Measures sought to boost Vietnam’s share in global agricultural value chains

Tuesday, 2019-10-08 17:12:20
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Vietnam has a great of potential to further increase its farming exports.
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NDO - A forum was held on October 8 in Hanoi to seek measures aimed at increasing the participation of Vietnamese businesses in global agricultural value chains.

Vietnam is exporting agricultural produce to 185 countries and territories, currently ranked second in Southeast Asia and 15th globally, said Nguyen Quoc Toan from the Agricultural Processing and Market Development Department at the event.

He informed that Vietnam’s agricultural exports brought in US$30.2 billion in the first nine months of 2019, up 2.7% year on year, and that with 16 new-generation trade deals, there will be more opportunities for further farming exports.

Speaking at the conference, many experts stated that there is a huge global demand for food and Vietnam has a great deal of potential to further bolster its agriculture by deeper participation in global value chains.

Pham Hoang Van Anh at the World Bank noted that global food demand will increase by 70-100% until 2050 due to increasing population growth and changes in food consumption choices.

She advised that it is necessary to build quality infrastructure as a key factor to develop the food industry so that Vietnam can seize on the opportunities and participate in global value chains at a deeper level.

Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong stated that the value of Vietnam’s agricultural exports is low due to the insufficient attention to processing and packaging.

In addition, there are many obstacles to bank credit for investment in agricultural value chains, said Phong.

According to Pham Thi Thanh Tung at the State Bank of Vietnam, such difficulties were attributed to weak connections between farmers and enterprises, and the agricultural sector’s vulnerability to natural disasters and diseases.

She added that it is necessary to enhance the effectiveness of appraisal and credit assessment of customers in order to increase lending without collateral assets to agricultural businesses.