Business development associated with agriculture

(Baonghean) - In the current conditions of market economy and international integration, enterprises are the foundation, one of the driving forces that determine the speed and quality of development. This principle is even more meaningful for Nghe An province, or in other words, developing enterprises associated with agricultural and rural economy is a necessary choice in Nghe An's development strategy.

» Priest Nguyen Dinh Thuc incites parishioners

Enterprises play an important role in solving a number of development problems (especially agricultural and rural economy) of Nghe An because: Firstly, enterprise development helps liberate and develop production capacity, mobilize and promote resources in socio-economic development;

Second, enterprise development creates a shift of labor from the agricultural, forestry, fishery and small household business sectors, which are low-productivity, low-income, majority-employed, and underemployed, to the enterprise sector, especially industry and services, which are high-productivity and have better income;

Third, enterprise development is a factor ensuring the implementation of the goals of industrialization and modernization of the country, improving economic efficiency, and maintaining economic stability; Fourth, enterprise development is a decisive factor in stability and effectively participating in solving social problems such as job creation, hunger eradication, poverty reduction... in rural areas.

Along with some potentials and what were previously difficulties (hilly land, forests, ...) in the development of Nghe An's agricultural economy, with the current trend, it is basically becoming an advantage. However, that advantage can only be promoted when there is direct participation, cooperation or organization of production according to the enterprise model.

Developing vegetable growing area in Nam Thanh commune, Nam Dan

The linkage of enterprise development with agricultural and rural economy in Nghe An is essentially promoting the transformation of agricultural production organization model towards modernization (enterprises producing and processing agricultural products, forming a team of agricultural production workers, etc.), is a policy innovation to attract capital and enterprises to invest in developing agricultural production with high efficiency and sustainability. Continue to innovate the form of production organization, forming economic links in the production of agricultural commodities. In which, it is necessary to:

- Innovate agricultural production organization towards linking production, expanding economic space to form product chains and upgrading agricultural - industrial value chains (organizing agricultural production - processing - consumption linkages...). Create a breakthrough in the organization of agricultural production in the province.

- Invest in developing key economic sectors linking production - processing and consumption on the basis of applying advanced science and technology, high technology, such as: wood processing, cattle and buffalo farming, poultry, dairy farming and milk production.

- Speed ​​up the establishment of high-tech agricultural zones, promote the application of high technology in production. Research and widely apply advanced processes and techniques, promote mechanization in agricultural, forestry and fishery production:

- For cultivation: Applying synchronous mechanization processes (from land preparation, planting, care, harvesting, processing); intensive cultivation processes of rice, corn, peanuts from seeds, intensive investment; applying high technology to develop concentrated production areas of advantageous products of the province, gradually reducing the area of ​​low-yield and inefficient rice cultivation, expanding the area of ​​specialty crops (oranges, tea, medicinal plants, etc.) linking raw material growing areas with the processing industry; safe production and processing according to the value chain, good agricultural practices (VietGAP); implementing models of water-saving irrigation, irrigation for industrial crops if conditions permit.

- For livestock: Research, develop and apply pig and chicken farming processes according to VietGAP standards. Develop beef cattle farming on a modern, concentrated farm scale from breeding, production, feed processing, care, and slaughter. Develop industrial-scale dairy farms, gradually expand household cattle farming in a model linked with milk purchasing and processing enterprises. Apply high technology to livestock development, control and safe livestock farming for epidemics, treat livestock waste using biogas technology, use probiotics to minimize environmental pollution, etc.

Japanese enterprises learn about vegetable production in Quynh Luong commune (Quynh Luu). Photo: CL

- For forestry: Apply science and technology to support forestry management, protection and development such as: GIS, remote sensing, electronics. Promote the application of mechanization in afforestation, especially in the exploitation of planted forests. Focus on guiding and encouraging the expansion of production forest areas according to sustainable forest management standards (FSC), developing medicinal herbs (possibly under the forest canopy) associated with sustainable forest protection.

- For aquaculture: Expand the area of ​​application of technical processes and intensive farming technology according to VietGAP standards; research and apply technical measures for intensive farming of some aquatic products with high demand in the market such as white-leg shrimp, tidal clams, etc. Prioritize the development of offshore fishing equipment.

- Focus on promoting the application of technical advances in high-quality plant and animal varieties and developing seed production infrastructure. Promote the application of advanced and modern science and technology to improve the capacity and quality of agricultural, forestry and fishery processing.

- Prioritize investment in developing refined and deep processing industries, innovating advanced and modern technology and equipment. Linking production with processing, preservation and consumption of products according to the value chain to increase added value for advantageous products of the province such as: oranges, tea, peanuts, rice; livestock products, dairy farming; aquatic products, forestry, medicinal herbs.

Implementing and innovating policies to create a connection between business development and agricultural and rural economy in Nghe An is:

- Review land funds and plan specialized, concentrated, large-scale raw material production areas, encourage land accumulation and land consolidation under State management and control. Focus on building large fields, creating favorable conditions for businesses to invest in and develop in the fields of agricultural, forestry and fishery production. Link agricultural production with processing industry to form a number of key agricultural production and business sectors of the province, creating a breakthrough in shifting the agricultural economic structure.

Produced at canned fish processing factory - Royal Foods Company Limited.

- Continue to innovate policies and mechanisms to encourage businesses to invest in agriculture. This is the driving force for development, contributing to the implementation of strategies and restructuring of the agricultural sector to ensure high added value, efficiency and sustainability. There are policies to encourage and provide incentives to form or attract businesses to participate in exploiting and promoting the strengths of the Western Nghe An economic region and the coastal and marine economic regions.

- Solve well the issue of land allocation and lease for long-term stability to enterprises, households and individuals for joint venture and association production to create large volumes of goods to serve as raw materials for processing factories. Develop the most suitable land allocation plan for crops, for the development of various types of farms, ranches...

- Encourage domestic private economy and foreign investors to invest in agricultural production and business. This is an important force capable of creating many jobs, attracting labor, increasing the capacity of processing and consuming agricultural products, technical services... for socio-economic development.

- Calling for and attracting domestic and foreign investors to invest in the agricultural sector, organizing production, purchasing and consuming raw materials effectively. Developing and consolidating strong export business organizations that can close the chain from raw materials - processing - export.

Paying attention to and forecasting difficulties for existing businesses to form support policies, creating conditions for stable development, and being able to cope with fluctuations, etc. is an attractive force for business development (especially new businesses).

It is predicted that in the context of increasingly deep integration, Vietnam's sugarcane will no longer be competitive enough, and it will be very difficult to survive in the market. Therefore, it is time for Nghe An province to scientifically review (research) the competitiveness index of the sugarcane and sugar industry as well as some other crops in the province to have preparation (even the direction of conversion, if there is no effective solution to improve the situation).

Assoc.Prof.Dr. Nguyen Trong Xuan

(Vietnam Economic Institute)