In prior to international economic integration, Vietnam ispromoting the export production and of agricultural and aquatic products to all countryover the world, occupying important posit
Trang 1In the era of industrialization and modernization, export plays an essential role in everycountries ‘economy Through export, countries shall exploit their advantage ininternational division of labor, open up international economic opportunities, createsfavorable conditions for economic development and restructuring the economic in order
to create more job opportunity Therefore, Vietnam’s export activities are vital to thedevelopment of the economy for the cause of industrialization and modernization of thecountry
Vietnam is a developing agricultural country, thus, export of agricultural and aquaticproducts take up a major part for the economic, creating favorable conditions for theindustries to develop This following report will give an overview about the state ofexports in agricultural and aquatic products, as well as provide solution to overcomedifficulties
Key word: exports, agricultural and aquatic products, development of the economy
Trang 2Agricultural and aquatic products are fundamental goods that meets up to daily needs ofpeople For this reason , agricultural and aquatic products has increased as in both ofquantity and quality In prior to international economic integration, Vietnam ispromoting the export production and of agricultural and aquatic products to all countryover the world, occupying important positions in the national economy With suchimportant role, exports in agricultural and aquatic products have been identified as “thrusting industrial” in Vietnam’s economic development plan However, the export ofthese items still face many challenges that requires businesses and famer to findsolutions Therefore, we have selected the topic "An overview in the export ofagricultural and aquatic products in Vietnam" to examine
Trang 3Chapter 1: Introduction to Vietnam’s export in agriculture and aquatic products
Chapter 2: Vietnam’s export in agricultural and aquatic products in 2016
Chapter 3: Solutions to promote the export of agricultural and aquatic products
Trang 4I Overview of Vietnam’s exports in agricultural and aquatic products.
1 Introduction to Vietnam’s export in agriculture and aquatic products
1.1 Concept
Exporting is a function of international trade whereby goods produced in one country areshipped to another country for future sale or trade The sale of such goods adds to theproducing nation's gross output If used for trade, exports are exchanged for otherproducts or services in other countries The purpose of export activities is developingadvantage of the countries in the international division of labor
Agricultural products are products or semi-finished products from the cultivation ofanimals, plants, fungi, and other life forms for food, fiber, biofuel, drugs and otherproducts from the plant Agricultural products are foods, fibers, fuels, and raw materials.Examples of foods are fruits, vegetables, meat, and spices Examples of fibers includewool, cotton, and silk Examples of fuels include methane and wood Examples of rawmaterial include lumber and bamboo
Aquatic products are resources and products that bring people from the water, harvested
by humans, and used for food, raw materials or sold on the market Among aquaticproducts, the most common are fish Besides, there are other products such as crustaceans(for examples shrimps and crabs), molluscs (excluding clams, oysters), seaweed andamphibians (excluding frogs, eels)
1.2 The role of export
- Export creates investment capital for imports, industrialization and modernization
- Export contributes to the restructuring of the economy, boosting the development ofproduction
1.3 The role of export products in agriculture and aquatic in the domestic economy
Trang 5Given the fact that agriculture has long been a Vietnamese major mean of living, it haslargely impacted our economy, because:
- It is indisputable that we have a small-scale economy and out of date technology.Therefore, the production of raw products such as agriculture would be our advantagesagainst other countries
- Agriculture and aquatic export helps Vietnam to accumulate capital that can be used forthe purpose of industrialization Furthermore, it plays a significant role to consumefarmer’s products, maintains industrial development rate, induces trade gap to stay inacceptable figure, and bringing foreign currency to the country
- Agriculture and aquatic export ultimately utilizes our climate features, human andmineral resources…
2 The export markets and features of Vietnam agricultural and aquatic products
2.1 The export markets of agricultural and aquatic products
Agricultural and aquatic products are products with great demand in the world marketdue to their specialty The markets for agricultural and aquatic products are mainlydeveloped countries and regions in the world such as the UK, USA, EU, Germany, Japan, At the present time, these countries have a change in consumption structure ofagricultural and aquatic products: the switch to organic products (produced from nature,
no pesticides, fertilizer) The major agricultural and aquatic exporters in the world(Thailand, China, USA,…) are paying great attention to this issue
Vietnam's current export markets for agricultural and aquatic products have changed alot In the past, the main markets were the former Soviet Union and Eastern Europe In
1990, Vietnam's exports to those regions accounted for 50% of total exports, but by 1995,the number was only 18% due to the collapse of the Soviet Union and the socialist system
of the Eastern Europe The good news is that after Vietnam joined WTO, especially after
Trang 6the US lifted the embargo on Vietnam, commodity exchanges between Vietnam and thecapitalist countries have remarkable increased The main export markets for agriculturaland aquatic products of Vietnam are still Asia, Europe and the United States.
