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Mekong Delta receives $23 million of investment from Korea

Thu, 08 May 2014. Last updated Thu, 25 Jun 2015 08:42

South Korea has recently confirmed its investment in Mekong Delta by supporting local farmers in with the total amount up to $23.5 million. This investment is mainly used for upgrading modern machineries and training human resource.

On May 6th, authorities of Can Tho City have a meeting with representatives of Korea Agricultural Machinery Industry Cooperative (Kamico) about the project of agricultural mechanization in Mekong Delta. South Korea proposed to support $ 25 million through non-refundable ODA loan. This amount is to upgrade advanced agricultural machinery for the purpose of agricultural mechanization.

 

Rice exporting in Mekong Delta

 

This capital will be allocated according as follows: 60 percent of the amount is used for purchasing and transporting to Vietnam agricultural machineries such as combine harvesters, spraying machines, and sowing machines… which are manufactured according to South Korea’s technology. The remainder 40% is invested in personnel training and technology transfer. Machineries transported to Vietnam will be evaluated the effectiveness after a period of use. On that result, South Korea will produce better new models to meet the actual needs of farmers in Mekong Delta. In addition, Kamico also confirms the investment in Mekong Delta from 1 thousand to 1.4 thousand billion VND in constructions of factories and basic infrastructures.

 

Famers in Mekong Delta have a bumper crop

 

Mr. Truong Quang Hoai Nam, Vice Chairman of Can Tho People’s Committee said that the project once coming into operation would bring benefits to both parties. Farmers in Mekong Delta will have the opportunity to approach modern machineries. Benefits in the future are even greater: agricultural mechanization is accelerated; losses during harvest and transport are reduced while productivity and prices of products are increased.  Besides, South Korean enterprises will have the chance to penetrate into Vietnam and seek for partners to cooperate in the field of providing agricultural machinery. Vietnam in general and Mekong Delta in particular are considered as potential markets because agriculture is the most major manufacturing industry in Vietnam but the number of modern agricultural machineries here is too insufficient to meet the demand of farmers. If Korean commodities are good and have a competitive price, local farmers will definitely transfer from machines made in China into Korean ones. Furthermore, Vietnam government implements many favorable policies for agriculture. Consequently, foreign enterprises that invest in agricultural fields also gain benefits from those policies. According to the Department of Agriculture and Rural Development of Can Tho City, 70 percent of machineries using in Can Tho is from China, which has poor quality as well as low capacity. Applying machineries from South Korea is expected to improve productivity and quality of products.