Delegates to the conference agreed that it’s hard to implement large-scale farming, as any project beyond 10 hectares of rice farming must require the prime ministerial approval. Interest rates for agricultural loans receive no privileges as it is considered a high-risk investment. Complicated administrative procedures was also another challenge raised by agricultural businesses at the conference.
“So many ministries are involved in rice farming. We are calling for reform in regulations and to have just one ministry to deal with it. For example, Shrimp and Tra Fish exported to the US are monitored by the US Department of Agriculture, not their Department of Commerce”, Tran Manh Bao – General Director of Thai Binh Seeds Corporation – said.
A recent survey conducted by the Ministry of Agricultural and Rural Development revealed that 82% of agricultural businesses in Vietnam find it hard to get insurance, 77% had trouble with technology, 70% faced credit challenges and 63% struggled to find land.
“Land regulations must be simplified to make it easier to rent out land. Secondly, credit policies have to become more favourable for farmers to facilitate agricultural development”, Dr. Nguyen Do Anh Tuan – Director of Institute for Policy and Strategy of Agricultural and Rural Development said.
“The ministry is working hard to remove regulatory barriers and cut down the legal procedures to boost agricultural and rural development”, Nguyen Xuan Cuong - Minister of Agricultural and Rural Development – said.
For the first time ever, the Ministry of Agricultural and Rural Development and Vietnam Chamber of Commerce and Industry are working together in establishing an initiative to remove agricultural barriers for the 2016-2020 period.
Eight assistance projects are now in place to help agricultural businesses break new ground.
