Country sees positive signs in vegetable, rice, coffee export orders

Thursday, 18/01/2024 17:15
Vegetables, rice, and coffee have seen a surge in orders right from the beginning of 2024, signaling a busy year ahead despite challenges in the global trade, reported Vietnam News Agency.
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Illustrative image (Photo: VNA)

Chairman of the Vina T&T Group Nguyen Dinh Tung revealed that his company recently shipped durian to China, six tonnes of An Giang mango to Australia and one tonne to the US, among other markets.

He expressed his hope to maintain a double-digit export growth this year.

Successful negotiations to open markets for diverse agricultural products in China, with its massive population, played a pivotal role in the substantial growth of fruit and vegetable exports that reached 5.6 billion USD last year.

The coffee sector, facing concerns about supply shortages from major global producers and disruptions in the Europe-Asia maritime transport route through the Suez Canal, not only welcomed new export orders but also witnessed an increase in export prices early this year.

The overall prosperity in the export of various agricultural products is also anticipated to continue thanks to improving production, processing, and supply.

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Illustrative image (Photo: VNA) 

Though the Vietnamese farm produce are available in 190 countries, their shares remain relatively modest in major markets, particularly in China, constituting only 5% of its total agricultural import volume.

Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetables Association, highlighted that Vietnam has signed 16 free trade agreements (FTAs), with 15 currently in effect. This has created advantages to fruit and vegetable exports through tariff preferences, thereby improving the competitiveness of Vietnamese enterprises.

According to the Ministry of Agriculture and Rural Development, Vietnam can potentially export over 8 million tonnes of rice while still ensuring food security this year. Amid global uncertainties in rice supply, the Vietnamese grain prices are expected to benefit, leading to a boost in export revenue.

Vegetables, rice and coffee generated a record export revenue exceeding 14 billion USD last year. With a steady influx of orders, they are poised to earn an estimated 17-17.5 billion USD this year.

Cashew exports earn 3.64 billion USD in 2023

With 3.64 billion USD of export value, the cashew industry exceeded the 2023 plan by 18% (3.05 billion USD), marking the highest level in recent years.

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Cashew exports earn 3.64 billion USD in 2023 . (Photo: congthuong.vn)

According to data from the General Department of Vietnam Customs, Vietnam exported 63,000 tons of cashew in December 2023, equivalent to 343 million USD, up 34% in volume and up 27.5% in value.

In 2023, cashew exports reached the target of 644,000 tons, equivalent to 3.6 billion USD, up 24% in volume and up 18% in value against 2022. With this result, the cashew industry surpassed the year plan by 18%. This is also the highest result in recent years.

This year, Vietnam exported cashew to some major markets such as the U.S., China, and the Netherlands with positive growth. Specifically, cashew exports to the U.S. reached 885 million USD, up 5% against 2022 and accounting for nearly 25% of the total export turnover of this item.

According to cyclical factors, Vietnam’s cashew export activities are busy in the last months of the year. Consumption demand for cashew nuts during holidays often increases sharply. The industry had great expectations after the visit of U.S. President Joe Biden to Vietnam in September 2023.

Mr. Tran Huu Hau, Deputy General Secretary of the Vietnam Cashew Association (Vinacas), said that the cashew industry has had a foothold in the U.S. for many years, and the demand of this market is quite stable.

After Vietnam and the US upgrade of relations, Vinacas hopes that cashew businesses will be able to access modern technology and production lines from the U.S., serving the new direction of the industry with the focus on processing and exporting value-added products, instead of cashew nuts like today.

In addition, cashew exports to China also recorded a breakthrough after the country lifted COVID-19 epidemic prevention measures, with export turnover of 683 million USD, up 55% against 2022 and accounting for 19% of the total.

Cashew exports to the Netherlands, the gateway to the EU market, in 2023 reached 353 million USD, up 19% against 2022 and accounting for 10% of the total.

Other potential markets such as Germany, England, and United Arab Emirates also recorded positive results in 2023.

The Import-Export Department under the Ministry of Industry and Trade said that Vietnam’s cashew industry well exploited traditional and potential markets. Cashew export in 2024 is forecast to have much room for growth.

Shrimp exports to Australia doubled in five years after joining CPTPP

In five years since joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnamese shrimp exports to Australia increased sharply, accounting for a market share of 70%, doubling the nearly 32% before signing the agreement.

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Vietnamese shrimp exports to Australia increased sharply after joining CPTPP

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), after five years of participating in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), seafood is one of the industries with many positive changes thanks to taking advantage of preferential tariffs in trade with member countries. CPTPP took effect from January 14, 2019.

The market share of Vietnamese seafood in the markets of CPTPP member countries tends to increase. For example, in the Canadian market, the market share increased from 7-8% to 10%, of which shrimp increased from 18% to 25% and ranked first, while tuna increased from 6% to 11% and ranked 3rd at this market. The VASEP said that the fastest growing market is Australia with a market share of 70%, double the nearly 32% before signing CPTPP.

On the contrary, according to VASEP, the fisheries industry still has competition in the domestic market coming from products of member countries such as Japan, Chile and Australia.

VASEP said that current logistics restrictions on the seafood industry reduce its competitiveness. Seafood exports exposed weakness when they depend largely on foreign logistics systems.

This has been clearly shown since 2020 when many changes happened in the world such as the COVID-19 epidemic, conflicts in Europe, and recently the Middle East (Red Sea tensions).

“The current Red Sea tension story once again reveals the problems of Vietnam’s logistics industry when foreign shipping lines dominate, monopolize pricing and increase prices of freight and other transportation services,” according to VASEP.

Airlines add over 66,200 seats to serve Tet peak travel

Vietnam Airlines Group including Vietnam Airlines, Pacific Airlines and VASCO continues to add more than 66,200 seats, equivalent to more than 310 domestic flights.

The additional seats aim to serve the travel needs of people during the Tet period from January 25 to February 24, 2024 (December 15 to January 15 of the Lunar calendar).

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The increased flights are mainly concentrated on domestic routes between Ho Chi Minh City and Hanoi, Da Nang, Hai Phong, and Vinh. (Photo: thesaigontimes.vn)

This increase in flights has raised the total number of domestic and international flights of the group during the Tet peak period to about 2.64 million seats, equivalent to more than 12,370 flights, Vietnam News Agency reported.

The additional flights are mainly concentrated on domestic routes between Ho Chi Minh City and Hanoi, Da Nang, Hai Phong, Vinh, Thanh Hoa, Quy Nhon, Hue, Quang Nam, Tuy Hoa, Da Lat, Cam Ranh, Buon Ma Thuot, Pleiku, and Phu Quoc.

During the peak Tet period, due to increased travel demand, airlines recommend that passengers purchase their flight tickets in advance.

According to the website of the Civil Aviation Authority of Vietnam, Vietnam Airlines and Vietjet Air have agreed to transport apricot and peach branches as checked baggage on domestic flights. The application period is until February 24, 2024./.

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