Investors and businesses shared the same view that Vietnam’s agricultural sector ensures only national food security, but also is the way to prosperity, according to Prime Minister Nguyen Xuan Phuc.

Prime Minister Nguyen Xuan Phuc at the meeting. Source: VGP.

“This solidifies our belief and present opportunities to develop specialties and agricultural products in each locality,” Phuc said at an online conference discussing measures to promote agricultural mechanization and food processing on February 21.

Phuc stressed the significance of the meeting as 65% of the population is living in rural areas.

However, Phuc noted despite the huge potential of the agricultural sector, there remains inefficiency in food processing, harvesting and storing, leading to losses and waste in production.

Meanwhile, the rate of mechanization in the sector is lower than Thailand, which is one of the reasons for low productivity, Phuc added.

Overview of the meeting. Source: VGP.

Phuc said food processing is one of the key solutions to higher added value in agricultural production, and more importantly, is to reduce risks for farmers and agricultural firms. For example, the technology application would help keep dragon fruits fresh for 20 days, and bananas for 40 days.

In addition to export markets, Phuc added the domestic one should be a priority for the sector so that local customers have access to quality and safe agricultural products.

Phuc also expressed concern that logistics costs remain high in the agricultural sector and is having negative impacts on the competitiveness of Vietnamese goods. He cited a case where logistics costs account for 50% of the price of a mango from Dong Thap province.

Phuc emphasized the target of Vietnam joining the 10 most advanced countries in agriculture by 2030, and becoming a global hub for food processing and agricultural logistics.

To realize such goal, Phuc requested the Ministry of Agriculture and Rural Development to finalize the strategy for agricultural mechanization and food processing until 2030, as well as a roadmap for Vietnam to be among the leading 5 countries in processed vegetables, seafood, and wooden products.