Export of agricultural products in 2024: Expectation of breakthrough

In January 2024 alone, Vietnam's total export turnover of agricultural products reached $5.14 billion, up 79.2% compared to the same period last year. Most groups and sectors have experienced growth, signaling breakthrough expectations for this year.

Growth across most markets

In January 2024, Vietnam saw a series of agricultural export orders to major markets. For example, green-skinned mangoes from Chợ Mới district, An Giang province, were exported to the US and Australia markets.

According to Nguyen Dinh Muoi, Deputy General Director of Vina T&T Import-Export Company, this year could be a breakthrough year for the fruit industry, as a series of products have received positive signals from major markets such as Japan, the US, Australia, China, the EU, etc. Importantly, the potential of most of these markets is significant, opening up opportunities for Vietnamese fruits.

Similarly, the rice sector is also expecting a successful year, with promising signals from various markets. Many rice export companies have already received orders at the beginning of 2024.

Pham Thai Binh, Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company, stated that the price of Vietnam's 5% broken rice is currently not less than $700 per ton. In 2024, Vietnam's minimum rice export volume could be equal to that of 2023, but the value is expected to be 15 to 20% higher. Therefore, while Vietnam earned $4.8 billion in 2023, the estimated rice export turnover for 2024 is expected to exceed $5 billion.

Thus, Vietnam's rice export prospects are quite bright this year. Although rice prices still depend largely on whether India considers lifting its rice export ban, the price of this commodity in 2024 could remain high.

According to the Food and Agriculture Organization (FAO), the world is facing a shortage of about 5 million tons of rice. Le Thanh Hoa, Deputy Director of the Department of Quality, Processing, and Market Development (Ministry of Agriculture and Rural Development), informed that the global rice stockpile has decreased to just over 160 million tons. This presents a significant opportunity for the Vietnamese rice and rice product industry, which businesses should capitalize on.

The remarkable performance in the first month of 2024 must also include the seafood sector. 2023 was a difficult year for this sector, but seafood exports have seen growth in many markets since January 2024, signaling a return to strength.

Assessing agricultural exports in the first month of the year, Deputy Minister of Agriculture and Rural Development Phung Duc Tien stated that in January 2024, Vietnam's total export turnover of agricultural, forestry, and aquatic products reached $5.14 billion, up 79.2% compared to the same period last year, with the value of agricultural exports also increasing. Specifically, agricultural products reached $2.71 billion, up 93.8%; forestry products reached $1.49 billion, up 72.5%; aquatic products reached $730 million, up 60.8%; livestock products reached $36 million, up 3.5%... China continues to be Vietnam's largest agricultural product import market, accounting for 23% (up 106.9%). Next are the US market, accounting for 20.8% (up 95.9%), and Japan, accounting for 7.4% (up 47.5%).

Specific strategies for each sector

According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, the agricultural sector has set a target to reach around $54-55 billion in agricultural exports in 2024. Vegetables, fruits, rice, seafood, and forestry products are the main product groups, expected to make a significant contribution to the overall growth.

Experts believe that the agricultural sector will successfully meet, even exceed, its set targets because many product groups promise significant breakthroughs. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, stated that in 2024, Vietnam's fruit and vegetable sector is expected to grow by about 15-20%, continuing to reach new heights, possibly surpassing $6 billion, even approaching $7 billion. Currently, the Vietnam Fruit and Vegetable Association is coordinating with the Ministry of Agriculture and Rural Development and businesses to implement various activities to promote the development of the fruit and vegetable industry.

"The potential for Vietnamese fruits and vegetables is enormous; however, Vietnam's export turnover of fruits and vegetables accounts for only about 2-3% of the world's total fruit and vegetable export turnover. There is still much room for this sector. The key is how to effectively exploit these potentials," said Dang Phuc Nguyen.

Similarly, the seafood sector is expected to reach $10 billion in export turnover this year, as many markets are showing signs of recovery. In addition, rice, forestry products, and wooden products are also expected to have a year of recovery and excellence, pushing the export value of the entire sector to new heights.

Despite significant opportunities, there are challenges as well. Deputy Minister of Agriculture and Rural Development Phung Duc Tien believes that the sector has not fully exploited its strengths in deep processing, brand building, and meeting quality requirements, which are still obstacles for Vietnamese agricultural products. Although Vietnamese agricultural products have shown improvements in quality over time, and many enterprises comply with import regulations, this remains a major challenge for establishing a firm and sustainable foothold in import markets.

"To boost agricultural exports and establish a firm and sustainable foothold in import markets, the Ministry of Agriculture and Rural Development will work with enterprises to monitor and manage the production process effectively, issue area codes, review criteria, and meet standards from many major markets. The Ministry will also analyze the market to develop specific strategies for each period and each product group to make breakthroughs in agricultural exports. Additionally, the agricultural sector will closely monitor major import markets such as China, the US, Japan, the EU, to boost exports and explore new potential markets such as Muslim countries, the Middle East, Africa," emphasized Deputy Minister Phung Duc Tien.

(Author: Do Minh/hanoimoi.vn)

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