At the online seminar “Adaptation of agro-processing products to integrate into the new phase” on May 12, Mr. Nguyen Quoc Toan, Director of Agro-product Processing and Market Development Department (Ministry of Agriculture and Rural Development village) said that although it has only been around 4 months, the COVID-19 epidemic has had a strong impact on businesses in general and agricultural products in particular.
According to data from the Department of Agro-product Processing and Market Development (Ministry of Agriculture and Rural Development), in April 2020, our country's agro-forestry-fishery export turnover was only nearly 2.9 billion USD. The total export value of the first 4 months of 2020 of the agricultural sector was therefore only over 12 billion USD, down 4% compared to the same period in 2019.
Particularly in the first 3 months of the year, the total export turnover of agricultural products in general decreased by 4.3% compared to 3 months of last year.
The cause of Vietnam's agricultural sector is deeply integrated, all changes of the market will have a direct impact on businesses.
Besides, Vietnam mainly exports raw agricultural products, not focusing on the domestic market and processed products, so the added value is not high.
According to Toan, China is currently the largest export market with a proportion of about 25%, the United States ranked second with 24%, Europe about 12%, … these are all major economic axes but the COVID- 19 is affecting global supply chains.
“For Vietnam, even if we control the epidemic, it will still be affected by other countries that have not overcome it yet,” Toan said.
In addition, Mr. Vu Manh Hung, Chairman of the Board of Directors, CEO Hung Hung Group, Vice Chairman of Vietnam Digital Agriculture Association said that with the current situation of COVID-19 disease control, it is both a risk but also a problem. is the sewing for businesses.
Because it helps us see that agriculture is the foundation for Vietnamese businesses.
However, Mr. Hung pointed out some limitations of Vietnamese enterprises that are not focusing on brand names, so they do not focus on product quality, do not invest in processing machinery systems and national standards. International standards such as Global GAP.
Mr. Vu Manh Hung, Chairman, CEO Hung Nhon Group, Vice Chairman of Vietnam Digital Agriculture Association
Same views, GS. Dr. Bui Chi Buu commented that Vietnam has developed very well in production so the productivity has grown very fast.
However, in terms of processing technology, we encounter inadequacies in raw materials, factories and processing technology. While the Prime Minister requests that by 2030 Vietnam's agro-forestry-fishery processing industry will reach 7-10%, we now have 5%.
Vietnam's agricultural, forestry and fishery processing industry aims to “rank among the top 10 countries in the world” by 2030, to be a global center for deep processing and logistics of agricultural products and have sufficient processing capacity. , to meet the requirements of agricultural production with the growth rate of value of deeply processed agricultural products reaching 7-8% / year.
“It can be seen that our depth of science is still very weak, about the processing industry we invest very modestly, so that is the disadvantage when we want to achieve high speed.
Another paradox is that we export rice ranked second in the world but farmers are very poor. Therefore, the investment in technology and businesses is only a part of the share and the state still has to invest heavily, thus solving this problem, ”said Buu.
GS. Dr. Bui Chi Buu, Former Director of the Southern Institute of Science and Technology
In addition, another barrier to the development of the current agricultural sector is said to be a major export of raw materials while new processed products bring high added value.
“I have seen a reportage of coffee farmers in the Central Highlands who are facing difficulties in consumption. Currently, our coffee is 100% crude, and crude export is almost no benefit to farmers, so in order to increase the value, we have to invest mechanization in processing.
If only raw coffee is exported, businesses will fall into the loop, only raw export forever, ”said Nguyen Ngoc Luan, Founder of Meet More Fruit Café, Vietnam Entrepreneurs Association in Australia.
Apply 4.0 technology to agricultural production and processing
Facing the current reality of the agricultural industry, Mr. Nguyen Ngoc Luan said that for businesses to develop products, businesses must develop brands.
Especially the new direction for businesses is to process products so that products find a foothold in the market and directions for export.
“Investing in technology, going in a completely new direction is something that Vietnamese agricultural processing enterprises need to research and invest immediately,” Luan said.
This is also the view of Hung Nhon Group CEO, who believes that enterprises need to understand the standards as well as advantages and barriers.
In particular, it is necessary to apply 4.0 technology, analyze the advantages and disadvantages, how to be ahead of them, understand the policies to create motivation for enterprises. When overcoming barriers, there will be opportunities for development, cooperation with a number of foreign corporations and investment in modern technologies.
He also proposed that the government and localities reform policies to develop agriculture in general and processing industry in particular.
Meanwhile GS. Dr. Bui Chi Buu said that there are many policies, but investing in technology is a policy that needs to be done immediately to increase competitiveness, making a difference for Vietnamese agricultural products.
And that difference comes from modern technology. The Government should have policies to encourage and support technology investment enterprises.
In addition, according to Mr. Nguyen Quoc Toan, in order to raise product prices, it is necessary to improve the quality of agricultural products.
Need to review the input stages of agricultural products, as well as the logistics costs of agricultural exports, especially the costs of electricity and transportation, especially the cost of air transport is very high.
In addition, attention should be paid to agricultural credit, increasing access to capital for farmers and processing enterprises, the representative of the Department of Processing and Market Development of Agricultural Products emphasized.
