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Attracting investment in agriculture: Removing obstacles

Việt NamViệt Nam25/12/2024


(Quang Ngai Newspaper) - Despite its great potential, Quang Ngai has not yet attracted many businesses and investors to the agricultural sector, due to many difficulties related to land policies, capital sources, etc. This is also an issue that requires intervention from functional sectors as well as local authorities.

Business in trouble

One of the obstacles for enterprises investing in the agricultural sector is the difficulty in accessing land, because some regulations on land allocation and leasing procedures for investors to implement projects are unclear. Some investment projects in the agricultural and rural sectors have been approved by competent authorities, but have not been allocated land, leased land, or changed land use purposes, causing many difficulties for enterprises. A representative of a shrimp farming enterprise in Pho Khanh commune (Duc Pho town) said that the regulations, procedures, and conditions for land allocation and leasing for agricultural projects are very complicated and take a long time. Therefore, the progress of project implementation lasts for many years, greatly affecting the operations and opportunities of enterprises; while investing in the agricultural sector is high-risk, requires large resources, and has a long capital recovery period.

The Shrimp Farming Investment Project in Pho Khanh Commune (Duc Pho Town) has not been implemented after many years due to land regulations.
The Shrimp Farming Investment Project in Pho Khanh Commune (Duc Pho Town) has not been implemented after many years due to land regulations.

The issue of developing raw material areas and purchasing products for farmers is also one of the reasons why businesses are reluctant to invest in the agricultural sector. Director of TBT Agriculture and Forestry Company, Vo Thi Hong Van, said that if the price of products is high, farmers will "break the contract" to sell outside, or sell to traders elsewhere, while the company is forced to buy at the price signed with farmers. Therefore, when cooperating to organize the production of goods with farmers, businesses are very afraid of "breaking" the contract, leading to a lack of raw materials for production. To attract businesses to participate in the agricultural sector, the government needs to find a solution to resolve this problem; at the same time, there must be measures to rectify the situation of businesses competing to buy in an unhealthy competitive manner.

Need to remove bottlenecks

Recently, the province issued a Project to develop safe, concentrated vegetable production areas, ensuring traceability associated with processing and consumption markets by 2030 in the province. The goal is that by 2030, the organization of safe, concentrated vegetable production, ensuring traceability, will reach an area of about 1,500 hectares, with an output of over 24 thousand tons. Of which, over 90% of the area (1,350 hectares) of vegetables are certified to meet food safety conditions, committed to safe vegetable production; from 10% of the area (from 150 hectares or more) of safe, concentrated vegetables, are granted growing area codes, ensuring traceability; from 10% of the area (from 150 hectares) of vegetables participate in production linkages... To achieve the above goal, the province encourages and calls on enterprises to invest in organic agricultural production, high-tech, safe agriculture.

To date, the province has attracted 34 investment projects in the agricultural sector, with a total registered capital of nearly 1,700 billion VND; of which, 19 projects have been put into operation, 11 projects are being implemented and 4 projects have been revoked. In the 2 years of 2024 - 2025 alone, there are no agricultural projects in the list of projects attracting investment in the province.

According to business owners, in order for investors to boldly "pour capital" into the agricultural sector, especially green agriculture and organic agriculture, the province first needs to consider removing existing obstacles. That is, planning concentrated production areas, associated with openness in accessing land policies; at the same time, issuing preferential and favorable mechanisms and policies to attract enterprises to invest in production, associated with linking production and product consumption. Director of Tien Dat Livestock Joint Stock Company (Tu Nghia) Nguyen Van Sang said that competent authorities need to clearly stipulate procedures related to land and finance to clear the legal corridor for enterprises as well as financial institutions to participate in the agricultural sector, green agriculture, and high-tech agriculture. In addition, the province needs to have policies to support infrastructure development, create concentrated production areas specializing in commodity production, convenient for applying mechanization to green agricultural production.

Director of the Department of Agriculture and Rural Development Ho Trong Phuong said that after the Provincial Planning for the period 2021 - 2030, with a vision to 2050, was approved by the Prime Minister , the Department of Agriculture and Rural Development has focused on identifying and proposing concentrated agricultural production areas to submit to competent authorities for approval, as a basis for attracting businesses to invest in agricultural production, especially high-tech agriculture. In addition, the industry also coordinates with local authorities to develop an infrastructure investment plan to serve agricultural production, to advise and submit to the province for consideration of investment in completing infrastructure, to attract businesses.

Article and photos: THANH PHONG

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Source: https://baoquangngai.vn/kinh-te/nong-nghiep/202412/thu-hut-du-tu-vao-linh-vuc-nong-nghiep-thao-go-nhung-vuong-mac-e724b92/

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