New Land Law: An opportunity to boost green agricultural investment

Abstract: The Land Law of 2024 came into effect on August 1, bringing significant opportunities to attract investment and promote the development of green agriculture in Vietnam.

A field in Thai Binh province. The 2024 Land Law allows for the concentration of agricultural land, opening up important opportunities for the development of modern green agriculture.

Hanoi – The Land Law 2024 came into effect on August 1, providing an important opportunity to attract investment to promote the development of modern green agriculture in Vietnam.

The law allows the concentration of agricultural land through conversion, leasing, production cooperation, etc., as well as the accumulation of agricultural land through transfer and use as equity assets.

These regulations will help address a major bottleneck that has long prevented large-scale land funds from developing large-scale, high-tech agricultural production.

Tuấn Ngọc Agricultural Cooperative in Ho Chi Minh City has been working to expand the land it uses for farming. The cooperative’s 4,000 square meters of land used to grow vegetables supplies about one ton of high-tech agricultural products every day, which is very limited compared to the needs of the southern city. The cooperative hopes to more than double its productive agricultural area to about 10,500 square meters, but is unable to expand its existing land and has had to develop planting areas in Binh Duong, Dong Nai and Ninh Thuan provinces.

Lan Junyu, director of the cooperative, said that since the planting area cannot be concentrated in one place, the planting is difficult to manage and control during the production process, resulting in higher production costs for high-tech vegetables.

Ngọc said that when agricultural land can be pooled, production costs for high-tech agricultural cooperatives could be cut by nearly half.

Expert Li Bazhiren said that the new land law allows localities to plan land and reorganize production to ensure that it is suitable for local conditions and advantages, creating favorable conditions for implementing the “One Community One Product” (OCOP) program and strengthening regional connections.

Hau Giang Province is a purely agricultural province, with agricultural land accounting for more than 85% of its land area. The province is determined to promote the development of high-quality agriculture. The province has been actively calling for investment in agriculture, but the number of investors is very small.

Ngo Minh Long, Minister of Agriculture and Rural Development of Hau Giang Province, said the first requirement for any investor is to own a large amount of land.

Mr Long said the concentration of agricultural land provided a major opportunity for local governments in the Mekong Delta region to develop agriculture in a sustainable way.

Specifically, this creates favorable conditions for companies to participate in the development of one million hectares of high-quality, low-emission rice projects, in line with the goal of promoting green growth in the region by 2030.

Nguyen Thanh Phuc, manager of Phuoc Thanh 4 Commercial and Production Company, said the accumulation of agricultural land has enabled enterprises to expand production scale and apply modern technology to improve productivity and efficiency while reducing costs.

The key, he added, is that with more land available, companies and businesses will no longer hesitate to invest in high-tech farming and new models such as organic, low-emission farming.

Nguyen Van Phuong, former deputy director of the Ministry of Finance’s Tax Policy Department, said that many fields are currently abandoned because farmers do not cultivate them effectively and they do not have the confidence to rent them out to businesses.

He stressed that local authorities have an important role to play in addressing this issue and promoting efficient land use.

Key Summary

New Land Law Takes Effect: The 2024 Land Law came into effect on August 1, providing an important opportunity to attract investment to promote the development of Vietnam’s modern green agriculture, allowing the concentration of agricultural land to promote large-scale, high-tech agricultural production.

Advantages of concentrated agricultural land:The new law allows the concentration of agricultural land through land conversion, leasing, cooperation, etc., which solves the management difficulties and high costs caused by scattered land and improves the production efficiency of high-tech agriculture.

Key roles of local governments:The new law provides local governments with new powers in land planning and production restructuring, which will help promote regional agricultural cooperation and the implementation of the “One Community One Product” (OCOP) program, and promote the sustainable development of local agriculture.

Promoting green agricultural investment:The new policy provides conditions for enterprises to expand production scale and apply modern technologies, and encourages investment in high-tech agriculture, organic agriculture and low-emission agriculture models.

Improving the utilization rate of agricultural land:By concentrating land, the problem of idle farmland has been solved, land use efficiency has been improved, and farmers are encouraged to rent land to enterprises for efficient agricultural production.

In summary, the implementation of the new Land Law has brought great opportunities for the development of modern green agriculture in Vietnam. By concentrating agricultural land and optimizing land use, the new law is expected to solve the bottlenecks that have long hindered the development of large-scale high-tech agriculture, and promote agricultural modernization and sustainable growth. This not only provides new development directions and investment opportunities for local governments and enterprises, but also lays the foundation for improving the efficiency and competitiveness of the entire agricultural industry. With such policy support, the development prospects of Vietnam’s green agriculture are broader, attracting more investors to pay attention and participate. If you have any questions about the new Land Law or green agricultural investment or need further advice, please feel free to contact Jaycy.

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