Ministry aims to boost domestic consumption of farm produce
Ministry aims to boost domestic consumption of farm produce
The agricultural sector aims to boost farm exports and raise consumption at home, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong at a forum in Hanoi today, March 5.
The Ministry of Agriculture and Rural Development, in cooperation with the Ministry of Industry and Trade, organized the forum, called “Vietnam Agricultural Production and Consumption Promotion 2019,” according to local media reports.
Speaking at the event, Minister Cuong said Vietnam’s agricultural sector was facing several major obstacles.
First, the sector is mainly involved in small-scale and scattered production, so it has yet to meet the requirements for large-scale goods production and the high standards of world markets.
Second, the effects of climate change, the environment and diseases affecting crops and livestock have direct influences on domestic production, as well as the supply and demand of agricultural produce.
Third, the output markets for farm produce face many difficulties. Minister Cuong said that the global economic growth is expected to decline this year, and many economies will shift their focus to heavily invest in their agricultural sectors. As a result, there will be fierce competition in exports.
Fourth, Vietnam’s major importers of farming products, such as China, South Korea, Japan, the European Union and the United States, are currently increasing their protectionist stance on these products through food quality management and safety and hygiene standards, as well as traceability requirements.
Finally, the trade tension between China and the United States, the uncertainty surrounding Brexit – the impending withdrawal of the United Kingdom from the European Union – and the geopolitical instability in the world will also affect the export of Vietnam’s agricultural products.
According to Minister Cuong, 2019 is of great importance for making breakthroughs in fulfilling the targets of the five-year plan of the agricultural sector for the 2016-2020 period.
The Party, the National Assembly and the Government have set the gross domestic product (GDP) growth rate of the sector at over 3%, its production value at 3.11% and its export turnover at 43%.
He pledged that his ministry will continue restructuring the agricultural sector, including developing three major groups of products at the local, provincial and national levels with geographical indications.
He added that it is necessary to further innovate and develop production; build material areas for concentrated production; establish cooperatives; and call on the private sector to make investments in supermarkets, convenience stores and markets to boost domestic consumption.
The ministry is also seeking ways to increase the capacity for farm produce processing, preservation, packaging and labeling to raise the value of the produce.
The ministry is committed to promoting the research, transfer and application of science and technology, taking measures to make the most of the Fourth Industrial Revolution’s opportunities and developing hi-tech and organic agriculture, Cuong said.
He said the need to improve the business environment more significantly, reduce administrative procedures and business conditions and conduct negotiations with other countries for the removal of trade and technical barriers affecting Vietnamese farming products.
The ministry also aims to organize more trade promotion activities so that Vietnam’s key agricultural products can become household names at home and abroad.
Cuong added that the agricultural sector will cooperate with other relevant sectors to introduce national standards and criteria in line with the regulations of importers in the region and around the world.
Fraudulent acts that could affect the quality of agricultural products will be strictly handled to maintain the reputation of these products domestically and internationally, he said.
Last year, the sector's export turnover reached a record high of US$40.02 billion, with a trade surplus of some US$8.7 billion.
