Attracting Investment for the Construction of New Rural Areas: Facing Difficulties

Source: Pano feed

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Nearly 300 representatives participated in the conference “Promoting roles of enterprises in constructing new rural areas”. The conference was jointly organised by the Central Coordination Office of National Target Programme on constructing new rural areas and Vietnam Business Forum newspaper in Hanoi.


The national target programme on constructing new rural areas for the 2010 – 2020 period was commenced 3 years ago. It initially gained important achievements and attracted the interest and participation of the whole society.


According to Dr Pham Thi Thu Hang, General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI), the national target programme on constructing new rural areas includes criteria like planning, transportation, irrigation, healthcare service, environment, infrastructure and culture. Its main aim is to support farmers to have higher incomes and better material and spiritual lives. However, agricultural production in most areas is mainly micro-scaled while co-operatives are small scaled and operate ineffectively. The form of “4 players” cooperation was violated due to lack of sanctions.


Statistics have shown that many projects of constructing new rural areas have been approved but have not been implemented due to lack of resources or improper implementation roadmaps. In many places, people still have to depend on the budget; most of them do not have access to preferential capital resources. Therefore, according to Dr Hang, enterprises play a crucial part in promoting the efficiency of production models, and applying technology in production to create competitiveness. The reason for this role is that apart from economic resources and capital for effective production models, enterprises well conduct management skills in distribution, marketing and improving quality of agricultural products.


In fact, despite state policies on attracting enterprises to invest in rural areas, the result is not satisfactory. By now, enterprises have contributed only 5 percent of total capital to implementing the programme. Moreover, the number of enterprises in rural areas makes up about 30 percent of total number of enterprises nationwide, and they are small scale and gain low benefits.


Therefore, to attract more enterprises to invest in new rural areas, according to Mr Nguyen Minh Tien, Deputy Director of Economic Cooperation and Rural Development, Ministry of Agriculture and Rural Development, the Government should have stronger policies to reduce risks in agriculture production, even if some risks are unavoidable (natural disasters, market disasters). Only then will enterprises feel secure to invest in this sector.


Besides, the characteristics of agricultural investment is that enterprises must connect production with distribution, which means they have to coordinate with farmers, their organisations in the chain from production to distribution. Therefore, policies must ensure the close connection, support and mutual interest among parties.


Mr Dam Quang Thang, General Director of Agricare Vietnam Co., Ltd


To promote the role of enterprises in constructing new rural areas, the Government and relevant authorities should create more favourable conditions for enterprises to operate in agriculture; remove legal barriers and support small and medium size enterprises; and provide enterprises access to support packages of the Government like in capital or interest. At the same time, capital and favourable capital programmes associated with specific and long term policies should be available to help enterprises feel secure to invest.


Ms Ngo Kieu Oanh, Director of ATC Vietnam


There should be an IT system, a national database, on agriculture, rural areas and farmers with high quality information. It will help enterprises develop investment strategies, as well as attract investment in the form of public – private partnership (PPP). Enterprises may participate in evaluating the economic value and feasibility of projects.

Huong-Anh




Đăng ký: VietNam News

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