Exports of rice, vegetables, cashews, and coffee go well

Exports of nine out of ten key items to the USA decreased

Nguyen Nhu Tiep, Director of the Department of Quality, Processing, and Market Development, reported on July 19 at a meeting of the Ministry of Agriculture and Rural Development to review the market development task for the first six months of 2023 and implement the key tasks for the final three months of the year that exports of rice, vegetables, cashews, and coffee all grew well, with rice and vegetables showing a sudden increase of 34.7% and 64.2% respectively compared to 2022.

In the first half of the year, exports of agricultural, forestry, and fishery products to the Chinese market increased by 7.7%, with vegetables, rice, cashew nuts, and tea seeing the greatest value increases. From now until the end of the year, it is anticipated that the export of agricultural products to this market will maintain a modest growth, particularly some commodity categories such as vegetables and fruits and rice. Wood, seafood, and cassava, which suffered a steep decline during the first six months, may experience a modest recovery in the final three months of the year.

The export turnover of agricultural, forestry, and fishery products to the US market in the first six months of 2023 is estimated to be 4.9 billion USD, a decrease of 32.9% compared to the same period last year. The exports of only coffee increased by 16%, to a total of 145.2 million USD, while the exports of the remaining nine items all decreased. The World Bank predicts that the US economy will experience a considerable slowdown in the second half of 2023 and early 2024 as a result of the tightening of monetary policy, estimated at 1.1% in 2023.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam stated that in the last six months of the year, the Ministry will focus on implementing trade promotion activities, connecting and developing markets to promote the export of agricultural products.

Even though the export turnover to the Japanese market decreased compared to 2022, the Japanese government's consumption promotion policies and the Japanese people's demand for agricultural products still make this a potential market.

The Ministry will contemplate coordinating trade promotion activities for fruit products for the Japanese market in conjunction with events commemorating the 50th anniversary of the establishment of diplomatic relations between Vietnam and Japan and the ASEAN Summit - Japan in Tokyo in December 2023.

Deputy Minister Tran Thanh Nam stated that, for the US market, the Ministry of Agriculture and Rural Development has identified a number of large states that have a demand for the importation of Vietnamese agricultural products via Agricultural Counselors and Trade Counselors in the states, so as to encourage the signing of export promotion programs.

On July 21, 2023, the Ministry of Agriculture and Rural Development will host a "online forum connecting the production, processing, and export of brackish water shrimp"; through the Associations of the United States, the Ministry will search for states that import a great deal of Vietnamese agricultural products in order to organize work, exchange, connection, and promotion of agricultural products in this market.

For the Chinese market, Deputy Minister Tran Thanh Nam proposed that the Department of Quality, Processing and Market Development expedite discussions with Guangxi and Yunnan provinces (China) in order to finalize a memorandum of understanding and contact Decree on exporting agricultural products at the local level; promote exchanges with Guangxi province on the establishment of the Guangxi - Vietnam Agricultural Enterprise Association and the Vietnam - Guangxi Agricultural Product Logistics Association; overcome limitations and remove obstacles in exporting agricultural products to the Chinese side, thereby creating favorable conditions for enterprises participating in the official export of agricultural products to China.

In addition, the Deputy Minister recommended that businesses and associations pay close attention to food safety issues, particularly in ports, fishing vessels, and warehouses.

Watch out the situation of 'blank space'

Minister Le Minh Hoan suggested that associations and businesses communicate information and market indications with the Ministry frequently and swiftly in order to solve problems and propose solutions.

The Minister recommended that businesses stop considering trip trade and instead concentrate on investing in developing raw material regions and forming a business community to develop the market.

Enterprises are strongly encouraged to participate in the development and implementation of 3 backbone projects to develop the agricultural product market, including the "Pilot project to build areas of agricultural and forestry raw materials up to standards to serve domestic consumption and export in the period 2022 - 2025", "Sustainably develop 1 million hectares of high-quality specialized rice in conjunction with green development in the Mekong Delta", and the Project "Development of a logistics system to enhance the quality and competitiveness of Vietnamese agricultural products South to 2030, vision to 2050".

Periodically and quarterly, departments under the Ministry coordinate activities to disseminate market regulations and information on consumer preferences to localities, businesses, and producers via Trade Counselors, Vietnam Business Associations, and then direct production.

The Minister suggested that businesses and associations improve the quality of agricultural products by increasing the transparency of agricultural products through traceability. Adding medicinal plants and seasonings to the primary export industry in order to transition into a new economic space. To avoid a "blank space" situation, it is necessary to focus on the domestic market in addition to the export market.