Vietnam aims to become top ten global agri processor

Vietnam aims to develop a sustainable and modern farm produce processing system, making the country one of the world’s top ten agricultural processing hubs by 2030.

This goal was mentioned in the Decision 858 signed by Deputy Prime Minister Le Van Thanh approving Vietnam’s strategy on mechanisation in agriculture and processing of agricultural, forestry and fishery produce until 2030.

Accordingly, Vietnam's mechanisation rate by 2030 would be over 70% for crops, 60% in animal husbandry and 95% in aquaculture.

The growth rate of value-added products in the agricultural processing sectors would reach an annual average of 8% until 2025 and 10% until 2030.

By 2030, more than 70% of major agricultural processing centers will adopt medium to high-level technologies, while 60% of Vietnam's agricultural export staples will be processed products.

The government eyes the establishment of major agricultural corporations with international-level financial capability and corporate governance; and industrial clusters for processing farm produce linking with concentrated material regions and distribution networks.

To carry out this strategy, the government will continue to refine institutions and regulations, including those on land management, policies and mechanisms on cooperation among localities and government agencies in mass agricultural production.

Tax incentives for the agricultural processing sector, and machinery, equipment and technology in agriculture will be proposed to be amended when the National Assembly reviews the Law on Tax Administration.

Technological advancements are expected to be applied in the farm production process, along with incentives helping train a high-quality workforce for the mechanisation of agriculture.

The banking sector is responsible for providing preferential loans for agricultural development, especially for projects that form large-scale farm produce processing, storing, and distributing centers.

The Ministry of Agricultural and Rural Development will restructure concentrated agricultural production regions according to three groups of national, provincial and local key products based on the advantages of each region.

The ministry is tasked with creating favourable conditions for mechanisation application and development of farm produce processing; and strengthening cooperation in agricultural production and distribution, with businesses being key in the value chains.