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COVER STORY

PHOTOS: VIET TUAN
out that exports of Vietnamese agricultural nearly 1 per cent of the total. This contrasts is prioritizing investor selection in terms of
products have seen impressive growth, with with the advantages of and potential for agri- technology, global chain connections, and
volumes of exported cashew nuts, fruit and cultural development in the country, which environmental sustainability.
vegetables, and wooden products growing has long been in the top 5 largest exporters of At a conference to review the first half of
between three- and eight-fold since 2009. rice, coffee, pepper, rubber, and seafood, the year and tasks for the second half, held in
“Most local farms still engage in traditional among others, and has nearly a dozen agri- late June, Minister of Agriculture and Rural
farming,” he noted. “Advanced Japanese food cultural products with annual export value in Development Le Minh Hoan emphasized that
and agri-firms can find opportunities to coop- the billions of dollars. MARD and other ministries will have a
erate with these farms to make production According to many economic experts, one response for when the market fluctuates and
more efficient and value-added.” of the main reasons for the low figures is the adopt a new mindset to activate the entire
MARD has issued Official Letter No. 3293 difficulty for FDI enterprises to access land system in connecting information and data
calling for FDI in the agriculture, forestry and build stable raw material areas, while between supply and demand.
and fisheries sector in the 2021-2025 period, logistics support services and infrastructure Concluding a meeting with MARD in May,
requesting that cities and provinces review, for agricultural production are also limited. Prime Minister Pham Minh Chinh emphasized
update, and adjust projects seeking FDI. From a Japanese point of view, Mr. Takeo that the orientation and development of the
According to the Dien Bien Provincial Depart- said that finding suitable partners and pene- agriculture sector is to focus on transforming
ment of Planning and Investment, this has trating into the market are significant obstacles. the growth model and changing the mindset
opened up opportunities for the province to “Most Vietnamese agriculture firms are small from agricultural production to agricultural
attract FDI in agriculture, forestry and fisheries. and not organized,” he explained. “Cooperation economic development, from the supply chain
Another important factor for Vietnam is with small firms is complex and requires a of agricultural products to the value chain of
the bilateral and multilateral trade deals it different approach than between major firms commodities, and from high-yield agriculture
has signed with Asia-Pacific and European such as Mitsui and Minh Phu Seafood. Also, to high-tech, ecological agriculture.
partners. “Foreign investors will be able to Vietnam’s food market is still not large enough In developing a strategy to attract FDI, the
find market opportunities both in Vietnam for Japanese manufacturers and service agriculture sector needs to improve its invest-
and in its partner countries,” Ms. Tam said. providers, even though Japanese food is ment environment and ensure policy trans-
gaining in popularity.” parency. Mr. Takeo said that provinces have
Short of potential In order to attract FDI into agriculture in been active in attracting FDI into manufac-
Figures from the GSO note that FDI in the 2021-2025 period, according to the Infor- turing, but not so much with agriculture. “Few
agriculture, forestry and fisheries in the first mation Center for Agriculture and Rural regions promote foreign investment in agri-
half of 2021 only accounted for 0.5 per cent Development, it is necessary to develop an business,” he said. “Information is limited. I
of total FDI in Vietnam. As of June, FDI in the attraction strategy. Investment in agri-pro- believe that all Vietnamese localities have the
sector stood at $3.6 billion, accounting for cessing with high added value is needed, as potential to attract FDI in agriculture.” %

10 | VIETNAM ECONOMIC TIMES | AUGUST 2021