Untying knots for agriculture businesses

13:35 | 17/04/2015 Society

(VEN) - A number of investment incentives for agriculture were recently issued. However, there remains a lack of practical and efficient support for businesses already operating in the agriculture sector.

Untying knots for agriculture businesses

At a meeting on investment attraction in agriculture and rural areas held by the Institute of Policy and Strategy for Agricultural and Rural Development (IPSARD) on March 26, a series of knots regarding policies, land, the application of science and technology, credit and taxes were raised by enterprises.

As a pioneer in seedlings, the Thai Binh Seedlings Joint Stock Company has faced innumerable difficulties. General Director and Chairman of Thai Binh Seedlings Joint Stock Company Tran Manh Bao said agriculture is different from other sectors. There are plants or animals that only give fruits or crops within six months but there are others that could only be harvested after many years. However, the procedures on land, investment and basic construction for agriculture projects had little relation to reality. Bao recommended that a suitable mechanism needs to be drafted to facilitate further cooperation between research institutes and enterprises.

Director General of Da Lat Flower Biotechnology Joint Stock Company Nguyen Dinh Son stated that the complicated procedures caused difficulties for enterprises. For example, the difficulties in the imports of flower seedlings and ornamental trees are not from the suppliers but are related to plant quarantine procedures. Plant quarantine time is long and characterized by complicated procedures that leave enterprises frustrated and their production and business plans affected.

Developing businesses in the agriculture sector and strongly boosting trade, services and intensive processing technologies are seen as solutions to increase the value and export revenues of farm produce as well as farmer incomes.

In addition, while many enterprises in other sectors enjoy preferential treatments, those enterprises investing in agriculture receive almost no similar incentives. Despite regulations saying enterprises that apply high technologies will get the highest land and tax incentives, so far the Da Lat Flower Biotechnology JSC still has to subject to the 25 percent import tax on greenhouse equipment. Many industrial products can have value added tax deductions but businesses in the agriculture sector still have to pay.

Some businesses insist that the policies and mechanisms related to the agriculture sector in the recent period have remained weak and insufficient. Although the state has issued a large number of policies, there are still gaps that block the development of enterprises such as the support industry policy for agriculture or the policies on land. According to Chairman and General Director of Minh Phu Seafood Group Le Van Quang, businesses are the most active factor in the agriculture production value chain and only they can fulfill the conditions to tackle four key knots in the country’s agricultural restructuring, which include market access and development, the application of science and technology, managerial reform in production and business activities, and mobilizing investment capital.

By Nguyen Hanh




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