After the positive outcomes of 2023, Vietnam's agricultural exports continued to achieve significant success in January 2024, contributing to a four-fold increase in trade surplus compared to the same period last year. In January 2024, the total export turnover of agricultural products from Vietnam reached an estimated $5.14 billion, marking a 79.2% increase compared to the same period the previous year. This signals positive signs from the agricultural export market right from the beginning of the year.
Vietnam's Agricultural exports with opportunities from major markets
AGRICULTURAL PRODUCTS
The value of agricultural exports to various markets has also increased. Specifically, exports to the Americas reached $1.18 billion (up 93.6%); Africa $104 million (up 185.4%); Asia $2.52 billion (up 86.3%); Europe $532 million (up 38.2%); and Oceania $78 million (up 100.9%).
China remains the largest market for Vietnamese agricultural products, accounting for 23% of the total, an increase of 106.9%. The other two major markets for Vietnamese agricultural products are the United States, accounting for 20.8% (up 95.9%), and Japan, accounting for 7.4% (up 47.5%). Also in January 2024, Vietnam imported $3.72 billion worth of agricultural products. As a result, the trade surplus of agricultural products in the past month reached $1.43 billion, more than 4.6 times higher than the same period in 2023.
FRUITS
According to Nguyen Dinh Muoi, Deputy General Director of Vina T&T Import-Export Company Limited, this year could be a breakthrough year for the fruit industry, as a series of fruits have received positive signals from major markets such as Japan, the United States, Australia, China, the EU, etc. It is worth noting that most of these markets have significant potential, opening up opportunities for Vietnamese fruits.
RICE
Similarly, the rice sector is also anticipating a successful year, with promising signals from various markets. Right from the beginning of 2024, many rice exporting enterprises have received orders. Therefore, the prospects for rice exports from Vietnam are quite bright this year. Although the price of rice still depends largely on whether India considers lifting its ban on rice exports, the price of this commodity in 2024 may still remain high. According to the Food and Agriculture Organization (FAO), the world is facing a shortage of about 5 million tons of rice. Currently, global rice stocks are decreasing, with only over 160 million tons remaining. This is a significant opportunity for the Vietnamese rice sector that businesses need to capitalize on for breakthroughs.
Exporting agricultural products requires 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. Among these, vegetables, fruits, rice, aquatic products, and forestry products are the key commodity groups expected to contribute significantly to the overall growth of the sector. Recognizing that China will continue to be Vietnam's largest agricultural import market in 2024, Deputy Minister Phung Duc Tien stated that the agricultural sector desires and will continue to effectively exploit this market. This includes promoting the "smart border gate" mechanism in the circulation of goods.
While there are significant advantages, there are also challenges. Deputy Minister Phung Duc Tien pointed out that Vietnam has not fully exploited its strengths in deep processing, brand building, and meeting quality requirements, which are still barriers for Vietnamese agricultural products. Although Vietnamese agricultural products have improved in quality over time and many enterprises comply with import regulations, this remains a major challenge for sustainable and resilient presence in import markets.
Investing in deep processing to enhance competitiveness
In addressing solutions for deep processing, Mr. Le Thanh Hoa advises processing enterprises to continuously keep up with consumer trends and preferences, as well as market demands, to develop new products that timely meet these needs. Consumers are increasingly time-conscious, so convenient and easily processed products will continue to garner attention.
Opening up new markets
According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, right from the beginning of 2024, the entire industry has actively implemented solutions to promote production and business, especially trade promotion and consumption of agricultural products. Vietnamese agricultural products are increasingly expanding their market and international market share.
Recognizing that China will continue to be Vietnam's largest agricultural import market in 2024, Deputy Minister Phung Duc Tien stated that the agricultural sector desires and will continue to effectively exploit this market. This includes promoting the "smart border gate" mechanism in the circulation of goods.
In addition to maintaining traditional markets such as the United States, Japan, and the European Union (EU), the Ministry of Agriculture and Rural Development strives to open up new markets with great potential, especially in Halal Muslim countries, the Middle East, and Africa.
The Ministry of Agriculture and Rural Development will also leverage new-generation free trade agreements (FTAs), especially the CPTPP and EVFTA, to boost exports of key agricultural products. It will accompany and support enterprises in securing new export orders. Additionally, it will collaborate and support the protection of trademarks and geographical indications for potential export products.