Agricultural enterprises and corporations – new rising waves come
10:08 - 07/03/2017
(Dan Viet News) Though witnessing many difficulties caused by natural disasters, tough weather, 2016 is still regarded as an outbreak of the investment wave of enterprises into agriculture, including giants who are investing and have declared to invest into agriculture such as Vingroup, TH True Milk, Hoa Phat, Truong Hai Auto, and FPT Corporation, especially The Gioi Di Dong Joint Stock Company has funded for a range of green groceries.

Flourishing association between enterprises and farmers
Other than investment strategy in the industry, obviously when investing in agriculture, big companies always seek engagement with farmers. It is because of the fact that in order to begin real farming, the roles of farmers are inseparable. Among those companies, VINECO (under Vingroup) is one of the leading enterprises with promising investment of 4.000 billion in agriculture. VINECO are currently producing in over 14 farms, with more than 100 products, at 50-60 tonnes of fresh vegetables per day and expectedly reaching nearly 150-180 tonnes per day in 2017.

Another great name who is driving its investment to agriculture is Hoa Phat Cooperation. Mr. Tran Tuan Duong – General Director of Hoa Phat Cooperation told that the company has started its agricultural production since 2015 given that the production is well-invested, decisive but thoughtful, not massive. “At first, we have involved in breeding foodstuff and breeding; then, based on the market movement, we decided to continue investment to safe food distribution, and create a value chain called 3F: Feed - Farm – Food”, revealed Mr. Duong.

Starting up with the auto production, Truong Hai Auto Corporation also informed to invest into agriculture, into rice in particulars . Mr. Tran Ba Duong, Chairman of the Board cum. CEO of THACO shared that, the current agriculture in Vietnam can not continue to grow without the model of industrialized agriculture. Moreover, the difficulty of present agriculture is that there is no other sector of "making money" to compensate for agricultural losses. Therefore, Vietnam's agriculture is desperately seeking for those companies which with their capital contribution, are capable of organizing and affordable to engage in agriculture. Since then, we aim to create a standard model of agricultural production.

Enterprises will be the key elements leading to agricultural restructuring

In recent years, the Government, the ministries have issued a series of preferential policies for investment in agriculture, such as Decree 210 of the Government, and most recently, Prime Minister Nguyen Xuan Phuc has agreed to give the package of 50,000-60,000 billion credit with preferential interest rates to investing companies to agriculture.

Also in 2016, more dialogues between the State and enterprises to invest in agriculture have been taken place. Typically, the Conference on Building Vietnam's agricultural industry which was carried out on 18th December 2016 and chaired by Prime Minister Nguyen Xuan Phuc has attracted the participation of nearly 500 enterprises, and among that many enterprises declared to invest in agriculture. Since then, the Government has given the instruction about creating the most favorable conditions for enterprises to invest in agriculture./.

Nguyen Linh – Translated by Ngoc Anh
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