Change your way of thinking and doing business. Form production chainsto become more competitive. This was the key message thatAgriculture and Rural Development Minister Cao Duc Phat conveyed tostakeholders at a recent online conference to discuss opportunities andchallenges presented by international integration of the agriculturesector.
Vietnam's expected signing of several bilateral andmulti-lateral free trade agreements this year would provide major exportopportunities, especially for farm produce, he said.
At the same time, the dissolution of tariff barriers would pose stiff challenges, he added.
Sinceit joined the World Trade Organisation (WTO) in 2007, Vietnam hassigned seven free trade agreements (FTA) and maintained stablerelationships with 160 countries and territories, according to Tran KimLong, head of the ministry's Department for International Cooperation.
"Commitmentsto bilateral and regional trade agreements can contribute to expandingexport markets, diversifying export commodities and markets, boostingproduction, creating jobs and incomes for farmers, promotingtechnological applications, changing production mechanisms and bringinginto full play the advantages of (all) sectors," Long said.
Statisticspresented at the conference showed the progress that Vietnam has madein farm produce exports, which account for between 26 and 27 percent ofthe export of all goods every year.
Agriculture is the only sector that has recorded a trade surplus, with 8.5 billion USD in 2013 and 9.5 billion USD in 2014.
Phatsaid "numerous" agricultural products, especially in animal husbandry,have managed to enter and maintain a "firm standing" in picky markets.
Healso said that in the past, "we had successfully protectedhome-produced goods through taxes. However, in the future, only chickenfrom ASEAN will carry five percent import duty. On other products, thetariff will be zero.
“Thus, without proper measures, Vietnammight become a consumption market for farm produce from other countries.That will shrink local production and farmers will lose chances toincrease production and incomes," Phat said.
Another senior official underscored the minister's warning.
“Themajority of countries that Vietnam is set to sign trade agreements withhave strong advantages in agriculture. For instance, EU countries aregood at husbandry, Australia and New Zealand have advantages inproducing beef and fruits and the US is strong in exporting chicken,pork and beef. So there is certainly great competitive pressure onVietnamese commodities," said Luong Hoang Thai, head of the Ministry ofIndustry and Trade's Multilateral Trade Policy Department.
Conferenceparticipants agreed that Vietnam had been slow to readjust itsproduction mechanisms to make full use of opportunities and establishcomparative advantages.
Vietnam also lacked appropriate planningand investment policies for specific products or industries with highdemand in domestic and world markets. Moreover, production remainedfragmented and commodities were not produced in large quantities whilethe quality of goods had not been constant, they said.
Le DinhSon, Vice Chairman of the Ha Tinh People's Committee, said the centralprovince had recently reorganised its production chain and enjoyed"initial" results from deploying new models in producing vegetables,fruits and pigs using new technologies.
"The biggest challenge we face in international integration is maintaining and expanding export markets," Son said.
"Vietnameseproduce usually find it hard to compete with foreign ones. In addition,many Vietnamese are fond of imported goods. Therefore, if we do notreorganise farming production, we could even lose out at home."
Son said middlemen had considerably increased production costs.
Forexample, farmers had to pay 33,000 VND (1.5 USD) per kilogram of feedfor prawns when they bought it from an agent, 5,000 VND higher than ifthey bought it directly from the first seller/supplier or fromproducers, he said.
"The cutting of tariffs would not be a majorissue if we manage the distribution phase well and reduce intermediatecosts, which can help reduce production costs," said Son.
Son also called for the central and local governments to "make the local market healthier and annul benefits of certain groups.
TranKim Long, head of the MARD's Department for International Cooperation,said the agriculture sector should map out specific strategies andincrease approaches to key market of farm produce while establishingcooperation with potential partners.
"It is important to studyand assess potential impacts of integration, enhance competitiveness offarm produce, develop human resources for international alliances,reform institutions and improve the capacity of State managementbodies," he said.
