Recognizing the great potential agricultural market of Vietnam, many Japanese investors said that in the coming time, their investment in the agricultural sector in Vietnam will make big changes, especially in high tech agriculture.
At a meeting of Japanese-Vietnamese companies in the field of agriculture held on 15 February, exchanged with the press, Hiroshi Chishima - Deputy Representative of JETRO in Vietnam(Japan Trade Promotion Organization) assessed that the agricultural sector in Viet Nam is developing, however, mainly as a small-scale and household-based business.
Therefore, many Japanese investors have not poured much money into this sector because of the difficulties in terms of policy. Hiroshi said that in order to attract Japanese investors, Vietnam needs to address land issues and accelerate the implementation of administrative procedures.
In addition, Hiroshi said that high-tech agriculture will be more promising when it comes to policy and credit packages.
"Through the meeting today, I see many Japanese businesses reap good results because they see Vietnam as an attractive market, so in the future, Japanese enterprises will seek opportunities for agricultural cooperation with Vietnam in the form of technology transfer or supply of machinery, equipment and seeds to improve agricultural practices and improve product quality, "said Hiroshi.
A report by Japan-based Seiko Consulting Corp (Japan) on the impact of TPP on Japan's economy and agricultural cooperation between Japan and Vietnam has indicated that Japan is rapidly expanding investment projects in agriculture - forestry - fishery in Vietnam, due to the pressure of TPP.
The reason is that, when participating in the TPP, Japan will have to open almost entirely the agricultural sector to the TPP members, even to the most sensitive agricultural commodities. As a result, Japanese agricultural products will have to compete fiercely on prices with the same products imported from other TPP countries. Meanwhile, the size of Japan's agricultural production is rather limited.
Representatives of Seiko Ideas said that while Japan needs a key partner to develop agricultural cooperation, Vietnam is also in great need of a large partner to cooperate in this field, as Vietnam has potential. The agricultural capacity is very large compared to other TPP members.
"When produced in Vietnam, Japanese enterprises will export agricultural products back to Japan to enjoy a zero tariff." At the same time, Japanese companies can meet the conditions set out in the TPP. Export products must have 70% TPP content, "the company said.
According to the Japan International Cooperation Agency (JICA), the number of Japanese enterprises interested in agricultural sector in Vietnam is increasing. For example, the OTA Kaki Company implemented a project to develop a high quality flower market, with an effective distribution system in Lam Dong Province.
Also in Lam Dong, Nikko Foods is carrying out a $820,000 project to develop high quality tomatoes.
According to calculations by Japanese experts, tomatoes produced by Vietnamese farmers are priced at VND 8,000-10,000/kg and sold at supermarkets in Vietnam for VND 15,000-25,000/kg. However, the price of tomatoes may increase to 40,000 VND/kg if produced by Japanese technology. When exported back to Japan, the price of tomatoes wholesale will exceed $3 (equivalent to more than 66,000) a kg.
Representatives of JICA Vietnam also said that Vietnam's agriculture sector has a great potential for development. In Lam Dong, for example, if farmers grow flowers instead of coffee, their incomes may increase 9 times.
Currently, high-tech agriculture is a sector that the Government of Vietnam focuses on creating favorable conditions for development. As evidence of this, the Prime Minister has directed a credit package of about 100,000 billion for development of high-tech agriculture.
(According to cafef.vn)
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