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COVER STORY

In need of

encouragement

While investment attraction has been low for many years, Vietnam’s
agriculture sector still possesses potential for foreign investors if
additional government support is forthcoming.

T KHANH CHI REPORTS

ietnam’s agriculture sector has long the effects of African Swine fever, and from country’s GDP last year, compared to 41.6
struggled to attract substantial 2020 there have been knock-on effects from per cent by services and 33.7 per cent by
V amounts of FDI. As of June, project Covid-19. Despite the low level of FDI, the industry. Though agriculture has doubled in
numbers in the sector accounted for just 2.56 agriculture sector has proven to be resilient terms of value over the last decade, its share
per cent of the total and capital 0.5 per cent, and able to absorb major impacts. But the of GDP has witnessed an average annual
according to the Foreign Investment Agency. level of FDI in the sector has remained low.” decline of 0.3 per cent, according to Dezan
“The investment environment in Vietnam’s Shira & Associates.
agriculture sector has been stable for some Limited interest With $41.2 billion in agriculture export
time, despite major issues affecting the econ- Agriculture is a key sector in Vietnam’s value last year, Vietnam ranked 16th globally.
omy,” said Mr. David John Whitehead, Chair- economy and agriculture, forestry and fisheries While the sector still holds enormous potential,
man of the Mavin Group. “In 2019, we suffered together contributed 14.9 per cent to the FDI continues to be limited.

AUGUST 2021 | VIETNAM ECONOMIC TIMES | 11