1. Improvement competitiveness of Vietnam’s Agriculture
PhD. Đặng Kim Sơn

2. Overview of agriculture and export in Vietnam
From 1998, agricultural production grows continuously and rapidly, 4% per year.
Changing from self-sufficiency to production diversification and export orientation.
Some products become competitive and important in the world market.
GDP Growth and Agriculture

3. Export-oriented agriculture
38%
35%
31%

4. Export volume of some agricultural products (thousand tons)
1995
1998
2000
2004
Rice
1988
3748
3476
4070
Coffee
248
382
733.94
936
Rubber
138
191
273.4
485
Tea
18.8
33.21
55.66 96
Cashew
98.9
25.2
34.2
107
Pepper 18
15.1 37
109

5. Export volume of some agricultural products (million USD)
1995
1998
2000
2004
Rice
530
1024
672
947
Coffee
598
594
501
616
Rubber
188
127.47
166
565
Tea
25.3
50.5
69.61 92
Cashew
88.8
117
167.32
425
Pepper
38.9
64.45
145.93
148

6. Share of agricultural import markets from Vietnam

7. Some comparative statistics between Vietnam and other ASEAN countries

8. Vietnam and ASEAN: Agricultural export volume and Agricultural export volume per head of some ASEAN countries in 2002

9. Competitiveness of some agricultural products of Vietnam: Rice
Rice production cost of Vietnam is lowest in Southeast Asia (labor cost is equal to 1/3 of Thailand’s)
Vietnam ranks the second rice exporter in the world (accounting for 13 – 14% of total rice export of the world)
However, it is a strong competitive market

10. Competitiveness of rice product
Advantages
Low production cost in Mekong River Delta
High productivity
Favorable natural conditions
Many experiences of rice production
Abundant labor
Preferential policies of the Government
Disadvantages
Fragmented and small –scale farming
High post-harvest loss
Ineffective marketing
Low-level facilities and other infrastructures (unloading means)
No brand names of export rice
Opportunities
New technologies
Expanded market as a result of the economic integration
Government’s preferential policies of investment aimed at improving technologies, varieties and research
Government’s priority policies of development post-harvest and processed technologies, and trade in services
Developed enterprises
Challenges
Farmers’ profits is lower
Competition from big exporters such as Thailand and India
Competition from potential exporters like Cambodia and Myanmar
Competition from products which may bring about higher profit
Increase of input price
Productivity is increasing up the ceiling

11. Competitiveness of some agricultural products of Vietnam: Breeding
Breeding sector is growing stably, growth rate is 5.27%/year, which is higher than plantation.
Breeding productivity of Vietnam is very low compared with the world. Small-scale breeding, bad cross-bred varieties, weak breeding technologies.
Average end-weight of pigs is more than 70kg (6-8 months) in compared with kg (5-6 months) in the world.

12. Competitiveness of breeding products
Advantages
Abundant rural labor
Breeding experiences
Government’s preferential policies
Disadvantages
Low export market share
High production cost
Small-scale production
Low profits for producers
Low productivity
Weak animal sanitary, loss by diseases
Shortage of advanced processed machines
Ineffective marketing
No SPS Agreements with many countries
Opportunities
Increased income brings about increase in demand
A habit of consuming fresh meat and local varieties
Development of planting foodstuff
Geographical closeness with large countries
Increase in domestic consumption
Government’s support
Foodstuff price is lower by integration
Challenges
Intensive competition from both inside and outside of the country: milk, poultry and bovine products
Complicated diseases

13. Competitiveness of some agricultural products of Vietnam: Tea
Vietnam’s tea accounts for 4.6% of the world production, low productivity.
Export volume is small, accounting for 2,6% export volume in the world.
Vietnam has not got tea brand names

14. Competitiveness of tea product
Advantages
Favorable climate conditions
Many experiences
Product diversification
Development of private enterprises in export
Vietnamese people’s habit of tea drinking
Foreign companies and join-ventures development
Disadvantages
Weak irrigation, old varieties, low productivities
Low prices of primary exported tea
No tea brand names
Dependence on some large markets
Manually procession
Unstable quality of exported tea
Opportunities
Expanded domestic and global market
Product diversification
Rapid reform of enterprises
Challenges
Using much fertilizer and pesticide
Unstable markets for export
High-level competition
Diversification of the drinking market

15. Competitiveness of some agricultural products of Vietnam: Pepper
Pepper production is almost for export purpose, high competitiveness (one of six products which has export value more than 100 millions USD/year).
Favorable natural advantage and multi-crops practice, productivity is higher than this of other export countries.

17. Enhancement competitiveness of Vietnam’s agricultural products
To improve investment in research, application science and technology
To speed up technology transfer
To improve services (plantation protection, veterinary, variety production, technology standards, quality standard control)
To apply international and regional standards
To implement building infrastructure for production (irrigation, electricity…)
To implement building infrastructure for marketing (road, storehouse…)
To reform enterprises, improve business capabilities

18. Enhancement competitiveness of Vietnam’s agricultural products
To improve trade promotion
To increase vertical integration
To attract and encourage investment in agriculture and rural area (concentrate on processed industry)
To develop the role of community in management natural resources and rural development