Foreign firms hungry for agri projects
Foreign firms hungry for agri projects
Foreign investors’ appetite for Vietnam’s agricultural sector is growing, with a string of new or expanded projects scheduled to come on line soon.
Tran Thi Thu Ha, Deputy Chairwoman of the Binh Dinh People’s Committee, said that final investment procedures were being completed for the expansion of Vietnam-Australia Group’s $23 million project to build a hi-tech shrimp farming complex in the province during 2016-2017.
In late 2015, this group also began the construction of a $45.4 million complex to produce high-quality shrimp in the Mekong Delta province of Bac Lieu. This 315 hectare project, which will be the largest of its type in Vietnam, will employ 2,000 local workers once it becomes operational in 2017.
“A growing number of agricultural foreign-invested projects are expected to be implemented in 2016. They are ready for implementation now,” said Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.
For example, the Vietnam-Australia joint venture Austfeed Vietnam Corporation has been given an investment certificate to build a new $30 million feed mill in the Mekong Delta province of Dong Thap. With construction due to commence in the first quarter of 2016, the mill will have an annual capacity of 400,000 tonnes after starting operations in February 2017.
In another case, Spotlight Animal Feed Corporation, a joint venture between Vietnam’s Spotlight and KSK Global, which is a major US financial investor, is expecting approval from the southern province of Ba Ria-Vung Tau for its new feed mill there. This project will have an annual capacity of 150,000 tonnes.
In early 2016, the corporation will also commence the construction of another mill in the northern province of Hai Duong. Currently the corporation is operating a feed mill in Dong Thap, and building another mill in the southern province of Dong Nai.
Additionally, the US’ Cargill will open its 11th Vietnam-based feed mill in the central province of Nghe An in 2016. Recently, Cargill invested $7 million for the expansion of its existing animal feed mill in Dong Thap, while announcing that it would extend its investment in Vietnam by another $40 million, bringing its total investment in the country to $180 million. The firm’s plan includes a new $30 million animal feed mill in the southern province of Binh Duong and a $10 million agreement with Saigon International Terminals Vietnam (SITV) for grain and oil seeds warehousing facilities in Phu My port in Ba Ria-Vung Tau. SITV is a member of Hutchison Port Holdings Limited – the world’s leading port investor, developer, and operator.
Tuan said that in February 2016, the Ministry of Agriculture and Rural Development would send a draft of a new decree on incentives for foreign-invested agricultural projects to the Ministry of Justice for comment. After that the draft will be submitted to the government for approval within the first half of 2016.
Under the draft, incentives will be given to foreign investors in four sectors, including production and development of plant varieties and breeds, production of supporting materials, intensive processing of agro-forestry-aquatic products, and production of veterinary medicines and pesticides.
“These four sectors are not attractive to local enterprises, so we have to attract foreign investors to them,” Tuan said.
