16:08 | 08/10/2015 Economy
(VEN) - The government is being urged to develop appropriate incentives to encourage investment in the largely ignored agriculture, forestry and fisheries support industry sectors.
Most businesses processing agricultural, forestry and fisheries products have failed to keep up with the market demands
Underdeveloped agriculture, forestry and fisheries support industries
According to Nguyen Manh Dung, the representative of the Department of Agro-forestry, Aquaculture and Salt Production under the Ministry of Agriculture and Rural Development, most domestic small-scale businesses in these sectors use backward technologies and equipment. For example, only 18 of nearly 600 rice processing businesses have annual capacity of more than 100,000 tonnes and 558 are located in provinces in the Mekong Delta; only 3.1 percent of tea processing businesses operate on a large scale and have daily capacity of more than 100 tonnes; while the majority of 625 seafood processing businesses are small-scaled. In addition, domestic businesses that want to invest in agriculture, forestry and fisheries support industries have failed due to a lack of market research.
According to the Ministry of Agriculture and Rural Development, most businesses processing agricultural, forestry and fisheries products have failed to keep up with the market demands due to backward technologies and equipment. Only a few of them have looked for foreign partners or set up joint ventures with foreign partners.
Various causes for underdevelopment
There are several reasons for the country’s backward agriculture, forestry and fishery support industries. Most businesses processing agricultural, forestry and fisheries products are small in scale, limited in investment, while relying on recruiting cheap and unskilled workers, applying backward technologies.
Support industries are viewed as key to the development of agriculture, forestry and fisheries, especially in terms of improving added value and sustainable development. To develop agriculture, forestry and fisheries support industries, it is necessary to develop the market for these products, encourage more businesses to participate, and have more government incentives, said Nguyen Manh Dung.
Several agriculture, forestry and fisheries support industries should be prioritized including engineering, high-precision manufacturing, electronic industries (especially for agricultural product processing), industrial refrigeration, heat transfer and packaging.