Many inclusive agricultural businesses are not ready to receive investment.

DNVN - According to Ms. Vu Thanh Mai - Clickable Impact, a strategic consulting company on green and inclusive growth, implementing an inclusive business model in the agricultural sector faces many challenges. Many inclusive businesses in agriculture are not ready to receive investment, leading to limited access to capital sources.

ASEAN defines inclusive business (IB) as a business model that provides goods, services and livelihoods to low-income people. This type of business is commercially viable on a large scale or has the potential to expand, mobilizing the participation of low-income people in the value chain as suppliers, distributors, retailers or customers. The model brings tripartite benefits to the government, businesses and low-income people themselves.

In Vietnam, in order to support businesses towards green growth and sustainable development, the Prime Minister issued Decision 167/QD-TTg dated February 8, 2022 approving the "Program to support private sector enterprises in sustainable business for the period 2022-2025" (referred to as Program 167).

The programme places special emphasis on inclusive business practices, with the aim of ensuring that the whole society benefits from economic activities, especially disadvantaged groups that are often overlooked in traditional business models.

Sharing at the workshop "Promoting inclusive business in agriculture in Vietnam and the incubation program for supporting organizations and inclusive business enterprises towards international recognition" on October 15, Ms. Vu Thanh Mai - Clickable Impact - a strategic consulting company on green and inclusive growth, said that the inclusive business model in agriculture (IAB) plays an important role in achieving sustainable development goals and creating social impact.

Delegates attending the workshop.

In Vietnam, the implementation of IAB is facing many challenges. There is a lack of consistency in understanding and implementation. Investment in IAB is expensive with unattractive returns compared to other popular forms of investment.

“Many IAB businesses are not ready to receive investment, leading to limited access to international support sources. The process of building trust among actors in the chain (enterprises, traders, farmers) still has many difficulties,” Ms. Mai emphasized.

In terms of finance and resources, according to Ms. Mai, uncontrolled risks in the agricultural sector prevent investors from pursuing large investment packages or committing to continue investing. Impact investing in the agricultural sector remains very limited, with statistics showing about 16 development finance institutions and private investors.

New funding sources are focused on a select few IAB businesses. Women face greater challenges accessing business networks and financial resources when launching IAB.

“To raise business awareness of IAB, it is necessary to organize communication campaigns to raise awareness for business groups about IAB with real benefits and impacts.

“It is necessary to raise awareness among farming households about the opportunities and benefits of participating in IAB models. Focus on creating conditions for female farmers, people with disabilities and young people about opportunities to improve their income and quality of life when participating in IAB,” Ms. Mai recommended.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/nhieu-doanh-nghiep-nong-nghiep-kinh-doanh-bao-trum-chua-san-sang-nhan-dau-tu/20241015032631992