Despite facing considerable difficulties including natural disasters in 2005, Vietnamese agriculture still recorded considerable achievements in producing and selling agricultural and forestry products. In 2006, Vietnam will have to try even harder to maintain and increase the export revenue of key farm products.
Deputy Minister of Agriculture and Rural Development of Vietnam, Mr. Diep Kim Tan said, in 2006, the total number of farm products raised roughly 4.5 per cent. With the diversification as well as improved quality, farm products satisfied domestic demand. This year is regarded a year of success in harvest as well as price of most of main farm Vietnamese products namely: rice, coffee, rubber, cashew and pork. Although the price of many products constantly changed, in general, it still benefited farmers.
The total export revenues of farm products reached roughly US$5.8 billion in 2005, up 29 per cent on-year. Products having high export revenues include rice (roughly US$1.4 billion), wood products (US$1.5 billion), rubber (US$772 million) and coffee (US$718 million). Products having increases in both export volume and revenue were rice, cashew, wood products, vegetable, rubber and peanuts. However, revenues of many products were down due to difficulties in market and product resources, including pepper, vegetable oil, and tea.
At present, the market for Vietnamese agricultural and forestry products has been expanded to nearly 100 countries and regions. In which, Asia is the biggest market for rice, rubber, fruit and vegetable, pepper, cashew, wood products. Many key products including coffee, honey, processed fruit and vegetable, woods were exported to the European market; coffee, cashew, pepper, squeezed pineapple, wood to America; rice, tea and other farm products to Africa.
Mr. Tan reckoned that the export of farm products achieved high growth because farm product trading world-wide has recovered. Ina addition the improvement of many products benefited Vietnamese product prices. Vietnamese enterprises also tried research market demand; diversify and improve their products; upgrade their quality product in order to meet the customers’ demand. At the same time, the commercial promotion was concentrated and implemented and it developed effectively as a result.
Mr. Tan also said: in 2006, the farm products market is forecast to continue to see optimistic signs. However, it also has many potential risks that will require Vietnamese agriculture to implement new procedures to deal with. The Ministry of Agriculture and Rural Development has built the 5-year plan in 2006 to 2010 phase. This plan aims to reach an average production growth rate from 4 to 4.5 per cent per year and the export revenue growth records of 12 per cent per year. Agricultural and forestry products exporting revenue is trying to record US$5.9 billion. The export volume of rice exports is 4.5 million tonnes, coffee 780.000 tonnes, dried latex is 570.000 tons, tea is 100.000 tonnes, cashew 110.000 tonnes, pepper 105.000 tonnes while export revenues of fruit and vegetable is worth US$330 million and forestry product US$1.88 billion.
The Prime Minister of Vietnam has instructed Ministries and sectors to build plans and solutions to push exports and limit excess import to balance trading by 2010. Up to now, Vietnamese agriculture has been in an excess export period however farm import speed has rapidly risen in recent years. As long as enhancing the efficiencies of production and the quality product, commercial promotion has been being instructed and regarded as a necessary task contributing to the implementation of proposed plans especially the export target.
Mr. Tan also revealed that in 2006, the Ministry of Agriculture and Rural Development will coordinate with agricultural associations to implement commercial promotion activities, maintain and upgrade the farm product market net with locals. In particular, many exhibitions as well as conferences will be held including an agricultural and forestry products exhibition, seed and breed market, and an international agriculture exhibition; conferences pushing up consuming agricultural and forestry products will be organised. In addition, the Ministry will also cooperate with locals and associations to build farm product trademarks under the national trademark program. According to the reports from the Ministry, in 2006, it will participate in agricultural exhibitions in China, Italia, France to introduce Vietnamese agricultural products.
The agricultural and forestry products which meet the standard of honouring “high quality agricultural and forestry products and commercial credibility” program will be collected and advertised by the Ministry of Agriculture and Rural Development.
Lan Anh