapt to competitive environment during the international integration.
In addition to the investment projects in the agricultural sector with total capital of US$49 million, recently, many investors such as Vingroup have been looking for investment opportunities in the high-tech agriculture sector. The Vingroup has decided to invest in a vegetable production project in Vinh Phuc with an area of 500 hectares and a total investment of VND500- 700 billion. Accordingly, Vingroup will use 20 hectares for application of PE Greenhouse technology, 80 hectares for grid greenhouse technology of Japan and the remaining for the application of mechanization, automation, construction of processing and preserving fruits and vegetables after harvest. This project will use at least 100 types of high quality seeds and the traditional seeds of Vietnam to provide high-quality 7,000 to 10,000 tonnes of seeds per harvest at reasonable price. Together, Vingroup will provide good training plans and local labour resources to develop agricultural workers who are capable of using advanced cultivation technology. This strategic investment in agriculture in the current period will bring new achievements in agricultural development of Vinh Phuc.
Thanh Nga