Here are some of the export markets for agricultural and aquatic products in Vietnam
- Aquatic products export markets: EU, USA, China, Japan and South Korea,…
- Rice export markets: Philippines, China, Malaysia, Indonesia, USA,…
- Coffee export markets: USA, Germany, Russia, Switzerland, France, UK, Italy,…
- Tea export markets: Russia, UK, Taiwan, China, Iraq, India, Pakistan,…
2.2 Features of agricultural and aquatic products of Vietnam
Agricultural and aquatic products are very important to meet the needs of every nation’speople They are the main export commodities of the less developed countries and areone of the strategic commodities as most of the international agricultural and aquaticproduct purchases are made through agreements between governments
On the other hand, the purchases and production of agricultural and aquatic productsdepend mainly on climatic seasonality, crop harvest, supply and demand and paymentconditions of each country
Features of agricultural and aquatic products of Vietnam
- Agricultural and aquatic products are always the main export products of Vietnam.They have a large export volume, but the quality is still low
+ Rice: for inferior rice, Vietnam can compete well with India, China and Pakistan forexporting to low-income countries or aid recipients But for high-quality products,Vietnam cannot compete with the US and Thailand due to poor quality of storage anddrying
Trang 7+ Coffee: the most controversial issue is the quality of Vietnam’s coffee It’s not uniformdue to drying, classification Therefore, Vietnam has got only spot contracts and no long-term contracts up to now.
+ Tea: for the past few years, the tea industry has improved the technological process,modernized processing plants to have more products in accordance with the requirements
of customers, create certain markets However, Vietnam’s tea still does not create realreputation in the international market
- Price of agricultural and aquatic products that Vietnam export is often lower than theprice of those of other countries The reason is that the quality of agricultural and aquaticproducts of Vietnam is low and they have not built up the reputation as well as strength inthe international market
II Vietnam’s export in agricultural and aquatic products in 2016 (Ministry of
Industry and Trade, 2016)
1 General situation about the export in agricultural and aquatic products 1.1 The turnover
Although the global economy recovered slowly in 2016, the level of commodity priceswas low and agricultural production faces many difficulties due to drought and heavysalinity intrusion, most types of agricultural and aquatic products of Vietnam wereconsumed in time, without stagnation or redundancy The export turnover of agriculturaland aquatic products in 2016 reached more than $22 billion This was a positive result ofexports of agricultural and aquatic products after the negative growth in 2015 In terms ofabsolute value, the export value of this commodity group had risen by $1.58 billioncompared to 2015 This increase contributed to the overall growth of export turnover,expressed that the capacity of enterprises to exploit the market was still very active in thecontext of world’s fallen demand
1.2 The products
Trang 8In 2016, most of the major export items of agricultural and aquatic productsreached a positive growth rate compared to 2015: Aquatic productions reached $7.05billion, coffee reached $3.34 billion, tea reached $217 million However, there were someitems decreasing such as: rice fell down 22.4% to $2.17 billion, cassava and cassavaproducts fell down 24.2% to $999 million.
Export of agricultural and aquatic products in 2016 to China had made $5.62billion, grew 15.5% over 2015 Positive items included aquatic products reached $685million, coffee reached $106.7 million, tea reached $25.9 million Only rice and cassavadeclined 8.6℅ ($782.3 million) and 25.7% ($868.4 million) respectively
1.3.3 The United States market
This is Vietnam's third largest export market for agricultural and aquatic products(represents approximately 15%) of which ranking the first market for pepper and thesecond in coffee
Trang 9Export of agricultural and aquatic products to the United States had gained $3.35billion in 2016, increased 17.5%, of which positive aquatic items were aquatic productsreaching $1.44 billion; coffee and pepper reaching $450 million and $342.4 millionrespectively Some items fell such as tea had gone down to $7.5 million, decreased19.7%; rice reached $18.4 million, decreased 34% mainly due to price and quantityfalling due to low demand.
