Agriculture sector digs up some startling profits

The Ministry of Agriculture and Rural Development (MARD) last week reported that the country’s agro-forestry-aquatic export turnover for the year touched a record $19.2 billion, up 22.6 per cent against 2009 and 16.8 per cent against the government’s initial target.

Of which the export turnovers of farm produce, aquatic and forestry products were estimated at $9.95 billion, $4.94 billion and $3.63 billion, respectively, up 24.2, 16.3 and 29.8 per cent, respectively, against last year.

Meanwhile, the sector’s total import turnover was estimated at $11.9 billion, up 25 per cent against 2009.

MARD Minister Cao Duc Phat said amid Vietnam’s prolonged trade deficit, the sector had firmly maintained its trade surplus. “This reflects the sector’s good resistance to the economic downturn,” Phat said.

While the country suffered a trade deficit of $17.5 billion in 2008, $12 billion in 2009 and $12.4 billion this year, the sector witnessed big trade surplus, which stood at $6.76 billion in 2008, $10.3 billion in 2009 and $7.25 billion this year.

“Vietnam’s agro-forestry-aquatic sector has enjoyed many favourable conditions such as high export prices and foreign importing markets’ swelling demand, which have raised many major staples’ export prices,” said Nguyen Viet Chien, director of the MARD’s Centre for Informatics and Statistics.

Statistics showed that Vietnam’s rice exports hit a record high in volume and export turnover last year, totaling 6.88 million tonnes and $3.23 billion, up 15.4 per cent in volume and 21.2 per cent in turnover against 2009.

“For example, Indonesia’s imports of Vietnamese rice increased 24 times in volume and 30 times in value against 2009, making it Vietnam’s third largest rice importer,” Chien said.

Rubber exports for the whole year were 773,000 tonnes, with a turnover of $2.32 billion, up 5.7 per cent in quantity and 89.1 per cent in turnover.

Prices of the commodity had increased thanks to a greater global demand, amid narrowing supplies. For example, India’s rubber imports from Vietnam tripled in quantity and increased seven-fold against 2009. The average rubber price within the year’s first 11 months rose by 82 per cent year-on-year.

Cashew exports touched 196,000 tonnes with a turnover of $1.14 billion in 2010, up 10.8 per cent in quantity and 34.8 per cent in turnover against 2009. The average cashew price during the year’s first 11 months escalated by 21.5 per cent against the same period of 2009.

Vietnam also earned $3.4 billion from wood product exports, up 31.2 per cent against 2009, with the US, Japan and China comprising 66.3 per cent of the country’s total wood exports. For example, China’s imports of made-in-Vietnam products doubled from 2009.

The country’s aquatic product export turnover for 2010 reached nearly $5 billion, up 16.3 per cent against 2009. Coffee exports of 1.1 million tonnes also earned nearly $1.7 billion, down 5 and 3.7 per cent in quantity and turnover, respectively.

The MARD said the sector targeted to earn about $19 billion from agro-forestry-fisheries exports in 2011. However, it said that this target was not easy to reach, due to an expected increase in technical barriers from many of Vietnam’s importing markets. – VIR

Tags: Vietnam Agriculture sector