Leading regional countries fear the rise of Vietnamese agricultural products

From   rice...

Agricultural products   Vietnam has been competing with   Thailand   in many key markets. According to Thailand’s The Nation, Thai businessmen are voicing concerns about the country’s loss of control over agricultural exports, warning that Vietnam’s rapid rise, thanks to consistent government policies and strategic investments, could soon see Vietnam surpass Thailand in this field.

Screenshot of article from The Nation Thailand.

Mr. Smith Taweelerdniti - General Director of Nithi Foods - said: While Thailand used to lead ASEAN in agricultural exports, in recent years   Vietnam   has rapidly closed the gap through targeted investments in food technology and   agriculture .

“Vietnam offers strong tax incentives that attract more investors than Thailand. Vietnam’s domestic market is huge and despite lower wages, purchasing power remains strong,” he said.

Vietnam also competes directly with Thailand in important export markets such as the US and China, he added.

According to the Ministry of Agriculture and Environment (MARD) of Vietnam, the country's agricultural export turnover will reach a record 62.5 billion USD in 2024, up 18.7% compared to 2023. Fruits, rice, coffee and cashew nuts are the top consumed items. This year, the MARD aims for GDP growth of the whole sector from 3.3 - 3.4%, with total agricultural, forestry and fishery export turnover reaching 64-65 billion USD.

Meanwhile, although Thailand is still an agricultural powerhouse in the region, according to the forecast of the country's International Trade Promotion Agency, in 2025, agricultural and agro-industrial exports will only increase by about 5.4%, reaching 52.19 billion USD - much lower than the target that Vietnam is aiming for. Some of the key products are fruits, rice, rubber, chicken and cassava.

Currently, Vietnam and Thailand are the two leading rice exporting countries in the world, however, there have been times when the price of Vietnamese rice has surpassed that of Thailand and India to become the most expensive in the world.

Thai media also expressed concerns among Thai businesses, using Vietnam's ST25 rice variety - the winner of the World's Best Rice Award in 2023 - as a symbol of growing competitive advantage.

In 2024, Vietnam's rice exports will reach a record 9.2 million tons with a turnover of 5.7 billion USD, up 12.9% in volume and 23% in value compared to 2023.

Vietnam’s output is already very close to Thailand’s, as the country exported 9.9 million tons of rice, worth $6.8 billion in 2024. If Vietnam’s growth momentum continues well, Vietnam could completely surpass Thailand’s output. This was clearly seen in the first quarter of this year.

According to the Vietnam Customs Department, in the first quarter, the country's rice exports reached nearly 2.31 million tons, bringing in 1.21 billion USD, up 5.82% in volume. Meanwhile, Thailand's rice exports in the first quarter of this year decreased by 30% compared to the same period last year, reaching only 2.1 million tons.

“Thailand is currently the world’s second-largest rice exporter, but this position could be lost if the global market becomes more volatile and if the US imposes tariffs exceeding 10% on Thailand,” said Pichai Chunhavajira, Thailand’s finance minister.

... to fruit

Not stopping at rice, fruit is also a field that Vietnam is putting great pressure on.   Durian   - Thailand's key product in the Chinese market - is witnessing the strong rise of Vietnam.

While the volume of Thai durian exported to China in 2024 decreased by 13% in volume and 9% in value (to nearly 3.8 billion USD), Vietnam's grew impressively by 38%, reaching an export value of 3 billion USD. Vietnam's market share in China also increased from 33% to 41.5%, forcing Thailand to recalculate its strategy to maintain its advantage.

Not only durian, many other Vietnamese fruit products are also gradually occupying important positions in key global markets such as the US, China,...

Ms. Rungphech Chitanuwat - ASEAN Portfolio Manager at Informa Markets - commented that Vietnam has actually surpassed Thailand in rice and fruit exports.

She attributes this to Vietnam’s decisive government, which has invested heavily in scientific research and infrastructure upgrades. Conversely, she says Thailand’s stagnant bureaucracy, shifting policies and aging population pose long-term challenges.

“If this situation continues, Vietnam could surpass Thailand in many areas within 3-5 years,” she warned.

Source: https://baoquangninh.vn/quoc-gia-hang-dau-khu-vuc-e-ngai-su-troi-day-cua-nong-san-viet-nam-3357637.html