Credit package of 50 - 60 trillion VND for high-tech agriculture

At the recent Conference on Building Vietnam's Agricultural Industry, Prime Minister Nguyen Xuan Phuc decided to allocate a credit package of about 50 - 60 trillion VND for the development of high-tech agriculture with the most favorable and open loan mechanism.

The event was organized by the High-tech Agriculture Club (DAA Vietnam - a unit under the Central Committee of the Vietnam Young Entrepreneurs Association) with the participation of more than 500 delegates from state management agencies, international organizations and businesses.

Don't let planning hinder high technology

The Prime Minister pressed the button to launch the high-tech agricultural program.

At the conference, the Prime Minister and leaders of ministries, branches and localities directly discussed and answered the concerns of businesses investing in agriculture. The dialogue was frank, open and democratic, and according to the Prime Minister, an open and democratic society is a factor leading to success.

“When the 4th industrial revolution takes place very fiercely around the world, Vietnam has three very important strengths: one is organic agriculture, clean agriculture, high-tech agriculture, two is information technology and three is tourism,” the Prime Minister said, welcoming DAA’s intention to develop high-tech agriculture.

The Prime Minister outlined the vision and aspiration to build a modern, multifunctional agriculture that is internationally competitive. Vietnam strives to rise up and gradually stand among the group of leading agricultural countries in the world. Vietnam will become a center for supplying high-tech agricultural products, with an important position in the global production network and value chain.

From the foundation of agricultural development, promote many other industries such as processing industry, food, machinery and input materials manufacturing industry for agriculture, develop famous agricultural product brands. "Strive to soon turn Vietnam into a leading country in agricultural products", the Prime Minister emphasized.

Based on some proposals of DAA, the Prime Minister clearly stated the message: Not all localities planned in high-tech agricultural zones are allowed to invest in high-tech agriculture. Instead, it is necessary to ensure that all Vietnamese farmers, regardless of region, size, or nature, are encouraged to apply high technology to agricultural production.

Regarding the proposal of the South Central Seafood Investment Company Limited, a company that is developing a high-tech shrimp seed production model, the Prime Minister agreed to expand the shrimp farming area. The Prime Minister said that he and the Minister of Agriculture and Rural Development will chair a conference on developing high-quality shrimp in Vietnam in January 2017.

Regarding the proposal of businesses related to credit support, the Prime Minister immediately decided: There must be a credit package of 50-60 trillion VND to serve this work with the most favorable and open lending mechanism, but not only for one commercial bank to do this but for many commercial banks. Because the important principle of the market economy is competition, thereby improving credit quality, fighting negativity and unofficial costs.

Informing that Vietnam has signed 12 Free Trade Agreements and is a member of the WTO, the Prime Minister agreed with the opinion of businesses that Vietnam needs to have technical barriers in accordance with regulations and integration commitments to protect domestic agricultural products.

The Prime Minister agreed with the opinions that it is necessary to amend Article 193 of the Land Law on conditions for receiving transfers, capital contributions, and leasing agricultural land use rights to implement non-agricultural production and business investment projects and Circular 23 of the Ministry of Natural Resources and Environment on land to facilitate agricultural development.

The Prime Minister also said that it is necessary to reorganize production of cooperatives and individual households, "because if we leave small households as they are now, it will be difficult to compete in the market economy."

The Prime Minister also appreciated DAA's proposal on the development model of high-tech agricultural complexes.

Pilot establishment of land fund bank

In that spirit, the Prime Minister outlined a number of policies. Specifically, it is necessary to complete land use planning for agricultural production based on potential and comparative advantages, and recalculate the most effective use of land to implement the policy of mechanization and bringing enterprises into agriculture. The Prime Minister said that the Government is piloting the establishment of a land bank and considering the formation of a land use rights market to improve the efficiency of land exploitation and use.

Along with credit, it is necessary to establish and develop a number of agricultural insurance funds and support funds for farmers and agricultural enterprises.

The Prime Minister also emphasized the policy of strengthening the connection between the four parties, in which the connection between farmers and investors is the core, especially building a chain of links in production, preservation, processing and distribution of agricultural products, effectively participating in the production network and global agricultural value chain.

The Prime Minister suggested that high-tech agriculture in the 4th industrial revolution is an agriculture that not only applies hard technology, that is, equipment and machinery, but must also know how to take advantage of soft technology such as information technology, social networks, non-traditional connection methods, etc.

Informing that Vietnam has signed 12 Free Trade Agreements and is a member of the WTO, the Prime Minister agreed with the opinion of businesses that Vietnam needs to have technical barriers in accordance with regulations and integration commitments to protect domestic agricultural products.

Illustration photo.

The Prime Minister agreed with the opinions that it is necessary to amend Article 193 of the Land Law on conditions for receiving transfers, capital contributions, and leasing agricultural land use rights to implement non-agricultural production and business investment projects and Circular 23 of the Ministry of Natural Resources and Environment on land to facilitate agricultural development.

The Prime Minister also said that it is necessary to reorganize production of cooperatives and individual households, "because if we leave small households as they are now, it will be difficult to compete in the market economy."

The Prime Minister also appreciated DAA's proposal on the development model of high-tech agricultural complexes.

Enterpriseization of agriculture and farmers

At the conference, Mr. Truong Gia Binh, Chairman of DAA Vietnam, expressed his desire to introduce new approaches in agriculture towards applying high technology, building value chains, and corporatizing agriculture and farmers.

“This new approach will contribute to changing Vietnam’s agricultural sector from traditional production to high-tech agriculture, from an industry with low added value and growth rate to an industry with superior value compared to traditional industries and forming an effective and competitive agricultural value chain providing quality products,” said Mr. Binh.

In addition, DAA Vietnam introduced a project to apply digital technology in food safety management - "Using DAA STAMP smart stamps to trace the origin and control the quality of safe food". DAA Vietnam also signed 2 cooperation agreements and launched a pilot model of tracing the origin of safe vegetables with the People's Committee of Hanoi and the People's Committee of Ho Chi Minh City.

According to Baodientuchinhphu