Domestic agriculture is seeing opportunities to expand markets and acquire new technology as several Japanese investors show interest in hi-tech farming in Vietnam.
Indoor vegetable garden
Since 2013, there are a number of cooperation between Vietnam and Japan in this sector, such as the fresh vegetable project in Lam Dong Province and the tuna fishing plan in Binh Dinh Province. Japanese farmers also visited Da Lat and expressed desire to create a “fresh vegetable hub for Asia” there.
During a conference on developing the agriculture sectors in both Vietnam and Japan held last year in HCM City, many Japanese firms committed to make high investments for Vietnam.
Japanese investors said Vietnam had potential to develop hi-tech farming and produce quality products. But young Japanese people are not interested in farming, leaving mostly old people to work in this sector, so in the coming years, Japan will need more agriculture imports from Vietnam.
When Japan joins the Trans-Pacific Partnership (TPP), it will have to remove subsidies to its farmers.
Vo Tri Thanh from the Central Institute for Economic Management said average growth in the agriculture sector was 4 percent, while the growth rate in service sector is 10 percent. Investors fail to see profits in farming and farmers abandon land to find other jobs.
However, in the past eight years, food prices have increased sharply and people are starting to recognise the importance of farming and food security. Not only Japan, but domestic and other foreign firms from South Korea are also focusing more on this sector.
Economists urged domestic firms to find foreign partners so they can learn new technologies in farming and get a foothold in a growing export market expected to become extremely competitive due to growing demand for quality produce.
Farm sector sees advantage in Japan investment Related image(s)
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