Allying Vietnam-Japan agricultural businesses

16:27 | 16/09/2015 Cooperation

(VEN) - Vietnam and Japan have great potential for agricultural cooperation. Japanese companies are showing growing interest in Vietnamese farming and are tending to invest directly in this area, according to the Ministry of Planning and Investment’s Planning Department Deputy Director Dao Quoc Luan.

Allying Vietnam-Japan agricultural businesses

Luan said that Japanese direct investment (FDI) in Vietnamese agriculture via 34 projects reached US$230.3 million in 2014. Vietnamese businesses want to partner with Japanese companies in terms of processing technology and post-harvest preservation.

To increase investment and cooperation between Vietnam and Japan in agriculture, the Ministry of Agriculture and Rural Development of Vietnam recently associated with the Ministry of Agriculture, Forestry and Fisheries of Japan to organize a forum between Vietnamese and Japanese agricultural businesses. Participants agreed that Vietnam firms need to change their business thinking to keep up with the new situation, focus on building competitiveness, apply science and technology, and use modern management models to increase productivity and reduce production costs. Japanese companies need to research the Vietnamese market and law and take part in implementing free trade agreements (FTAs) between ASEAN and Japan and between Vietnam and Japan. In addition, via their investment in Vietnam, Japanese companies need to cooperate with Vietnamese businesses to build a value chain ranging from production to processing and sales, ensure food safety and hygiene, and invest in prioritized areas such as livestock breeding, cultivation and breed production.

According to Japan External Trade Organization (JETRO) Chief Representative in Ho Chi Minh City Yasuzumi Hirotaka, the Vietnamese agricultural sector is facing a series of problems such as the small scale of business, low productivity, low efficiency, the unconnected food production-supply chain, lack of brand names of exports, and agricultural policies which have not bolstered agricultural investment towards increasing value, mechanization, application of new techniques and connection between producers and consumers.

Yasuzumi Hirotaka said that to facilitate cooperation between the two countries, the Vietnamese agricultural sector needs to work on land planning to facilitate mechanization, while at the same time simplifying administrative procedures. It is also necessary to increase mutual understanding between localities in the two countries in terms of farming techniques to facilitate the implementation of projects. Japan has committed itself to continue its support in terms of equipment, techniques and human resources for Vietnam in an effort to further strengthen agricultural ties between the two countries.

According to Deputy Minister of Agriculture and Rural Development Le Quoc Doanh, the Ministry of Agriculture and Rural Development is drafting a decree on a policy to encourage foreign investment in agriculture and rural areas. The policy should meet the expectations of foreign investors and be highly practical in order to provide favorable conditions for foreign investors in agriculture and rural areas and act as a basis for the two parties to boost agricultural development in Vietnam./.


Nguyen Hanh