VIETNAM DEVELOPS MODERN SUPPLY SYSTEM FOR FARM PRODUCTS

The Ministry of Agriculture and Rural Development aims to restructure the entire chain of production, procession and distribution of agricultural products. The centres will improve connections between production and distribution activities that will enhance efficiency, increase consumption of agricultural products, and ensure quality. The products entering the centres will be controlled and have traceable origins to ensure quality, and there will be classification and packaging of products according to recognised standards.

In particular, a trading floor with information about market prices in many countries and integrated payment services will be created to offer favourable conditions for businesses.

Minister of Agriculture and Rural Development Nguyễn Xuân Cường said that the country’s agriculture lacks effective productivity because most farms are small, exposing the sector to threats of loss and crop failure, especially under climate change. 

Besides shrimp, catfish and milk, most agricultural products have very short value chains, he said. Farmers are the most vulnerable as production still depends heavily on weather conditions while infrastructure remains limited. "Viet Nam has to continue agricultural restructuring, and must focus on products in which the country has comparative advantages. Innovation and international cooperation need to be enhanced," he said.

In the context of global integration, more public-private partnerships are needed to develop financial resources for a complete agricultural management ecosystem that would satisfy food demand of the country's citizens but also the international market, Cường said.

Ousmane Dione, country director for World Bank Viet Nam, has raised concerns over quality and sustainability of Việt Nam’s agricultural growth, saying that profits earned by small households were low and post-harvest losses were considerable. Food quality and safety have not been ensured, hindering the country’s agriculture sector from expansion. He recommended that Viet Nam strengthen ties among stakeholders and provinces in planning of production areas and improve trade promotions as well as productivity.

From 2009 to 2018, Việt Nam's agricultural export market expanded from 72 countries to 200 countries, with annual turnover of US$40 billion. However, about 40 per cent of the total value of agricultural exports are to China, with more than 70 per cent of vegetables exported to China. Because of the heavy dependence on the Chinese market, the agricultural sector has faced difficulties during the COVID-19 epidemic because of sluggish trade conditions.