Vietnam: Ag products losing competitiveness
Agriculture contributed just 0.28 per cent to the gross domestic product (GDP) growth in the first q…Agriculture contributed just 0.28 per cent to the gross domestic product (GDP) growth in the first quarter of this year, the lowest since 2011, it was reported at a workshop held by the Institute of Policy and Strategy for Agriculture and Rural Development under the Ministry of Agriculture and Rural Development last Saturday.
Institute Director Nguyen Do Anh Tuan said the fall in shipment was not being rectified, and noted that the dropping demand had been compounded by the emergence of strong rivals that left local products struggling to compete.
Local fruits that are traditionally prominent in China, like lychees, plums, dragon fruit and watermelons, are also facing challenges, as the northern neighbour is rapidly expanding fruit cultivation, enabling it to export its fruits to Viet Nam, instead of the other way around.
Other workshop participants expressed concern about the quality of Vietnamese produce and "misguided" strategies that inhibit the nation's ability to meet global demand.
They also pointed out a lack of market information, especially relating to China, which further dulls Vietnamese edge in this critical market.
It would be hard for Viet Nam to supply higher quality goods at lower prices unless it makes scientific and technological breakthroughs in agriculture, Tuan said.