Agriculture sector set to exceed annual export target for 2021 | Business
Hanoi (VNS / VNA) – The Ministry of Agriculture and Rural Development
(MARD) expects to exceed its annual export target of agricultural, forestry and fishery products, thanks to the restoration of production and business after the COVID-19 epidemic.
“This year, MARD predicted that the export turnover of agriculture, forestry and fishery products would reach more than USD 44 billion, exceeding its initial target of USD 42 billion,” said Phung Duc Tien, vice-president. Minister of Agriculture and Rural Development.
According to Agriculture and Rural Development Minister Le Minh Hoan, there will be plenty of export opportunities for local agricultural products in the fourth quarter of 2021, especially Christmas and New Year 2022 and Lunar New Year.
The European market will be a major destination for Vietnamese agricultural products and significant trade with Thai, South American and African markets is expected to continue, he said.
“I hope that existing government policies, as well as local initiatives, will encourage exporting companies to resume trading,” Hoan said.
To seize the opportunities for recovery and to increase exports of agricultural, forestry and fishery products by the end of the year, MARD will coordinate with ministries and sectors to implement programs to promote the trade focused on opening up new export markets, according to Nguyen Quoc Toan, director of the Department of Agricultural Product Processing and Market Development.
They will also provide businesses with market information and regulations on goods traded between Vietnam and China, as well as quotas for local agricultural products under the EVFTA and UKVFTA agreements.
This year, exports of agricultural, forestry and fishery products have faced many challenges caused by the COVID-19 pandemic. In particular, the fourth outbreak which began in late April has caused disruption throughout the economy, affecting agricultural supply chains, production and export activities nationwide, according to the TUESDAY.
The agricultural industry has maintained the growth of exports of many products, both in quantity and value. In the first ten months of this year, the value of exports of agricultural, forestry and fishery products was estimated at $ 38.8 billion, up 13.1% from the same period in 2020, the ministry said.
Approaching the target of 44 billion USD in export value for the whole year, the sector’s export turnover has reached at least 5.2 billion USD in the past two months, according to the ministry. .
This is a great success against the backdrop of the complicated development of the pandemic which has disrupted the supply chains of agricultural raw materials, directly affecting the processing and export of agricultural, forestry and aquatic products.
The disruption of the agricultural commodity supply chain is due to localities enforcing government regulations on the prevention and control of COVID-19 in different ways, according to Tien.
He also believes that the government’s goal of reviving economic development could face certain difficulties if the pandemic continues to reappear in new localities.
Agricultural development also faces challenges in other areas; crop and animal diseases, climate change, natural disasters, drought and saltwater intrusion also continue to negatively affect production.
Other problems include the slow resumption of production chains, lack of manpower and congestion in the transport of agricultural, forestry and fishery products. Many processors also lack the capital to continue production and business. Others have not yet met the material conditions to maintain production.
Increased freight on some routes and rising prices for feed and fertilizers have also created more difficulties for businesses.
MARD plans to help restore agricultural development through government policies that were released after the COVID-19 outbreak. MARD and the Ministry of Industry and Trade are coordinating to reduce stocks of agricultural products and ensure the supply of agricultural products for export. They will also have solutions to reduce the price of raw materials which have increased recently.
“The higher price of inputs in Vietnam is caused by an increase in prices around the world, due to the COVID-19 pandemic. Agricultural inputs in the country depend on imports, which account for 70 to 80 percent of demand. If imports are interrupted due to transport difficulties, it will lead to a shortage of inputs in the domestic market, ”Tien noted.
The two ministries recommended that the government develop policies that encourage domestic production of inputs and introduce a mechanism that reduces the volume of export products that could be used for the production of raw materials in the future.
It was also suggested that farmers should be more careful in their use of inputs, as they often use more inputs than necessary. If farmers can adapt to use only what they need, it could reduce use by up to 40 percent.
In addition, to restore supply chains, the agricultural sector proposed that the Ministry of Health increase the number of vaccines available to workers in the industry, as agricultural products have to be transported to many areas.
According to Tien: “In the future, Vietnam’s agricultural sector needs to secure seeds and inputs as well as market and product diversification. The sector also needs to build commodity zones and supply chains based on enterprises and cooperatives, meeting the standards of export markets. “
Dinh Cao Khue, president of Dong Giao Foodstuff Export Joint Stock Company (DOVECO), a company that exports agricultural production and fruits in 55 countries, said his company maintained exports during the fourth outbreak of COVID-19.
“We have encountered many difficulties, especially in purchasing and transporting raw materials, as many localities have applied social distancing measures to control the pandemic, in accordance with guideline 16,” Khue said.
At the same time, the cost of exports to the US and European markets continues to increase compared to before the pandemic, which creates financial pressure on exporting companies.
Despite this, Nguyen Dinh Tung, Managing Director of Vina T&T Group, affirms that: “The last months of the year are an opportunity for the export of fruits, as the demand for fruits is the highest during these months for end of year and beginning of year festivals. Next year. We hope to increase the export volume due to the increase in orders from partners.
Ngo Tuong Vy, deputy director of Chánh Thu Fruit Import-Export Co, Ltd, said that to increase the export capacity of key fruit products, his company will purchase more mangoes, durian and jackfruit from Dong Thap. They are key export products; mangoes for the United States and Australia, jackfruit for China and durian for China, Japan and Australia.
To help meet demand, de Vy’s company will support cooperatives in technical advice, building raw material regions and setting up production and supply chains to create a stable supply of exports, a she declared.
Nguyen Hai Nam, president of the Vietnamese Pepper Association, said the pepper industry quickly restored production and business after the COVID-19 outbreak. They expect growth in both the quantity and value of pepper exports this year due to the convenience of transporting raw materials. /.