'Eagles' pour 71,000 billion into investment, good harvest and falling prices are no longer a curse

As a country with a strong agricultural sector , most of Vietnam's agricultural products achieve production volumes ranging from several million to tens of millions of tons per year, with some even ranking among the world's top producers.

Statistics show that in 2022, the production of grain was 47.1 million tons, vegetables 18.8 million tons, fruits 18.68 million tons, meat 7.05 million tons, seafood approximately 9.03 million tons, and eggs 18.3 billion...

Maintaining the supply and demand of food not only ensures national food security but also contributes to macroeconomic stability and the overall balance of the economy. In 2022, the export value of the entire agricultural sector reached US$53.5 billion – a historical record.

Many large businesses and corporations are investing heavily in the processing and preservation of agricultural products (Photo: Hoang Ha).

However, for many years, the agricultural sector has remained plagued by fragmentation, small-scale operations, and spontaneous development. Furthermore, post-harvest processing and preservation of agricultural products remain weak points in this sector.

The practice of harvesting agricultural products, especially fruits and vegetables, and selling them fresh still largely leads to farmers frequently facing the situation of "bumper harvests but falling prices," requiring them to rescue their produce. Meanwhile, the export of raw or minimally processed agricultural products accounts for a high percentage, with low added value.

Industry experts have pointed out that we still mainly sell agricultural products in bulk, exporting them raw in bags, resulting in meager revenue.

In its recent report on the implementation of Resolution No. 62/2022/QH15 on questioning activities at the 3rd session (15th National Assembly), the Ministry of Agriculture and Rural Development also mentioned the situation of investment in the development of agricultural product processing and preservation industries, and the strengthening of deep processing.

Accordingly, in the value chain, post-harvest processing and preservation, which were previously weak points, are gradually improving. Vietnam has formed and developed a system of agricultural, forestry, and aquatic product processing industries with nearly 7,600 industrial-scale facilities linked to exports, with a designed capacity to process and preserve (including preliminary processing) over 120 million tons of agricultural raw materials annually.

In addition, there are tens of thousands of small-scale, family-owned agricultural processing facilities of various types scattered throughout the country, primarily engaged in preliminary processing and manufacturing to serve domestic consumption and increase farmers' income.

Many large private enterprises and corporations have shown interest in and implemented investment projects in the processing of agricultural, forestry, and aquatic products, including modern facilities with advanced processing technologies for fruits and vegetables, shrimp, catfish, livestock and poultry slaughtering, coffee, etc. 76 large-scale processing projects have been started and some have become operational, with an investment scale of over 71,000 billion VND.

Investing in agricultural processing not only adds value to products but also helps farmers avoid the situation of bumper harvests leading to price drops (Photo: Hoang Ha).

The increased investment in the processing industry for agricultural, forestry, and aquatic products has contributed to increasing the added value of agricultural commodities, reaching approximately 8-10% per year, and has strongly impacted the restructuring of crops and livestock. Along with this, product quality and food safety are ensured; post-harvest losses, although still high at around 10-20%, are trending downwards, at approximately 0.5% per year.

According to the Ministry of Agriculture and Rural Development, several modern processing complexes invested in over the past five years have achieved advanced technological levels and capabilities; the export value of deeply processed products with high added value accounts for approximately 35% of the total value of agricultural exports.

The initial steps involve forming linkages and creating strong connections between the processing industry, raw material production, and consumer markets; stabilizing production and avoiding the phenomenon of bumper harvests leading to price drops or the need for "rescue" efforts for farmers; changing the long-standing fragmented and small-scale production practices of the agricultural sector; and transforming the structure of livestock and crops, contributing to increasing the value of Vietnamese agricultural products...

In recent years, major corporations such as TH Group , Nafoods Group, Dong Giao Food Export Joint Stock Company, Lavifood Joint Stock Company, VinaT&T, etc., have invested heavily in agricultural processing projects and complexes. Farmers participate in cooperatives to produce raw materials for these processing plants.

Earlier, Minister of Agriculture and Rural Development Le Minh Hoan also stated that many large enterprises and corporations are investing in the agricultural sector, especially in the deep processing stage.

According to him, the agricultural sector needs "eagles" to lead the way and bring agricultural products to the "global market." Cooperatives and small and medium-sized enterprises in localities will collaborate with these "eagles" to create an ecosystem, thereby creating added value for Vietnamese agricultural products.

A $40 billion asset, awaiting a 'magic wand' to benefit millions.

Most of Vietnam's agricultural products achieve production volumes ranging from several million to tens of millions of tons, generating $40 billion in export revenue. However, the proportion of processed agricultural products remains too low, leading to a situation where goods are sold in large quantities but revenue is minimal.

Source