Many inclusive agricultural businesses are not ready to receive investment.

According to Ms. Vu Thanh Mai of Clickable Impact, a strategic consulting company specializing in green and inclusive growth, implementing an inclusive business model in agriculture faces many challenges. Many businesses engaged in inclusive agriculture are not yet ready to receive investment, leading to limitations in accessing capital.

ASEAN defines inclusive business (IB) as a business model that provides goods, services, and livelihoods to low-income individuals. This type of business is commercially viable at scale or scalable, mobilizing the participation of low-income individuals in the value chain as suppliers, distributors, retailers, or customers. The model benefits three parties: the government , the businesses, and the low-income individuals themselves.

In Vietnam, to support businesses in pursuing green growth and sustainable development, the Prime Minister issued Decision 167/QD-TTg on February 8, 2022, approving the "Program to support private sector businesses in sustainable business practices for the period 2022-2025" (hereinafter referred to as Program 167).

This program places particular emphasis on inclusive business practices, aiming to ensure that the entire society benefits from economic activities, especially vulnerable groups often overlooked in traditional business models.

Speaking at the workshop "Promoting Inclusive Business in Agriculture in Vietnam and the Incubation Program for Inclusive Business Support Organizations and Enterprises Towards International Recognition" on October 15th, Ms. Vu Thanh Mai - Clickable Impact, a strategic consulting company specializing in green and inclusive growth - stated that the Inclusive Business in Agriculture (IAB) model plays a crucial role in achieving sustainable development goals and creating social impact.

Delegates attending the workshop.

In Vietnam, the implementation of Investment Asset Management (IAB) faces many challenges. These include a lack of consistency in understanding and implementation. Investing in IAB is costly with less attractive returns compared to other popular investment forms.

"Many IAB businesses are not yet ready to receive investment, leading to limitations in accessing international support. The process of building trust among stakeholders in the chain (businesses, traders, farmers) still faces many difficulties," Ms. Mai emphasized.

Regarding finance and resources, according to Ms. Mai, the uncontrollable risks in the agricultural sector hinder investors from pursuing large-scale investment packages or committing to continued investment. Impact investments in agriculture remain very limited, with statistics showing approximately 16 development finance institutions and private investors.

New funding sources are concentrated on a select few exemplary IAB businesses. Women face greater difficulties accessing business networks and financial resources when implementing IABs.

"To raise awareness among businesses about IAB, it is necessary to organize communication campaigns to educate the business community about IAB's practical benefits and impacts."

"It is necessary to raise awareness among farmers about the opportunities and benefits of participating in IAB models. Emphasis should be placed on creating opportunities for female farmers, people with disabilities, and young people to improve their income and quality of life through participation in IAB," Ms. Mai recommended.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/nhieu-doanh-nghiep-nong-nghiep-kinh-doanh-bao-trum-chua-san-ready-to-receive-investment/20241015032631992