PPP investment form helps develop agriculture

Given the current serious climate change, public - private partnership (PPP) investment form is expected to lure more investment in the agriculture sector as prices of agricultural products will increase and stay high in the years to come, the Vietnam Business Forum Magazine (VBF) reported.
Given the current serious climate change, public - private partnership (PPP) investment form is expected to lure more investment in the agriculture sector as prices of agricultural products will increase and stay high in the years to come, the Vietnam Business Forum Magazine (VBF) reported.

Minister of Agriculture and Rural Development Cao Duc Phat also said that the results of PPP projects made him expect a sharp rise in PPP in agriculture in the near future.

According to the minister, Vietnam is one out of 11 countries in the world to pilot PPP in agriculture. As many as 20 leading foreign corporations have invested in agriculture in Vietnam in the form of PPP. Vietnam has established six PPP groups of agriculture: vegetables, fruits, coffee, tea, seafood - the general merchandise, and microfinance groups. All groups are very effectively operated.

Tran Vu Hoai, Vice President of External Relations at Unilever Vietnam, a representative of PPP in tea group, said with the PPP model, tea growers and tea processors have received farming sustainability training. Each year, Unilever buys 30,000-35,000 tonnes of international Rainforest Alliance-certified tea for export. This helps promoting " made in Vietnam" tea brand in the world tea market.

Up to now, businesses joining the PPP in tea group reportedly have invested 440,000 EUR in training programmes and in production cooperation with over 23,000 farmers in six provinces.

As head of the seafood PPP group, Philippe Bacac, Managing Director of Metro Cash & Carry Vietnam, said promising results have also been reported in the PPP in seafood group. Metro Cash & Carry Vietnam together with other companies of the group like Cargill and Fresh Studio have successfully built up qualified production chains, which helps Vietnamese seafood products easily penetrate supermarket chains. Each year, more than 4,000 tonnes of seafood products from the PPP projects are provided to supermarkets nationwide.

The PPP in seafood group trained more than 2,000 fishermen and 400 merchants in farming techniques, safe medicine and chemical use, packaging and transportation in accordance with certified standards.

Dang Kim Son, Director of the Institute for Policies and Strategies on Agriculture and Rural Development, said Vietnam has great opportunities to attract FDI into agriculture through PPP projects. This is a door to attract FDI capital into agriculture. Besides, the Government of Vietnam’s determination on agricultural restructuring will create a significant source of motivation for investors.

Son said PPP projects have boosted agricultural output by 2-3 times and farmers’ incomes have thus increased 10-15 percent. This model has successfully connected businesses and farmers. Management agencies have timely fixed problems arised from production activities.

Tran Kim Long, Deputy Director of International Cooperation Department under the Ministry of Agriculture and Rural Development, said to continue promoting PPP advantages, good results from PPP projects in big businesses should be thoroughly studied to apply in different levels and various sectors.-VNA

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