Agro and aquatic exports have experienced a slowdown in recenttimes, suffering from a disparate array of difficulties such asinadequate zoning, lack of production materials, insufficient investmentand low added value, radio The Voice of Vietnam (VOV) reported on June9.
The agro-aquatic export turnover is forecast to reach 8.9billion USD this year, up over 12 percent compared to last year’s sameperiod, according to the Ministry of Industry and Trade. However, it issignificantly important to note that the group’s exports underwent aserious decline of 17 percent during the month of May compared to April.
Other factors hindering the group’s exports included inadequatefinancial capacity of businesses, markets’ low demands for consumptionand stiff competition from other nations.
At present, theworld’s rice market is facing huge challenges as the excessive supply iscreating a glut in the global marketplace and fierce competition putssevere downward pressure on the sales.
To add fuel to the fire,there is greater downward pressure on Vietnamese rice in the worldmarket as a result of Thailand's flooding the global market with itsrice reserves and new supplies from Myanmar and Cambodia as they beef upproduction.
Meanwhile, the imposition of a tax rate of 1percent on rubber exports has also caused increased difficulties for thesector. Vietnam has technically established standards on quality forrubber exports. However, there are no compulsory regulationsrequiring adherence to the established standards.
The hike ofinput costs such as electricity, water and transport have been observedin the domestic market which are further compounding the difficultiesfaced by the sector.
An Phu Seafood Joint Stock Company DeputyGeneral Director Nguyen Hong Le said that local businesses should stayactive in producing agricultural feed to avoid negative impact from theglobal market on the seafood products’ costs.
Chinese businessesaccounted for 35 percent of the country’s total agricultural feed.Meanwhile, 85 percent of the quality of tra fish depends much on thisfeed and local businesses should capitalise on this demand. Somebusinesses which have processing factories can produce high qualityagricultural feed. However, farmers who do not have such factoriescannot control the quality of input feed.
Le asked the State Bankof Vietnam to provide domestic businesses with loans at low interestrates to help them invest in producing feed for tra fish and ensuring anaquaculture zone to improve the quality of tra fish in the future.
Theseafood material for export processing makes up just 70-75 percent ofthe processing factories’ demand (equivalent to 60-65 percent of thesefactories’ capacities), affecting the production costs and the supply ofproducts to markets. Moreover, there are shortages of capital forshipbuilding as fishing facilities and costs for the exploitation ofthese products remain high. Especially, the market demands are low,leading to low export prices.
Nguyen Huu Dung, Vice President ofVietnam Association of Seafood Exporters and Producers, underlined theneed to study and learn about market conditions to offer a morecompetitive export price.
The association proposed some projectsto set up a wholesale market to export frozen fish fillets to theEuropean market in the form of auction. If the product is auctioned inthe international market, the world market will decide the price, Dungsaid, adding the adjustment of balancing the supply and demand willprovide a basis for the price of Vietnamese seafood products.
Atpresent, agro-aquatic export turnover accounts for 15 percent of thecountry’s total export turnover. However, there are few programmes topromote farm produce.
Deputy Minister of Industry and Trade TranTuan Anh said that businesses should work hand in hand with relevantministries to implement trade promotion programmes and build trademarksfor farm produce in the international market to bring higher efficiencyfor export items.
He said that despite the state’s support,businesses should be active in building a long-term programmes anddeveloping trademarks in association with market access. In the future,one of the priority contents in boosting trade promotion activities isto set up a cooperative model among the state’s management agencies,associations and businesses.
According to economic experts, itis necessary to identify Vietnam’s comparative advantages and selectsome strategic commodities to invest in a synchronous manner and set up acomplete supply chain including production, processing and consumption.In addition, it is needed to boost post-production and post-harvestprocessing stages to export high quality farm produce.
