Vietnam aims to develop a modern and sustainable farm produce processing system, making the country one of the world’s top ten agricultural processing hubs by 2030.

This goal was stated in the Government’s Decision 858 signed by Deputy Prime Minister Le Van Thanh approving Vietnam's strategy on agricultural mechanisation and development of the agricultural, forestry and fishery processing industry until 2030.

Under this strategy, Vietnam's mechanisation rate by 2030 would be over 70% for crops, 60% in animal husbandry and 95% in aquaculture.

Furthermore, the growth rate of value-added products in the agricultural processing industry would reach an annual average of 8% until 2025 and 10% until 2030.

By 2030, more than 70% of major agricultural processing centres will adopt medium to high-level technologies, while 60% of Vietnam's agricultural export staples will be processed products.

The Government eyes the establishment of major agricultural corporations with international-level financial capability and corporate governance; and industrial clusters for processing farm produce linking with concentrated material regions and distribution networks.

To carry out this strategy, the Government would continue to refine institutions and regulations, including regulations on land management, policies and mechanisms on cooperation among provinces/cities and Government agencies in mass agricultural production.

Tax incentives for the agricultural processing sector, and machinery, equipment and technology in agriculture will be proposed to be amended when the National Assembly reviews the Law on Taxation.

Technological advancements are expected to be applied in the farm production process, along with incentives helping train a high-quality workforce for the mechanisation of agriculture.

The banking sector is responsible for providing preferential loans for agricultural development, especially for projects that form large-scale farm produce processing, storing, and distributing centres.

The Ministry of Agricultural and Rural Development would restructure concentrated agricultural production regions according to three groups of national, provincial and local key products based on the advantages of each region.

The ministry is tasked with creating favourable conditions for mechanisation application and development of farm produce processing; and strengthening cooperation in agricultural production and distribution, with businesses being key in the value chains./.