July 9, 2021

Land prices in Vietnam have risen for the second time this year, while the cost of growing food in the country is now expected to surpass $100 a tonne by 2025.

A report released last week by the Land and Water Conservation Council said land prices in the southern province of Phuaca had risen by about 4.8 per cent over the past three months to $1,800 a hectare (4.2 per cent).

While the country’s biggest grain producer, Vietnam has a history of rising land prices.

The price of land in the province rose from about $1.7 billion in 2003 to $2.6 billion in 2015, and then doubled again in the early 2020s to $3.3 billion.

However, this time it is expected that the rate of increase will be slower than last year.

“The main driver behind the rise in land prices is the rapid growth of the agricultural sector in Vietnam over the last decade,” the report said.

“More and more land is being acquired for agricultural production in Vietnam and it is a huge challenge for farmers to obtain the land they need.”

It also said the average price of agricultural land in Vietnam rose more than 20 per cent in the first half of 2018 to $6,600 a hectour.

“Land prices are very high in many provinces and in some areas, particularly in rural areas, land prices are more than twice as high as in neighbouring countries,” the study said.

The report said the rise was partly due to an increase in land use, which led to an expansion of agricultural areas, and the increase in demand for farming equipment.

“This increased demand for agricultural equipment has contributed to an increased increase in agricultural prices, and in turn, this has increased the price of farmland,” the researchers said.

In the past five years, Vietnam’s land market has experienced a sharp rise in prices.

In 2019, the country recorded its first rise of more than 50 per cent.

But the increase is now set to continue for several more years.

The Land and Resources Department said farmers needed to pay more attention to the land price data.

“We need to be more responsible about the price increases because it affects the quality of agricultural products and also our social stability,” a department spokesperson said.

Topics:food-and-cooking,business-economics-and/or-finance,housing-industry,government-and%E2%80%93-%E6%90%9D,horticulture,vietnamFirst posted September 05, 2019 11:55:14

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