Businesses’ investment plays vital role in sustainable agriculture development
Attracting businesses and investors to pour capital into sustainable agricultural value chains is seen as a key solution to pave the way for, and create breakthroughs in the sector’s development amid intensive integration and the volatile global economy, according to insiders.
Agriculture is considered as a highlight in Vietnam’s economic panorama in 2023. The sector set to earn US$54 billion in export turnover in 2023.
In recent year, big enterprises’ investments in agriculture have proven effective, helping Vietnamese farm produce be successful in conquering the international market.
Outstanding businesses like Loc Troi Group, Vinamilk, TH Group, Trung An, Folra, Vina T&T, Vinh Hoan, and Minh Phu have exported their agricultural products to many demanding markets.
Experts attributed these results to the guiding role of businesses in creating high-value agricultural products.
They, however, noted agriculture still faces challenges and risks that may make investors and businesses reluctant to enter the sector, adding that it remains less attractive compared to other industries.
According to Minister of Agriculture and Rural Development Le Minh Hoan, the newly-registered foreign investment capital in agriculture surged to US$12.5 million per project in 2017, but decreased to US$4.2 million per project in 2021.
According to a resolution issued by the 13th-tenure Party Central Committee on the development of agriculture, farmers and rural areas till 2030 with a vision to 2045, Vietnam will accelerate the application of science and technology to further promote agriculture development, focusing on improving the quality and added value of agricultural products.
The Government has also issued many policies and speed up administration reform to attract and facilitate businesses’ investment in developing sustainable and safe agriculture models.
The Ministry of Planning and Investment has submitted a draft decree on support for agricultural projects to the government, which is expected to lure more investment to the sector.