Agro policies hindering enterprise growth highlighted
Agro policies hindering enterprise growth highlighted
Multiple agro policies are barriers to the operations of companies in the agriculture sector, including the state’s over-intervention in the sector’s zoning and restrictions to business rights, according to a recent report from the Vietnam Chamber of Commerce and Industry (VCCI).
The Ministry of Agriculture and Rural Development this year stipulated livestock densities for regions across the country in a draft decree guiding the execution of the Law on Animal Husbandry.
Under the draft decree, farmers in Dong Nai Province will not be allowed to open new livestock farms.
Other localities also expressed concern over the ministry’s restrictions on livestock density.
In particular, the Red River Delta, which has the highest livestock density in the country, was required to raise a maximum of 1,020 pigs, 458 buffalo, 507 beef cattle or 250 dairy cows per square kilometer without raising any other kind of livestock.
This livestock density is much lower than the population density of Hanoi in 2019, which is 2,398 people per square kilometer.
The regulation on livestock density goes against the Law on Planning and demonstrates the State’s over-intervention in the local market, VCCI claimed in the report.
Further, the ministry’s other policies will hinder creativity in the sector.
Early this year, the ministry issued Circular 02, featuring a list of animal feed allowed for use in Vietnam. According to the circular, local people and companies can only trade animal feed included on the list. This rule was considered illogical and not on par with Vietnam’s Constitution.
The circular missed out many conventional animal feed including water hyacinth and banana pseudostem, leading to concerns over the legality of their use and trade. Moreover, this regulation will hamper creativity among local residents and enterprises. For instance, if the locals discover a new type of animal feed, they will not be permitted to put it up for sale.
Besides this, Circular 01/2018 of the ministry failed to include certain livestock that have long been raised and traded by the locals, such as composting worms.
According to regulations on administrative fines in the livestock sector, the sale of livestock excluded from the list will be subject to a fine of VND40 million to VND50 million.
