PPP in agriculture: There are many challenges

VCN - Over 6 years, the establishment of 8 working groups in the form of public-private partnerships (PPP) in agriculture have contributed significantly to promote the development of key agricultural products. However, to push the development of this form, and contribute practically to restructuring the agricultural sector, is not simple.
ppp in agriculture there are many challenges
Seafood sector is determined to falled behind compared to other sectors. Photo: Nguyễn Thanh

Coffee is "shining"

Speaking at the Annual Meeting of Working Group PPP sectors under Partnership for Sustainable Development of Agriculture Vietnam (PSAV), Mrs. Pham Thi Hong Hanh, Secretariat PSAV, Department of International Cooperation (Ministry of Agriculture and Rural Development) said that: Vietnam is pursuing a policy of openness of the market, has entered the contract and negotiated 17 free trade agreements (FTA), in that 10 FTAs ​​are in the process of implementation, the remaining 7 agreements are approved and are pending signing.

When signed and implemented these FTA, there are no tariff barriers for export & import enterprises. However, in order to approach international markets, agricultural products must meet stringent requirements, especially in terms of quality. It requires adequate investment in the whole value chain while it is also a weakness because the investment in agriculture is quite limited, especially direct investment FDI.

Accelerating the deployment of PPP also aims to attract enterprises in investment, as well as in response to a new vision within the framework of the World Economic Forum, to pursue the mission 20-20-20 is to increase 20% production, increase 20% of income for farmers, reduce emissions by 20%, etc.

According to Mrs. Hanh, since 2009, the agricultural sector has established a working group in the form of PPP that includes: Coffee, tea, pepper, seafood, fruits and vegetables. After that, based on the practical demand, there are two additional groups formed including agricultural chemicals and agricultural finance.

During that time, the operation of the groups has achieved positive results, the most typical sector is coffee. With the coffee groups, the implementation of PPP projects have helped to increase production by 17%, increase farmer’s income 14% and significantly reduce emissions and greenhouse gas, nearly achieving the 20-20-20 target. In addition, the coffee model projects also included training for farmers on sustainable production, support to plan the development of national documents, and applied not only in the project but also in all provinces that have coffee production in the country.

Besides that, for the tea groups, through the projects it has built documents for sustainable tea production, training and creating sustainable supply chains for tea, etc. For vegetables, the project has improved productivity through training activities such as planting, irrigation, and putting new strains into production.

For pepper group, recently, within the framework of the project has conducted a series of activities such as an action plan for sustainable development of pepper, organizing forums to set the vision for enhancing pepper's reputation in the world market.

Seafood took a step back

Having no positive results as above, the seafood group took a backwards step compared to other groups due to many factors, including the transfer to new investors, and the role of the General Directorate of Fisheries (Ministry of Agriculture and Rural Development) has not participated actively. "This is the PPP group, so it needs to have cooperation from both sides of Government and enterprises. So it also requires an active participation of the appointed authorities," Mrs. Hanh said.

In the group of agricultural finance, although implementing business connections, projects and banks, the international commercial investment banks in Vietnam and the major commercial banks in Vietnam do not have a branch in districts in the provinces so it leads to high transaction costs. Hence it is difficult to implement.

"In the near future, in order to achieve better results, it is suggested that we implement a Circular about guiding the implementation of some articles of Decree 15/2015 / ND-CP on investment in PPPs in the agricultural sector.” Mrs Hanh said.

Around this issue, Mr. Nguyen Do Anh Tuan, Director of the Institute of Policy and Strategy for Rural Agricultural Development (Ministry of Agriculture and Rural Development) analysed that: Although achieving certain results, the development of the PPP sector still has many challenges. Typically, how to push up and connects enterprise in and outside the country to expand the multi-deployment model because most new deployment models are just models.

"Indeed, for PPPs in agriculture, the participation of the public sector is not as expected, so can move into private projects. Also, the capacity and experience to promote the projects are limited, also has not formed a network of experts in this matter ... " Mr. Tuan said.

According to some experts, the problems also came from the arrangement of funds for the implementation of PPP projects is quite difficult (there are currently no private sources, still relying heavily on the budget of public investment plans). Besides that, the investment projects in the fields of agriculture, in rural areas often have low profitability, payback period usually is less attractive to investors than other sectors. Currently, not many investors are interested in agriculture, they understand and proactively suggest participation and implementation of PPP projects in the fields of industry, etc.

