In 2024, Vietnam's agriculture will grow strongly in both production and export. Production value will increase by 3.3%, agricultural, forestry and fishery export turnover is estimated at 62.5 billion USD, up 18.7% compared to 2023, with 11 products continuing to maintain export turnover value of over 1 billion USD.

However, in the coming time, to have a certain market share in large markets still exists many challenges. Therefore, efforts from "the producers" are needed for agricultural exports to continue to break through, reaching 100 billion USD in the near future.

Sad and happy intertwined

According to the Ministry of Agriculture and Rural Development, the total export turnover of agriculture, forestry and fishery products in 2024 will reach a record high of 62.5 billion USD, an increase of 18.7% compared to 2023. The trade surplus of the agricultural sector will continue to reach a new record of 17.9 billion USD, an increase of 46.8% and account for 71.6% of the country's trade surplus in 2024 (the country's trade surplus is about 25 billion USD).

Of the 62.5 billion USD of agricultural, forestry and fishery exports, the export of main agricultural products will reach 32.8 billion USD, an increase of 22.4%; livestock exports will reach 533.6 million USD, an increase of 6.5%; the export of main forestry products will reach 17.28 billion USD, an increase of 19.4%; and aquatic products will reach 10.07 billion USD, an increase of 12.2%.

However, along with the records, there are also some dark spots on the picture of agricultural exports when recently, the Vietnam SPS Office (Ministry of Agriculture and Rural Development) sent a notice to the Plant Protection Department and the Vietnam Fruit and Vegetable Association regarding the amendment of Regulation (EU) 2019/1793 on temporarily strengthening official controls and emergency measures to manage the import of certain goods from some third countries into the EU. Accordingly, for Vietnamese durian, the EU temporarily increased the frequency of border inspections from 10% to 20%.

For dragon fruit, chili and okra, the EU kept the same frequency of border inspections. Of which, the inspection frequency of dragon fruit is 30%, chili and okra are 50%. These three products, when imported into the EU market, must be accompanied by results of pesticide residue analysis.

Previously, in August 2024, the leader of the Vietnam SPS Office also informed that in the first half of 2024, the EU sent up to 57 warnings to Vietnamese authorities due to the presence of antibiotic residues and banned substances in our country's agricultural products.

Taking advantage of FTAs

Currently, Vietnam has signed free trade agreements (FTAs) with more than 60 markets, including major economic partners such as China, the European Union (EU), South Korea, Japan, the UK, Russia, etc.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Chile is one of the first countries in Latin America to sign a free trade agreement with Vietnam. Therefore, Vietnamese seafood enterprises have an advantage over other countries when enjoying tariff incentives under the Vietnam-Chile Free Trade Agreement (VCFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In 2023, Chile is one of the few tuna export markets of Vietnam that maintains high growth.

The EU temporarily increased the frequency of durian checks at the border from 10% to 20%.

Also for tuna products, the Russian market has great potential thanks to tariff incentives from the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEUFTA). While the main export item is frozen tuna meat/loin (tuna loin) from Vietnam which is exempted from tax when exported to Russia under the agreement in VN-EAEUFTA, products from China and Thailand are subject to a tax of 3.8%.

For the Indian market, the ASEAN-India Free Trade Agreement (AIFTA) also brings some advantages to Vietnam's agricultural exports. Commercial Counselor, Vietnam Trade Office in India Bui Trung Thuong said: India is currently Vietnam's largest trading partner in the South Asia region, accounting for 84.9% of Vietnam's exports to South Asia. Vietnam's main agricultural export groups to India: rubber reached 186.7 million USD, down 26.4%; wood and wood products reached 121.9 million USD, up 287.7%; tea 83.2 million USD, down 21.6%; pepper 62.4 million USD, down 13.8%; coffee 61.2 million USD, up 6.6%...

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) includes 12 members: Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia, the UK and Vietnam. Apart from Asian countries, Vietnam's agricultural, forestry and fishery exports to the remaining countries are still very limited.

According to the Import-Export Department (Ministry of Industry and Trade), among ASEAN countries, Vietnam continues to be Canada's most important import partner, accounting for 43% of Canada's total import turnover from the region. However, at present, Vietnamese agriculture has not been able to take advantage of many advantages in this market because Canada tends to promote policies towards the South American economic bloc, which has affected the export of some Vietnamese products with strengths such as fruits and seafood.

According to the Ministry of Industry and Trade, the Vietnam-EU Free Trade Agreement (EVFTA) has been opening a big door for Vietnamese agricultural products to penetrate deeply into the EU market. Thanks to EVFTA, Vietnam has eliminated up to 94% of tax lines for fruits and vegetables (previously with a tax rate of 10-20%), creating a competitive advantage compared to Thailand and China.

