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Businesses urged to improve their effectivenesss
According to Professor Vo Tong Xuan, former rector of An Giang University in the Mekong Delta, many enterprises have not paid enough attention to learning about the potential of agricultural products and industries.
Regarding the difficulties in promoting investment in agriculture and rural development, Professor Xuan said almost all enterprises are still hesitant to invest in agriculture for fear of risks arising from natural calamities and epidemics and a lack of land. If the government does not offer incentive policies, it will be difficult to encourage businesses to invest in agriculture.
Reporter: Resolution No 26-NQ/TW states that there are incentive policies which encourage enterprises from all economic sectors to invest in agricultural and rural development. In your opinion, what is the main focus of these policies?
Prof. Xuan: So far, we have talked a lot about this issue and no detailed policies have been issued. In future, we should issue concrete policies to encourage farmers to participate in collectives and guide farmers to sell products where they are worth their full value.
Reporter: Is this the reason that limits the number of investors in the agricultural sector?
Prof. Xuan: I think, many small and medium-sized enterprises are still not experienced enough in doing business. They do not know how to penetrate new markets and promote their agricultural products. In addition, most of them are still operating on a small scale and finding it difficult to build strong trademarks for their products.
Reporter: Do you think this is due to the weak cooperation between businesses and farmers and what should the Government do to strengthen their links?
Prof. Xuan: At present, the State has not introduced any mechanism which is strong enough to help businesses and farmers sign contracts, under which businesses commit to ensure enough supplies of input materials and farmers do not have to worry about seeking outlets for their products. That is why many businesses have broken their contracts with farmers. It is a fact that businesses often refuse to purchase products when prices are low while farmers prefer to sell their products to outside traders when prices go up.
Therefore, it is necessary to develop a suitable mechanism that would ensure the implementation of contracts between businesses and farmers. Businesses should have long-term investment strategies and sign contracts with farmers as previously agreed by both sides.
Reporter: Another problem is that businesses only receive a small amount of State investment. How can this be resolved?
Prof. Xuan: State investment plays an important role in reducing investment risks in the agricultural sector. The State should assist businesses to promote investment in the technology transfer and application of post-harvest processing techniques. Otherwise, businesses and farmers would find it difficult to cooperate well and ensure stable supply of good-quality products to the consumer market.
Reporter: Thank you.
VOV
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