| Lao Cai : Attracting investment in the deep processing of key agricultural products. Son La: Boosting the development of agricultural product processing industry. |
We need to change our mindset.
Vietnam possesses numerous advantages and potential for developing agricultural, forestry, and fisheries production. Annual agricultural and food production not only meets domestic consumption needs but also serves the processing industry and exports to many countries worldwide .
While Vietnam's agricultural, forestry, and fisheries exports were only around $20 million in 1990, they have now surpassed $53 billion per year. In the first eight months of 2024, Vietnam's agricultural, forestry, and fisheries exports reached $40.08 billion, an increase of 18.6% compared to the same period last year. Most export items in this group showed year-on-year growth, with agricultural products experiencing the highest increase (24%), reaching $21.32 billion. Many Vietnamese agricultural products are projected to perform well from now until the end of the year, given favorable conditions in trading markets.
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| Many products are made from dragon fruit. Photo: Phan Lien |
With its current growth trajectory, the agricultural sector is poised to achieve its export target of $55 billion and GDP growth of 3.5% in 2024.
Despite achieving positive results, a deeper analysis reveals that research, application of science and technology, innovation, and human resource training in agriculture still have limitations.
In reality, 70-85% of Vietnam's agricultural products are exported in raw form or with low processing levels. The problem of bumper harvests leading to price drops remains common, production is fragmented, the quality of agricultural products is inconsistent, processing technology is outdated and not standardized, packaging is unattractive, and production costs are high, resulting in poor competitiveness and price pressure in the international market.
On the one hand, this prevents the value of agricultural products from increasing, and risks economic losses due to the large amount of spoiled fruits and vegetables after harvest and during transportation to consumption areas. On the other hand, exported agricultural and food products face many difficulties and challenges from increasingly stringent quality standards and origin requirements of importing markets; the rising trend of protectionism in many markets; and the trend towards sustainable development, carbon emission reduction, and environmental protection in Vietnam's key export markets.
In the context of Vietnam's deep integration into the global economy, the development of the Fourth Industrial Revolution is impacting many sectors of the economy, especially agriculture, with tremendous force. This necessitates a shift in thinking regarding agricultural development, moving from agricultural production to agricultural economics; developing efficient agriculture based on high technology; and increasing the economic value per unit of land used.
Businesses need support.
The application of advanced post-harvest technologies is considered key to reducing logistics costs, opening up and accessing more markets around the world, and increasing the value of products.
Currently, many localities and businesses are actively participating in and developing deeply processed products. For example, in Tien Giang province, there are over 500 businesses specializing in milling and processing rice for domestic consumption and export. To meet the increasing demand, businesses have installed modern technological systems such as silos for storing and preserving rice; automated production lines; focused investment on transporting rice from businesses to partners; and built warehouses to store tens of thousands of tons for export.
For vegetables and fruits, many businesses have invested in frozen vegetable and fruit processing plants using the full IQF (Individual Quick Freezing) processing program. After freezing, the products retain their natural shape, flavor, and food safety, making them popular in both domestic and international markets.
Even from the same type of coffee, some businesses have developed deeply processed products to cater to new consumer tastes and trends. For example, Meet More fruit-flavored coffee has been processed into instant coffee with mint, taro, coconut, and mung bean flavors. These products are now available in Australia, the UK, Japan, India, Russia, the US, South Korea, and other countries. This represents a new direction, contributing to increasing the value of this promising industry in Vietnam.
In the dragon fruit-growing region of Binh Thuan, in addition to fresh fruit, dried and chewy dried dragon fruit products have also been introduced. Processing not only increases the product's value but also extends its shelf life, making it easier for businesses to access global supply chains.
Despite these advantages, the number of businesses investing in agriculture remains low, accounting for approximately 1.3% of the total number of businesses, with the majority being small and medium-sized enterprises. Due to their small scale, most businesses lack the resources to invest in advanced testing, inspection, processing, and preservation equipment. Many businesses and cooperatives have not yet accessed highly skilled experts to support and advise on developing business ideas and improving products.
Based on local realities, Binh Thuan province will support businesses and production facilities producing the province's advantageous products to improve production capacity, increase competitiveness, and meet international standards, aiming for the export of OCOP products made from dragon fruit that have been recognized with 3-4 stars. Support will also be provided for the establishment of "Proud of Vietnamese Products" sales points for businesses to promote and sell OCOP products made from dragon fruit at tourist destinations, places frequently visited by tourists for sightseeing and relaxation, and among residents in Phan Thiet city, a place with many scenic spots and historical relics.
Simultaneously, coordinate the implementation of support policies to attract investment in agricultural processing plants; continue to encourage and support businesses to invest in technology and equipment to process high-quality, food-safe products to meet market demands, contributing to reducing pressure on the consumption of fresh dragon fruit.
Speaking at the recent seminar "Market Trends and Export Opportunities for Vietnamese Agricultural Products and Processed Foods into International Distribution Systems," Deputy Minister of Industry and Trade Phan Thi Thang stated that Vietnam needs to continue implementing current policies that support the agricultural sector in shifting from exporting raw materials to increasing the proportion of refined products, creating conditions for businesses to apply science and technology in agriculture, and attracting investment to develop the food processing industry. This will contribute to improving product quality and diversification, diversifying product lines, and shifting from developing agricultural supply chains to developing value chains, keeping pace with global market consumption trends.
In the coming period, the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development will strengthen coordination in promoting trade and negotiating market access for Vietnamese agricultural products.
To increase product competitiveness, businesses have no choice but to invest in modern equipment and technology, and improve processing capacity. Relevant units need to develop a plan for concentrated raw material sourcing areas, focusing on increasing effective linkages between localities and regions, and between farmers and businesses, to create stable raw material sources for processing and export. |
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