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5 challenges for agriculture, forestry and fisheries exports

Update: 2/24/2014

According to the Ministry of Agriculture - Rural Development, Export situation of agricultural , forestry and fisheries of major Vietnam in 2014 continues to face many difficulties and challenges . Including 5 DNXK challenges that need to be mindful of the positive solution than the increase in export turnover .
 
First, there is the power consumption of the import market remains weak and competition keeps increasing for Vietnam . Economic forecast for North America (including the United States and Canada ) will grow at only 2.9 % , the European economy : 1.35 % and Japan 1.6 % . China's economy is forecast to slow down (expected 8 % ) .
 
Meanwhile , the market share of our export commodities were difficult due to increasing national territory continued participation in agriculture, forestry and fisheries exports . " For example, for the rice market , the traditional markets such as the Philippines , Indonesia increased domestic production , reduce imports . Resurgence of Indian exports , along with rivalry of Burma , Cambodia increased competitive pressures Vietnam rice exports " - Truong Thanh Phong - Chairman of the Vietnam Food Association said .
 
 
Goods are carefully packed for export before the South gate Cups - Lang Son
 
Second, the technical barriers to trade to strengthen the application of the import country . While quality issues , ensure food hygiene and safety of agricultural products , seafood Vietnam is facing serious challenges . Typically, the technical barriers from Japan and Korea to Vietnam shrimp ( this is the second major markets ) .
 
The most recent date of 01/31/2014 , the Russian Federation will prohibit the imports of catfish from Vietnam , as well as all the fish products of 8 companies in Vietnam due to violation of the provisions of the Water this food safety .
 
Third, the financial capacity of Vietnam enterprises are weak , lack of capital ( although theoretically reduce interest rates , but access to credit faced obstacles ) . Most of the companies working capital to carry out credit from commercial banks at high interest rates . Many investment firms borrowed from the previous year ( rate of investment incentives by 14.5 % / year ) , loss of ability to repay should not continue to borrow capital for production . This also makes it difficult to resolve "output " to farmers .
 
Mr. Luong Van Tu - Chairman Cocoa Coffee Association recommendation : The state should continue to implement solutions rescheduling , debt-freezing conditions to help enterprises overcome difficulties and gradually boost business . Mr. Self also said that the tax exemption is more practical solution than reducing lending rates for businesses . There is such a strong new businesses to invest in at the farm production .
 
Fourth , the problem of unfair competition , reduce the quality products , lower prices discrediting of agricultural products , seafood Vietnam in the international market is the inherent weakness of many companies in most of our export industry for several years .
 
According to the Department of Trade and processing of agricultural , forestry, aquaculture and salt , the most obvious manifestation of this situation is that the companies do not comply with the technical standards in production and processing , are typical cases the use of weight gain , increased moisture in processing frozen fish fillets to 86 % , the proportion of glazing up to 60-70 % of the time prescribed shall not exceed 20 %, lower grade and price dragon ; tea exports to the world's cheapest ...
 
Fifth , structural items , we still export raw commodities is key . Meanwhile , many of the major export items of Vietnam close to the maximum limit on production (coffee , rice , fish , shrimp ... ) . To increase export turnover is necessary to change the structure of commodity exports towards goods of high added value .
 
Besides the difficulties and challenges mentioned above , predicted 2014 will be more favorable factors for the export of general merchandise , including agriculture, forestry and fisheries . Ministry of Agriculture - Rural Development plans to export agriculture , forestry and fisheries this year reached 28.5 billion U.S. dollars ( 2.65 % increase compared to 2013 ) . Among them is expected to export about 7.0 to 7.5 million tonnes ; 1.2-1.3 million tons of coffee ; 1.15 million tonnes , 130 thousand tons and 180 thousand tons of pepper and cashew types . Particularly seafood export turnover is estimated at approximately $ 6.9 billion in 2014.
 
Shrimp exports will be difficult to sustain the growth momentum as last time . The reason is that after a difficult year by shrimp disease , currently the producing countries such as Thailand , China ... is recovering and increase supply to the market . Therefore, shrimp prices have the potential to reduce competition and raw material supply shrimp will become more acute .
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