Vinh Phuc Accelerating High-tech Agricultural Investment

Vinh Phuc province’s foreign direct investment (FDI) value in the first eight months of 2023 increased by 71% compared to the same period in 2022 and was 27% higher than the full-year target. This impressive result highlights the province’s strong appeal to investors.

The groundbreaking ceremony of Vinabeef Tam Dao

Toward sustainable development

The Department of Planning and Investment announced that Vinh Phuc aims to secure US$2-2.5 billion of FDI funds from countries such as Japan, South Korea, Singapore, China and the United States in the period of 2022-2030. The province intends to attract 1-5 of the world’s leading multinational corporations. Vinh Phuc will prioritize high-tech agriculture, organic fruit and vegetable production, high-tech livestock and poultry farming, and agricultural processing along the value chain. This strategy will ensure sustainable development for Vinh Phuc in the future.

To attract investment capital for high-tech agriculture, Vinh Phuc has concentrated on unlocking many markets worldwide. In early March 2023, Vietnam Livestock Corporation (Vilico) under Vietnam Dairy Products Joint Stock Company (Vinamilk) and Sojitz Corporation of Japan held a groundbreaking ceremony for the VND3,000 billion (US$125 million) Vinabeef Tam Dao cow breeding and beef processing complex in Minh Quang commune, Tam Dao district. The complex is the first project to be implemented under the memorandum of understanding (MoU) on a US$500 million investment signed by Vinamilk, Sojitz Group and Vinh Phuc province in late 2021. The groundbreaking ceremony demonstrated the effort and resolve of these companies and Vinh Phuc province in boosting cooperation in high-tech agriculture and food production and processing.

Vinabeef Tam Dao is a state-of-the-art facility spanning nearly 76 hectares. It consists of two main subdivisions: a beef cattle farm with a capacity of 10,000 head and a cool beef processing factory with an annual output of 30,000 cows (equivalent to 10,000 tons of products). Scheduled to be operational in 2024, Vinabeef Tam Dao adopts a closed 4-in-1 process: farming, production, processing and distribution. This integrated approach ensures the delivery of exceptional products, including cool beef that is guaranteed to be fresh, delicious, nutritious and safe for Vietnamese consumers.

With a focus on ecological agriculture and scientific and technological applications, Vinh Phuc province is committed to developing environmentally friendly green agriculture. The province aims to adapt to climate change, reduce rural environmental pollution, and minimize greenhouse gas emissions by 2030. The agricultural sector is projected to grow at an annual rate of 2.5%, while labor productivity within the sector is expected to increase by 5.5-6% per year. By 2045, Vinh Phuc aspires to become a leading province in sustainable and ecological agriculture. It aims to achieve large-scale operations with high commerciality and added value while establishing strong connections with domestic and international markets. The province will also foster modern agricultural processing and preservation sectors.

Commitments from the government

During discussions with investors and partners, Vice Chairman of the Provincial People’s Committee Vu Chi Giang emphasized Vinh Phuc’s commitment to improving the quality of administration at all levels. Provincial leaders actively support businesses and investors throughout their investment research and project implementation.

Vinh Phuc aims to become a developed industrial province and one of the industrial, service, and tourism centers of the region and the country. The province hopes to attract many large corporations to invest in the following fields: computer, telephone, and electronics industry; semiconductor industry; automobile industry, electric vehicle industry, pharmaceutical industry, high-tech agriculture, trade and services, and tourism.

To support local businesses, domestic and foreign investors, especially multinational corporations and strategic investors interested in learning about investment opportunities in the province, Vinh Phuc leaders will direct all levels and sectors of government to effectively implement the following measures:

Applying general investment incentive policies for businesses by law.

Introducing local investment support policies and developing sets of policies to diversify investment fields and expand access to investment support for businesses and investors in the province.

Supporting businesses in accessing land quickly by preparing available land funds, directing site clearance, and generating available land for new investment projects.

Supporting businesses in solving labor matters such as worker training and recruitment.

Investing in infrastructure for industrial zones and tourist areas while supporting essential production/business conditions for companies.

Furthermore, the province will quickly resolve investment-related administrative procedures, continue to review and simplify administrative procedures, and radically direct and manage prompt settlement of emerging hardships faced by businesses.

By Hien Nam, Vietnam Business Forum