One-Third of Agri-Firms Incur Losses: MARD

One-third of all existing agricultural enterprises, or more than 5,000 entities, have reported losses, according to the Ministry of Agriculture and Rural Development (MARD).

 

The ministry has released a report, which says that only 60 per cent of enterprises involved in agriculture are making profits, while the remainders are incurring losses, although the number of unprofitable enterprises has decreased over the last three years.

 

According to Doan Dinh Thiem, Head of MARD’s State Owned Enterprise Renovation and Management Committee, the average loss is from VND800 million (US$50,600) to VND1 billion (US$62,893) per entity.

 

The majority of agricultural enterprises are small and medium scale, 60 per cent of them have total capital of less than VND10 billion ($628,000). In the field of seafood production, all enterprises have capital of less than VND10 billion. Only 1 per cent of enterprises in any field have capital of more than VND200 billion ($12.6 million).

 

MARD officials said at a business forum held in Hanoi on May 17, that agricultural enterprises have been through a very low growth period, compared to enterprises operating in other fields.

 

This is why the ministry has put forward several solutions aiming to support agricultural enterprises, including VAT and corporate income tax (CIT) exemptions on several subjects.