Exporting Agricultural Products: How to Overcome Trade Barriers

Joy is spreading throughout the villages in Muong Ang, Dien Bien as the price of fresh coffee suddenly skyrocketed from 8-10 thousand VND/kg to 16-17 thousand VND/kg. For many farming households, this is considered a "bumper harvest season". Mr. Nguyen Van Hai, a farmer in Ang Nua commune, Muong Ang district shared: "My family is very excited because this year's coffee price is much higher than previous years. The money earned will help us cover our living expenses and invest in our coffee garden."

The harvest seasons…

Mr. Hoang Van Tien - a farmer in Muong Ang town, has been attached to his coffee garden for more than half of his life. The coffee trees have now become his companions, witnessing many rainy and sunny seasons. Thanks to the experience accumulated over many years and the application of advanced farming techniques, his 10-hectare coffee garden always produces high yields, averaging about 140 tons of fresh fruit per year. With the current high coffee prices, Mr. Tien expects his income from his coffee garden to be about more than 1 billion VND. Talking about his success, Mr. Tien shared: "In the past, when coffee prices were unstable, many farmers were discouraged. But with perseverance and love for coffee trees, I overcame the difficulties. Now, when the fruits of my labor are rewarded, I feel extremely happy."

The sharp increase in coffee prices not only brings economic benefits to the people but also contributes significantly to the development of the agricultural sector in Muong Ang district. This is a positive signal, affirming the great potential of coffee trees and is a driving force for the locality to continue investing in and developing this crop.

Unable to hide his pride when sharing about the remarkable achievements of the agricultural sector in the past 10 months, Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development said: "Rice output reached a record of 40.5 million tons, far exceeding the same period last year. This shows the continuous efforts of farmers and businesses in applying science and technology to production". According to the Ministry of Agriculture and Rural Development, the total export turnover of agriculture, forestry and fishery products in the first 10 months of 2024 reached 51.74 billion USD, an increase of 20.2% over the same period in 2023. Many product groups have high export value such as seafood up 12%, forestry products up nearly 20%, agricultural products up nearly 26%. Thus, the target of exporting agriculture, forestry and fishery products of 54 - 55 billion USD this year is completely possible. "With 2 months left in 2024, if we export 5.5 billion USD each month, agricultural, forestry and fishery exports in 2024 will reach 62 billion USD. This will be the year with the highest agricultural, forestry and fishery exports ever," Mr. Phung Duc Tien shared.

Vietnam's agriculture is on the threshold of transformation.

…“stuck” with barriers

In addition to coffee, we export many other agricultural products such as vegetables, durian, dragon fruit, cashew nuts, etc. In particular, the Vietnamese rice industry is making a strong mark on the world agricultural map, not only ensuring national food security but also becoming one of the leading rice exporting powers. However, to improve its position and maintain sustainable development, this industry still has challenges to solve such as small-scale production, outdated technology, low farmer income and limited diversification of export markets. Experts say that the lack of a synchronous development strategy, inadequate investment and poor coordination among stakeholders are major barriers.

Or for wood products, data from the Ministry of Agriculture and Rural Development shows that wood and forestry products, in the first 10 months of 2024, exported 14.05 billion USD, up 19.9%; export surplus 11.75 billion USD, up 18.8% over the same period in 2023. Faced with complex fluctuations in the global market, Vietnamese wood processing enterprises are facing many challenges. The high price of imported raw wood due to the impact of epidemics, natural disasters and political conflicts has forced many businesses to seek domestic wood supplies. Mr. Nguyen Tuan Hung - Department of Forestry Processing and Trade - Department of Forestry (Ministry of Agriculture and Rural Development) said that Vietnam currently exploits more than 20 million m³ of wood from planted forests each year, meeting about 75% of the raw wood demand of the wood processing industry. However, the quality and specifications of domestically grown wood are currently limited, mainly small wood, only suitable for the production of wood chips and pellets. This poses a difficult problem for businesses that want to increase product value and compete in the international market.

According to Mr. Nguyen Tuan Hung, Vietnam is facing a difficult problem: major wood export markets such as the US, EU, Japan, South Korea and China are increasingly tightening requirements on legal wood and sustainable forest certification. This is both a challenge and an opportunity for the Vietnamese wood industry to increase value and expand its market. However, the cost of achieving sustainable forest certification is quite high, especially for millions of farming households owning small forest areas. How to help them access the necessary capital and technology is a big question.

Faced with the growing challenges of climate change and increasing food demand, Vietnamese agriculture is on the threshold of transformation. Mr. Dang Kim Son - Permanent Vice President of the Association of High-Tech Agricultural Enterprises affirmed that high-tech agriculture and innovation are the "doors" for our country's agricultural sector to escape fragmentation and backwardness and reach new heights. To realize this goal, attracting high-quality foreign investment in the agricultural sector is essential. This not only helps improve processing capacity, but also creates a healthy playground for domestic enterprises to develop together and deeply integrate into the international market.

Source: https://thoibaonganhang.vn/xuat-khau-san-pham-nong-nghiep-lam-sao-de-vuot-qua-rao-can-thuong-mai-157662.html