The Agriculture and Rural Information Center (Agroinfo) forecasts a doubling of foreign investment in Vietnam’s agricultural sector by 2030, aiming for an impressive $34 billion influx. Despite this ambitious target, industry experts have raised concerns about its feasibility.
Vietnam has seen a steady growth rate of 2.83% annually in agriculture from 2010 to 2020, as highlighted by Ta Thu Trang from Agroinfo, a division of the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD). Additionally, Vietnam boasts a significant global market share, accounting for 12% of rice exports worldwide.
However, the role of foreign investments has been relatively modest, with only 1,984 projects and a total registered capital of $17.64 billion between 2019 and 2021. These investments have largely failed to leverage Vietnam’s comparative advantages and have been concentrated in areas with developed transportation infrastructure, notably Hanoi and southern regions.
Challenges identified include the limited scale of investments, insufficient utilization of advanced technologies, and pressure on local businesses due to certain practices such as misuse of Vietnamese origin certificates.
Agroinfo’s proposed investment scheme aims to address these issues by targeting sectors where Vietnam faces deficits or underdevelopment, such as high-tech agriculture, animal breeding, and food processing. The plan seeks to increase technology transfer and the contribution of foreign-invested enterprises to agricultural exports, with a focus on areas like plant genetics, animal husbandry, and advanced processing technologies.
However, stakeholders like Nguyen Anh Tuan from the Vietnam Association of Foreign Invested Enterprises (VAFIE) caution that the plan lacks specificity regarding prioritized projects and areas for investment. Suggestions include expanding the scope to include herb production and supporting industries like timber processing, which heavily rely on imported materials.
To facilitate investment attraction, there are calls for the establishment of a working group to coordinate efforts between relevant ministries and industry associations, ensuring a strategic approach to connecting potential investors with viable projects.
~ Source: Vietnam eyes $34 bln investment in agriculture in 2030 (theinvestor.vn)