Other participants mentioned the need forenterprises to increase their competitiveness by being aware of risksand other influences of FTAs on their operations. They should also behelped in coming up with their own strategies and solutions, thedelegates said.-VNA
Vietnam's expected signing of several bilateral andmulti-lateral free trade agreements this year would provide major exportopportunities, especially for farm produce, he said.
At the same time, the dissolution of tariff barriers would pose stiff challenges, he added.
Sinceit joined the World Trade Organisation (WTO) in 2007, Vietnam hassigned seven free trade agreements (FTA) and maintained stablerelationships with 160 countries and territories, according to Tran KimLong, head of the ministry's Department for International Cooperation.
"Commitmentsto bilateral and regional trade agreements can contribute to expandingexport markets, diversifying export commodities and markets, boostingproduction, creating jobs and incomes for farmers, promotingtechnological applications, changing production mechanisms and bringinginto full play the advantages of (all) sectors," Long said.
Statisticspresented at the conference showed the progress that Vietnam has madein farm produce exports, which account for between 26 and 27 percent ofthe export of all goods every year.
Agriculture is the only sector that has recorded a trade surplus, with 8.5 billion USD in 2013 and 9.5 billion USD in 2014.
Phatsaid "numerous" agricultural products, especially in animal husbandry,have managed to enter and maintain a "firm standing" in picky markets.
Healso said that in the past, "we had successfully protectedhome-produced goods through taxes. However, in the future, only chickenfrom ASEAN will carry five percent import duty. On other products, thetariff will be zero.
“Thus, without proper measures, Vietnammight become a consumption market for farm produce from other countries.That will shrink local production and farmers will lose chances toincrease production and incomes," Phat said.
Another senior official underscored the minister's warning.
“Themajority of countries that Vietnam is set to sign trade agreements withhave strong advantages in agriculture. For instance, EU countries aregood at husbandry, Australia and New Zealand have advantages inproducing beef and fruits and the US is strong in exporting chicken,pork and beef. So there is certainly great competitive pressure onVietnamese commodities," said Luong Hoang Thai, head of the Ministry ofIndustry and Trade's Multilateral Trade Policy Department.
Conferenceparticipants agreed that Vietnam had been slow to readjust itsproduction mechanisms to make full use of opportunities and establishcomparative advantages.
Vietnam also lacked appropriate planningand investment policies for specific products or industries with highdemand in domestic and world markets. Moreover, production remainedfragmented and commodities were not produced in large quantities whilethe quality of goods had not been constant, they said.
Le DinhSon, Vice Chairman of the Ha Tinh People's Committee, said the centralprovince had recently reorganised its production chain and enjoyed"initial" results from deploying new models in producing vegetables,fruits and pigs using new technologies.
"The biggest challenge we face in international integration is maintaining and expanding export markets," Son said.
"Vietnameseproduce usually find it hard to compete with foreign ones. In addition,many Vietnamese are fond of imported goods. Therefore, if we do notreorganise farming production, we could even lose out at home."
Son said middlemen had considerably increased production costs.
Forexample, farmers had to pay 33,000 VND (1.5 USD) per kilogram of feedfor prawns when they bought it from an agent, 5,000 VND higher than ifthey bought it directly from the first seller/supplier or fromproducers, he said.
"The cutting of tariffs would not be a majorissue if we manage the distribution phase well and reduce intermediatecosts, which can help reduce production costs," said Son.
Son also called for the central and local governments to "make the local market healthier and annul benefits of certain groups.
TranKim Long, head of the MARD's Department for International Cooperation,said the agriculture sector should map out specific strategies andincrease approaches to key market of farm produce while establishingcooperation with potential partners.
"It is important to studyand assess potential impacts of integration, enhance competitiveness offarm produce, develop human resources for international alliances,reform institutions and improve the capacity of State managementbodies," he said.
Other participants mentioned the need forenterprises to increase their competitiveness by being aware of risksand other influences of FTAs on their operations. They should also behelped in coming up with their own strategies and solutions, thedelegates said.-VNA
