Since the beginning of fiscal year 2013, there have been positive signs as many Vietnamese enterprises have gained large contracts, pushing the export of agricultural and aquaculture products in the first month up dramatically from last year. Typically, rice and coffee have had their volumes doubled.
It is reported by the Ministry of Agriculture and Rural Development, in January 2013, agricultural and aquaculture export turnover was estimated US$2.17 billion, up by 39.7 percent year by year.
Creating impetus for the whole year
By the end of January 2013, the Vietnam Food Association (VFA) exported 534,000 tonnes of rice with value of US$259 million, up by 108.5 percent in volume and 76.4 percent in value against 2012. At present, rice price is on a downward trend again. The average export price was US$454/tonne, US$30-40/tonne lower than that of rice from Indian and Pakistan. Currently, most rice export contracts involve Chinese, Hong Kong and African markets which account for over 80 percent of export volume. This is considered a notable success. Besides, coffee saw export volume of 191,000 tonnes, bringing value of US$387 million, up by 70.6 percent in volume. The two biggest coffee consuming markets of Vietnam – the US (accounting for 12.51 percent) and Germany (accounting for 11.63 percent) – have had good growth in both quantity and value.
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Vietnam has only exported raw materials, had no brands, with low value added and seen low business efficiency.
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Concerning cashew nuts, Vietnam exported over 14,000 tonnes, earned the turnover of US$88 million, keeping its leading position as the world’s biggest export country of this product. Two main export markets are the US (occupying 27.6 percent) and China (occupying 19.6 percent).
Aquaculture export turnover reached US$376 million, up by 3.5 percent year on year, and the US has still affirmed its position as the top importer, holding 19.15 percent, followed by Japan (17.81 percent) and South Korea (8.36 percent).
To remain affirmed in the market
As warned by economists, despite its world top ranks in export volume of many agricultural products, so far, Vietnamese agricultural product exports haven’t dominated the world market. Most products have seen significant increases in quantity while that in value is quite low and not corresponding to the production. We have only exported raw materials, had no brand, low value added and seen low business efficiency. These gaps, if not addressed soon, will cause serious difficulties for our agricultural product export.
It was supposed by Deputy Minister Tran Tuan Anh of Industry and Trade, that the direction for export in 2013 and following years is the model of sustainable development and balance between depth and expansion. The objective is improve the productivity, quality and added value to raise the export turnover and value of agricultural and aquaculture products, and build up competitiveness and strong brands.
However, according to Dr. Prof. Vo Tong Xuan, to effectively increase the added value of agricultural and aquaculture products, it is necessary to review each stage in the production process of the sectors, and identify which one increases added value in the product. This would improve production, farmers’ incomes and gradually affirm the position of Vietnamese products in the world market. Meanwhile, linkage between the processing plant and farming households should be fostered to guarantee the voluntary principle and, more importantly, the equality among subjects in term of benefits, among which those for farmers, cooperatives, groups, and material producers should be prioritized. Moreover, policies and statues should be continuously improved, whereas stakeholders should catch up with market information and invest into innovation of production lines to ensure food hygiene. These are prerequisite conditions for the Vietnamese agricultural and aquaculture sectors to possibly remain affirmed in the international market.
Q.K
Vietnamese
