Green-skinned pomelos processed for export. The global demands for importing rice, fruits and vegetables are increasing on disruptions to supply chains in many countries due to geopolitical conflicts and trade wars, providing significant opportunities for Việt Nam. — VNA/VNS Photo Hồng Đạt
The Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development are working together on possible ways to seize any opportunities from the rising global demand for rice, fruits and vegetables, in order to expand exports sustainably.
According to Nguyễn Ngọc Nam, President of Việt Nam Food Association, Việt Nam earned an estimated US$2.3 billion from exporting 3.6 million tonnes of rice from January – May, representing a rise of 11 per cent in volume and 34 per cent in value.
All eyes are on India and whether the country will lift its current ban on rice exports, Nam said. If the ban is kept in September, there will be a significant opportunity for Việt Nam to increase its own exports in response to rising global demands.
Production output from other countries is falling due to the impacts of climate change, heat and drought.
However, Việt Nam’s rice exporters are competing with each other, under cutting prices and Ngọc urged the Ministry of Industry and Trade to find solutions to the unhealthy competition, suggesting that a floor on prices for export rice could be imposed.
Nguyễn Như Cường, Director of the agriculture ministry’s Department of Crop Production, estimated that around 7.6 million tonnes of rice can be for export this year.
The total output of fruits and vegetables is estimated at 13.5 million tonnes, up 3.4 per cent over 2023.
As regards to concerns that harvesting and planting of several fruits are increasing rapidly without complying with the planning laws, such as durian, the agriculture ministry said that inspections are being enhanced on code-granted growing areas and packaging facilities to ensure compliance with signed protocols.
In addition, the national standards and technical standards are being developed to standardise the farming process.
According to Nguyễn Thanh Bình, President of Việt Nam Fruit and Vegetable Association, import markets are imposing high standards for the product quality, thus, producers must pay attention to the market demand and diversify export products.
The fruit and vegetable industry also needs to establish value chains to control quality and supply towards sustainable development, Bình said.
Minister of Agriculture and Rural Development Lê Minh Hoan said that links between Vietnamese exporters remain weak and in terms of trade promotions, enterprises are still going it alone.
Hoan said that associations play an important role in helping farmers, producers and exporters to get market information, take advantages from free trade agreements, as well as promote brands.
The Ministry of Industry and Trade said that the exports of agricultural products will continue to face challenges.
The global demands for importing rice, fruits and vegetables are increasing on disruptions of supply sources in many countries due to geopolitical conflicts and trade wars, providing significant opportunities for Việt Nam. However, the focus must be on improving product quality to meet the requirements, the ministry said.
Minister of Industry and Trade Nguyễn Hồng Diên urged the agriculture ministry to strengthen the restructuring of the rice, fruit and vegetable industry towards enhancing quality and efficiency.
It is important to ensure compliance with planning and increase the application of technology in production, harvesting, processing and preservation.
The focus should be placed on developing standards for production, processing and quality in line with international economic integration requirements to improve competitiveness and value of Vietnamese farm produces, affirm brands in the international markets and expand shares in potential markets.
Packaging exported rice at Lộc Trời Group's affiliate Thoại Sơn Food Co Ltd's factory in An Giang Province. Around 7.6 million tonnes of rice can be for export this year. — VNA/VNS Photo Vũ Sinh
Improved quality critical for farm produce
According to the National Agro-Forestry- Fisheries Quality Assurance Department, improving quality and meeting labour and environment standards are critical for agricultural products.
Phạm Thị Lâm Phương from the Import-Export Department under the Ministry of Industry and Trade said Việt Nam’s export of agro-forestry-fishery products are facing difficulties due to falling consumption demand in major markets. In addition, consumers are paying greater attention to not only origins and quality but also labour and environmental standards.
She said the competition for exporting farm produce is also increasing as several countries are strengthening their participation in free trade agreements.
Nguyễn Quang Hiếu, Deputy Director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said that negotiations are underway to open markets for fresh coconuts and frozen durian to China. Work is being continued to complete the draft protocol for jackfruit.
Jackfruit is a traditional product being exported officially but the protocol must be signed following the standardisation roadmap agreed with the Chinese customs department. Longan, lychee and rambutan will follow.
As for medicinal herbs, China has sent a draft protocol, and reviews are underway towards the signing.
In the US, the market will be opened for passion fruit after coconut. The Plant Protection Department is proposing the US allow treatment measures which have been recognised by other countries such as cold treatment for longan, hot steam treatment for mango and dragon fruit and Methyl Bromide treatment for lychee.
An open market for pomelo to Japan is the most difficult, Hiếu said, as this requires a test that might take around one year to complete.
Negotiations also face problems from changing policies and stricter standards of import markets, together with the increasing trend of applying non-tariff barriers on farm produce.
Hiếu also expressed worries about products that have the potential for export and the ability to meet the standard requirements of the import markets by domestic producers and exporters.
Import markets also have high requirements for seafood products, such as the EU, Đặng Văn Vĩnh from the National Agro-Forestry – Fisheries Quality Assurance Department said.
The National Agro-Forestry – Fisheries Quality Assurance Department’s Director Nguyễn Như Tiệp said that besides traditional markets, it is necessary to expand to potential and niche markets.
The domestic market of around 100 million population also has strong potential, he said.
In the long term, a market information database will be developed to provide analysis of the market size, demand and trends as a base to develop produce. — VNS