Hanoi needs to remove two barriers of capital and land to attract businesses to invest in high-tech agriculture, according to local media.

Applying high-tech in agriculture is inevitable for the capital city’s farming sector, especially in face of the Industrial Revolution 4.0 which has strong impacts on socio-economic life.

In order to remove the agricultural development hindrance, the Hanoi government has implemented a number of solutions such as providing businesses, cooperatives, cooperative groups, farms, and households with money from the city's funds for processing and conservation of high-tech agricultural products.

Tending hydroponic vegetables at Duc Phat High-tech Agricultural Cooperative (Thanh Tri district). Photo: Ba Hoat

In particular, under the Hanoi Agricultural Sector’s restructuring plan for the period of 2019-2020, the city has spent over VND204 billion (US$8.77 million) to support high-tech agriculture program and VND233 billion (US$10.019 million) for enterprises investing in agriculture and rural development.

Director of Lac Hoa Limited Company Truong Cao Son said that 70% of his investment in the business model of high-tech agriculture combined with eco-tourism in Tien Xuan commune (Thach That district) was preferential loan from the city agricultural extension fund. The money was spent on building water supply canals and drainage system.

Director of Nam Phuong Tien Agricultural Cooperative (Nam Phuong Tien commune, Chuong My district) Le Van Lanh said he had been subsidized 80% of seed cost to grow organic pomelos with technology application in production.

Director of the Hanoi Department of Agriculture and Rural Development Chu Phu My said that despite the shortcomings, the supporting policies have initially helped businesses solve their capital shortage.

According to Chairman of the Dan Phuong district People's Committee Nguyen Huu Hoang, in order to have a big land fund for high-tech agriculture, the district government has mobilized people to associate with businesses. Particularly, people contribute land and enterprises pour the money, then people can be trained and work for the enterprises on their own land.

This is also the way that Phuc Tho and Hoai Duc districts have done to attract businesses to invest in agriculture in recent years.

The director of the Hanoi Department of Agriculture and Rural Development also asked businesses to actively apply for support policies from the Vietnamese government, besides the support policies of the city and the localities, including the VND100,000 billion (US$4.3 billion) loan package for high-tech agriculture.

In the time ahead, the municipal government will improve mechanisms and policies to encourage the participation of the private sector in the field of high-tech agriculture.

Especially, regarding the issue of land grouping, the Vietnamese government has instructed the Ministry of Natural Resources and Environment to early propose amendments to the Land Law 2013 to remove difficulties for localities and businesses.