Few businesses invest in agriculture

FRIDAY, 10/08/2018 11:16:24

Despite the great potential of agriculture, the number of businesses investing in this field is lower than in other ones in Hai Duong province.

Viways Food Processing JSC.'s project to build a poultry breeding and slaughtering farm has encountered a lot of difficulties in the course of processing administrative procedures

What should be done to encourage enterprises to invest in agriculture is a matter of concern.

Obstacles in many stages

Viways Food Processing JSC.'s investment in a project to build a poultry breeding and slaughtering farm in Chi Minh ward (Chi Linh provincial town) was approved by the provincial People's Committee last April, nine months after proposal.

However, to date, the company has not been able to complete land-related procedures to apply for a construction permit.

"After the project had been approved, we wanted to quickly process necessary land procedures to start construction but have not finished though four months have passed," said Nguyen Manh Cuong, director of the company.

"Papers must be transferred back and forth between the Department of Natural Resources and Environment and Chi Linh authorities.

"My company has been neither answered nor given specific instructions by units to complete these procedures.

"Although the project is prioritized to attract investment to agriculture, my company has not been entitled to any specific incentives."

Thanh Ha Vegetables, Tubers, and Fruits One Member Co., Ltd. in Hong Lac commune (Thanh Ha) has invested in poly and net house systems to plant vegetables, tubers, and fruit trees under VietGAP standards but encountered a lot of difficulties.

"There are not many support policies for agricultural investors. It is very risky for such businesses. Productivity greatly depends on weather, climate, and land," said Pham Thi Huyen Trang, deputy director of the company.

"When deciding to invest in this field, we had to research, learn experience, make connections, and find ways to sell products in production and consumption stages by ourselves."

Effective investment in agricultural production requires funds, large areas of land, and investors with knowledge of and experience in agricultural techniques.

Le Van Viet, director of Xuyen Viet Aquaculture Production and Trading Cooperative in Hong Hung commune (Gia Loc), said people always want to keep or only rent their land out for a short time while enterprises would like to hire land for years to ensure capital recovery time. Therefore, it is very difficult for businesses to negotiate with hundreds of households to accumulate large production areas.

The majority of enterprises and organizations investing in agriculture want to expand their projects but often face land difficulties. In the photo: A project of Xuyen Viet Aquaculture Cooperative in Hong Hung commune (Gia Loc)

Through inquiries, a lot of agricultural investors in the province said there remained difficulties in accessing regional planning.

Enterprises wanting to pour large investments faced land difficulties. There were even areas planned for the fields in which enterprises were investing but when they wanted to gather land to expand their projects, local authorities did not create conditions. Companies wanting to invest in agriculture still lacked intensive information about the field.

Many enterprises also said criteria to enjoy preferential policies in agriculture were very difficult, not to mention that businesses had to implement a lot of procedures to be supported.

Removing land obstacles

Over the past years, the provincial People's Committee has always paid attention to and encouraged businesses to invest in agriculture and rural areas through the promulgation of projects, mechanisms, and policies, reform of administrative procedures in business registration, investment approval, and organization of conferences to promote investment in agriculture and rural areas, according to the Department of Agriculture and Rural Development.

Enterprises are entitled to land hire exemption or reduction, excused from corporate income taxes, taxes on the import of assets and goods imported to create fixed assets, etc.

However, very few enterprises have invested in this field.
According to data of the Department of Planning and Investment, since 2008, Hai Duong authorities have approved only 41 agricultural and rural investment projects using nearly 93 ha of land with a total investment of over VND3,723 billion.

Of these, there are only one cultivation project and five breeding ones. The remaining projects are mainly in the fields of producing animal feed and processing, preliminarily treating, and preserving agricultural products.

There are over 900 businesses registering to operate in agriculture, forestry, and fishery in the province, accounting for more than 8% of the total number of enterprises in the province.

To attract and encourage enterprises to invest in agriculture, specialized agencies of the province and local authorities should guide and create favorable conditions for investors to access land and investment incentives as prescribed.

Grassroots authorities should mobilize people to together with investors carry out procedures to transfer or rent demanded areas of land out to the businesses in the shortest time.

Besides, to sustainably develop modern agriculture, the provincial authorities should make detailed plans for large-scale regions, form clean land sources for project implementation, and orient investment to these planned regions, thereby creating favorable conditions for enterprises to invest in agriculture.



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