Prospects in agri-cooperation between Vietnam and the United States

US President Joe Biden’s visit to Vietnam is slated to take place on two days of September 10-11 at the invitation of Party General Secretary Nguyen Phu Trong. The Vietnam Agriculture News arranged an interview with Mr. Nguyen Do Anh Tuan, Director of ICD MARD, to clarify this heated topic in light of the many achievements that the two countries have achieved in recent years, including in agriculture.

In recent years, agri-trade between Vietnam and the United States has flourished, and President Joe Biden's visit will mark a new milestone in the bilateral relationship between the two nations. The advancement of diplomatic relations will facilitate the expansion of agricultural cooperation. How do you evaluate the agri-development potential of two parties in the near future?

The United States is thus a prominent agricultural producer, consumer market, and importer. With a population of 338 million, the United States imports over USD 200 billion worth of agri-forestry-fishery (AFF) goods to meet domestic demand. The majority of imports consist of coffee, cacao, fresh and processed vegetables, seafood, and timber and timber products.

The United States remains one of Vietnam's and the agricultural industry's most important markets. Vietnam's AFF exports to the United States reached USD 13 billion in 2022, representing 24.4% of the world's total agricultural export turnover, but only 6.7% of US AFF import value. Huge opportunities present for Vietnam to increase its market share in the latter.

In 2022, seafood exports to the United States reached USD 2.1 billion (up 4%), wood and wood products reached USD 8.67 billion (down marginally by 1%), and cashews reached USD 842 million (down 19%). Some products have moderate export volume but substantial export growth, such as vegetables at 247 million USD (an increase of 11.2%), pepper at 282 million USD (an increase of 23.2%), and rice at 18 million USD (an increase of 58%).

The Vietnam Ministry of Agriculture and Rural Development has welcomed the delegations of the US Secretary of Agriculture, the United States Trade Representative (USTR), two US Deputy Secritaries of State, two US Deputy Secretaries of Agriculture, and Governors of Nebraska and California over the past year.

The action demonstrates Vietnam's significance to U.S. agricultural cooperation. Several bilateral meetings are accompanied by a series of exchange and negotiation activities, understanding and collaboration between the two parties, which serve as an essential foundation for enhancing agricultural cooperation. Regarding the upcoming visit of President Joe Biden to Vietnam, the relationship between the two nations will be elevated to a new level, bolstering their bilateral cooperation in agriculture and rural development.

The Ministry of Agriculture and Rural Development (MARD) has been analyzing opportunities and implementing comprehensive strategies to improve the position, competitiveness, and market share of Vietnamese agricultural, forestry, and fisheries (AFF) products on the US market in order to capitalize on US market potential. Therefore fostering the transformation of Vietnamese agriculture towards ecology, high technology content, and added value, supporting the connection of farmers, farmer groups/cooperatives with the global value chain, and bolstering the income of producers. establishing a reputation as a responsible, transparent, and sustainable AFF exporter, which will serve as the foundation for establishing the Vietnamese AFF brand worldwide.

Cooperation in training and agricultural technology is also of mutual interest; therefore, how do you think the visit of US President Joe Biden will advance this cooperation?

In the fields of Animal Husbandry, Veterinary Medicine, Forestry, Fisheries, Natural Disaster Prevention, and Climate Adaptation, MARD is proactive in promoting comprehensive, substantive, and effective cooperation with US partners, particularly the US Trade Representative, the US Department of Agriculture, and the US Agency for International Development (USAID). This visit by President Biden will promote greater agricultural cooperation between Vietnam and the United States.

First, jointly promoting the development of market mechanisms in trade relations between the two nations will accelerate trade negotiations, open agricultural markets, and reduce differences in handles of Vietnam's AFF exports to the United States, particularly wood and wood products, seafood, and honey.

Second, this is an occasion to foster greater bilateral cooperation in the areas of science and technology, disease prevention, and climate change. USAID, as a member of the One Health Partnership Framework on zoonotic disease prevention, which is managed by the MARD in coordination with two co-chairing ministries (Health and Natural Resources), is involved in the prevention of zoonotic diseases.

Thirdly, President Biden's visit will facilitate the implementation of commitments and the signature of new project documents that the United States supports for Vietnam's agricultural sector.

During his administration, President Joe Biden has paid significant attention to sustainable development, green growth, and emission reduction. In your opinion, how can the United States assist Vietnam in achieving its net zero goal by 2050?

The Vietnamese government places a significant emphasis on sustainable development, climate change adaptation, and the responsible implementation of its international obligations. At the COP26 Conference, the Vietnamese Prime Minister pledged to attain net zero emissions by 2050, to participate in the "Global Methane Emissions Reduction" initiative, and to implement the "Glasgow Declaration on Forest and Land Use" along with several other initiatives.

To contribute to the implementation of Vietnam's commitments at COP26 and COP27, Vietnam's Ministry of Agriculture and Rural Development (MARD) has participated in a number of initiatives with the United States and other countries and international organizations, such as the Agriculture Innovation Mission for Climate (AIM for Climate/AIM4C) and the Action Alliance "Promoting sustainable productivity growth for food security and resource conservation" (SPG), among others.

