Agricultural sector reaches peak levels in 2018

The Ministry of Agriculture and Rural Development has reported that local agro-forestry-aquatic products, shipped to over 180 countries and territories throughout the world, raked in US$40.5 billion in 2018, making Vietnam the world’s 15th largest farm produce exporter.

Fruit and vegetable exports in the first 11 months of 2018 reaped US$3.5 billion.

2018 can be considered a successful year in agricultural development as the sector reached record highs.

Agricultural production recorded a growth rate of 2.89 percent, at the peak level since 2012. Meanwhile, aquatic and forestry production witnessed respective growth rates of 6.46 percent and 6.01 percent.

The structure of agricultural production in 2018 shifted the focus to quality and high value exports over quantity.

Vietnam has a number of products which it has advantages in and enjoyed an increase in growth over the last year. These include aquatic items, fruit and vegetables, and wooden products, while those suffering from oversupply in the previous years were reduced. Of note, more attention was paid to increasing the production of high quality products.

Economic expert Vu Dinh Anh attributed the positive results to the joint efforts made to put farm produce exports on the right track. He added that Vietnam has numerous advantages in agricultural production and export but it needs to expand high quality farm produce for the sake of imroving the export value.

The proportion of Vietnamese farm produce exports also rose in 2018. China topped the list when making up the largest proportion with 22.9 percent, a year on year rise of 3.6 percent. This was followed by Japan (19.1 percent), the US (17.9 percent), and ASEAN countries (10.64 percent).

Additionally, the value of all key farm produce exports increased last year. Notably, rice exports during the first 11 months of 2018 amounted to 5.7 million tons, bringing in US$2.9 billion, up 5.6 percent in volume year on year and 17.7 percent in value.

Meanwhile, fruit and vegetable exports during the 11-month period reaped US$3.5 billion with tra fish shipments recording peak levels with US$2 billion, a 27.4 percent rise from year.

Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, said there is still a huge capacity for Vietnam’s agricultural production and the export of farm produce to grow.

Tien puts high hopes on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that is expected to leverage Vietnamese farm produce and allow for deeper penetration into the world market. “Fishery production is predicted to gain many benefits from the CPTPP as medium-term capital will be poured into developing fishing logistics centers and breeding stations.”

In 2019, Vietnam has set the target of bringing its agricultural growth to 3 percent and agricultural exports up to US$43 billion. The MARD has plans to speed up negotiations on additional export deals while redoubling efforts to preserve the market share from regular importers.

The ministry also mapped out a scheme aimed at utilizing opportunities emerging from free trade agreements that Vietnam has signed, particularly the CPTPP and pending EU-Vietnam Free Trade Agreement (EVFTA).