Over the past time, the export of a number of agricultural products such as rice, aquatic products and fruits has encountered many difficulties in export activities. Around this issue, the VNA reporter interviewed Mr. Tran Quoc Toan – Deputy Director of the Import and Export Department (Ministry of Industry and Trade) about the challenges facing Vietnamese enterprises as well as solutions to support from State management agencies.
Reporter: In the first quarter, Vietnam’s agricultural exports; including rice, although the price is good, the quantity of exported goods will decrease compared to the same period in 2020. How do you assess this situation and the rice export orientation in the coming time?
Mr. Tran Quoc Toan: Despite facing many difficulties in the context of the COVID-19 epidemic, Vietnam’s rice exports still achieved positive results. Although the quantity decreased, the turnover increased and brought benefits to the rice farmers.
Along with that, Vietnamese rice exporters are increasingly focusing on improving quality, traceability and towards meeting the strict standards of export markets such as the EU, South Korea, and the United States. States. This is one of the factors that has helped improve the competitiveness of Vietnamese rice grains.
Data on Vietnam’s rice export turnover to some “high quality requirements” markets showed positive “signals” about improving the quality of rice products in the agricultural sector in general. as well as those of businesses in particular in recent years.
Illustration: The Industry and Trade Newspaper.
For example, Vietnam’s rice export structure has been gradually shifting to high value-added rice such as fragrant rice, accounting for 27.15% of the total export rice volume, japonica rice. accounting for 3.39%, sticky rice for 9.26% …
In general, the current average export price ensures farmers profit when compared with the average export cost of paddy planned for the winter-spring crop 2020-2021.
In addition, Vietnam has entered into many trade agreements with many strategic countries and regions that have helped Vietnam’s rice brand become more known, and Vietnam’s rice export market has gradually been opened. To expand exports to consumer markets for high-end rice and specialty rice at a higher price than white rice, contributing to the increase in export value for Vietnamese rice.
Therefore, in order for rice export to grow more in the coming time, the Ministry of Industry and Trade has been and will be presiding over and coordinating with the ministries, branches and the Vietnam Food Association to implement and guide businesses to implement. effectively signed FTAs to make the most of market opportunities.
Notably, the Ministry of Industry and Trade continues to actively and regularly coordinate with the Ministry of Agriculture and Rural Development – the agency assigned to take the lead in production, focusing on drastically and synchronous solutions. related to rice industry restructuring, improving the value and quality of Vietnamese rice, building and developing Vietnamese rice brands.
However, besides the support from State management agencies, businesses need to actively prepare capacity, source of goods, improve competitiveness through building long-term, methodical and compliance plans. strictly comply with regulations on traceability, while building and protecting brands to promote sustainable exports, maintain and diversify markets.
Moreover, it is necessary to proactively cooperate and link to enhance strength, create supply chains and prepare measures to deal with trade remedies lawsuits through monitoring market and price conditions. , trade conditions, capacity building.
Reporter: Recently, many seafood and fruit products are facing many challenges to maintain and expand key markets; including the United States. How do you view this issue and what solution does the Ministry of Industry and Trade have to support businesses?
Mr. Tran Quoc Toan: Vegetables and fruits have an impressive export growth rate of the agricultural sector for many years with an average growth rate of 14.1% in the 2016-2020 period.
However, due to the impact of the COVID-19 epidemic, by 2020, the export turnover of vegetables and fruits will only reach $ 3.3 billion, down 12.7% over the same period. In the first quarter of 2021, the export turnover reached 944 million USD, an increase of 6.1% over the same period in 2020.
The United States is the second largest export market with a market share of about 4-5% of Vietnam’s total fruit and vegetable export turnover with an average export growth rate of 24.4% in the 2016-2020 period.
In 2020, the export turnover of vegetables and fruits to the United States will reach 168.8 million USD, maintain a growth rate of 12.5%, despite the global trade context affected by the COVID-19 outbreak in 2020; of which, fruit alone was 72.9 million USD, down by 8.5% YoY. In the first 2 months of 2021, the export of vegetables and fruits to the US reached 23.4 million USD, up 3.7%, accounting for 4.2% of the export proportion of the whole industry.
Up to now, there have been 6 types of fresh fruits from Vietnam allowed to be exported to the United States, including dragon fruit, longan, litchi, rambutan, breast milk, and mango. However, the export volume is negligible, accounting for a small market share due to the high costs of transporting, preserving, quarantine, and irradiation treatment … related to exporting fresh fruit, so it is less competitive than other countries geographically closer.
However, the export of processed fruits and vegetables has a relatively positive growth due to the change in demand and taste of consumers. In particular, this type is dominated by convenience and long storage time and prevails in the current epidemic context.
In addition, for seafood products, the export turnover in 2020 will reach $ 8.4 billion, a decrease of 1.5% over the same period in 2020; of which, exports to the US increased the most, reaching over USD 1.6 billion, up 10% compared to 2019, mainly due to a sharp increase of 33% in shrimp exports. In the first 2 months of 2021, seafood exports to this market continued to record a positive growth of 5.4% over the same period in 2020, reaching over $ 189 million.
Currently, the demand for seafood imports of the United States has begun to gradually recover, the structure of seafood consumption categories has also changed in accordance with the practical situation in the context of the COVID-19 epidemic. Therefore, the segment of products serving retail channels, home consumption with high convenience such as ready-to-eat, instant, dry, canned foods with reasonable prices, is and will have room to increase. growth in the United States in the year 2021.
In addition to the aforementioned difficulties, the high rise in shipping rates and the lack of empty containers for packing in the past few months have also had a direct and unfavorable impact on seafood export activities.
According to the Association of Seafood Exporters and Producers (VASEP), by the end of 2020, foreign shipping lines will increase the freight by 2-3 times, even 6-7 times in some sectors where enterprises still cannot book ships and containers for export.
Not only that, enterprises supplying seafood materials from abroad cannot book ships to bring raw materials to Vietnam for export processing.
Therefore, in order to contribute to supporting businesses to overcome difficulties, maintain and promote the export of agricultural products in general as well as vegetables, fruits and seafood in particular, especially to the US market, the Ministry of Industry and Trade continues to develop. declaration of anti-fraud measures to protect Vietnam’s export industries from the risks of lawsuits against evasion of trade remedies.
On the other hand, the Ministry will update the situation of price movements and market fluctuations to promptly notify, disseminate and guide associations, enterprises and production establishments to guide and organize their plans. appropriate production and business, promptly prepare and respond to market fluctuations.
In particular, proactively grasp the application of trade protection measures, promptly inform relevant units and businesses, and effectively fight against technical and commercial barriers. unreasonable US trade in agricultural products; including seafood and fruits of Vietnam.
In addition, the ministry continued to coordinate with the Ministry of Agriculture and Rural Development to accelerate the negotiation of market opening technically to supplement the list of Vietnamese goods / enterprises permitted to be exported to the United States; implementing programs to promote export of aquatic products, vegetables and fruits practically, effectively, suitable with market demand.
Regarding the issue of rising freight charges, the Ministry of Industry and Trade has reported to the Prime Minister on this issue and will continue to work closely with the Vietnam Logistics Business Association and industry associations. for the purpose of rational use of exported goods, making the most of two-way container rotation.
Reporter: Thank you very much!
According to VietnamBiz
