A Great Opportunity for Vietnamese Agricultural Products to Reach Global Markets

According to economic experts, from now until the end of the year, goods exports will continue to thrive thanks to strong consumer demand in many countries, especially for Vietnamese agricultural products.

Vietnam’s agricultural exports are expected to boom in the final quarters of the year.

Currently, Vietnam is the world’s leading supplier of cashews and pepper, ranking second in coffee and third in rice. Vietnamese seafood has also met the highest quality standards to penetrate demanding markets such as the US, EU, Japan, and South Korea.

Export situation at the beginning of the year

In the first five months of 2024, Vietnam’s exports of agricultural, forestry, and aquatic products reached over $24 billion, an increase of more than 20% compared to the same period last year. Economic experts predict that from now until the end of the year, exports will continue to increase strongly thanks to increased consumer demand from many countries.

Opportunities to increase Vietnam’s agricultural exports.

– Durian: Durian has the opportunity to increase export turnover and is expected to surpass the $2.3 billion mark this year thanks to its popularity in the Chinese market.

– Rice: Rice exports are booming, with many new orders from Europe, Africa, and Southeast Asia. The export price of fragrant rice currently exceeds US$1,000 per ton, establishing a strong position in the international market. Mr. Nguyen Thanh Huan, Deputy Director of the Department of Industry and Trade of An Giang province, encouraged factories to improve quality, diversify products, and enhance packaging to meet international demands.

– Seafood: Due to reduced inventory, partners from the US, Japan, and South Korea are actively importing seafood from Vietnam. Capitalizing on opportunities from these markets will help boost Vietnamese agricultural exports in the final quarters of the year.

Vietnam’s agricultural exports, especially from the Mekong Delta region, have many opportunities to increase export value by the end of the year. Improving product quality, diversifying, and meeting international standards will help Vietnamese agricultural products gain a foothold in international markets, ensuring sustainable and effective development.

Many Challenges Remain Facing Vietnamese Agricultural Exports

In 2023, Vietnam’s agricultural, forestry, and fisheries exports reached over $53 billion, a modest figure compared to expectations. Below are the main challenges affecting Vietnam’s agricultural exports:

Dependent on foreign shipping companies

Vietnamese businesses are entirely dependent on foreign shipping companies, leading to high and unstable transportation costs. Mr. Nguyen Van Nhut, General Director of Hoang Minh Nhat Joint Stock Company, said that shipping rates to Europe have increased from $500 to $5,000 for a 25-ton container of rice, affecting delivery schedules.

Raw material shortages and rising prices

– Raw material shortages: Many industries, especially seafood, are facing raw material shortages and rising production costs. This reduces competitiveness and makes it difficult to maintain stable production.

– Difficulties in aquaculture: Many farmers are financially exhausted and are reluctant to start farming due to prolonged difficulties.

Logistics issues

– Shipping costs: The cost of shipping exported goods has increased due to fluctuations in international transportation. Businesses need to find ways to reduce shipping costs to maintain competitiveness.

– Lack of warehouse space: Mr. Nguyen Tien Diep, Director of Uyen Diep Vietnam Durian Cooperative, said that the business is lacking warehouse space and needs support from ministries and departments to expand and ensure product quality.

Export floor prices and penalties

Shortages of raw materials and soaring prices are also posing challenges to Vietnam’s agricultural exports. Particularly in the fisheries sector, prolonged difficulties have led to financial hardship for many farmers, causing them to lose interest in aquaculture.

There is a need for a floor price for exports, along with sanctions, to ensure that businesses collectively protect their best selling prices in international bidding, thereby increasing the value and competitiveness of agricultural products.

Source: Vietnam Television