Vietnamese agricultural products pushed by multi-value and multi-sectoral thinking

The prices of nearly all agricultural items have been increased

MARD reported that the overall export revenue of agro-forestry-fishery (AFF) products from January to May experienced growth due to the increase in practically all AFF product categories. The agriculture sector contributed 13.11 billion USD to the outcomes, up 27.7%. Forestry goods accounted for 6.58 billion USD, up 22.7%. Fishery products reached 3.5 billion USD, up 3.6%. Livestock products amounted to 199 million USD, with an increase of 5.6%, among others.

Significantly, there was a substantial rise in the export of several agricultural products compared to the same period last year. Specifically, the average price of rice increased by 20.5% to 648 USD/ton, coffee saw a 49.9% increase to an average price of 3,482 USD/ton, rubber increased by 8.8% to 1,504 USD/ton, and pepper experienced a 39.3% increase to 4,308 USD/ton.

The export value of major agricultural, forestry, and fishery products has increased compared to the same period last year. Specifically, wood and wood products have reached a value of USD 6.14 billion, up 23.6%. Coffee has reached a value of USD 2.9 billion, up  44.1%, with a volume of 833 thousand tons. Rice has reached a value of USD 2.65 billion, showing a growth of 38.2%, with a volume of 4.15 million tons. Cashews have reached a value of USD 1.55 billion, showing a growth of 19.3%, with a volume of 288 thousand tons, which is a growth of 30.6%. Fruits and vegetables have reached a value of USD2.59 billion, up 28.1%. Shrimp has reached a value of USD1.3 billion, up 7.5%.

The export value of agricultural, forestry, and fishery products to all markets experienced growth. More precisely, the value of exports to Asia increased by 17.5% to reach USD11.31 billion. Similarly, exports to the Americas increased by 23.1% to USD5.4 billion, while exports to Europe increased by 39.4% to USD3.2 billion. Additionally, exports to Africa increased by 26.1% to USD459 million, and exports to Oceania increased by 24.8% to USD341 million.

The United States, China, and Japan remain the three primary export markets. The United States saw a 23.9% increase in the export value of agricultural, forestry, and fisheries products, accounting for 20.6% of the total. China experienced an 8.6% increase, accounting for 19.2%. Japan had a 6.6% increase, accounting for 6.7% of the total, compared to the same period last year.

In addition to conventional markets, Vietnam's agricultural, forestry, and fishery exports have also penetrated specialized markets with significant potential, including Australia, Singapore, Halal (Muslim countries), Africa, and Latin American countries.

According to Mr. Dang Phuc Nguyen, the General Secretary of the Vietnam Fruit and Vegetable Association, the fruit and vegetable sector is experiencing significant growth and is expected to achieve a record annual export turnover of USD6-6.5 billion. Mr. Nguyen highlighted that besides China, other regions such as Europe, the Americas, Oceania, and Africa are also witnessing a strong export of fruit and vegetable products.

Since mid-2023, rice exports have consistently sustained their increasing trend. Significantly, the current market price of Vietnamese rice remains elevated, with an average of around USD 650 per ton. In addition, the rice export market is steadily growing, with a focus not just on traditional countries such as the Philippines, Indonesia, and Malaysia, but also on expanding into the European Union, United States, and other Asian markets.

In Singapore, Vietnam has lately emerged as the leading rice exporter to this market, with an export turnover of around SGD 36.15 million. This represents an 80.46% increase compared to the corresponding period in 2023.

Flourish through the evolution of the agricultural production mindset

As stated by Minister Le Minh Hoan of MARD, sustainable agricultural development encompasses more than just avoiding from using chemical fertilizers, plant protection agents, and harmful chemicals that pollute the land and environment. It also involves implementing solutions that yield significant economic benefits for farmers.

"Sustainable agricultural production entails a protracted and ongoing process. It is imperative to refrain from rushing and instead adopt a well-thought-out development strategy, while also avoiding the pitfalls of short-term thinking. Nevertheless, farmers and authorities should prioritize the diligent implementation of scientific and technical remedies over hasty financial considerations. Money is highly valuable and serves as a means to support one's daily existence, but in this situation, we are compromising our integrity," Minister Le Minh Hoan expressed.

"'What is the definition of integrity?' Agricultural products are produced and delivered to consumers by farmers. Rice produced with integrity also has the potential to influence and transform human behavior. Hence, let us diligently engage in our efforts with utmost dedication and energy, and the outcomes shall be tangible and personally exciting," expressed Minister Le Minh Hoan.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien, attributed the successful export results of agricultural, forestry, and fishery products in the first five months of the year to the proactive, positive, and innovative efforts of the Ministry and the entire sector. These efforts involved advising the Government and the Prime Minister, coordinating with various ministries, sectors, and localities, and effectively implementing the proposed tasks and solutions.

This entails transitioning from the production of agricultural goods to the study of agricultural economics, shifting from focusing on the development of a single sector to promoting cooperation and development across multiple sectors, advocating for the incorporation of various values into agricultural, forestry, and fishery products, and moving from the establishment of agricultural supply chains to the development of industry chains.

In addition, the endeavors to expand market access and secure new contracts have yielded positive results, resulting in a significant 21% growth in overall export turnover. Mr. Tien illustrated, indicating that now, numerous wood and wood product exporting companies have secured orders up to August, with some even extending until the conclusion of 2024.

Deputy Minister Phung Duc Tien stated that, in addition to catering to the domestic market of 100 million individuals, the agriculture sector will undertake initiatives to enhance the export of agricultural, forestry, and fishery products to markets including China, the United States, Japan, and Europe. Simultaneously, the emergence of new prospective markets, such Halal Muslim countries, the Middle East, and Africa, will create expansion opportunities.

In addition, the industry will utilize free trade agreements, specifically the CPTPP and EVFTA, to enhance the export of significant agricultural, forestry, and fishery goods. It will also assist businesses in securing new export contracts and collaborate to safeguard trademarks and geographical indications for Vietnam's promising export commodities overseas.