Foreign Direct Investment (FDI) in Vietnam

Monday, December 18, 2017

DA NANG CALLS FOR HI-TECH FARMS

DA NANG CALLS FOR HI-TECH FARMS

Clean produce: An investor introduces a hi-tech farm at an investment conference in Da Nang
The central city of  Da Nang has called for VND 1.5 trillion (US$66.3 million) investment in five high-tech farms to create a centre for hi-tech-farming in the central and central highlands region.
The farms, part of the city’s hi-tech farm master plan, will include livestock farms and a processing zone, mushroom, organic and safe-vegetable farms, herb gardens, a fishing port and fish trading centre on 144 ha in three communes - Hoa Vang, Ngu Hanh Son and Son Tra.
The city has offered favorable conditions and support for investors, including slashing the land-clearance fee by 50 percent to VND 20 million ($884) per hectare per year for five years. Moreover, the city will also offer financial support for investors by giving them VND 20 million a hectare each year for five-years. If an investor develops a 5 ha farm, they will receive financial support of VND 100 million per year. 
Vice-chairman of the city’s People’s Committee, Ho Ky Minh, said the hi-tech farm project would help increase the value chain of the city’s agriculture and provide unique products to serve tourists. He said agriculture now contributed about 2 percent (VND 873 billion) of the city’s production.
Minh said land for farming had narrowed due to rapid urbanization and expansion of industrial parks during past decades, while infrastructure investment and human resources for farming were in poor condition.
Director of Vietnam’s Institute of Economic Studies, Tran Dinh Thien, suggested the city’s agriculture should be restructured to host waves of mass investment.
He said the city’s farms must create products for tourism as well as attract local and foreign investors.
Thien said only 4,000 businesses - just 1 percent of total investment in Vietnam - invested in agriculture in 2017. Most projects were small-scale and of little value.
Earlier this year, the city planned seven suburban communes to boost high quality and safe agriculture in Hoa Vang District over a total area of 540 ha.
It also allocated 130ha for safe vegetable farming and 310 ha for aquaculture and livestock.
The city has a total of 50 farms, but these provide only 10 per cent of the demand for vegetables and farm produce.
All supermarkets welcome "made-in Da Nang" products, but farmers in the city have yet to supply sufficient quality products, including vegetable, seafood and quarantined poultry.
Only 12 suburban farms in Da Nang have certifications of safety and quality - or brand names.
The city is helping local farms attain the Vietnam Agriculture Practice (VietGAP) green-label certificate.
It has one million populations who consume 145,000 tons of seafood and 140,000 tons of vegetables each year.
Da Nang, in co-operation with Japan International Co-operation Agency (JICA), has also launched a project to recycle organic waste.
Last year, the Vietnam Dairy Products Joint-Stock Company (Vinamilk) invested $26.5 million in a dairy farm on 124 ha in Hoa Phong Commune in Hoa Vang District.

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"Source: Vietnamnews.vn"

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