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Vietnam revising fishery policies to attract more investments
Publication Date : 04-04-2014
Vietnam will review for possible revision policies on domestic and foreign investments in the local fishery industry because of their inefficiency in attracting investments.
This was stated by officials of Vietnam's Ministry of Agriculture and Rural Development (MARD). According to the MARD, by the end of 2013, Vietnam had 70 foreign direct investment (FDI) projects in the fishery industry valued at only US$300 million. The domestic private investment in the industry also remained low.
Chu Tien Vinh, former deputy director of Fisheries Department under the MARD, said high risks associated with the industry and unattractive investment incentives had made domestic and foreign investors shy away from investing in the local fishery industry, reported Dau tu (Investment Review) newspaper.
Investors had made minor investments in the seafood trade segment and in feed for the industry, while the industry had mainly state investment, he said.
However, the state investment in the industry had also not met the industry's demand, he added. From 2006 to 2010, investments in the fishery industry accounted for only 3 per cent of the total investments in the agricultural sector. The MARD has increased the investment to 7 per cent for the period 2011-2015 but it was still deemed low.
The MARD expects to increase the investment in fisheries to 10 per cent of the total investment in the agricultural sector for the period of 2016-20.
Nguyen Thi Hong, head of the MARD's planning department, said the policy on investments in the fishery industry would be restructured in the direction of cutting investments from the state budget and increasing investments in preferential credit, policies on encouraging private and foreign capital, and public-private partnership (PPP) projects.
The department has cooperated with large foreign corporations, including Metro Cash and Carry Vietnam, Cargill and Fresh Studio, for the implementation of PPP projects in the fishery industry. This, it said, had gained positive results.
Deputy Minister of agriculture and rural development Vu Van Tam said the ministry would review plans of fish ports across the nation to adjust and the results of the review would be made part of the policy revision proposals that would be submitted to the Prime Minister.
The ministry would also act as an advisor to the government and provinces in setting specific plans to develop large fish centres in Hai Phong, Da Nang, Khanh Hoa and Ba Ria-Vung Tau and to attract investments into the centres, he said. Such centres are also being planned for Kien Giang and Can Tho.
Meanwhile, the fishery industry will also change the structure of investment policies to prioritise capital for infrastructure, logistics service, large regions of developing fisheries and fish varieties.
The industry will focus on intensive production, application of hi-tech for it and cooperation in production and business.
Do Thu Trang, from general research division under the Planning and Investment's Development Strategic Institute, said the provinces with a developed fishery industry should have long-term plans to attract investments to the industry and cooperate in promoting investments in the regions.