Nguyen DoAnh Tuan, from the Centre for Agricultural Policy Director at theInstitute of Policy and Strategy for Agriculture and Rural Development,said that there should be immediate support solutions for theagricultural sector and ways to link farmers to the global chain.-VNA
The agro-aquatic export turnover is forecast to reach 8.9billion USD this year, up over 12 percent compared to last year’s sameperiod, according to the Ministry of Industry and Trade. However, it issignificantly important to note that the group’s exports underwent aserious decline of 17 percent during the month of May compared to April.
Other factors hindering the group’s exports included inadequatefinancial capacity of businesses, markets’ low demands for consumptionand stiff competition from other nations.
At present, theworld’s rice market is facing huge challenges as the excessive supply iscreating a glut in the global marketplace and fierce competition putssevere downward pressure on the sales.
To add fuel to the fire,there is greater downward pressure on Vietnamese rice in the worldmarket as a result of Thailand's flooding the global market with itsrice reserves and new supplies from Myanmar and Cambodia as they beef upproduction.
Meanwhile, the imposition of a tax rate of 1percent on rubber exports has also caused increased difficulties for thesector. Vietnam has technically established standards on quality forrubber exports. However, there are no compulsory regulationsrequiring adherence to the established standards.
The hike ofinput costs such as electricity, water and transport have been observedin the domestic market which are further compounding the difficultiesfaced by the sector.
An Phu Seafood Joint Stock Company DeputyGeneral Director Nguyen Hong Le said that local businesses should stayactive in producing agricultural feed to avoid negative impact from theglobal market on the seafood products’ costs.
Chinese businessesaccounted for 35 percent of the country’s total agricultural feed.Meanwhile, 85 percent of the quality of tra fish depends much on thisfeed and local businesses should capitalise on this demand. Somebusinesses which have processing factories can produce high qualityagricultural feed. However, farmers who do not have such factoriescannot control the quality of input feed.
Le asked the State Bankof Vietnam to provide domestic businesses with loans at low interestrates to help them invest in producing feed for tra fish and ensuring anaquaculture zone to improve the quality of tra fish in the future.
Theseafood material for export processing makes up just 70-75 percent ofthe processing factories’ demand (equivalent to 60-65 percent of thesefactories’ capacities), affecting the production costs and the supply ofproducts to markets. Moreover, there are shortages of capital forshipbuilding as fishing facilities and costs for the exploitation ofthese products remain high. Especially, the market demands are low,leading to low export prices.
Nguyen Huu Dung, Vice President ofVietnam Association of Seafood Exporters and Producers, underlined theneed to study and learn about market conditions to offer a morecompetitive export price.
The association proposed some projectsto set up a wholesale market to export frozen fish fillets to theEuropean market in the form of auction. If the product is auctioned inthe international market, the world market will decide the price, Dungsaid, adding the adjustment of balancing the supply and demand willprovide a basis for the price of Vietnamese seafood products.
Atpresent, agro-aquatic export turnover accounts for 15 percent of thecountry’s total export turnover. However, there are few programmes topromote farm produce.
Deputy Minister of Industry and Trade TranTuan Anh said that businesses should work hand in hand with relevantministries to implement trade promotion programmes and build trademarksfor farm produce in the international market to bring higher efficiencyfor export items.
He said that despite the state’s support,businesses should be active in building a long-term programmes anddeveloping trademarks in association with market access. In the future,one of the priority contents in boosting trade promotion activities isto set up a cooperative model among the state’s management agencies,associations and businesses.
According to economic experts, itis necessary to identify Vietnam’s comparative advantages and selectsome strategic commodities to invest in a synchronous manner and set up acomplete supply chain including production, processing and consumption.In addition, it is needed to boost post-production and post-harvestprocessing stages to export high quality farm produce.
Nguyen DoAnh Tuan, from the Centre for Agricultural Policy Director at theInstitute of Policy and Strategy for Agriculture and Rural Development,said that there should be immediate support solutions for theagricultural sector and ways to link farmers to the global chain.-VNA
