Agricultural exports steadily overcome difficulties

Since late 2015 and the first months of 2016, Vietnam’s agricultural sector has continuously faced woes, including damaging cold in the north, drought and saltwater intrusion in the Mekong Delta provinces and unfavorable factors in the market.

Overcoming difficulties, agricultural exports have seen a significant increase in the first months of this year compared to the same period last year and are expected to prosper in the second half if management agencies successfully implement solutions for market development and mechanisms to attract more enterprises to invest in agriculture.

Lychees are checked before being exported to the US and Australia. (Credit: NDO)

During the first five months of 2016, the agricultural sector, particularly exports, has faced numerous difficulties. The El Nino extreme weather phenomenon has negatively impacted key agricultural areas; in addition, drought and saltwater intrusion have reduced the winter–spring crop by 1.13 million tonnes of rice. The severe saline intrusion with saltwater encroaching up to 10-25km further inland compared with seasonal averages has resulted in a decrease of 12% in the output of prawn and 14% of whiteleg shrimp. In addition, drought has caused the death of a large number of coffee trees as well as strong decrease in productivity of citrus, coconut and pepper.

In 2016, Vietnam’s agricultural commodity market is forecasted to face significant challenges as some European importers have warned about pepper contaminated with pesticide residues, Indonesia has required plant quarantine and China has set out strict regulations on imported natural rubber. Moreover, the international market has suffered from strong impacts of currency devaluation of the large exporters. Vietnam’s agricultural exports also faced devaluation of domestic currency in some countries in order to increase their own exports, which made the price of Vietnamese agricultural products higher than other countries and reduced their competitiveness.

However, export turnover of Vietnam's agro-forestry-fishery products reached US$12.18 billion in the first five months of this year, a year-on-year increase of 4.9%. Of the turnover, the export value of major agricultural commodities was estimated at US$6.05 billion, up 6.6% over the same period last year. Facing a crushing calamity in recent months, the growth that the Vietnam’s agricultural sector made was actually a feat.

Notably, some agricultural commodities, particularly exported vegetables and fruit, achieved spectacular growth. The exports of vegetables and fruits have brought US$1.8 billion in 2015 and US$900 million in the first five months of 2016. In addition, numerous kinds of Vietnam’s fruits have met all imported requirements of highly regulated markets like the US, including dragon fruit, rambutan, longan and lychee. Over the past five months, Vietnam has exported nearly 2,000 tonnes of fruits to the US.

(Source: NDO)