Promoting corporate role in rural development

16:37 | 04/12/2015 Society

(VEN) - Companies are playing an important role in new rural development in the country but have failed to pool their strength.

Promoting corporate role in rural development

Deputy Permanent Secretary of the Hanoi Party’s Committee Nguyen Cong Soai visits a farming model at Dai Dong Commune, Thach That District, Hanoi

In the context of economic downtrend during the 2010-2015 period, the majority of companies have faced difficulties. However, several of them such as the Vietnam Dairy Products JSC and the Lam Son Sugar JSC have contributed significantly to new rural development programs in various ways including directly investing in agriculture, linking with farmers to implement new technical and technological models and financing social welfare services in rural areas, said Tang Minh Loc, the Director of the Department of Cooperatives and Rural Development and Chief of the Central New Rural Development Coordination Office.

According to the General Statistics Office of Vietnam, last year, only 0.96 percent of all companies were interested in agriculture, forestry and fisheries, with foreign direct invested companies accounting for just three percent of that percentage. In addition, these sectors only attracted about one percent of the total corporate investment and employed just 2.3 percent of the total labor force.

After nearly five years of new rural development, corporate investment in agriculture and rural development has failed to match the potential of local agricultural development and demand due to concerns over poorly developed infrastructure and meager incentives, said Vice President and Secretary General of the Vietnam Federation of Agriculture and Rural Development Associations Nguyen Tri Ngoc.

For example, investors found it hard to sign land use agreements with farmers due to high costs. Moreover, they had to pay land use fees.

In order to remove difficulties facing investors in agriculture and rural development, people’s committees in provinces and cities should act as referees for investors and farmers in every agricultural and rural development project, have incentives in terms of infrastructure for the development of key agricultural products, support at least 20 percent of infrastructure construction costs for agricultural and rural development projects, provide preferential credit packages for investors in agriculture and rural development, cover at least 30 percent of corporate agricultural insurance premiums paid for the first time, and several support policies on the application of new techniques and technologies and trade promotion, said Tang Minh Loc

Over the past nearly five years, total investment in agriculture and rural development has amounted to nearly VND851.86 trillion, including VND20.4 trillion (4.9 percent) in corporate direct investment.


Nguyen Hanh