Experts: Land use planning key to agriculture development
VOV.VN - Agriculture and its related group of industries, hereinafter referred to as simply agriculture, in Vietnam provide employment to millions of people and are the backbone of the rural economy.
The industry is currently undergoing a massive transformation, evolving from simply a traditional way of life to a professionally managed industry offering plenty of areas to choose for investment.
According to a spokesperson for the Foreign Investment Agency, current foreign direct investment (FDI) for such agricultural related purposes as crop prodcution, raising livestock, acquaculture, forestry and fishing is relativley low.
Nationwide there are only about 530 foreign investment ventures registered at US$3.7 billion in agriculture, accounting for just an estimated 1.4% of total FDI in the country, said the spokesperson.
The combination of low productivity, added value, on-farm profitability combined with excessive debt, which are characteristics common to agriculture not just here in Vietnam, but also globally, are just not that appealing to foreign investors, he said.
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These endeavours include a hi-tech vegetable farm in the Central Highlands province of Lam Dong, growing mangoes for export to Japan in the Mekong Delta province of Dong Thap, another project in the northern province of Vinh Phuc and a fishing project in the central province of Binh Dinh.
“Inappropriate national and local government intervention that restricts investors ability to use farmland land freely is the number one impediment to attracting FDI in agriculture,” said Mr Kawada.
“Japanese investors perceive this government interference as symptomatic of deep-seated weaknesses in its capacity for policy formulation and implementation, particularly at the local governmental level.”
He said the failure to have an effective land reform strategy also negatively impacts the ability of the marketplace and producers in the agriculture industry to organize alternative processing and sales outlets.
If the goal is to attract significant amounts of FDI in the future into agriculture than land reform aimed at providing foreign investors with clear and unambiguous land use rights must be one of the building blocks.
Professor Nguyen Mai, president of the Vietnam Association of Foreign Invested Enteprises mirrors Mr Kawada views on the importance of land use reform saying it “is without question one of the pillars of restructuring agriculture.”
“It’s time to change the thinking in attracting foreign investment in agriculture. It’s important to pay attention to the desires of investors as to what kinds of plants and animals they want to raise,” said Professor Mai.
Dr Nguyen Anh Phong from the Institute of Policy and Strategy in Agriculture and Rural Development agrees saying, “the competitiveness of agriculutrue remains weak and the added value of farm produce remains far too low.”
To stimulate FDI in agriculture, the government needs to set priorities to restructure the nation’s land use laws, continue to improve infrastructure and be more proactive in supporting private companies’ development of the industry, Dr Phong concluded.
