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Attracting foreign investment into agriculture
14:49, 2014/05/19
Measures to reverse the dwindling attraction of foreign direct investment (FDI) into agriculture was the focus of a seminar in Hanoi on May 19 held by the Ministry of Agriculture and Rural Development (MARD).
It was reported that though FDI into a number of industries in Vietnam over the past 20 years such as construction, tourism and hi-tech fields, has been steadily rising, investment in agriculture has been flagging.
 

In 2001, FDI in agriculture accounted for 8% of the country’s total, and the figure slowed to just 1% a decade later.

There is uneven capital distribution, with priority given to livestock breeding, feed processing, forestation, and forest product processing.

The primary reasons cited for lack of investment were that investors are highly concerned about the high risk of natural disasters, epidemics, low profits, and slow capital recovery.

In addition, experts attributed the fall in FDI in agriculture to the sector’s unclear development strategy and FDI attraction promotion plans.

The seminar provided an opportunity for professionals, managers and businesses to work out measures to improve the mechanism of credit, land, and technology, along with efforts to lure FDI strongly in agriculture and maximize the potential of this sector in the future. 
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