1.3.4 ASEAN market
Export of agricultural and aquatic products to ASEAN reached $1.78 billion in
2016, decreased 23.8%, of which some items had positive growth such as aquaticproducts had made $515 million, coffee earned $281.5 million, tea reached $19 million.Some items had decreased turnover such as pepper decreased 24% to reach $111.3million or rice decreased 53.9% to reach 469 million
The export structure of Vietnam's agricultural products to this market increased inboth types and volume of commodities, focus on increasing the added value of goodswhen it comes to consumption
1.3.5 Japanese market
Japan was the fifth largest exporter of agricultural and aquatic products in Vietnam(represented 6.6%), it was the second largest market in vegetables and the third in aquaticproducts This was also a potential market for some other agricultural commodities such
as cashews, tea, handicrafts if they meet the standards of food hygiene and safety as well
as animal and plant quarantine
Export of agricultural and aquatic products to Japan reached $1.46 billion,increased 6.6% in 2016 Of which, aquatic productions increased by 6.2% to $1.1 billion;coffee increased by 19.7% to $202.9 million Thus, there were still some negative items:pepper fell down 13.8% to $28.3 million; Cassava decreased 16.7% to $15.6 million These decline were due to the fact that market demand had not recovered yet,
Trang 10and the Japanese Yen continued to fall against the US dollar, making export prices in USdollars of Vietnamese goods unfavorable in this market.
The implementation of the Vietnam - Japan Economic Partnership Agreement(VJEPA) is now entering a new phase, opening up great opportunities for Vietnameseexported commodities to enter the Japanese market, whereby the products Vietnamenjoying the most tariff preferences of Japan are agricultural and aquatic products In thesector of aquatic products, Japan will reduce tariffs from an average of 5.4% in 2008 to1.31% in 2019 However, Japan has been a high demand market for food hygiene, safety,setting many technical measures and barriers for imported agricultural products.Therefore, the penetration of agricultural and aquatic products of Vietnam into Japan isoften difficult
2 Major agricultural and aquatic exporting products in 2016
2.1 Aquatic products
Export situation (Ministry of Industry and Trade, 2016):
In 2016, the export of aquatic products had reached 7.05 billion US dollars, which was7.4% higher than 2015 The composition of export products remained unchangedcompare to 2015 in main sectors such as shrimps (44%), pangasius catfish (24%) andtuna (7%) More specifically, shrimp exports had reached 3.15 billion US dollars, 7%higher than the year of 2015; pangasius exports had increased 7% to reached 1.66 billion
US dollars; tuna exports had recovered after three years of decline, making 485 million
US dollars, 7% higher than previous year
Besides, major export markets had recovered and grew positively in comparison with
2015 For instance, the USA had reached $1.44 billion, which was 9.7% higher ; EU hadrise 3.6% to reach 1.17 billion US dollars; Japan had made 1.1 billion US dollars whilethe numbers was 608 million US dollars in Korea; 685 million US dollars in China, 515million US dollars in the ASEAN…
Trang 11However, the export of aquatic products in 2016 still faced some difficulties in themarket such as:
- Low demand, fierce competition from other exporting countries, technical barriers atimporting markets such as the USA, EU, Japan, Taiwan, China
- Vietnamese aquatic products in general had neither built up their trademarks inexporting markets nor a long-term strategies Therefore, it shall be weakened by thecut-throat competition of the competitors
2.2 Rice
Export situation (Ministry of Industry and Trade, 2016):
In 2016, the rice markets all over the world continued to compete fiercely as there wereunfavorable developments for the rice exports of Vietnam At the beginning of 2016,Vietnam's rice exports had a relatively favorable effect from the contract with thePhilippines, but then, pressure when having surplus supply had weaken the result ofVietnam's rice export results, forcing it to fall to just over 4.9 million tons, valued at only2.2 billion US dollars, crash nearly 26.5% in volume and 22.4% in value compared to2015
In 2016, Vietnam's rice export price was fluctuated Offer prices of had deal at thehighest level of $385/ton while the lowest price was about $345/ton Compared with riceprices in the region, Vietnam's rice export price was $5-10 per ton lower than that ofThailand, but higher than the price of India and Pakistan at about $5 per ton (the sametype of rice)
Export market:
Asia markets (excluding the Middle East) accounted for 65.3% of total rice exports(turnover decreased 34.7%); Africa accounted for 16.8% (turnover decreased 9%);America accounted for 9.66% (turnover increased 7.1%); Oceania took up 4.5%( turnover increased 50%); Europe accounted for 1.7% (turnover decreased 25.6%) andthe Middle East market accounted for nearly 2% (36% higher) compared with 2015