The weak supporting industries of Vietnam is also an issue, as a business could only domestically source 33% of the necessary materials for production, while having to import the remaining proportion.
Vietnam thus needs more support in terms of taxes and other incentives to improve the supporting industries.
A representative of the Korean trade organization also told the meeting that its member businesses do not know much about the agriculture sector in Vietnam’s Mekong Delta.
Mekong Delta provinces are therefore urged to supply more information and introduce their strengths to foreign businesses to be able to attract more investors, the South Korean trade organization advised.
Besides Can Tho, which is directly administered by the central government, the Mekong Delta also includes such provinces as Long An, Tien Giang, Ben Tre, Vinh Long, Tra Vinh, Hau Giang, Soc Trang, Dong Thap, An Giang, Kien Giang, Bac Lieu and Ca Mau.
These 13 localities took advantage of the meeting on November 19 to inform international investors that they are calling investment for 74 projects.
Japanese businesses will boost investment to the Mekong Delta, and seafood emerges as the industry with the biggest potential, according to the Japanese trade representative.
Vietnam’s Mekong Delta attracted US$2.3 billion worth of foreign investment between 2011 and 2014, according to the VCCI Can Tho.
The area posted an average economic growth of 10% annually from 2001 to 2010, and 8.8% a year in the 2011-14 period.
There are now 29,000 businesses operating in the Mekong Delta, accounting for 7.7% of the total number of firms across Vietnam.
Considered Vietnam’s granary, the Mekong Delta supplies more than 90% of the country’s rice production, and 50% of the seafood outputs, among many other agriculture produce, according to the VCCI Can Tho.