Agricultural exports fall

Wednesday, Sep 04, 2013 15:35

Local experts urge for an agricultural restructure for better productivity with the same input. — Photo Nongnghiepvietnam

HA NOI (Biz Hub) — Exports of agricultural products such as coffee, rice, and rubber fell nearly 12 per cent on average in the first eight months of this year.

According to the Ministry of Agriculture and Rural Development, coffee exports suffered the most, falling 23 per cent in volume and 22.5 per cent in value to 974, 000 tonnes worth $2.09 billion.

Rice exports also struggled, falling 15.7 per cent in volume to 4.69 million tonnes worth US$2.05 billion.

Rubber exports dropped off 14.1 per cent in volume.

While crop failure, the global recession and fiercer competition were cited as the main reasons for the slump, lawsuits, anti-dumping tariffs and cancelled orders also took their toll.

Since early this year, a number of shipments of locally produced goods including dragon fruit, rice and shrimp have been returned due to low quality.

Dr. Vo Tri Thanh, deputy director of the Institute for Central Economic Management, said local agriculture had potential but growth in the last three years had been slow, adding that the only way to solve the problem was to develop a cleaner production process to boost quality and competitiveness.

Other experts said the agricultural sector should be restructured for better productivity with the same input

Nguyen Viet Vinh, general secretary of the Viet Nam Coffee Cocoa Association, said coffee exporters were in need of financial "first aid".

The Government has agreed to extend credit to coffee exporters as well as other agricultural export enterprises. However, Vinh said they needed more time to pay back debts and new bank loans, while they also asked for a VAT rebate that reached into hundreds of billions of dong. — VNS


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