More Investment Incentives Needed for Agriculture

The State should adopt more special incentives to encourage investors to engage in agriculture and rural development, a seminar in Hanoi on August 19 heard.

There are still huge investment opportunities in the agriculture and rural sector.

Vietnam Chamber of Commerce and Industry General Secretary Pham Gia Tuc said the government needs to focus on dealing with capital shortages and working out preferential policies to attract more investors in the field.

Meanwhile, the Institute of Policy and Strategy for Agricultural and Rural Development cited complicated licensing and land allocating procedures and tardy project site clearance as the biggest obstacles hindering business operations.

According to delegates, there are still huge investment opportunities in the agriculture and rural sector despite its poor infrastructure facilities.

Many localities boast good farmland that is adaptive with agricultural and industrial crops of high economic values, they said.

Viet Nam ’s abundant workforce, reasonable labour costs, and growing demands for agricultural products are factors that promise to bring big benefits to investors.

However, participants pointed out a fact that the flow of foreign direct investment (FDI) in the area remains modest as just US$34.3 million were registered for 18 projects, making up 0.77 percent and 2.75 percent of the country’s total, respectively.

Source: VNA

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