Agro and aquatic exports have experienced a slowdown in recent times, suffering from a disparate array of difficulties such as inadequate zoning, lack of production materials, insufficient investment and low added value, radio The Voice of Vietnam (VOV) reported on June 9.
The agro-aquatic export turnover is forecast to reach 8.9 billion USD this year, up over 12 percent compared to last year’s same period, according to the Ministry of Industry and Trade. However, it is significantly important to note that the group’s exports underwent a serious decline of 17 percent during the month of May compared to April.
Other factors hindering the group’s exports included inadequate financial capacity of businesses, markets’ low demands for consumption and stiff competition from other nations.
At present, the world’s rice market is facing huge challenges as the excessive supply is creating a glut in the global marketplace and fierce competition puts severe downward pressure on the sales.
To add fuel to the fire, there is greater downward pressure on Vietnamese rice in the world market as a result of Thailand's flooding the global market with its rice reserves and new supplies from Myanmar and Cambodia as they beef up production.
Meanwhile, the imposition of a tax rate of 1 percent on rubber exports has also caused increased difficulties for the sector. Vietnam has technically established standards on quality for rubber exports. However, there are no compulsory regulations requiring adherence to the established standards.
The hike of input costs such as electricity, water and transport have been observed in the domestic market which are further compounding the difficulties faced by the sector.
At present, agro-aquatic export turnover accounts for 15 percent of the country’s total export turnover. However, there are few programs to promote farm produce.
Deputy Minister of Industry and Trade Tran Tuan Anh said that businesses should work hand in hand with relevant ministries to implement trade promotion programmes and build trademarks for farm produce in the international market to bring higher efficiency for export items.
According to economic experts, it is necessary to identify Vietnam’s comparative advantages and select some strategic commodities to invest in a synchronous manner and set up a complete supply chain including production, processing and consumption. In addition, it is needed to boost post-production and post-harvest processing stages to export high quality farm produce.
Nguyen Do Anh Tuan, from the Centre for Agricultural Policy Director at the Institute of Policy and Strategy for Agriculture and Rural Development, said that there should be immediate support solutions for the agricultural sector and ways to link farmers to the global chain.