By Thanh Nguyễn/Thanh Thuy

Related News

Revenue faces short-term difficulties but will be more sustainable when implementing FTA

Revenue faces short-term difficulties but will be more sustainable when implementing FTA

VCN – The National Scientific Conference under the theme “Tax management for imports and exports in the context of FTA implementation: Current situation and solutions” was jointly held by the General Department of Vietnam Customs (GDVC) and the Academy of Finance, on December 11.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.

Latest News

Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Business regulations must be trimmed for development of enterprises: Experts

Business regulations must be trimmed for development of enterprises: Experts

The General Statistics Office (GSO)'s socio-economic report for January 2025 reveals that while over 33,400 newly established or resumed businesses entered the market - marking a 15% increase compared to January 2024 - more than 58,300 businesses withdrew from the market, representing a growth of 8.1% on year.
Vietnam's agricultural product exports shine in 2024

Vietnam's agricultural product exports shine in 2024

The agricultural sector wrapped up 2024 with 62.4 billion USD in export turnover, marking an 18.5% increase against 2023, while achieving a record trade surplus of 18.6 billion USD, surging 53.1%.

More News

Aiming for 16% credit growth and removing credit room allocation

Aiming for 16% credit growth and removing credit room allocation

VCN - A representative of the State Bank of Vietnam (SBV) said that the SBV is gradually innovating its credit management methods, aiming to remove the mechanism of allocating credit room to each credit institution.
Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia has announced it will initiate an anti-dumping duty investigation on the imports of galvanised iron coils/sheets or galvanised steel coils/sheets originating from or imported from Việt Nam, China and South Korea.
Coffee prices hit record highs, heightening speculation risks

Coffee prices hit record highs, heightening speculation risks

Phan Minh Thông, Chairman of Phúc Sinh JSC, called the price surge "insane," warning of continued increases as businesses are compelled to trade at elevated prices instead of following pre-set contracts.
Exports witness a rise of US$1 billion in the first 15 days of 2025

Exports witness a rise of US$1 billion in the first 15 days of 2025

VCN - Compared to the same period in 2024, exports in the first half of January 2025 increased by more than 6%, equivalent to nearly USS$1 billion.
Central industrial hub sets ambitious growth target in 2025

Central industrial hub sets ambitious growth target in 2025

The central province has targeted ambitious growth of up to 10 per cent with some key strategic industrial investment projects in 2025, contributing VNĐ25 trillion (US$1 billion) to the State budget.
Demand for dragon fruit in Tiền Giang Province continues to increase

Demand for dragon fruit in Tiền Giang Province continues to increase

Dragon fruit prices in Tiền Giang Province remain high after the Lunar New Year due to increased demand from China and domestic consumption.
Data centres are attracting investors in Asia

Data centres are attracting investors in Asia

The global data centre market reached new heights in 2024, driven by the growing demand for generative AI, which has triggered a new wave of investment.
US or China: Who will lead in Vietnamese Tra fish imports?

US or China: Who will lead in Vietnamese Tra fish imports?

VCN - Given that tra fish is a key export commodity for Vietnam's seafood industry, the question arises whether the United States will surpass China as the leading importer of this product in 2025.
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
Read More

Your care

Latest Most read
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - The figure decreased by 15.6% (equivalent to a decrease of US$5.33 billion) compared to the figure in the first half of January 2025.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Business regulations must be trimmed for development of enterprises: Experts

Business regulations must be trimmed for development of enterprises: Experts

The General Statistics Office (GSO)'s socio-economic report for January 2025 reveals that while over 33,400 newly established or resumed businesses entered the market - marking a 15% increase compared to January 2024 - more than 58,300 businesses withdrew from the market, representing a growth of 8.1% on year.
Vietnam's agricultural product exports shine in 2024

Vietnam's agricultural product exports shine in 2024

The agricultural sector wrapped up 2024 with 62.4 billion USD in export turnover, marking an 18.5% increase against 2023, while achieving a record trade surplus of 18.6 billion USD, surging 53.1%.
Aiming for 16% credit growth and removing credit room allocation

Aiming for 16% credit growth and removing credit room allocation

VCN - A representative of the State Bank of Vietnam (SBV) said that the SBV is gradually innovating its credit management methods, aiming to remove the mechanism of allocating credit room to each credit institution.
Mobile Version