Exporting Vietnamese agricultural products: Increased but not commensurate with potential

Export Vietnamese agricultural products

In recent years, Vietnamese agricultural products have been a main export group in terms of export value. However, compared to the potential, advantages and market demand, the export value of agricultural products of Vietnam is not equivalent.

In the period of 2011 – 2016, the export value of Vietnamese agricultural products gained an average annual growth rate of 12.7%, but not stable. In fact, there was a decrease rate in 2013 and 2015 compared to previous year. Export value accounted for 12% of total export turnover and this proportion tends to decrease.

Vietnam have been exporting agricultural products to many markets. The largest markets for Vietnamese agricultural products are China (19%), EU (16%), United States (13%), Japan (8%)… In 2011, Vietnam had 19 export markets with turnover of more than $ 1 billion each. However, this number reached more than 30 markets in 2016.

According to the Ministry of Agriculture and Rural Development, in the first five months of 2017, export turnover of agriculture, forestry and fishery was $ 13.7 billion, up 9.5%. Specifically, export value of major agricultural commodities was $ 7.3 billion, up 12.6% over the same period of 2016.

Although there have been many efforts and successes to develop and expand markets for agricultural products from Vietnam, Vietnam still faces many difficulties. Vietnamese enterprises usually have small scale and outdated technology. The main Vietnamese agricultural products are less competitive and have no brand name in the international market.

In addition, Vietnam exports agricultural commodities in raw material form, so the value added is not much. Also, Vietnamese agricultural products have been suffering competition from those of Thailand, India, and China.

In the context of strong international economic integration, it has been opening opportunities for Vietnamese agricultural products. Signing free trade agreements (FTAs) will help agricultural commodities from Vietnam to penetrate tough market with better prices and low tariff.

However, to take advantage of such opportunities, it is necessary to cooperate between parties. First of all, the government has to build information system for Vietnamese exporting companies of agricultural products. Moreover, policymaker make priority of attracting investment in clean and high-tech agricultural sector from cultivation to process. Doing this well, it will build trademark of Vietnamese agricultural products in the world market.

Vietnamese source: tapchitaichinh.vn