Vietnam's agriculture sector achieved a number of milestones in 2019

Many of the agricultural sector's goals were met in 2019, according to the Ministry of Agriculture and Rural Development's online conference on December 23 in Hanoi.

Despite trade disputes and tougher rules imposed by international markets, Vietnam was able to post a 41.3 billion USD turnover for agricultural and aqua-cultural products in 2018, up 3.5 percent from the previous year, according to the conference report.

Meanwhile, the prices of these items have decreased by 10% to 15%.Aside from export turnover, two other major objectives were met: forestry coverage of 41.85% and a percentage of new rural area-certified communes of 54%.

According to Minister Nguyen Xuan Cuong, the livestock industry has had a rough year due to ongoing diseases that have resulted in unexpected effects.

Due to the effects of trade battles between major countries, Vietnam's farm produce market was uncertain in 2019, especially for some key export earners. African swine disease spread fast across provinces and cities, wreaking havoc on the hog herd, culling roughly 6 million pigs and cutting pork production by nearly 9%.

Despite these challenges, Vietnam generated more than 41 billion USD from agro-forestry-fishery exports last year, up 3.5 percent from the previous year. The achievements are attributable to the sector's quick response to disease outbreaks in the cattle and poultry industries.

Processing and consumption chains have been built to improve the efficiency and value of agricultural goods.

"The establishment of post-harvest processing plants in the Central Highlands plays an extremely important role in organizing production links, especially in material zones of passion fruit, avocado, and durian," said Nguyen Quoc Toan, Director of the Ministry of Agriculture and Rural Development's Agricultural Products Processing and Market Development Department. This will also aid the development of the home processing industry."

Last year, the rice sector in Vietnam maintained its productivity, production, and value growth, while the Vietnamese rice brand established its international significance.

"The ST25 rice research team received First Prize in the World's Best Rice Contest 2019," stated Tran Xuan Dinh, former Deputy Director of the Ministry of Agriculture and Rural Development's Cultivation Department. In the worldwide market, this is a significant honor for Vietnamese rice."

Exports to the forestry sector reached a new high of more than 11 billion dollars this year.

Furthermore, the Voluntary Partnership Agreement on Forest Law Enforcement, Governance, and Trade between the EU and Vietnam provided a significant opportunity for Vietnam's timber exports to reach the EU market.

"The agreement is of tremendous importance indicating Vietnam has consistently upheld international forest law enforcement in selling timber products and in origin tracing to grow the forestry industry sustainably," said Deputy Minister of Agriculture and Rural Development Ha Cong Tuan. This will lay the groundwork for a more transparent business environment in which to trade wood products."

The agriculture sector's goals for 2020 are to maintain present growth rates, continue to reorganize toward sustainable development, and boost export value.

"In 2020 and the years ahead, the agricultural sector should focus on continuing its restructuring, developing commodity agriculture, applying the latest technology, improving the processing and preservation of farm produce to meet market needs and requirements, and further expanding the market, particularly the markets of the 28 EU countries," Prime Minister Phuc said. The agricultural sector should place a greater emphasis on the quality and prestige of its products."

Prime Minister Phuc also urged the sector to accelerate crop and livestock restructuring in order to meet market demands and adapt to climate change. He urged more collaborative efforts to remove the EC's "yellow card" warning on Vietnamese seafood as soon as possible.

Despite trade wars and tightened regulations imposed by foreign markets, Vietnam was able to record a 41.3 billion USD turnover for agricultural and aqua-cultural products, up 3.5 percent from 2018.

Meanwhile, the prices of these products have been reduced by 10% to 15%.

Aside from export turnover, two other major goals have been met: forestry coverage of 41.85 percent and the ratio of new rural area-certified communes of 54 percent.

This year has been difficult for the livestock industry due to continuous diseases which have caused unprecedented consequences, said minister Nguyen Xuan Cuong.

Until November, African swine fever saw 5.9 million pigs slaughtered. Hanoi alone lost 30 percent of its herd which is equivalent to 1 trillion VND (43.1 million USD).

The agriculture minister also admitted several shortcomings that hamper the growth of the sector and need to be addressed soon.

The pace of agricultural restructuring and new rural area building remain uneven between localities, and the slow progress in resolving issues related to illegal, unreported and unregulated (IUU) fishing and regaining the trust of the European Union, the risks of diseases affecting livestock and crops, and food hygiene continue to haunt the sector in 2019, Cuong said.

Against all odds, more than 2,700 new agricultural enterprises were established in 2019, a 25.3 percent increase over 2018, bringing the total number of agricultural businesses to 12,581.

Seventeen major agricultural projects began operations in 2019 with a total funding of more than 20 trillion VND (862.3 million USD), owing to improvements in the investment environment that encouraged investors to join the industry.

The sector's trade surplus reached a new high of 9.9 billion USD, up 14 percent from the previous year. Ten commodities with export turnovers of more than one billion USD were kept, including five product groups earning three billion USD, including shrimp, coffee, and cashew nuts.

This year has been difficult for the livestock industry due to continuous diseases which have caused unprecedented consequences, said minister Nguyen Xuan Cuong.

Until November, African swine fever saw 5.9 million pigs slaughtered. Ha Noi lost 30 per cent of its herd which is equivalent to VND1 trillion ($43.1 million).

The agriculture minister also admitted several shortcomings that hamper the growth of the sector and need to be addressed soon.

The pace of agricultural restructuring and new rural area building remain uneven between localities, the slow progress in resolving issues related to illegal, unreported and unregulated (IUU) fishing and regaining the trust of the European Union, the risks of diseases affecting livestock and crops, and food hygiene, continue to haunt the sector in 2019, Cuong said.

The sector’s trade surplus reached a record $9.9 billion, increasing 14 per cent compared to last year. Ten commodities with export turnover of more than $1 billion continued to be maintained, including five product groups earning $3 billion such as shrimp, coffee and cashew nuts.

PM Phuc hailed the sector for its achievements in 2019 despite difficult conditions, saying it needs to continue to respond to climate change, apply technology in agricultural production and improve the quality of human resources.

By Hanh Tran

References

1. VNA, December 24, 2019. Vietnam+. Vietnam’s agriculture sector surpasses many goals in 2019. Retrieved from: https://en.vietnamplus.vn/vietnams-agriculture-sector-surpasses-many-goals-in-2019/165993.vnp

2. VOV, December 31, 2019. The voice of Vietnam, VOV world. Vietnam’s agriculture continues to grow in 2019. Retrieved from: https://vovworld.vn/en-US/economy/vietnams-agriculture-continues-to-grow-in-2019-815178.vov

3. Trade News, December 26,2019. Asem connects. Vietnam’s agriculture sector: goals for 2019 and 2020. Retrieved from: http://asemconnectvietnam.gov.vn/default.aspx?ID1=2&ZID1=8&ID8=92946