As agreed between the Vietnam Ministry of Agriculture and Rural Development and the US Secretary of Agriculture, from April 2022, the US-Vietnam Climate Change Working Group was launched with the participation of relevant agencies under the Ministry of Agriculture and Rural Development of Vietnam and representatives of USDA, USAID, and USFS to reduce emissions in agriculture, animal husbandry and forestry.

In the immediate future, the two sides focus on the implementation of projects including the project “Adaptation to Climate Change in the Mekong Delta”, “Fertilizer Right”, “Transformational Strategies for Farm Output Risk Mitigation in Livestock Sector” (TRANSFORM). In particular, The Ministry of Agriculture and Rural Development of Vietnam is coordinating with the US WF to complete the signing of the Letter of Intent and develop the program " Viet Nam for Life: Nature-based Solutions for the Central " with a long-term cooperation framework lasting up to 20 years, with a budget of up to 300 million USD, focusing on addressing climate change issues, protect and restore biodiversity, while benefiting local communities in the Central Annamite Mountains, one of Asia's largest adjacent primary forests.

Vietnam will join hands to cooperate with the US Government, organizations, and investors as trusted partners to develop a green and sustainable agriculture and develop better agricultural supply chains and contribute to the global food security.

As being the dominant maret for Vietnamses agricultural products but also a demanding market with stringent requirements on commodities' quality, what solutions do we need to exploit this market more effectively?

Although the United States is a key export market with significant growth potential for Vietnamese AFF products, these goods continue to be constrained by limitations in quality, processing content, ability to meet regulations on technical standards, transportation and storage costs, establishment of distribution channels, and brand building.

In the meantime, US regulations on imported agricultural products are becoming more stringent, with an increasing number of regulations on quality and procedures of the FDA, pests and diseases on fruits and fresh agricultural products, FDA's food safety inspection regulations, USDA's quarantine regulations, and EPA's environmental regulations on pesticide residues, among others.

To satisfy the qualitative requirements of the U.S. market, the agricultural industry has reorganized production in accordance with U.S. requirements, preferences, and technical standards.

At the same time, we must continue to improve product quality and value to meet the needs of the American market. Immediate revision and completion of the current system of technical standards and national technical regulations for AFF products that reference US standards are required. Complete the food safety and disease safety control system for product groups that have export needs but do not meet US requirements in order for the US to evaluate, recognize equivalence, and open the export market door for these products.

And continue to vigorously promote the distribution and administration of agricultural and livestock area codes. Utilize information technology for the administration, inspection, and tracing of agricultural and forestry products; Review and develop sustainable production, preservation, and processing manuals for each product industry in order to meet quality and food safety standards for the US market.

As the focal point for managing the Partnership for Sustainable Agricultural Development Office (PSAV), the International Cooperation Department will work closely with businesses, multinational corporations, associations, and US states to further promote investment activities in the form of Public Private Partnership (PPP) in order to attract US investment in each subsector, develop production along the value chain, and invest in deep processing, added value, and food safety. This will also be an effective strategy for building the reputation and brand of agricultural products exported from Vietnam to the United States and the rest of the world.

Several agricultural products of the two countries have been officially accepted into each other's markets for some time now; therefore, could you describe some potential commodities that Vietnam could export to the United States in the near future?

The United States is the largest exporter of poultry meat to Vietnam (accounting for approximately 34% of total poultry meat imports); beef exports are the second largest (after Australia, accounting for approximately 16%) and pork exports are ranked sixth (accounting for approximately 5%) among countries exporting poultry, beef, and pork to Vietnam. In addition, Vietnam has made available to the United States a wide variety of agricultural products, including fresh fruits (cherries, pears, grapes, apples, oranges, and cranberries) and numerous plant varieties.

Simultaneously, the United States opened its doors to a number of Vietnamese products (including dragon fruit, longan, lychee, rambutan, star apple, mango, and grapefruit). On August 7, 2023, the United States updated its online database of agricultural goods import requirements in order to approve the import of fresh coconuts from Vietnam.

We must continue to prioritize promoting some of Vietnam's potentially strong export products to the United States, such as wood and wood products and seafood. We must also actively expand the market by participating more deeply in the distribution chain with products such as industrial crops, vegetables, and handicrafts.

The following specific objects may be of interest:

- Wood and wood products: highlight Vietnam's rich products, including wooden furniture, living room furniture, dining room furniture, and bedroom furniture;

- Fisheries: promote market opening for tuna, squid and octopus products, deeply processed products, branded products (shrimp, catfish, tilapia) and processed products ready to service the diverse consumption requirements of the US market;

- Cashews: Continue to concentrate on increasing the market share of unprocessed cashew kernels supplied to the U.S. market, and seek out trade promotion opportunities for processed cashew products.

- Pepper: Concentrate on developing refined and thoroughly processed pepper products and diversifying food and non-food products with pepper ingredients; Gradually establish the Vietnamese pepper brand in the US market.

- Coffee: Increase processing capacity and diversify processed coffee products, particularly instant coffee made with Robusta, which is popular on the US market.

- Vegetables and fruits: Continue to negotiate to open the door for Vietnam's high-quality fresh fruits and vegetables, such as durian, passion fruit, avocado, coconut, and asparagus, as well as processed goods, such as fruit and vegetable powder, canned fruit, and juice.