Agriculture spearheads growth

Agricultural restructuring is essential to Vietnam 's economic and social development, a conference heard on March 6.
Agricultural restructuring is essential to Vietnam 's economic and social development, a conference heard on March 6.

Speaking at the event, based on the national agricultural outlook forthis year, Dr Nguyen Do Anh Tuan, director of the Centre forAgricultural Policy, said that although the sector experienced growth of4 percent last year, market movements are forecast to be complicatedthis year.

Due to financial difficulties, the sectorwill face decreased demand from import countries. Moreover, Vietnamwill also have to compete with an increased number of producers such asEthiopia (coffee), South Africa (rice) and Myanmar (aquacultureproducts).

Epidemics such as foot-and-mouth disease,blue eared pig disease and bird flu, will also continue threateningproductivity, Tuan said.

Dang Kim Son, generaldirector of the Institute of Policy and Strategy for Agricultureand Rural Development, said that key commodities such as rice and coffeeare still experiencing unstable supply due to farmers focusing onshort-term markets alone, suffering big losses as a result.

"This situation must improve in order to maintain agricultural growth and sustainable development," he said.

Representatives at the conference agreed that restructuring the agricultural sector will be a good solution to the issue.

Alongside that, a linkage between companies and farmers, the promotionof public private partnerships, a connection between associations toassure quality standards and increased storage facilities are consideredintegral to the process.

On March 7, experts fromdomestic and international research organisations and relevantauthorities will continue discussing the outlook of rice and coffeeexports, farmer welfare improvements and the policy for agriculturalvalue chain development.

Vietnam 's agriculturesector forms a large part of the national economy with a growth rate of4 percent and earnings of 25 billion USD, accounting for 22 percent oftotal export turnover. Agriculture was the only sector to achieve a netexport surplus of 9 billion USD last year.

Thetwo-day conference was held via collaboration between the Instituteof Policy and Strategy and Rural Development and the Vietnam Chamberof Commerce and Industry.-VNA

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