Vietnam, with favourable weather conditions, fertile land and diligent labour force, has great potentials for agriculture development.
The country, for the last many years, has always been one of the biggest rice exporters in the world, thanks to which it is called the “Asian rice bowl”.
In 2012-2013, though facing big economic difficulties, Vietnam still could export 6-7 million tonnes of rice every year.
However, Vietnam’s agriculture had not attracted foreign investors until recently, when they could see a clear opportunity for them to exploit the great potentials.
The opportunity has come when Vietnam opens its doors widely by becoming a member of the regional and the world’s free trade agreements (FTA), including the imminent Trans-Pacific Partnership Agreement (TPP) and the Vietnam-EU agreement.
Once Vietnam joins the FTA playing field, the tariff barriers will be removed, which would pave the way for the country’s farm produce to access the world’s markets.
Japan, which well understood Vietnam’s great potentials for agriculture development, began sending its specialists to the country two or three years ago to learn about the feasibility of the outsourcing-based investment mode, which would help settle Japanese problems once it joins TPP.
International observers said Japan may “make compromise” during negotiations on the tariffs on some farm produce when it joins TPP. If so, the country would have to cooperate with those having great potentials for agriculture development. Vietnam is one of them.
Observers have said that Vietnam will get big benefits from the foreign investments in agriculture. Foreigners would bring huge capital and modern technologies to Vietnam, the things that Vietnam needs, to develop the agriculture production in the country.
Japanese, Israeli or Australian technologies are believed to help farmers have bountiful crops in the country where the soil is fertile and the weather favourable.
Especially, the foreign investment is believed to help popularise Vietnamese farm produce brands in the world market. Stronger brands would surely bring more money to Vietnam, thus helping it clear the “low-price agriculture” image in the eyes of the world’s consumers.
Attractive preferences promised for agriculture investors
The Ministry of Industry and Trade has released Circular No. 02 stipulating that from February 7, the imported materials for domestic agriculture production (forestry, husbandry, aquaculture and salt production) would be listed would be exempted from the import tax – the incentives reserved for specially preferential investment projects.
Prior to that, the government issued Decree No. 210, offering more incentives for the investment projects in the agriculture sector than those stipulated in the Decree 61. The big incentives aim to help call for more investment and strengthen the resources for the agriculture development.
Investors would be exempted from the land use fee if they develop the exceptionally preferential projects in agriculture. The 70 percent land use fee reduction would be offered to preferential investment projects
