Saturday, 16 Dec 2017

Improve competitiveness for agricultural export products

Updated at Saturday, 07 Oct 2017, 18:38
The Hanoitimes - For Vietnamese agricultural products to participate in the global value chain, there must be improvements in all phases of production, from seed planting to harvesting.
After 30 years of reform, Vietnamese agriculture has significantly improved, creating large amount of output and joint the international agricultural market. Many agricultural products have high competitiveness and take leading position in the world market. These achievemens have contributed to the success in porverty reduction and are the foundation for socio-economic development. 

However, despite achievements in agricultural export products, but Vietnamese main products such as rice, coffee, cashew, pepper have not had their own brands in the world market. This shows the low added value of Vietnamese’s agricultural products, which are difficult to compete with other countries in the market. 

According to economic experts, reason for the above mentioned issues are the low technology application and added value in Vietnamese agricultural export products. The majority of Vietnamese agricultural export products are in raw form with low value. Vietnamese agricultural products have low value, while the processing technology is obolete, appearance is not attractive, high production cost leading to low competitiveness.

Moreover, administrative agencies and enterprises’ capability of finding new markets  are weak, price forecast is inaccurate, lack of information with regard to export market as well as the consumption trend at some specific markets.

With the aim of increasing value and competitiveness for Vietnamese agricultural products, the Ministry of Agricultural & Rural Development has issed Decision No. 1003 on increasing added value for agricultural products and reducing loss after harvesting, with vision of increasing the added value for agricultural products and fisheries in average of 20% and reducing loss after harvesting of 50%. Besides, solutions for organizing produciton in the direction of increasing linkage between raw materials, processing, consumption, increasing added value, food safety, quality and reducing product price.

Representative of the Ministry of Agriculture & Rural Development said, in order to increase added value for agricultural products, it is necessary to diversify products, decrease the product price and improve added value in phases of the value chain.

In the context of market competition, it is vital to have products with high quality. However, in the current situation of fierce competition, enterprises must understand the customer preferences, as well as designing attractive packaging, meet the requirements for storage and maintaining the quality. Vietnam is in deep integration in the world market, with each market, or each customer group due to the distinct culture and specific demand. In addition to ensure the product quality, enterprises have to strive for finalizing the quality through designing products, as well as packaging to meet the demand of the market. 

It is important for Vietnamese enterprises to produce high quality products consistently, especially in the processing phase, providing products with regard to the market’s demand and building selling capability to increase value. 

At the same time, in order to increase the export value, it is neccessary to refine the product and choose new contribution channel, suitable product with the diversified demand of the market compared to the current exporting mainly raw products. Finally, enterprises have to enhance the quality of human resources in the agriculture sector, especially in training, and equipping knowledge for farmers to understand the market, creating high quality product efficiently and building the brand in the market. 
Nguyen Tung
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