Vietnam's farm exports set to hit record in 2021

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Ngoc Mai 17:38, 2021/12/13

Such positive results come from the sector’s restructuring process that aims to meet the demands from export markets.

Vietnam’s exports of agro-forestry-fishery in 2021 are set to reach a new record at over US$44 billion, exceeding the Government’s target by over $2 billion.

Processing lychees for export at Hong Giang Production and Trade Cooperative in Bac Giang Province. Photo: Tuan Anh

Just over two weeks before 2021 comes to an end, Trung An Hi-tech Farming Company is preparing for the export of 15,000 tons of rice to South Korea.

“We have completed exporting 22,000 tons of rice to South Korea in the last two months, and now the company is racing against time to meet the deadline to export an addition of 15,000 tons,” General Director of Trung An Pham Thai Binh told The Hanoi Times.

Since early 2021, Trung An Company has so far exported 177,000 tons of rice to countries around the world earning a revenue of $30 million. By year-end, the figure could rise to 190,000 tons.

In the South Korean market alone, the company has won the bidding for rice supply of nearly 49,000 tons during the 11-month period, accounting for 93% of the total volume of rice that South Korean companies bought from Vietnam.

In a similar situation, Vinanutrifood is stepping up production to meet its delivery schedule for the European market.

“Vietnamese overseas in Europe have a high demand for national products, especially farm produce during the year-end period,” General Director of Vinanutrifood Nguyen Thi Diem Hang told The Hanoi Times.

According to Hang, Vinanutrifood mainly exports dried mushrooms, noodles, mooncakes, peanut candy, or banh Pia (durian cake).

“Every month, the company exports 17-18 containers to the EU. The market is huge but has strict requirements on product quality, so we are working hard with our partners to reach its standards,” Hang added.

A report from the Vietnam Association of Seafood Exports and Producers (VASEP) noted the US, EU, and China are the key markets for Vietnamese seafood.

During the 10-month period, Vietnam’s shrimp exports to the US, its biggest market, rose by 22% year-on-year to $900 million, and VASEP expects the trend to continue until the first quarter of 2022.

In 2021, Hanoi’s exports are estimated at US$16 billion, an increase of 0.9% year-on-year, of which the domestic sector contributed $9.8 billion, down 6.7%, and the foreign sector of $6.2 billion, up 12.1%.

In return, the city’s import turnover could rise by 20.7% to $35 billion, of which domestic companies made up $27.7 billion, and their foreign peers of $7.3 billion.

Rising exports in the year-end period

Data from the General Statistics Office (GSO) noted as of November, Vietnam’s exports of agro-forestry-fishery rose by 14% year-on-year to $43.5 billion.

The country’s exports during the period rose by 17.5% year-on-year to $300 billion, in which agricultural products made up $25.2 billion, or an increase of 11.4%.

“Not only higher export volume but there have been higher product value as well,” Hai said, referring to the export value of cassava rising by 65%, rubber (11.7%), pepper (44%).

According to Vice Minister of Agricultural and Rural Development Phung Duc Tien, such positive results were thanks to the ongoing restructuring process of the agricultural sector to better meet demands from export markets.

Tien also pointed to the quick adaptability of local businesses in diversifying market alternatives for positive export performance.

“In a time of facing difficulties to access the Chinese market, Vietnamese businesses have been able to take advantage from free trade agreements to turn to others, such as US, EU, Australia, Japan or South Korea,” Tien added.

At present, the US has become the biggest market for Vietnam’s farm produce with a turnover of $12 billion, followed by China ($8.4 billion), Japan ($3 billion), and South Korea ($1.9 billion).

In the latest move, Vietnam and the US have reached an agreement on the control of illegal timber trading or extraction, which offers a huge opportunity for Vietnam’s timber exports to this market in 2022, accounting for 67% of total Vietnam’s exports to the US.