2-17-2020, 9:44 GMT+7

Attracting FDI capital into processing industry

 Viet Nam is currently one of the leading exporters of agricultural, forestry and fishery products and foodstuffs in the world, with an average annual growth rate of 8-10% in export turnover, according to the Ministry of Industry and Trade. 

 

Attracting FDI capital into processing industry

Viet Nam’s pork production was estimated to reach 3.3 million tons in 2019. As for fruits, statistics show that orange production hit 960,900 tons (up 12.4% year on year), pomelo production 779,300 tons (up 18.2%), mango production 814,800 tons (up 2.9%), and dragon fruit over 1.2 million tons (up 15%). 

 

Especially, Viet Nam is now among the world’s leading rice exporters. The country’s ST25 rice was recently recognized as the world’s best rice, which has initially increased the value of and world consumers’ identification level toward Viet Nam’s agricultural and fishery products in the international market.

According to economic experts, several factors made the processing industry of Viet Nam attractive to FDI capital. This field has great potential, as Viet Nam is currently ranked among the top five “food baskets of the world” thanks to its diverse and plentiful supply of agricultural and aquatic products. 

Last year, Viet Nam’s total production of aquatic products was estimated at 8.2 million tons, an increase of 5.6% compared to the previous year.

However, the exports of raw materials still account for a large proportion.

Calling for investment in processing industry

So far this year, the Government has issued many preferential policies to attract investment, aiming to raise the proportion of processed key agricultural and aquatic products and the application of international standards in the production process, hence building trademarks and improving competitiveness for Viet Nam’s agro-forestry and fishery products.

Specifically, general incentives include tax exemption for the imports of machinery, materials, specialized means of transport, materials that cannot be domestically produced, and raw materials for outsourcing and processing export products. 

Regarding the area of food processing, apart from the aforementioned general incentives, enterprises will enjoy a preferential tax rate of 10% for the incomes from their investment in the processing of post-harvest farm produce and the preservation of agro-fishery products and food.

Businesses will also be supported with training of human resources, market development and application of science and technology. 

The Government has directed cities and provinces to re-plan the agricultural raw material areas, redefine the long-term land use plans for each foreign-invested project in the field of agriculture and agricultural and food processing.

Dr. Frauke Schmitz Bauerdick, chief representative of Germany’s trade and investment promotion agency in Viet Nam, said consumers in Germany in particular and in Europe as a whole are very fond of products of Viet Nam origin, ranging from food to clothes and footwear. 

In recent years, the proportion of Vietnamese imports into Germany has been constantly growing. The preferential policies currently applied by the Vietnamese Government will be a driving force to increase the presence of German businesses in Viet Nam in the near future.

As for Vietnamese businesses, in order to increase their competitiveness and deeply participate in the world market, Viet Nam is adhering well to food safety and hygiene standards, investing in modern equipment and improving the prices and quality of products. 

In addition, Vietnamese firms have actively approached the distribution system and purchasing partners aiming to expand their business opportunities./.

(http://news.chinhphu.vn/)

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