Vietnam Mulls Ways to Boost Agriculture Export

2:17:51 PM | 8/18/2006

Vietnam’s agricultural products have confirmed their foothold in 100 countries and territories worldwide. Many of them have gained high rankings in foreign markets in term of quantity such as pepper (1st position), coffee, and rice (the 2nd), and tea (the 7th). However, Vietnam agriculture still has lots of things to do to deal with weaknesses to boost its export turnover.
 
Although fruit and vegetables are considered potential export items of Vietnam, they have not confirmed their status in the world market. Mr Hoang Bang, an expert from Fruit and Vegetables Research Institute under the Ministry of Agriculture and Rural Development ((MARD) revealed that Vietnam produced 9.6 tons of vegetables and 9.5 tons of fruits in 2005, but only 20 per cent of the products could meet international standards for export (valued at US$235 million). In the recent years, Vietnam’s fruits and vegetables export turnover has been reduced. Currently, Vietnam’s fruits and vegetables are only present in 36 countries instead of more than 50 countries.
 
If Vietnam has no proper measures to cope with the situation, the country will lose its position in the world market, Bang warned.
 
According to agricultural experts, the situation is allegedly attributed to poor quality of fruits and vegetables products and the high price, weakening competitive capacity of the local products.
 
Although Vietnam boasts many famous fruits and vegetables which have gained trademarks all over the world namely blue dragon, grapefruit, star apple, mango, longan, cabbage, carrot, onion and litchi, their trademarks are not strong enough to compete with those of other countries such as Hungary, USA, and Australia. This has certainly reduced profits of Vietnamese export enterprises.
 
In order to improve agricultural products and boost its export turnover, Vietnam must fulfill the following tasks:
 
Firstly, Vietnam must apply advanced technology in cross-breeding, cultivation, harvest, processing and preservation.
 
Secondly, the country should soon set up an appropriate evaluation standard system for agro-product quality. At present, tariff barriers are difficulties that Vietnam is facing in exporting agro– product. For example, Vietnam suffers two times higher tax duty when exporting blue dragon to Western Europe ($5.5 per kg) in comparison with those exported from Thailand ($2.8 per kg), Vietnam Fruits and Vegetables Research Institute stated.
 
Most Vietnam’s export agro-product are raw materials and have not been well processed. The country still sees high quantity and quality loss rate after the treatment process.
 
According to Mr Chu Doan Thanh, an expert from Fruit and Vegetables Research Institute, the important task is to pay due attention to effective investment in technology. With upcoming accession to the WTO, Vietnam’s agricultural products export would face fierce competition in the race with tough competitors who have advanced science & technology if the country has no timely solutions to raise quality of agricultural products.
 
Therefore, it is essential to enhance the cooperation and coordination among industries and agencies particularly among farmers, scientists, managers, and entrepreneurs to develop a stronger brand name for Vietnam’s agricultural products export in the world market.
P.V