Recently, within the framework of Prime Minister Pham Minh Chinh's official visit to the United Arab Emirates (UAE), on the afternoon of October 28, 2024, the Comprehensive Economic Partnership Agreement (CEPA) - Vietnam's first Free Trade Agreement (FTA) with an Arab country was signed, opening up great opportunities for Vietnam's agricultural exports. Previously, on July 25, 2023, Vietnam also signed the Vietnam - Israel Free Trade Agreement (VIFTA).

However, the challenge for Vietnamese agricultural products when exporting to countries with FTAs ​​is to meet technical barriers to trade (TBT), including a system of high technical standards and regulations; In particular, many standards are related to product quality, labor, environment, greenhouse gas emission reduction, anti-deforestation, green growth, etc.

In the coming time, when commodities such as coffee and forest products are affected by the EU Deforestation Regulation (EUDR), it will create many new difficulties for exports, requiring these industries to adapt quickly and effectively.

Economic diplomacy is the new driving force

At the Conference with Ambassadors and Heads of Vietnamese representative agencies abroad to summarize economic diplomacy in 2024 and deploy key tasks in 2025 to create momentum for growth, Prime Minister Pham Minh Chinh welcomed the positive results in economic diplomacy, a bright spot in foreign affairs, making an important contribution to the country's socio-economic development achievements in 2024 with 15/15 targets achieved and exceeded. Of which, growth is over 7%, FDI attraction in 11 months increased by 12.4%, reaching 31.4 billion USD, with disbursement reaching 21.7 billion USD, the highest in many years; and import-export turnover of about 800 billion USD...

The Prime Minister visited booths introducing OCOP products of the Agriculture and Rural Development sector before attending the conference to review 2024 and deploy the 2025 plan of the Agriculture and Rural Development sector.

Economic diplomacy has truly become the key content in all foreign affairs activities, especially high-level foreign affairs; there has been a change in thinking and working methods towards a more positive, practical and effective direction; effectively contributing to the implementation of strategic breakthroughs; economic diplomacy has been institutionalized and systematized in a systematic manner and has gained consensus and participation of the entire political system, and close coordination of ministries, branches and localities.

At the conference to summarize 2024 and deploy the 2025 plan of the Agriculture and Rural Development sector, Deputy Minister of Foreign Affairs Nguyen Minh Hang expressed his impression of the numbers and "miracles" of the Vietnamese Agriculture sector in the past year. Accordingly, the agricultural sector stands out with an impressive figure of total export turnover of agriculture, forestry and fishery products growing by 18.7% in the context of a challenging world economy, competition, conflict, increasing logistics and energy prices, etc.

“Looking at the total trade surplus of 25 billion USD, of which the agricultural trade surplus reached 17.9 billion USD, accounting for nearly 72% of the total trade surplus of the country, affirming the development of the agricultural sector, both as a pillar for the economic sector and an essential foundation for social security and a source of foreign currency for the country”, the Deputy Minister of Foreign Affairs shared.

Ms. Hang assessed that agriculture is one of the leading strengths for Vietnam to enhance its role, position and responsibility in global issues. In bilateral and multilateral relations, the agricultural sector is Vietnam's pride in growth and development. Within the framework of the G20, member countries also hope that Vietnam will share and strengthen cooperation in the agricultural sector and contribute to global efforts to ensure food security.

Standardize to maintain market

At the recent Agricultural Export Promotion Conference organized by the Ministry of Agriculture and Rural Development, Mr. Nong Duc Lai, Vietnam's Trade Counselor in the Chinese market, said: Vietnam is in the group of 10 countries/territories with the highest number of agricultural products and food products that are warned. Of which, the group of seafood, fruit juice (excluding coffee, dairy products), and cakes of all kinds are warned the most.

Therefore, the solution for agricultural exports to maintain growth is that Vietnamese authorities need to strengthen the management and supervision of the quality of exported goods. At the same time, regularly update and disseminate information to businesses about regulations, quality standards, and food safety and hygiene of importing countries.

To meet increasingly strict standards from the market, growing and farming areas have no other way but to comply with the regulations of the Vietnamese market and the import market. In addition, it is necessary to strengthen the connection between raw material areas and packaging, preliminary processing and processing facilities; have a mechanism for joint control and quality management.

On June 19, 2024, the Prime Minister issued Decision No. 534/QD-TTG approving the project: "Improving the effectiveness of the implementation of the Agreement on the application of sanitary and phytosanitary measures (SPS) of the World Trade Organization and SPS commitments within the framework of free trade agreements".

Accordingly, the target orientation by 2030: The rate of national standards and national technical regulations on food safety quality of agricultural, forestry and fishery products equivalent to international standards will reach 100%; Promote the database connecting interactive information between cooperatives, enterprises, associations, unions, local management agencies and Vietnam's SPS system; 100% of food safety management and animal and plant quarantine officers at all levels will be trained and updated annually on professional knowledge. Once this goal is achieved, agricultural export activities are expected to be smoother and achieve the set major goals.

