09:23 | 23/11/2019 Economy
(VEN) - A recent survey by the Japan External Trade Organization (JETRO) shows that 70 percent of Japanese enterprises in Vietnam want to expand investment in the country, especially in the field of high-tech agriculture. This opens up huge opportunities for the domestic agricultural industry to develop.
Nagura, Deputy Director of JETRO said Vietnam’s agricultural sector has many advantages to attract Japanese investors, including a large market, stable economic growth and low labor costs. In the first nine months of 2019, 48 Japanese enterprises invested US$270 million in Vietnam’s agriculture, mostly in projects in the northern province of Ha Nam and the Central Highlands province of Lam Dong.
The 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that came into effect in January this year also provides opportunities for Vietnam and Japan, not only in trade but also in investment cooperation, technology transfer, and vocational training cooperation for agricultural workers.
While Japan needs a key partner to develop agricultural cooperation, Vietnam, with its great agricultural potential, is also in need of a large cooperation partner in this field.
According to the Japan International Cooperation Agency (JICA), the number of Japanese enterprises wishing to develop agro-fishery projects in Vietnam is increasing and the number of Japanese businesses doing market surveys on investment in the country has been on the rise.
Kimura Yoshihisa, Senior Advisor on Agricultural Development Policy at JICA said Japanese agriculture has made progress through regrouping of lands to form larger cultivation areas for easier production mechanization and better access to traffic and irrigation systems, which help improve productivity and reduce costs. In addition, Japan established agricultural land banks and cooperatives to increase production scale and develop regional specialties, he said.
Agricultural enterprises pay special attention to international certifications on good agricultural practices (GAP) to gain consumer trust and improve quality, instead of competing with low prices and low profits. Vietnam’s agricultural sector should also focus on this strategy, and Japan is willing to share with Vietnam its experiences to help Vietnam attract investment and develop the trade in farm produce.