Enhancing Agricultural Cooperation with Africa, Middle East

The Ministry of Agriculture and Rural Development attaches great importance to the Government’s advocacy of strengthening cooperation with African and Middle Eastern countries. The cooperation with these regions has been stepped up in 2011, aiming to draw investment flows for the agricultural sector, and to increase exports of agricultural, forest and aquatic products to these markets. Besides, international agricultural cooperation has been promoted to help Vietnamese enterprises boost investment to Africa. Vietnam Business Forum interviewed Mr To Viet Chau, Deputy Head of the International Cooperation Department under the Ministry of Agriculture and Rural Development, on this issue. Do Son reports.

 

In agriculture, cooperation with Africa is quite different from ties with the Middle East. Therefore, market approaches are not the same. With Africa, Vietnam mainly exports rice and agricultural products, performs investment and business cooperation, harnesses land and resource potential of the region and sends experts to help African countries to develop agricultural production and ensure food security. Most African countries do not have large financial resources.

 

Meanwhile, we can draw on financial resources and technologies from the Middle East for agricultural production expansion in Vietnam to increase the supply of agricultural products like rice, tea, coffee, pepper, tropical fruits and vegetables, seafood, meat and milk for the Middle East or third countries. Middle East countries have high demand for rice. In recent years, agricultural cooperation between Vietnam and Africa and the Middle East has been strengthened. Political situations are not stable in many African countries because of wars, climate change, low agricultural productivity, population growth pressures and food security problems. However, in recent years, Vietnam has made significant achievements in agriculture; Vietnamese specialists are qualified and experienced; Vietnamese production practices are adaptable in many African countries; and prices of Vietnamese rice and agricultural products are also affordable for consumers in Africa and the Middle East.

 

Many African delegations have come to Vietnam to gain agricultural production experience, proposed signing of cooperation documents, including trade in agricultural products, technical cooperation, and tripartite cooperation with involvement of a third party like international organisations such as the United Nations Food and Agriculture Organisation (FAO) or a third country. We have also sent delegations to many African countries like Angola, Mozambique, Rwanda, Sierra Leone and Central Africa. But, African delegations visiting Vietnam are mainly governmental agencies or agricultural academies. Some Middle Eastern countries with powerful financial resources like Saudi Arabia and Qatar have also dispatched delegations to Vietnam to survey and discuss trade cooperation, joint business and investment. The latest visit to Vietnam was conducted by Israeli President Shimon Peres in November 2011 to work with the Minister of Agriculture. Agricultural cooperation with Vietnam draws the attention of Israel.

African businesses take less interest in Vietnamese agriculture because of insufficient information and geographical distance. They mainly care about importing rice from Vietnam, attending trade fairs and exhibitions, and exploring the market. In addition, some of them are interested in importing Vietnamese agricultural machinery because of relatively simple operations which match small-scale agricultural production in Africa. At present, some African companies with major financial resources are interested in forming joint ventures with Vietnamese partners, and signing contracts with Vietnamese experts to develop rice, agricultural or aquacultural production in Africa.

 

Africa purchases not only Vietnamese rice, but also from other countries like Thailand, China, Indonesia, Indonesia, Egypt, Bangladesh and India, some of which are Africa’s traditional clients. If we do not have good trade programmes, Africans will not be aware of Vietnamese rice.

 

Most African countries are poor. Thus, Vietnam needs to have flexible mechanisms, including payment, when it cooperates with them. Perhaps we can allow them to defer payments or apply a goods-for-goods mechanism. We may sell rice to them in exchange for cashew nuts, timbers, minerals or oil.

 

Many Middle Eastern countries are rich. Besides prices, they are interested in quality and varieties. We must be able to sell them what they need, rather than simply what we have. The Middle East needs agricultural products at their expected quality. For this reason, some Middle East countries recently suggested to invest and guide farming process for Vietnamese partners in Vietnam, or invited Vietnam to join in some agricultural projects in foreign countries (e.g. in Africa) to provide agricultural products for local people.

 

Most African and Middle Eastern countries are now attaching great importance to food security guarantee. They admire Vietnam's achievements in ensuring food security. In addition, Vietnam has many strong points in agricultural cooperation with Africa:

 

-  Vietnam has many achievements and much experience in agricultural development, particularly in cultivation, animal husbandry, aquaculture and commercial fishing, and processing. Many African countries have a high regard for Vietnam for its rice production. Africa wants to apply Vietnamese agricultural experience and techniques because they are adaptable in Africa.

-  Cultivation and agricultural development in general in most African countries remains rather backward. Therefore, African countries want to invite Vietnamese agricultural experts and technicians to cooperate and guide them to develop agriculture.

For the Middle East, Vietnam’s strengths are experienced, hardworking human resources which are always available for agricultural production investment projects in Vietnam, Africa or the Middle East if they have good enough treatment. In addition, Vietnam has favourable natural and soil conditions for agricultural development, plus good political and social stability - a good environment for Middle Eastern countries to locate their investment projects.

 

Agricultural cooperation with African and Middle East countries has progressed positively in the past time. Many African countries want to learn agricultural development from Vietnam. Vietnamese agricultural and fishery professionals and technicians have taken part in the South - South Cooperation Project which helps ensure food security for 10 African countries. This project supported by the FAO or a third country since 1996, and is highly appreciated by international communities and African countries themselves. Middle East countries are also very keen on cooperating and considering investment in agricultural projects in Vietnam. However, Vietnam - Middle East agricultural cooperation has been to date limited to trade in agricultural products, exchange of visits, scientific research, training and technical assistance in a modest scale, not enough to utilise the potentials of the two parties. Regrettably, there is hardly any presence of Vietnamese enterprises in agricultural development investment in Africa and the Middle East. Currently, the Ministry of Agriculture and Rural Development has submitted the mechanism and policy for implementation of Vietnam - Africa agricultural cooperation scheme to the Prime Minister for approval. In addition to creating consistent policies, favourable legal framework of the State of Vietnam and support and encouragement of African and Middle East countries, more partners are interested in agricultural and fishery cooperation with these potential but risky markets.