Last updated: Friday, June 14, 2013
Elevating Value of Vietnam Agricultural ProductsPosted: Friday, August 10, 2012
High technology is the solution to elevate the value of Vietnamese agricultural products, said Dr Nguyen Van Bo, Director of Vietnam Agricultural Science Institutein an interview with Vietnam Business Forum on the sidelines of policy dialogue on "high-tech application on Agriculture and Rural Development through Public Private Partnership ( PPP)", held recently in Hanoi. Anh Phuong reports.
Currently, Vietnam is encouraging businesses to invest in agriculture especially in the high-tech applications. Why has Vietnam not been able to promote PPP in agriculture yet?
It can be said is the field of agricultural production is characterized by high risk and low benefit so summed up in recent times, not over 5-6 percent of businesses investing in agriculture and rural development and that the majority of enterprises are small businesses with limited financial capability. So now for the policy to develop high technology can get into production, we need to create a legal framework and the possible policy for enterprises to invest.
In particular, we should focus on policies on market for corporate to develop their brand development, policy on land for the investors to do long-term investment in agriculture because agriculture investment takes time due to late income and finally, the need for financial assistance namely the preferential loans of the banking system.
What measures should be taken for an effective PPP model in agriculture?
Indeed, PPP is a senior development model of four players including the state, enterprises, scientists and farmers. Now in public-private partnership, public partners include banking system and the state in which, the state play important role of local state, Secondly, the private partners comprise of enterprises and farmers. Enterprises on behalf of farmers organize production and commercialization of products for them.
How can PPP in agriculture develop?
The most important things now are the issues of land and capital. In fact, most enterprises currently investing in agriculture are small and medium enterprises. To help them invest effectively, the state needs to adopt policies in support of the capital, including investment capital policy on tax and trade. Next is the issue of land, in fact now all land is allocated to farmers so how should we do to let farmers agreeably get land back to business. And also we need to answer the question that in which form that we can reallocate resources. At first, we can use methods such as: Transform right to use land, namely contributing capital through land use right in many different forms.
In fact, Vietnam has several investment projects in agriculture and high technology, but most have failed, in your opinion, what is the cause?
The main reason is that recently, the most high-tech projects are based primarily on the state and implemented in the way of technology demonstration, not really identified as owning great commercial factors. Therefore, Vietnam has been only successful in demonstration of foreign technology in Vietnam conditions. However, when upgrading to large-scale development, it has not achieved the desired effect because there is no participation and the role of the business. In principle, it is the businesses that look for market themselves and find their technology which we have not taken into account.
How does Vietnam's high-tech policy need to be specified?
Vietnam should now have a clear financial base. The state should create conditions for enterprises so that they can boldly call for intellectual resources from abroad to Vietnam.
On the other hand, Vietnam has too many policies, but many of them are at the macro level policies and when practicing in reality, it requires having drastic local involvement. As in the case of Nghe An province, without the commitment of leaders it could not have land for manufacturing enterprises. Therefore, it is essential that the local government "handshakes" with businesses to create conditions to support land acquisition funds timely.
Mr Bui Ba Bong, Deputy Minister of Agriculture and Rural Development
Vietnam has many high tech companies. The number of registered enterprises certified as high-tech is not much because they have not seen the benefit from the state's policy when they are recognized as high-tech. The goal of Vietnam in the coming years is going to have 30 percent of enterprises with high technology applications in agricultural production. And duties of the Ministry as well as related agencies are playing the bridge to help farmers and businesses meet up to achieve the purpose of consumption or export products.
Mr Amnon Eftat, Ambassador of Israel to Vietnam
We can say that Israel is a country with no large area, only over 20,000 km2. But Israel is known as "Silicon Valley" of the world in agricultural production and water technology. With only 2.5 percent of the population engaged in agriculture, each year the export of Israel in agricultural products is US$3 billion and it is one of the world's leading exporters. One hectare is for 3 million roses or 500 tons of potatoes / harvest. A cow can produce up to 11 tons of milk / year (about 55 liters of milk / cow / day), level of productivity that no country in the world is beyond. It is from these conditions that Israel and Vietnam can have deepening cooperation in the application of high technology in agricultural production in the future.
Ms Thai Huong, General Director of Bac A Bank
In Vietnam, businesses still believe that investing in agriculture will probably face risk because it depends too much on nature, acquires a large amount of capital investment and has slow recovery of capital. So they do not want to venture into this field, they mainly engage in investment channels that bring high profits and rapid capital recovery, such as securities, real estate, services So , the only way is to bring high technology into agricultural production that can change the picture of agriculture and the old way of thinking.