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COVER STORY

PHOTOS: VIET TUAN
Sojitz have invested in Minh Phu and Rynan eration and development, Mr. Voisin from While the Vietnamese Government has
over the last few years. EuroCham suggested. They should also seri- favorable policies and regulations to promote
From BritCham’s standpoint, the pandemic ously investigate geographical areas affected the application of high technology in the agri-
has mostly impacted supply chains. This is true by climate change and introduce a clear policy culture sector, foreign investors face a number
of both input and output markets, where delays on knowledge transfer. The key is access to of issues, according to Ms. An. If the following
are now common as prevention takes prece- property and loans with special interest rates, were to be realized, she explained, it would
dence. The best strategy for agricultural FDI to which would incentivize investment. certainly open the door to a surge of FDI into
adopt during this time would be a continued Mr. Whitehead, meanwhile, said Mavin Vietnam. Her first suggestion is to reduce red
focus on safety in everything they do, including will continue to develop genetics to improve tape in the importation of machinery, equip-
sanitary products, social responsibility, and staff the quality and disease resistance of its pigs ment, and bio-materials for technological inno-
welfare. More than ever before, foreign investors and poultry in Vietnam. “We continue to invest vations in agriculture. It is said that lengthy
are encouraged to help with food supply chain in aquaculture and in improved smart farming procedures for importing inputs in the agri-
continuity, adapting to the situation and working methods with a view to providing high quality tech business is a key obstacle for FDI.
out how to live in the “new normal”. and clean food to the people of Vietnam and Secondly, it would be more workable for
Vietnam is still a very agriculture-driven the world,” he confirmed. “It would be helpful foreign investors to see greater transparency
economy, with a substantial proportion of if the government could make the processes in incentives, environment regulations, and
the population involved - either directly or and procedures involved in the allocation of State management of the sector and sub-sec-
indirectly - in food production. Thus, for- land more user friendly and efficient, to allow tors. Many foreign companies have had
eign-owned agribusinesses should avoid com- for the expansion of large farming enterprises, tremendous difficulty in navigating their
petition with local farmers and, rather, build as opposed to small land holdings where there strategies when expanding to Vietnam due
relationships to integrate those farmers into are minimum opportunities for disease control to a lack of transparency in policies over land
a “win-win” partnership of long-term coop- and good animal husbandry.” acquisition and capital markets. %

AUGUST 2021 | VIETNAM ECONOMIC TIMES | 13