March 23, 2006

Vietnam encourages foreign investment in livestock sector

The Vietnamese government hopes to woo more foreign investment in the livestock industry so that revenue from the sector will increase to 30 percent of gross domestic product (GDP) by 2010, from 20.5 percent or US$53 billion last year.

Do Kin Tuyen, head of the animal production division at the Department of Agriculture of Vietnam said the livestock sector continues to show strong growth of 9-10 percent each year. The livestock industry accounts for 22.5 percent of the revenue from the total agricultural sector.

The Vietnamese government is offering privileges to foreign investors in the livestock industry, such as reducing corporate tax to as low as 10 percent, as opposed to the normal rate of 28 percent for other industries, said Do.

The livestock sector has attracted a few Thai companies. However, Taiwan still ranks as the biggest investor in Vietnam, followed by Japan and South Korea.