The Government has recently issued the Decree No. 61/ND-CP on incentive investment policies for agriculture and rural development. Accordingly, foreign investors will enjoy many preferences like land water surface rental and tax exemption etc. This decree has actually rolled out the red carpet" to welcome foreign investors to do business in these fields.
In early September, 20 Korean companies operating in the fields of agricultural machine importing and exporting, agricultural processing, seafood processing, farming and agriculture visited Vietnam to seek cooperation opportunities and study environment and preferential policies for foreign investors in the country.
Mr Jae Hyun Cho, Director of the ASEAN-Korea Centre's Development Planning and General Affairs Unit, said South Korean companies are actively contacting Vietnamese partners and industrial parks to discuss opportunities of trading and investment cooperation.
“Our fields of interest include agricultural machinery, forestry, fisheries, foods, drinks, handicrafts, household appliances, energy source development, distribution systems, technology transfer consulting and joint venture,” said Jae Hyun Cho.
Mr Do Nhat Hoang, Director of Foreign Investment Agency under the Vietnamese Ministry of Planning and Investment, said, in addition to the above incentives, South Korean investors will be supported with human resource training, transport haulage and scientific and technological application.
Ms Tran Thi Mieng, Deputy Director of the Department of Processing and Trade for Agro-forestry-Fisheries Products and Salt Production under the Ministry of Agriculture and Rural Development, admitted that Vietnam has not properly appreciated the opportunity from agricultural investment; thus, the result is limited. According to the Ministry of Planning and Investment, the agriculture lured some 8 % of foreign investment capital in 2001 but the value equalled less than 1 % in 2009 while service and real estate made up more than 70 %.
Sharing the viewpoint with Ms Mieng, Mr Hoang acknowledged that foreign investors were very keen on real estate, steel, cement and infrastructure fields while disregarding agricultural projects. It is time Vietnam boosted investment capital in agriculture.
Mr Jae Hyun Cho added South Korean businesses can satisfy all requirements of processing techniques and technologies for coffee, tea and other agricultural commodities from Vietnam. Aquaculture is also the strength of South Korean businesses.
Since Vietnam officially joined the World Trade Organisation (WTO) and ASEAN - Korea Free Trade Agreement signed in 2007, the bilateral trade turnover has increased dramatically. In the first seven months of 2010, the two-way trade revenue reached US$6.47 billion, of which Vietnam exported US$1.39 billion. The two nations target to bring the bilateral trade turnover to US$20 billion in 2015. Vietnam’s key agricultural products exported to South Korea include bakes and cereal products (US$6.8 million), 15,000 tonnes of coffee (US$21 million), nearly 18,000 tonnes of rubber (US$47 million), wood products (US$71 million), vegetables (US$6.7 million), and particularly seafood (US$180 million).
According to the Foreign Investment Agency, as of April 2010, South Korea is the largest investor in Vietnam with more than 2,495 projects and a total registered investment capital of nearly US$22 billion. In the first five months of 2010, the East Asian invested US$2.214 billion in 99 new projects. In addition, 22 existing projects added US$124 million of investment capital.
Huong Ly
Vietnamese
