Policies to mobilize financial resources from corporates to develop the new countryside in Vietnam

Abstract

Over the past years in Vietnam, corporates have been identified as a key and essential source for mobilizing investments in building a New Countryside (NC). The Party and the State have implemented preferential policies regarding finance, land, taxation, and credit to encourage corporations to invest in agriculture and rural areas. The mobilization of financial resources from corporates for NC construction over the past decade has significantly contributed to infrastructure development, and rural economic growth, and assisted localities in meeting NC construction criteria. However, the financial resources mobilized by corporates for NC construction remain limited, with a low mobilization rate compared to other sources. Despite comprehensive policies to incentivize corporates to invest in agriculture and rural areas, corporates are still hesitant to do so. Barriers still exist in institutions, policies, and incentives for mobilizing resources and encouraging corporations to invest in agriculture and rural areas. Investing in agriculture and rural areas carries inherent risks due to the dependence of agricultural products on natural conditions, underdeveloped rural infrastructure, low-profit margins, and slow capital recovery. This has affected the results of mobilizing financial resources from corporates for NC construction, necessitating innovative policies aligned with practical realities to enhance investment efficiency for corporates. This article examines the issue of mobilizing financial resources from corporates for NC construction and proposes improvement solutions.