Hanoi Attracts Investment in Agricultural Product Processing

9:48:11 AM | 3/10/2024

To increase the value of agricultural products and solve the problem of congestion of agricultural products during the harvest season, Hanoi is implementing many solutions to improve agricultural processing capacity as well as promulgating mechanisms and policies to attract businesses invest in this field.

In addition, many businesses build factories with modern processing technology, but because they are not linked to raw material areas and are oriented towards consumption and export, they only operate for a period of time and suffer losses.

For example, in 2010, Food Export Joint Stock Company (Dan Phuong district) invested more than 30 billion VND to install a pig slaughter line (capacity of 600 pigs/day. After a few years of operation, due to market investment, It was not stable so it had to close.

Some other businesses have invested tens of billions of dong to build processing factories, but so far they are only operating at 15-30% of designed capacity because there is no market, such as: JSC's cattle slaughter factory. Vinh Anh Food (Thuong Tin district); Slaughter and preliminary processing factory of Minh Hien Food Company Limited (Thanh Oai district)...

To support businesses, Hanoi implements policies to support investment in building preliminary processing, processing, seed preservation, and agricultural product preservation facilities according to Decree No. 57/2018/ND-CP dated April 17/ 2018 of the Government on mechanisms and policies to encourage businesses to invest in agriculture and rural areas.

However, up to now, no business in the city has enjoyed this regulation. The main reason is that there is no policy on land funds to build processing infrastructure associated with production areas; Access to bank capital is difficult due to problems with mortgages, financial proof, post-investment support...

Deputy Director of Hanoi Department of Agriculture and Rural Development Ta Van Tuong said that with the current rate of urbanization, it is difficult for Hanoi to build large raw material areas for deep processing; The construction of product distribution channels is also limited, so output is unstable.

Although there are still many difficulties and obstacles, Hanoi also has effective deep processing models.

Starting in 2008, with 2 hectares in Cu Khoi ward (Long Bien district), Tue Vien Organic Farm is one of the first organic vegetable brands in Hanoi introduced into supermarket systems. On average, each year Tue Vien Organic Farm achieves billions of VND in revenue from producing organic vegetables and products processed from leafy plants, such as shampoo, dishwashing liquid, hand sanitizer...

Meanwhile, Director of Ba Vi Dairy Joint Stock Company (Ba Vi district) Le Hoang Vinh shared that in order to purchase fresh milk for local farmers when there is large output and slow consumption market, the company has invested Modern production lines, processing fresh milk into yogurt products, milk cakes... However, to be successful, it is necessary to associate with raw material areas, establish markets, diversify products, and actively promote on social networking platforms.

Talking about investment in agricultural and food processing, Mr. Ta Van Tuong said that Hanoi will choose strong products with large production areas to invest in deep processing. Accordingly, for the fruit tree group, focus on dried banana products; orange and grapefruit juice; For vegetables, focus on spices for flavoring processing and macrobiotic products; with livestock, focusing on processing products from pork.

Along with the above solution, the City People's Council passed a Resolution stipulating a number of policies to encourage agricultural development in Hanoi, including policies to encourage the construction of preliminary processing and processing facilities; Support machinery and equipment for digital transformation...

Implementing this policy, the Capital's agricultural sector is coordinating with departments, branches and localities to review needs and guide businesses to access preferential capital sources; At the same time, grasp problems when implementing resolutions to promptly propose solutions to support businesses and units in terms of procedures, capital sources...

Hanoi sets a goal that by 2025, 50% of establishments processing and processing vegetables, fruits, meat, eggs, milk... will use modern machinery and equipment, applying technology. high quality, preserving products according to advanced quality management processes. By 2030, the city will form 15 agricultural product processing facilities associated with the value chain, applying modern technology, having competitiveness, meeting domestic and export market needs; Developing a one-stop processing, preservation and inspection complex to support export products.

Source: Vietnam Business Forum