Vietnam agricultural firms would lose competitiveness in long-run without proper linkage
The application of technologies and creation of value chain in production are key for sustainable agricultural development, said an expert.
Vietnamese agricultural firms would lose competitiveness in the long-run without proper linkages for greater added value in production, according to Park Hyang Jin, CEO of South Korean company Dreamfarm.
Overview of the conference. Source: Ngoc Thuy.
|
In addition to form a strong linkage in production, Park suggested Vietnamese enterprises to apply technologies throughout their operation, from production to processing, packaging and distribution, ensuring the whole process is under control.
Hoang Quang Phong, vice chairman of VCCI, said Vietnam is among the world’s major agricultural exporters, however, the sector’s competitiveness remains limited, due to most products having low added value. “The reason is that major phases in value chain production such as processing or packaging have not been focused on,” said Phong.
Moreover, financial incentive policies for investors joining the agricultural value chain remains flawed, Phong added.
Pham Thi Thanh Tung, head of the Credit Department for Agriculture Sector under the State Bank of Vietnam (SBV), said the application of technologies and creation of value chain in production are key for sustainable agricultural development.
However, such production chain models still have shortcomings, due to the inefficient and weak linkage among farmers, producers and distributors.
“This causes difficulties for credit institutions in monitoring the cash flow after lending to production chain,” said Tung.
Moreover, the sector is exposed to potential risks from natural disaster and epidemic, while most agricultural companies lack transparency and collateral to apply for loans from the banks, added Tung.
To widen access to credit for agricultural companies, Tung said more efficiency in credibility assessment is necessary, especially for those without collateral.
Nguyen Quang Toan, director of Agro Processing and Market Development Authority (Agrotrade), informed as of September, Vietnam has a total of 1,478 production chain models, up 660 year-on-year; 1,462 products and 3,267 location selling safe products under production chain models in 63 out of 63 provinces and cities; over 7,000 large-scale processing facilities of agriculture, fishery and forestry; 25,000 farming households forming linkages with agricultural producers qualified with Vietnamese Good Agricultural Practices (VietGAP).
As of present, Vietnamese agricultural products have been available in 185 countries and territories, ranking 2nd in Southeast Asia and 15th in the world in terms of farm exports. Vietnam is currently members of 16 free trade agreements, presenting opportunities for agricultural production, said Toan.
In the first nine months of 2019, farm exports reached US$30.2 billion, up 2.7% year-on-year.
“Greater integration into global value chain would help Vietnam’s agricultural sector fulfill its potential,” said Toan.
World Bank specialist Pham Hoang Van Anh said global demand for food is projected to increase from 70% – 100% from now on until 2050, due to an increase in population and changes in people’s eating behaviors.
For Vietnamese products to grasp this opportunity and Vietnamese agricultural sector further integrate in the global value chain, Van Anh suggested to focus on investing in modern agricultural infrastructure for greater competitiveness.
“Quality infrastructure is key factor for a developed agricultural and food sector,” Van Anh stated.
11:19, 2024/05/19
Denmark intensifies agriculture cooperation with Vietnam
Vietnam is an important market for Danish exports and an attractive destination for Danish agricultural businesses.
21:40, 2024/05/17
Amended capital law to boost agricultural export opportunities
Despite its small size, Hanoi's agricultural sector had export earnings of over US$1.35 billion last year.
10:22, 2024/05/15
Explore 400 handicraft models at Hanoi's specialized exhibition
This is the first event in a series of specialized exhibitions showcasing handicraft products, OCOP, and exemplary industrial commodities in rural areas in 2024.
22:47, 2024/05/12
Mekong Delta faces freshwater shortage
The salinization and scarcity of fresh water is expected to cause severe damage to the local farmers in the Mekong Delta region.
13:53, 2024/05/11
Vietnam export-oriented trade fair attracts 80 businesses nationwide
The trade fair runs from May 9-12.
17:56, 2024/05/10
Hanoi's agricultural sector embraces technology for safe food supply chains
The agricultural sector will continue to work with relevant agencies and telecommunications companies on a regular basis to organize training and provide guidance, knowledge and skills to agricultural enterprises.
- Vietnamese fruit and vegetable exports see sharp upturn
- Hanoi and Thai Nguyen strengthen cooperation in trade, investment and tourism
- Hanoi hosts the “Green Products for Consumers” fair
- Hanoi aims to lead the country in exporting OCOP products
- Hanoi partners with Lai Chau to market OCOP products
- Hanoi to develops craft villages for sustainable growth