The competitiveness of Vietnamese agricultural products is decreasing in the global market, leading to a sharp fall in exports, reports Vietnam News.
Agriculture contributed just 0.28 per cent to the gross domestic product (GDP) growth in the first quarter of this year, the lowest since 2011, it was reported at a workshop held by the Institute of Policy and Strategy for Agriculture and Rural Development under the Ministry of Agriculture and Rural Development last Saturday (6 June).
Institute director Nguyen Do Anh Tuan said the fall in shipments was not being rectified, and noted that the falling demand had been compounded by the emergence of strong rivals that left local products struggling to compete.
As well as rice, coffee and seafood, local fruits, like lychees, plums, dragon fruit and watermelons, are also facing challenges, as China is rapidly expanding fruit cultivation, enabling it to export its fruits to Vietnam, instead of the other way around.
Other workshop participants expressed concern about the quality of Vietnamese produce and 'misguided' strategies that inhibit the nation's ability to meet global demand, such as producing the wrong varieties.
They also pointed out a lack of market information, especially relating to China, which further dulls Vietnamese edge in this critical market.
It would be hard for Vietnam to supply higher quality goods at lower prices unless it makes scientific and technological breakthroughs in agriculture, Tuan said.
Director of the Centre for Agricultural Policy, Dang Kim Khoi,called for developing a support industry and processing technology.
Other experts suggested the country provide aid to exporters to counter exchange rate impacts. The aid can be in the form of reduced value added tax and enterprise income tax, widening credit limits and making interest rate adjustments.
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