14:09 | 20/11/2016 Economy- Society
(VEN) - Nearly 70 percent of agricultural machines are imported from Japan, the Republic of Korea and China although Vietnam has adopted many policies to promote mechanization.
Difficulties in policy
The implementation of Decision 186/2002/QD-TTg and Decision 10/2009/QD-TTg on promoting engineering development has lasted more than 10 years with many preferential policies, Vietnamese Society of Agricultural Engineering Deputy Chairman Doan Xuan Hoa said in a conference on speeding up mechanization in agriculture and agricultural machine manufacturing technologies. However, it has not met the target. Trade deficit of the engineering sector has exceeded US$10 billion a year, of which the import value of machinery and equipment serving production has accounted for the largest proportion.
The manufacturing of agricultural machines and complete equipment serving agriculture, forestry and fishery processing has not seen development, while foreign investment in the engineering sector has remained few.
The implementation of Decision 63/2010/QD-TTg and Decision 65/2011/QD-TTg in the last two years initially met urgent requirements of farmers throughout the country, especially in Mekong Delta. In particular, the two decisions created favorable conditions and encouraged domestic facilities to further invest in upgrading technologies and improving quality.
However, due to the fact that local machines producers cannot meet production requirements, the prime minister issued Decision 68/QD-TTg to replace Decision 63/2010/QD-TTg and Decision 65/2011/QD-TTg and added some articles on November 14, 2013. Organizations and inpiduals are subject to preferential policies when purchasing machinery and equipment serving agricultural production. Decision 68 has helped overcome difficulties in policies, meeting expectations of farmers and businesses. However it seems to be a step-back to the development of the domestic engineering sector. In addition, providing supports has faced many problems in mechanisms, making businesses difficult in accessing capital, while the development of long-term investment projects in agriculture, forestry and fishery processing remains limited.
Support policies following Decree 210/2013/ND-CP have not been deployed in practice due to lack of the overall planning. In addition, investors remain confused in selecting products and projects to meet supporting conditions. The National Foundation for Science and Technology Development has been put into operation, but agricultural machine manufacturing projects remain few. In addition, businesses have not been active in technology innovation.
Solutions from production practice
Institute of Policy and Strategy for Agriculture and Rural Development Former Deputy Director Duong Ngoc Thi said that the market on agricultural machinery and equipment has its own potentials. However it has only benefited foreign manufacturers. Instead of developing an extensive agricultural engineering sector, Vietnam should select some intensive product lines in accordance with its financial capacity and human resources. Then, reviewing and adding incentives when purchasing agricultural machinery and equipment are needed.
Chu Van Thien from the Agricultural Electromechanical Post-harvesting Technology Institute proposed to the authorities to amend and supplement support policies based on production practice of farmers and businesses. The contents of new support policies need to maintain stable and effective tools, while providing supports for objectives in accordance with each different period.
Improving mechanisms and policies to encourage the development of the agricultural engineering sector and seeing investment in its sector as investment in infrastructure serving production are mentioned as necessary.
Bach Quoc Khang from the Agricultural Electromechanical Post-harvesting Technology Institute said that there are many challenges and difficulties in agricultural mechanization that need to be overcome such as land accumulation, labor movement and higher prices of machinery and equipment. In addition, providing support for the mechanization need to be comprehensively implemented.