HÀ NỘI A draft decree to revise current investment mechanisms in agriculture is being finalised by the Ministry of Agriculture and Environment (MAE), with the goal of boosting capital inflows and addressing long-standing barriers in the sector.

The regulation, which will replace Decree No. 57/2018/NĐ-CP, is expected to mark a strategic policy shift toward green, circular, and multi-value agricultural development that aligns with Việt Nam’s broader sustainability goals.

Deputy Minister Võ Văn Hưng said that after five years in effect, Decree 57 has revealed significant shortcomings, including cumbersome procedures, fragmented support mechanisms, and limited appeal to private investors—particularly in remote and high-risk areas.

He proposed reorienting policies toward sustainability, value-added production, and integrating cultural identity into agricultural products to improve branding and international competitiveness.

At the local level, several implementation challenges have emerged. Authorities in Thừa Thiên - Huế pointed out that the current policy framework does not adequately cover forest conservation participants—an essential pillar of sustainable agriculture. Meanwhile, officials in Quảng Trị suggested revising the fixed 30 per cent quota for hiring ethnic minority workers, noting that it may not be realistic for small projects or areas with a limited local workforce.

From a business perspective, Trần Mạnh Báo, Chairman of the Seed Trade Association, said existing tax policies do not reflect the unique risks and long production cycles in agriculture.

He called for a separate tax incentive scheme to support long-term investment, particularly in research, high-quality seed development, deep processing, and the creation of large-scale raw material zones—critical foundations for Việt Nam to become an agricultural powerhouse.

Trần Công Thắng, President of the Institute of Strategy and Policy for Agriculture and Environment, underscored the importance of clearly defining eligible beneficiaries and support conditions to avoid inconsistent interpretation across provinces. He also suggested allowing enterprises to use on-site assets as collateral to facilitate access to credit.

Strengthening international partnerships and building a robust legal foundation

In addition to domestic reforms, Việt Nam is ramping up international cooperation to attract more agricultural investment. According to Nguyễn Đỗ Anh Tuấn, Director of the International Cooperation Department, the ministry is pursuing strategic partnerships with major economies such as the United States, the EU, Japan, and China.

He proposed increasing diplomatic efforts to gain mutual recognition of Việt Nam’s technical standards and advocated for sending agricultural attachés and establishing representative offices in key export markets to assist Vietnamese businesses.

Tuấn also highlighted the need to build integrated value chains, with businesses playing a central role in linking production zones. As global requirements for traceability and sustainability grow, he supported the development of transparent data systems, such as forest and coffee-growing databases, to meet international regulations like the EU’s Deforestation Regulation (EUDR) and enhance the competitiveness of Vietnamese agricultural exports.

To support sustainable investment, the draft decree also proposes the creation of a Green and Sustainable Agricultural Development Fund, which would mobilise and allocate capital for innovation, high-tech farming, seed improvement, and digital transformation—particularly in disadvantaged areas.

“Most importantly, policies must be practical and solve real problems that businesses face,” Deputy Minister Hưng stressed. He believes the new decree will generate fresh momentum for Việt Nam’s agricultural sector to evolve into a more sustainable, technologically advanced, and globally competitive model. — VNS