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Vietnam agricultural sector targets US$1.5 billion in FDI
15 | 09 | 2007
In August 2007, the Ministry of Agriculture and Rural Development (MARD) has issued a strategy and plans for FDI projects. Accordingly, the agriculture sector is expected to attract US$1.5 billion for scheduled projects by 2010.

To attract more FDI capital in the near future, the agriculture sector will carry out 3 large tasks, namely, improving the efficiency and quality of planning for each product, completing the policy on land and commercial promotion, and intensifying the quality of FDI attraction.

The state should encourage foreign enterprises to invest in agricultural products, forestry, wooden products, and breeding in order to increase the value of agricultural products for export and reduce poor quality products being exported. Budget capital and ODA capital will be invested in developing rural infrastructure, training skills for farmers, researching science, and transforming technology.

According to the MARD, at present, Vietnam possesses 758 FDI projects in the agriculture sector, bringing about a turnover of US$312 million and exports worth more than US$100 million.

However, little FDI capital has been injected into Vietnam’s agriculture sector. In Asian countries and territories with a progressive agriculture industry such Japan, the Republic of Korea, and Taiwan (China), FDI capital often remains at between 13 percent and 21 percent. FDI capital registered in the agriculture sector only posted about 5.6 percent and in the first six months of 2007, FDI in agriculture only accounted for 2.46 percent out of the national FDI.

According to economic experts, foreign enterprises often attach importance to projects which are quick in taking back capital such as food and agricultural products processing. Moreover, projects to develop biological technologies are not always attractive to foreign investors.

Source: Vietnam Economic News
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