Japanese agricultural businesses eye investment in Vietnam’s agriculture
The Trans-Pacific Partnership (TPP) is set to open up market and bring import tariffs down to zero for Vietnam and Japan, therefore Japanese businesses decided to step up investment in the Vietnamese agriculture sector since the latter is also a TPP member.
Japanese agricultural firms could then export products from Vietnam to their country paying zero tax. The TPP stipulates that to enjoy the zero tariff, a product must have 70% content from member countries.
Head of the Institute for Policy and Strategy for Agriculture and Rural Development Nguyen Do Anh Tuan told the media that Vietnam and Japan recorded great opportunities for agricultural cooperation, especially after signing a number of bilateral and multilateral free trade agreements, including the TPP, which has comprehensive commitments.
Japanese investors had already started looking for opportunities across the country to invest in hi-tech farming, Tuan added.
Some had already begun production, including projects of vegetables in the Central Highlands province of Lam Dong, mangoes in the Mekong Delta province of Dong Thap and a hi-tech project in the northern province of Vinh Phuc.
Once it takes effect in 2018 the TPP is expected to give a push to Vietnam-Japan agricultural investment and trade by opening the market for 38.4% of their agricultural products, 64.8% of aquatic products and 17.2% of wooden products, according to Tuan.
Japan will immediately remove tariffs on 78% of Vietnamese agricultural exports and the figure will rise to 88.5% in the next five or six years.
This is a good opportunity for Vietnam to expand its exports, increase its access to major markets around the world and join global supply chains.
Japanese enterprises can invest in Vietnam’s agricultural sector to take advantage of tariff incentives, abundant natural resources and cheap labour.
With their advantages in technology and market access in Vietnam, Japanese firms can invest in making agricultural machinery, fertilisers and pesticides.
Japanese companies should cooperate with their local counterparts to develop large-scale fields and complete value chains and brands for the domestic and international markets, Tuan noted.
In order to promote such investment flows, Vietnam should provide policy support for investors to address difficulties, develop land funds and build infrastructure, he said.
Tuan noted that local governments should be more proactive in supporting businesses.
Vietnam should focus on boosting small and medium-sized enterprises which can cooperate with Japanese companies in production, processing and distribution, according to Tuan.
Figures from the Foreign Investment Agency point out that in 2015 Japan was the third largest investor in Vietnam with 1.84 billion USD, accounting for 8.1% of the total. Agriculture was one of the sectors that attracted the largest investment.
In the Central Highlands province of Lam Dong, 10 Japanese companies have invested in agriculture, mainly growing clean vegetables.
Head of the Institute for Policy and Strategy for Agriculture and Rural Development Nguyen Do Anh Tuan told the media that Vietnam and Japan recorded great opportunities for agricultural cooperation, especially after signing a number of bilateral and multilateral free trade agreements, including the TPP, which has comprehensive commitments.
Japanese investors had already started looking for opportunities across the country to invest in hi-tech farming, Tuan added.
Some had already begun production, including projects of vegetables in the Central Highlands province of Lam Dong, mangoes in the Mekong Delta province of Dong Thap and a hi-tech project in the northern province of Vinh Phuc.
Once it takes effect in 2018 the TPP is expected to give a push to Vietnam-Japan agricultural investment and trade by opening the market for 38.4% of their agricultural products, 64.8% of aquatic products and 17.2% of wooden products, according to Tuan.
Illustrative image.
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This is a good opportunity for Vietnam to expand its exports, increase its access to major markets around the world and join global supply chains.
Japanese enterprises can invest in Vietnam’s agricultural sector to take advantage of tariff incentives, abundant natural resources and cheap labour.
With their advantages in technology and market access in Vietnam, Japanese firms can invest in making agricultural machinery, fertilisers and pesticides.
Japanese companies should cooperate with their local counterparts to develop large-scale fields and complete value chains and brands for the domestic and international markets, Tuan noted.
In order to promote such investment flows, Vietnam should provide policy support for investors to address difficulties, develop land funds and build infrastructure, he said.
Tuan noted that local governments should be more proactive in supporting businesses.
Vietnam should focus on boosting small and medium-sized enterprises which can cooperate with Japanese companies in production, processing and distribution, according to Tuan.
Figures from the Foreign Investment Agency point out that in 2015 Japan was the third largest investor in Vietnam with 1.84 billion USD, accounting for 8.1% of the total. Agriculture was one of the sectors that attracted the largest investment.
In the Central Highlands province of Lam Dong, 10 Japanese companies have invested in agriculture, mainly growing clean vegetables.
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