Vietnamese agricultural products and food are projected to have a more extensive role in the global supply chain

Vietnam has strengths and opportunities in agricultural production and export, however, local companies must make greater efforts to actively participate in the global food supply chain, according to experts.

Vietnamese agricultural products

The Deputy Minister of Industry and Trade, Phan Thi Thang, reported that Vietnam generated more than 53 billion USD from exports of agro-forestry-aquatic products last year. Various agricultural goods such as rice, vegetables, fruits, coffee, and cashew nuts experienced growth in both quantity and value. Despite this, she highlighted that Vietnamese exports, primarily raw materials, face challenges in terms of competitiveness, quality, and meeting importers’ traceability standards. Additionally, the increasing protectionism and the shift towards sustainable development in Vietnam’s major export markets have compelled businesses to swiftly adapt and comply with these trends.

Le Thanh Hoa, the deputy head of the Department of Quality, Processing, and Market Development at the Ministry of Agriculture and Rural Development, mentioned that free trade agreements (FTAs) have enhanced the competitiveness of Vietnamese agro-forestry-aquatic products through tax commitments.

Vietnam is currently the largest exporter of cashew nuts and pepper globally, the second-largest in coffee, and the third-largest in rice. Vietnamese aquatic products have also met the quality standards of demanding markets like the US, the EU, Japan, and the Republic of Korea (RoK), enabling them to become part of their supply chains.

Vietnam is the world’s second-largest coffee exporter

Tran Ngoc Quan, the Vietnamese Trade Counsellor in Belgium and the European Union (EU), highlighted that Vietnam accounts for only 4% of the over 160 billion USD worth of agricultural products imported by the EU. He recommended that local companies stay informed about market trends to align their production, transportation, and consumption practices with the EU’s requirements, thereby increasing agricultural and food exports to the region.

Vo Trung Hieu, the International Business Director of Vinamilk, a dairy company, mentioned that Vinamilk products are exported to more than 60 countries worldwide. He emphasized the company’s commitment to a sustainable development strategy and the search for suitable partners.

Hieu recommended that businesses familiarize themselves with consumer preferences and establish a strong network of partners to grow their market presence.