Boosting the development of market-driven products

As scheduled, the third quarter of 2015 is the deadline for the Ministry of Industry and Trade (MoIT) to submit to the government a scheme to enhance the competitiveness of Vietnam’s export products – an urgent task to remove obstacles for exporting agriculture products and relieving dependence on traditional markets, towards sustainable consumption of products before the TPP takes effect.

 

 

Photo for Illustration (Pho to: Thai Thien)

Despite nearing the fourth quarter, the ministry is still in the process of finalising the scheme oriented towards focusing on clarifying the factors including the competitiveness of Vietnam’s export products associated with the competitiveness of the country and enterprises.

Yet, for farmers, who directly manufacture farming products, it is just from the theoretical perspective. In reality, several kinds of fruits – watermelon, dragon fruit, Bac Giang lychee and Hung Yen longan – as well as other types of agricultural products – Da Lat onion and Soc Trang shallot – are facing numerous difficulties in terms of finding a place on the consumer market. Even Vietnam’s leading products such as rice and coffee are also struggling to find customers. 

 

According to the Ministry of Agriculture and Rural Development (MARD), Vietnam’s export revenues of the agro-forestry and fishery products only reached US$21.65 billion in the first nine months of the year, down 5% compared to the same period of 2014, with declines seen in many key items such as coffee (down 32.2%), rubber (down 13.7%) and rice (down 15.7%).

 

Notably, while awaiting for signals from stimulus policies for domestic consumption and exports markets, the cultivation area of the abovementioned agricultural plants has still not diminished but been increasing due to a lack of information, consequently leading to the distortion of planning and repetition of “planting-cutting-planting”.

 

Therefore, to ensure sustainable consumption markets for Vietnam’s farm products, the MoIT’s prediction work and market search, also known as trade promotion, play a significant role in balancing supply and demand even in the case of negative impacts on agricultural production. Then comes the role of the MARD in deciding the cultivation area for each type of item and providing prompt warnings and advice to each locality as the cultivation area tends to exceed the allowed level.

 

The Vietnam Farmers’ Association, localities, collectives and other associations need to keep a close watch on the production situation, aiming to provide consultations for farmers and give timely policy recommendations. For long-term goals, relevant ministries and sectors should outline more rational planning for planting regions of fruits and vegetables following the model of market-driven production, while boosting development of the processing and preserving industry of agriculture products.

 

It is time to speed up in the context that many agreements have already been signed or under negotiations such as the Trans-Pacific Partnership (TPP) and free trade agreements between Vietnam and the EU and between Vietnam and the Eurasian Customs Union. Vietnam’s agriculture market will be fully open as of 2018 and in the current time it is crucial to bring advantages and opportunities into play while dealing with challenges.

 

(Source: nhandan.org.vn)