Agricultural Exports - A Bright Spot for Vietnam’s Agricultural Industry

DNHN - Vietnam’s agricultural sector has achieved remarkable success in agricultural exports in recent times. The impressive growth in agricultural exports has contributed to boosting the economy and affirming the sector’s significant role and position.

Factors Contributing to the Growth of the Agricultural Export Market

One of the notable highlights of Vietnam’s agricultural sector is the diversity of its export products. Vietnam is blessed with rich and diverse natural resources, providing a significant advantage in producing various agricultural products. Vietnam’s primary export commodities include coffee, rice, pepper, cocoa, cashew nuts, rubber, and aquatic products such as shrimp, tra fish, basa fish, and various fruits like pomelo, pineapple, mango, and coconut. This diversity demonstrates Vietnam’s ability to meet the demands of the diverse international market while generating high export value.

The robust growth of the agricultural sector is also supported by essential policies and measures from the government. Preferential tax policies and free trade agreements have facilitated agricultural exports. Additionally, technological advancements in agricultural production have enhanced the quality and value of products, increasing their competitiveness in the international market.

Another critical factor is the increased export capacity and market expansion. Vietnam has made efforts to expand its trade network with many countries worldwide by signing free trade agreements. The primary consumer markets for Vietnamese agricultural products include China, the United States, Japan, the EU, and countries in the ASEAN region. This indicates that Vietnam’s agricultural sector has effectively exploited market potential and seized opportunities to expand exports.

The growth of agricultural exports has generated numerous economic and social benefits for Vietnam. It has contributed to increasing farmers’ incomes and improving their livelihoods. Simultaneously, agricultural exports have created jobs and contributed to the country’s GDP growth.

However, it is essential to acknowledge the challenges faced by Vietnam’s agricultural sector. One of the primary challenges is food quality and safety. In the international market, the demand for food quality and safety is increasingly stringent. Therefore, to remain competitive and maintain export markets, Vietnam’s agricultural sector must ensure compliance with international standards and enhance product quality.

Another challenge is the impact of climate change and natural disasters. Vietnam is a country with a tropical climate, and the majority of its population lives in rural areas. Climate change, such as droughts, floods, and severe storms, can cause significant damage to agricultural productivity and hinder the ability to meet export demand.

To overcome these challenges, the agricultural sector needs to continue investing in research and technology development while strengthening cooperation among relevant agencies, businesses, and farmers. It is necessary to enhance quality control and food safety while raising awareness about maintaining a sustainable environment and responding to climate change.

Agricultural Exports to Remain a “Bright Spot” in the Market

Agricultural exports have proven to be a bright spot in Vietnam’s agricultural sector. The diversity of export products, favourable policies, and market expansion have created significant opportunities for the sector. However, to sustain and grow agricultural exports, the agricultural sector needs to address challenges related to product quality and the impact of climate change. By implementing appropriate measures, Vietnam’s agricultural sector is expected to continue affirming its position in the export market and contribute to the country’s economic development.

The Deputy Minister of Agriculture & Rural Development - Phung Duc Tien, stated that 2023 was a challenging year for exports. In the first 11 months, agricultural, forestry, and fishery exports reached 47.84 billion USD, a 2.7% decrease compared to the same period last year. However, the agricultural sector is still pursuing the export target of 54 billion USD.

According to data from the Ministry of Agriculture and Rural Development, in the first 11 months of 2023, several key agricultural products showed positive developments. The export value of the fruit and vegetable group reached 5.32 billion USD, an increase of 74.5%; rice at 4.41 billion USD, an increase of 36.3%; cashew nuts at 3.31 billion USD, an increase of 17.4%. Other products such as shrimp, tra fish, and forestry products are also being actively and vigorously exported to achieve the 2023 target of 54 billion USD.

“We can see that the structure of the agricultural export market has changed in 2023. China is the leading market with an export value to China of 11.5 billion USD, accounting for 23.2%, an increase of 18% compared to the same period last year; The United States reached 9.5 billion USD, accounting for 20.6%, a decrease of 17.9%, and Japan reached 3.5 billion USD, accounting for 7.4%, a decrease of 9.1%…”, Deputy Minister Tien shared.

According to experts, managers, and agricultural commodity forecasters, agricultural products, especially fruits, vegetables, and rice, will continue to thrive in 2024 due to several favourable factors. These include an increase in orders, sustained global demand for imports, and Vietnam’s recognition as a supplier of increasingly high-quality agricultural export products that meet the requirements of demanding markets.

The Vice Chairman of the Vietnam Food Association, Do Ha Nam, stated that rice exports would continue to be a bright spot in 2024 as the global demand for food, including rice, remains high. Due to the impact of El Nino, rice yields may decline.

Nghe Nhan