Eyeing Higher Fruit and Vegetable Export Revenues

Together with the above information, Mr Dau also delved into analyses on strengths and weaknesses of Vietnamese fruits and vegetables. To date, Vietnamese fruits and vegetables have been exported to 50 countries and territories in the world, including many demanding markets like the United States, Japan and South Korea. Not only focusing on market expansion and search, most exporters are aware of the importance of quality management, food safety and hygiene. Many exporters have been certified internationally recognised certifications like HACCP (Hazard Analysis and Critical Control Points), ISO (International Organisation for Standardisation), BRC (a global standard for food safety developed by the British Retail Consortium, a UK trade organization), Kosher Certification, and Halal. Nonetheless, the value of fruit and vegetable export remains small in proportion to the country’s total exports. Many exporters have invested in large-scaled processing plants but they are not fully operated because of unsatisfactory sales markets. Most plants are operating at only some 30 percent of designed capacity due to insufficient raw materials. Even, some plants are running on just 5 percent of designed capacity. Complaints about quality and safety are still frequently sent back to exporters. Only 10 percent of fruits and vegetables are processed. Worse, poor harvesting and post-harvesting practices and techniques reduce the quality of products and raises safety risks. According to statistics, at present, the post-harvest loss of both quantity and quality is very high, 25 percent. In addition, farmers still sell cheap when they have a bumper crop and sell dear in a poor harvest, which weakens their interest in horticulture. Shipping costs and airfares are still higher than those in China and Thailand, thus ebbing the competitiveness of Vietnamese fruits and vegetables in relation to regional countries.

 

To deal with these issues, Mr Dau recommended developing export and domestic markets for Vietnamese fruits and vegetables at the same time and the domestic market will be a firm support for shrinking exportation. Insurance policy is necessarily applied to agriculture and long-term sales contracts need to be insured. This will help farmers and companies feel secure when they plant fruits and vegetables. In addition, Mr Dau asked central agencies to actively work with the Vietnam Ship Agents and Brokers Association and shipping firms to make practical support for the Vietnamese fruit and vegetable industry in order to have a better shipping fare when the commodities are shipped to key markets like the EU and the US. Then, Vietnam can increase the competiveness and value of exports in these markets.

 

Mr Doan Xuan Hoa, Deputy Director of Department of Agro-Forestry Product Processing and Salt Industry under the Ministry of Agriculture and Rural Development, said: The world market needs nearly 600 million tonnes of vegetables and 500 million tonnes of fruits each year and prices are relatively high. The demand for agricultural products increases more from now to early 2012 and Vietnam expects to earn more from this trend. To snatch up this opportunity, the Vietnamese fruit and vegetable sector needs to continue with the Decision No. 52/2007/QD-BNN of the Ministry of Agriculture and Rural Development on development planning for vegetables, fruits, flowers and ornamental plants. By 2020, Vietnam will earn US$1.2 billion from fruit and vegetable export. To do so, the country will focus on developing centralised material zones to supply inputs for processing facilities to run at 80 percent of designed capacity, and conducting research on and selection of high-yield and good-quality vegetable and fruit varieties. It needs to widely apply good agriculture practice (GAP) process to ensure quality standards and food safety. To develop processing and preservation, it needs to encourage investment in the construction of small and medium-sized modern vegetable processing facilities in rural areas to improve the quality of commodities, and step up scientific research and technology transfer, basing on social trends, to improve the quality and efficiency of processing industry. With regard to export markets, it necessarily organises good distribution networks and trade promotion activities, and opens representative offices in key markets all over the world. At the same time, it strengthens the industry information system to assist farmers and companies to know market demand, trends and tastes to produce and sell products effectively

 

Contributing ideas to these issues, US specialist Robert Guillermo said Vietnam should develop technical standards and procedures for fruit and vegetable products, strictly control pesticide/herbicide and heavy metal residues in plants, and food safety, widely apply ISO, HACCP and GMP quality management systems, etc. Besides, it should pay attention to building product quality checking centres to control imported and exported fruits and vegetables in accordance with standard rules and international commitments. It also needs to build commodity exchanges and consignee centres for each export commodity and gradually approach modern commercial transactions of the world.

 

Mr Nguyen Huu Nam, Deputy Director of Legal Department, VCCI-HCM, said: C/O-related trade fraudulence is developing complicatedly as trade swindlers are using more sophisticated tricks. Addressing this problem requires coordination of concerned agencies like the Ministry of Agriculture and Rural Development, Vinafruit, the Vietnam Chamber of Commerce and Industry (VCCI), Agriculture and Countryside Security Bureau under the Ministry of Public Security. By doing this, competent authorities, especially C/O granting bodies, will have more accurate basis to define and certify C/Os of Vietnamese fruits and vegetables to pay the way for these commodities to expand the global presence. Mr Nam concluded that the full understanding of Vietnamese business community in C/O of Vietnamese fruits and vegetables will play an important role in building up the brand name and the prestige of Vietnamese fruits and vegetables on the international arena.