In 2022, there will be only 13 projects with a total registered capital of 149 million USD, accounting for less than 1.3% of total US FDI capital in Vietnam.
Investment by US businesses is still quite modest
According to data from the Foreign Investment Agency (Ministry of Planning and Investment), by the end of December 2022, the total valid US FDI projects in the agricultural sector were only 13 projects with a total of Registered capital reached 149 million USD, accounting for less than 1.3% of total US FDI capital in Vietnam. Maybe this number does not represent the true situation of US investment in Vietnamese agriculture because many US businesses invest in Vietnam through subsidiaries in other markets such as Singapore and Hong Kong. … But these few data also show that there is a large gap in investment cooperation that can be filled by better exploiting the potential and strengths of both sides.
With the desire to create opportunities for Vietnamese and US businesses to meet and seek cooperation opportunities in the agricultural sector, on the morning of November 8, the Department of International Cooperation (Ministry of Agriculture and Rural Development) organized a Business Forum. Vietnam – United States agricultural industry with the participation of Mr. Marc Elrich, Mayor of Montgomery County and a delegation from the state of Maryland (USA).
According to Director of the International Cooperation Department Nguyen Do Anh Tuan, in the agricultural sector, investment by US businesses is still quite modest, not commensurate with the potential of the two countries.
The United States is currently Vietnam’s leading trade and investment partner. Two-way trade between Vietnam and the United States has continuously grown in recent years and has reached over 100 billion USD for two consecutive years. Exports to the United States account for 30% of Vietnam’s total export turnover to the world and Vietnam is the 8th largest trading partner of the United States.
In terms of investment, the United States also ranks 11th out of 143 countries and territories investing in Vietnam with a total valid registered FDI capital as of October 2023 of 11.8 billion USD and 1,306 projects. . Direct investment capital from the United States has made an important contribution to Vietnam’s development with large-scale projects, contributing to creating an increasingly solid foothold for Vietnam in the global supply chain.
According to Director of the International Cooperation Department Nguyen Do Anh Tuan, in the agricultural sector, investment by US businesses is still quite modest, not commensurate with the potential of the two countries.
“Vietnam and the United States established a comprehensive strategic partnership last September during US President Joe Biden’s visit to Vietnam. Hopefully, in the near future, new breakthrough, profound and effective cooperation will be implemented to help Vietnam penetrate deeply into the global value chain,” Mr. Tuan expressed his expectations.
Investing in high-tech agriculture is an option
According to a representative of the Department of International Cooperation, the United States, with its strengths in science, technology, and innovation, can cooperate with Vietnam to jointly develop a vibrant, modern, and sustainable agricultural industry. only brings benefits to the country but also contributes to ensuring global food security.
Giving an example of effective cooperation in science and technology between the two countries, Mr. Tuan informed about cooperation between Vietnam and the United States in the production of African swine fever vaccine. Despite many difficulties due to implementation during the Covid period, up to now, two Vietnamese enterprises have produced African swine fever vaccines and are circulating them on the market.
In addition, Cargill has just inaugurated the most modern animal feed factory in Asia in Dong Nai, or Pepsico provides farmers with international standard potato varieties, supports irrigation methods, and weather monitoring. details of high-tech applications… Mr. Tuan believes that these contributions are bringing new transformations to Vietnam’s agricultural industry.
Mr. Nguyen Truong Duy, representative of the Department of Science, Technology and Environment (Ministry of Agriculture and Rural Development), said that investment in high-tech agriculture is one of the priority areas of the agricultural industry today.
The agricultural sector is attracting more and more large domestic businesses and corporations to pay attention, learn about and invest on a large scale, especially in agricultural production models applying high technology. In the period 2012 – 2020, the number of agricultural – forestry – fishery enterprises increased nearly 3.1 times, from 3,517 enterprises to 10,766 enterprises. In 2018 alone, there were 1,847 newly registered businesses. If we include agricultural, forestry, and fishery processing enterprises and food trading enterprises, there are nearly 50,000 enterprises.
In addition to the increase of small and medium-sized enterprises in agriculture, a number of large corporations also promote investment in high-tech agriculture such as Vingroup, Hoang Anh Gia Lai, Pan Group, Masan, Him Lam, Viettel , FLC, T&T… When investing in agriculture, most large corporations apply modern technological processes, initially creating a spillover effect in agricultural production.
Investing in high-tech agriculture will help reduce the impact on climate change from agricultural production; improve production levels, improve productivity and quality, ensure food security and general nutrition; create high value-added products, improve investment efficiency; Create a channel connecting consumer markets, ensuring smooth food supply…
Mr. Marc Elrich, Mayor of Montgomery County, Maryland (USA), said that the participation of US agencies at the forum can play an important role in preparing Vietnamese agricultural products for export. exported to this country’s market. He said that the two sides need to strengthen connections not only at state management agencies but also at the level of universities and research institutes, where there are valuable sources of information, creating a basis for businesses to promote. connection, investment.
According to Nongnghiep.vn
