Sharp export price drops coupled with supply shrinkage on adverse weather and foreign currency appreciation are cited as main reasons behind Vietnam’s failure to realise export targets of agricultural, forest and aquatic products.
Given declining exports since the beginning of the year, the Ministry of Agriculture and Rural Development predicted that Vietnam’s agricultural, forest and aquatic exports may reach only US$30 billion this year, lower than the initial target of US$32 billion and lower than the result of US$30.86 billion in 2014.
Vietnam earned US$2.55 billion from agricultural, forest and aquatic exports in October, fetching a total of US$24.61 billion in the first 10 months of 2015, down 3.8 percent year on year.
The export value of agricultural commodities was estimated at US$11.51 billion in the 10-month period, down 6.1 percent year on year. Seafood export value was projected at US$5.45 billion, down nearly 18 percent.
Shipments to major markets fell sharply, with magnitude ranging from 6 percent to 26 percent). Exports to the United States plunged most, nearly 27 percent, followed by the European Union (EU) with a 19 percent drop and Japan with a 15 percent decline.
Coffee continued to be the worst performer in the January-October period. Vietnam exported 1.05 million tonnes of coffee valued US$2.13 billion in 10 months, down 29.6 percent in volume and 31.4 percent in value from the same period of 2014.
Rubber exports slumped 15.8 percent on year in value. Rice exports declined 4.6 percent in volume and 11.7 percent year on year in value in the reviewed period. Only cashew nut saw a positive growth in the 10-month time.
Oversupply and high inventories in many countries amidst shrinking import demands in key markets such as the US, the EU and Japan, coupled with exchange rate fluctuations are attributed to the spiral decline in the world market.
Market difficulties prompted many countries to erect additional technical barriers to agricultural, forest and aquatic products from Vietnam. Competitive pressures keep growing. For example, Vietnam had to compete much more fiercely with Thailand and Myanmar in rice export than 2-3 years ago.
US dollar and euro appreciation in combination with exchange rate volatility has adversely impacted exporters.
In the last two months of this year, the export value was projected to edge up and end the year 20-25 percent lower than in 2014.
Against this backdrop, the Ministry of Agriculture and Rural Development urged the Steering Committee for Agricultural Markets to coordinate with business associations and enterprises to closely monitor agricultural production and market development in order to propose actionable solutions, mechanisms and policies for expanding markets, dealing with difficulties and promote key exports.
Besides, the ministry will lead trade promotion delegations to potential markets in order to survey market demands and find solutions to existing difficulties in export. It will also review production and processing processes of every commodity and product to work out more effective solutions and policies to enhance product value.
Huong Giang
Vietnamese
