75% of agricultural enterprises use machinery fully depreciated

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Currently, less than 1% of enterprises in the country invest in agriculture. Photo: N.T

On the afternoon of September 5, 2019, the seminar on “Consultation on mechanism and policy to attract investment and encourage the development of enterprises investing in agriculture” held by the Ministry of Agricultural and Rural Development.

Mr. Nguyen Tri Ngoc Nguyen Tri Ngoc, Vice President cum General Secretary of the General Council of Agriculture and Rural Development Vietnam stated at the seminar that after nearly 4 years of implementation of the Government’s Decree 210/2013/ND-CP on incentive policies for enterprises investing in agriculture and rural areas, the policies attract enterprises is still limited.

Specifically, in comparison with other economic sectors, only about 4,400 enterprises invest in agriculture, accounting for nearly 1% of the total number of enterprises in the country. These enterprises are mainly small and medium-sized enterprises and 75% of agricultural enterprises use machinery and equipment which are fully depreciated.

In addition, Decree 210 has not mobilized the participation of all economic sectors to invest in agriculture, because the regulations are only applied to enterprises, meanwhile, agriculture is invested by other entities such as private sectors, business households and etc.

Some delegates said that the regulations in Decree 210 still cause limitations and difficulties for enterprises. For example, conditions for enjoying the policies in Decree 210 are unfeasible because criteria are too high for enterprises to meet. Besides, some areas have been not regulated in Decree 210 such as high-tech agricultural production and processing of national key products. Some essential contents have been not stipulated in the Decree including land, tax, credit, human resources training and etc.

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Mr. Ngoc said that if we want to speed up the attraction of enterprises investing in agriculture, we need to overcome the current limitation. When amending Decree 210, we need to review and amend policies on land to create favorable conditions and legal land for enterprises. Besides, credit capital must be ensured for policy implementation.

According to Mr. Nguyen Khac Hai, Chief Executive Officer of Pan Group, in order to attract enterprises investing in agricultural, we need to focus on intensive policies, especially tax policy. Because these policies will encourage enterprises to effectively invest in projects.

“Besides, need to create a fair and transparent business environment and abolish the “ask-give” mechanism in the context of complicated administrative procedures and time loss. Mr. Hai said.