Mekong Delta moving towards high-tech agriculture

Mekong Delta moving towards high-tech agriculture

Mekong Delta moving towards high-tech agriculture

The Saigon Times Daily

A container ship is seen at Tan Cang – Cai Cui port in Can Tho City. The Mekong Delta is working towards adopting modern agricultural practices to boost productivity – PHOTO: TL

HCMC – The Mekong Delta makes up more than half of the nation’s farm output but many farmers there are still struggling to make ends meet due to outdated technology and equipment. Therefore, the delta is working towards adopting modern agricultural practices to boost productivity.

In the next five years, high-tech agriculture would account for 30-35% of total agricultural production in the delta, according to a Vietnam News Agency report.

Vo Hung Dung, director of VCCI Can Tho, told a recent conference in Can Tho City that the delta’s agriculture needs high-tech technology to step up productivity, says the report. But the current embrace of advanced tech in agricultural production and processing remains limited.

Agriculture has a low level of mechanisation also, at 65% for rice harvesting. “These factors have resulted in low productivity, added value and competitiveness,” Dung said.

Rice farmers there lose more than VND3.2 trillion (US$143 million) post-harvest due to a low rate of mechanisation, according to the Mekong Delta Rice Research Institute.

To improve productivity, the delta will need more foreign investors, especially those committed to bringing in high tech, to bolster agricultural growth. In recent years, many of the delta’s 13 provinces have tried to polish their investment environment by injecting huge capital into traffic infrastructure, thus making the delta easily accessible.

The delta now needs US$1.4 billion for 50 agriculture projects, according to VCCI Can Tho. As of October last year, the region had attracted 50 agriculture projects with total registered capital of US$209.6 million.

With a population of more than 17 million, the delta is the third largest industrial area in the country after HCMC and Hanoi areas. Thanks to strong investment in infrastructure in recent years, it takes just three hours to travel from HCMC to Can Tho, the center of the delta, down from six hours in 2010.

The delta is the largest agricultural hub as it is responsible for 40% of the nation’s agricultural output. It produces more than 90% of the nation’s rice and 50% of the country’s seafood. Its rice output is 25 million tons a year, with over 6.5 million tons of it exported.

The Mekong Delta’s aquaculture output is 3.62 million tons a year, 57% of the nation’s total. Its shrimp exports amount to US$3 billion and its catfish shipments reach US$1.7 billion a year. Fruit acreage is more than 300,000 hectares.

This explains why FDI approvals in the delta are growing at a rate more than double the country’s average, according to VCCI Can Tho. FDI projects in the region have edged up by 73% since 2010, driving up FDI growth by nearly 20% a year.

Labor cost in the delta is the lowest in the country. Half of the delta’s 10 million workers are in the agricultural sector.

The Government has offered incentives for foreign investors in priority sectors and areas. The incentives include corporate income tax cuts, tax holidays, special zones, streamlined licensing procedures, land rent exemptions, and other favorable policies for foreign investors.

In the next 10 years, the economy of the delta is expected to achieve higher growth.

The Mekong Delta is facing challenges such as climate change, poor connectivity with other parts of the country, a lack of skilled labor, and poor supporting services.

Mekong Delta moving towards high-tech agriculture Related image(s)