The agriculture sector is forecast to earn US$41 billion from exports this year, according to Vu Ba Phu, head of the Việt Nam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT).

Vifoco Import-Export JSC's workers process fresh lychee. Developing
processing sector is a key solution to raise product value, thus
increasing export earnings. VNA/VNS Photo Vũ Sinh

The agriculture sector is forecast to earn US$41 billion from exports this year, according to Vũ Bá Phú, head of the Việt Nam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT).

To achieve this goal, developing processing is key to raising product value to increase export earnings, which is also in line with the Government’s goal of entering the top 15 countries with advanced agriculture, and top 10 with modern farm produce processing industry.

Efforts to modernise and further promote technology application in post-harvest processing have resulted in an increase of between 5-7 per cent in the agriculture sector’s annual added value, pushing the average export turnover up by 8-10 per cent per year.

Nguyễn Thanh Tuấn, deputy director of the Department of Industry and Trade in the central province of Phú Yên, said post-harvest processing is considered a key step in increasing the value of agricultural products and reducing losses, helping businesses to seek appropriate markets for their products.

The production and consumption chain model has also contributed to improving the value of products.

According to Nguyễn Quốc Toản, director of the Agricultural Products Processing and Development Department under the Ministry of Agriculture and Rural Development (MARD), localities nationwide have attracted over 70 investment projects worth more than VNĐ59 trillion (US$2.54 billion) in processing agro-aquaculture-forestry products since 2017.

The country earned $22.6 billion from exporting agro-forestry-aquatic products in the first five months of 2021, up 30.1 per cent year-on-year, the MARD reported.

The export value of key farm produce reached an estimated $7.78 billion in Jan-May, 13 per cent higher than that of the same period last year.

Meanwhile, the export of forestry, livestock and aquatic products climbed to $7.06 billion, $166 million, and $3.24 billion, up 61.8 per cent, 43.9 per cent, 12 per cent respectively.

Joining free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Việt Nam Free Trade Agreement (EVFTA), the UK-Việt Nam Free Trade Agreement (UKVFTA), and the Regional Comprehensive Economic Partnership (RCEP), has helped Việt Nam’s farm produce make inroads into large markets, pushing its agricultural exports in the reviewed periods, especially aquatic products, vegetables and fruits, rice and tea.

The MARD and the MoIT have organised online conferences with localities to seek solutions to help localities in selling their farm produce amidst complicated developments of the COVID-19 outbreak.

Attention has been also paid to introducing products on prestigious e-commerce platforms such as Alibaba, Amazon, Sendo, Voso and Shopee. — VNS