Agricultural exports record significant growth in H1
Agricultural exports record significant growth in H1
In the context of the overall decline in Vietnam's export of various commodities in the first half of 2023, some bright spots have emerged in exporting key agricultural products such as fruits, vegetables, rice, and coffee.
According to a report by FiinGroup, the growth of Vietnam's key agricultural products can be attributed to the 'Zero COVID' policy of China, unfavourable weather conditions for commodity production in other Asian countries, the Russia-Ukraine war, and the rising prices of Robusta coffee.
Notably, the policy in China, being Vietnam's largest trading partner, stimulated higher demand for fruits and vegetables, thereby elevating the export value of this crucial commodity group.
For rice, the export value surged due to a combination of factors, including potential declines in rice production in various Asian countries due to the hostile climate phenomenon of El Nino, and geopolitical issues such as the Russia-Ukraine war, leading to increased global food reserves.
Despite weather-related challenges impacting coffee production, the rising prices of Robusta coffee significantly supported the growth of coffee export value during the first half of the year.
The favourable growth in agricultural exports has indeed provided some relief to agricultural enterprises amidst the volatile business environment.
Indeed, there is a clear correlation between the resurgence in export activities within the agricultural sector and the revenue growth of agricultural enterprises during 2021 and 2022. FiinGroup's data reveals that net revenue growth experienced a decline in 2020, primarily due to the severe impact of the pandemic.
However, subsequent years witnessed a remarkable recovery and substantial growth, particularly evident in the rice and vegetable industries, achieving impressive growth rates of 46.5 per cent and 23.2 per cent respectively in 2022.
The recovery in export values of agricultural commodities served as a pivotal driving force behind the industry's positive financial performance, fostering an environment of resilience and growth.
Despite promising indicators, the future trajectory of the sector heavily relies on the ability of Vietnamese enterprises to take proactive measures to effectively confront a range of challenges. Undoubtedly, the sector's post-pandemic revival and favourable export performance constitute notable strides forward.
"However, amidst the backdrop of global macroeconomic fluctuations encompassing production costs, trade tensions, and the effects of climate change, there exist potential impediments in the foreseeable horizon. To maintain competitiveness and secure their position in the market, agricultural enterprises must prioritise strategic adaptability and engage in comprehensive risk analysis as they navigate the uncertainties ahead," the report said.
