VietNamNet Bridge – Many Japanese investors have been taking quiet steps to pour money into the agricultural sector in Vietnam. 

 

 

 

According to the Bank of Tokyo – Mitsubishi, which provides loans to the projects, the Japanese investors can save 85 percent of the heating/cooling cost when growing vegetable in Vietnam thanks to the good weather in Da Lat.

The temperature in the city is 17-20oC year round. Meanwhile, in Sendai and Hakata, the major greens cultivation areas in Japan, the temperature goes is 2-32oC.

A report shows that Japanese investors have to spend VND0.4 billion on heating and cooling vegetables at their 800 square meter farm in Da Lat, instead of VND2.7 billion a year in Japan.

Many Japanese investors are quietly drawing up plans to pour money into Vietnam’s agriculture sector, according to Atsusuke Kawada, Chief Representative of the Japan External Trade Organization (JETRO).

In fact, not only Japanese investors, but the Japanese government has also shown its intention to invest in Vietnam’s agriculture.

The Japanese Ministry of Agriculture, Forestry and Aquaculture has recently suggested a plan under which Japan would assist Vietnam in its food value chain to help increase the added value of farm produce.

Japan also helps Vietnam develop irrigation infrastructure in Mekong River Delta.  A project on controlling salinity intrusion and providing irrigation water is being implemented in Ben Tre province.

Kawada said Vietnam’s agriculture deserves investment because of the favorable natural conditions and good labor workforce in the country.

However, many Japanese still have not made heavy investments because of the poor infrastructure for agricultural production.

The representative from JETRO said that Japanese would consider the cost of transporting products from farms to distribution points before they make decisions on projects. 

Sources said the two governments are working on a plan to give financial support to agricultural infrastructure development. 

The Bank of Tokyo – Mitsubishi has suggested that Da Lat City in Lam Dong province and the Mekong River Delta receive high priority for receiving support. 

Nguyen Anh Minh from the Ministry of Agriculture and Rural Development said the ministry is compiling a plan on agriculture development for 2015-2020 which will be open for public opinion in June.

A report from the Japan External Trade Organization (JETRO) showed that Japanese FDI in Vietnam in 2014 dropped by 65 percent to $2.02 billion. The report noted a considerable decrease in both the number of projects and registered investment capital, by 10 percent and 15 percent, respectively.

DNSG