Capital shortage and complicated procedures are the main causes behind Vietnam’s difficulty to access Israeli technologies.
The interest in Israeli technologies began when Hoang Anh Gia Lai, a group with powerful financial capability, announced it was applying the technology in its agriculture projects.
A recent meeting between Israeli and Vietnamese enterprises held by BSA, a business promotion center held in HCM City, drew the attention of many agricultural producers, but many Vietnamese enterprises say there are still too many problems facing enterprises.
Do Lan from Green 2000, a well-known Israeli company, admitted that only two projects had been developed in Vietnam, though the company has been present here since 2010.
These include a project on growing vegetable and spices for export covering an area of four hectares in Nghe An province, which is under implementation.
The other project on vegetable production in greenhouses on an area of three hectares on Phu Quoc island has been cancelled because the Vietnamese partner could not arrange enough capital.
Capital shortage is one of the reasons that prevent Vietnam’s agriculture from approaching Israeli high technologies. According to Doan Thi Hong Quyen from the Can Tho City Science & Technology Department, it costs VND2-3 billion to set up a greenhouse system for 1,000 square meters in an area that can meet the standards to apply Israeli technologies.
The high investment rate is unaffordable for the majority of the enterprises in the Mekong River Delta, unless they get support from the State.
It is estimated that one hectare of cabbage can bring annual revenue of VND80 million, which means that it would take farmers 37.5 years to recover the investment capital. Quyen said in theory it would be reasonable to apply Israeli high technologies in growing valuable fruit for export.
However, as the export markets remain unstable, Vietnamese farmers still dare not make heavy investments if they are not sure about future sales.
Israeli enterprises have tried to draw Vietnamese attention to its drip irrigation technology. However, farmers in Mekong River Delta, an area with good natural conditions, have not been interested in the technology.
Meanwhile, the biggest problem for enterprises in Da Lat City is not lack of capital, but complicated procedures.
Le Van Cuong, director of Da Lat Gap, said the company needs to import insects to develop high-quality farm produce, free of chemicals, for export to Japan. However, it still cannot do this because of strict regulations on controlling such imports.
There are two kinds of insects from Israeli enterprises. The first one is used to help plants pollinate, while the second one helps kill harmful insects, or natural enemies.
Nguyen Hoang from Tay Ninh province said that enterprises need to prove to authorities that the insects are harmless. However, this would be very costly, which has caused enterprises to reconsider such purchases.
Source: Vietnamnet