Must accelerate, break through

In 2025, the agricultural sector will strongly develop the domestic and export markets for agricultural, forestry and fishery products. Build a value chain for each type of agricultural product, associated with the development of agricultural and rural logistics infrastructure, ensuring the domestic market supply chain.

At the conference to review 2024 and deploy the 2025 plan for the agricultural and rural development sector, Prime Minister Pham Minh Chinh noted that 2025 is the year of acceleration and breakthrough to the finish line of the entire 2021-2025 term, the year when Party Congresses at all levels will take place, preparing for the 14th National Congress of the Party. Therefore, the industry must accelerate, break through, and join the whole country in successfully implementing the socio-economic development plan according to the resolutions of the Party, the National Assembly, and the Government, in which the GDP growth target is at least over 8% and strives to reach double digits in 2025.

Regarding the guiding ideology, Prime Minister Pham Minh Chinh requested: First, it is necessary to focus on leading and directing the work of planning, building strategies, building institutions, building mechanisms and policies; removing institutional bottlenecks on mechanisms and policies to develop our industry quickly and sustainably. Second, further promote the application of science and technology, digital transformation and innovation to develop the digital economy, green economy, circular economy, sharing economy, knowledge economy, and night economy. Third, effectively contributing to the fight against climate change in key areas, especially subsidence, landslides, droughts, and flooding in the Mekong Delta, the Northern mountainous region, the Central region, and the Central Highlands. Fourth, farmers are more prosperous and happier, the countryside is more modern, and agriculture is more advanced. Farmers are the center, the subject, agriculture is the driving force, and the countryside is the foundation.

The restructuring of the agricultural sector must be substantial and effective, associated with the innovation of the growth model: Synchronously and effectively implementing programs, projects, and tasks to promote agricultural restructuring according to 3 groups of key products, according to industries, fields, and restructuring production by region; effectively implement the "One Commune One Product" (OCOP) Program, the Project "Sustainable development of 1 million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030" to contribute to promoting large-scale, sustainable production, planning the development of raw material areas, developing science and technology, developing specialized areas for high-quality agricultural products on the basis of promoting the potential and advantages of the region.

Reorganize production, develop appropriate and effective forms of production organization associated with the digital transformation process, digital economy, develop strongly, reasonably, appropriately, develop the cooperative system, associated with restructuring the agricultural sector and developing the rural economy.

Promote restructuring of the agricultural sector; reorganize production towards sustainable development based on potential and comparative advantages, apply high technology, focus on developing quality and advantageous products; develop enterprises in the agricultural sector, overcome the situation of small-scale and fragmented production; strengthen the linkage of 5 parties: Farmers - State - Enterprises - Banks - Scientists; continue to build a chain of links in production, preservation, processing and distribution of agricultural products, effectively participate in the global agricultural production network and value chain.

Develop markets and diversify supply chains. Promote mechanization and application of science and technology, high technology, intelligence, and automation in agricultural production; build a strong database for the entire agricultural sector; focus on selection and breeding; develop industries serving agriculture, processing and preserving agricultural products, increase the proportion of deep processing to increase the added value of products; develop production clusters associated with raw material areas, forms of cooperation in production and processing connected with domestic and international consumption systems.

Develop markets and build brands for Vietnamese agricultural products, do a good job of forecasting supply and demand, market information, connecting producers with consumers, taking advantage of advantages from FTAs, especially EVFTA, CPTPP to restructure export markets, reduce dependence on some markets, remove barriers to penetrate new markets, at the same time focus on the domestic market, have a strategy to bring goods from rural areas to urban areas, build brands for Vietnamese agricultural products.

At the dialogue with farmers of Prime Minister Pham Minh Chinh on the morning of December 31, 2024, the Prime Minister said: "We must achieve the target of exporting 100 billion USD of agricultural, forestry and fishery products in the coming years". The Prime Minister noted 9 important issues: Institutions and policies must be breakthroughs of breakthroughs; Land planning, planning of industrial zones and clusters serving agricultural production; liberating resources from land; developing agricultural economy, not self-sufficient agricultural production; expanding markets, including specific markets such as Halal food; promoting the application of science and technology, digital transformation; transforming labor; encouraging businesses to cooperate, support and associate with farmers.

The Prime Minister believes that the agricultural sector in 2025 and the coming time will transform even more strongly. Farmers will become increasingly richer and more civilized. The countryside will become more modern, prosperous, friendly and livable.

In 2025, the agricultural sector has identified the following key targets: GDP growth rate of the whole sector is 3.3-3.4%; total export turnover of agriculture, forestry and fishery is 64-65 billion USD; the rate of communes meeting new rural standards is over 80%; 325 district-level units meet standards/complete the task of building new rural areas; forest coverage remains stable at 42.02%; the rate of rural households using clean water according to standards is 60%.

Source: Kinh Te Nong Thon Newspaper