According to Ngo Quang Tu from the Agro Processing and Market DevelopmentAuthority, there are 157 processing facilities with a total output of nearly1.1 million tonnes per year.
However, these facilities usually operate at around 60% of their designedcapacity due to a shortage of raw materials as plantations remained scattered,coupled with seasonal processing and unstable food safety and quality.
There were also thousands of small-and-micro-sized processing establishments ofcooperatives and households across the country, which were faced with ashortage of capital, production space, lack of equipment and poor post-harveststorage, resulting in post-harvest losses of more than 20%.
Regarding the proportion of processed products, canned food accounted for 50%,condensed juice 18%, fried food 12%, soft drinks 10% and frozen 8%.
Processed products contributed only 18% of the total export value of vegetablesand fruit.
Tu said it was necessary to reorganise raw material production and enhanceregional linkage to ensure enough supply and quality of raw materials forprocessing.
While most processing facilities were small-scale, Pham Anh Tuan, Director ofthe Vietnam Institute of Agricultural Engineering and Post-Harvest Technology,stressed the need for developing modern processing technologies suitable forsmall-and-medium-scale operations.
Products suitable for small and medium scales were fresh, dried, frozen andcanned vegetables and fruits.
Tuan said that small and medium-sized processing facilities should invest morein technology to meet the demand for diversifying products.
However, they must pay attention to selecting appropriate technologies fortheir operation scales, source of materials and target markets.
Tran Van Cong, Vietnam's Agricultural Counselor in the EU, said that the EU wasa significant and potential export market for Vietnam's agricultural products,in which fruits and vegetables had the largest room to expand.
He said EU markets imported vegetables and fruits worth around 120 billion USD eachyear, accounting for 40% of the total global import and export value of fruitsand vegetables.
However, Vietnam's fruit and vegetable export to the EU remained modest, around190 million USD, 30% of which were processed.
Cong noted that the EU was a highly demanding market, urging attention to foodhygiene and safety.
Updating on sanitary and phytosanitary (SPS) measures, Ngo Xuan Nam, DeputyDirector of the Vietnam Sanitary and Phytosanitary Notification Authority andEnquiry Point, said that WTO member countries had 504 notifications in thefirst half of this year, 9% higher than last year.
Nam said that businesses must control the maximum residue levels, urgingattention to declaring additives in processing.
Phan Thi Thu Hien from the Plant Protection Department said each market hadspecific requirements for different agricultural products. For example, the USrequired fresh fruits to be irradiated, while the Republic of Korea and Japanrequired hot stream treatment.
Cooperatives and farmers needed to coordinate with State management agencies toclosely monitor the plantation and processing to meet such requirements./.