Vietnam Agricultural Products

Aquaculture

Vietnam’s aquaculture has prospered since the 1990s and earned even bigger reputation in recent years. Aquaculture export currently ranks fourth in export quota, making up 7.84% of the country’s total export quota. The main aquaculture products for export include prawns, sea fish (tuna), brackish fish (“tra” and “basa” catfish), octopus, cattle fish, and dried seafood. The quality of Vietnam’s aquaculture products have been improved significantly recently as manufacturing has managed to meet practices standards. Currently there are 90 countries/ regions importing Vietnam’s aquaculture products with the biggest one being the USA, followed by the EU, Japan, China, South Korea, Hong Kong, and Taiwan. However, Vietnam’s aquaculture export makes up only 3.5% of the world’s figure, which certainly does not match its high potential for development

Rice

Vietnam is the second largest rice exporter after Thailand. Domestically it ranks eighth among all export products. Last year only, Vietnam exported 4.5 million tons of rice, achieving an export value of 1.454 billion US dollars. Although rice quality and price have increased immensely, there still exist limitations in branding as well as problems concerning seeds, quality, production cost, and exporters’ capability. Rice cultivation area is now about 7.5 million ha, mostly in Mekong River Delta (over 50%) and Red River Delta (15%). The average productivity is 4.8 tons/ ha. Among the largest importers of Vietnam’s rice are the Philippines, Indonesia, Malaysia, Japan and Africa.

Rubber

With rapid increase in recent years, Vietnam is currently the fourth largest rubber exporter, after Thailand, Indonesia and Malaysia. In 2007 only, about 720,000 tons were exported for 1.4 billion US dollars, placing rubber the ninth largest Vietnam’s export product. Its main importers are China (60%), Singapore, South Korea, Taiwan, Germany, USA, and Russia. Rubber cultivation area in 2007 was 480,000 ha, 67% of which was based in the South East. This region is also the most productive area which yielded 86% of the 468,000 tons of latex nationwide, according to last year’s figures

Coffee

Coffee owns the seventh highest export quota which contributes 3.83% to the country’s total figure. In 2007, with 1.194 million tons, Vietnam’s coffee export ranked second only after Brazil in market share, at 10% as opposed to 30%; and it even won the first place with Robusta export. Thanks to favorable natural conditions, Vietnam has offered its importers with high quality and quite low price coffee. However, it is no doubt that low price is a disadvantage in itself, which results from the limitations in planting, harvesting, processing, preserving, transportation and trade. Currently, the total coffee cultivation area  is 500,000 ha, mostly based in Tay Nguyen. The biggest markets for Vietnam’s coffee are the EU (52%), the USA (15%), Japan, South Korea, and Singapore. It is estimated that in 2010, the cultivation area will reduce to 460,000 ha; average productivity will increase from 1.5 tons/ ha to 2.4 tons/ ha; and the average annual export quantity will be around 850.000 tons.

Cashew nuts

In 2007, Vietnam exported 153,000 tons of cashew kernel, gaining 649 million US dollars in quota. It has replaced India to be the largest cashew exporter, both in quality and quantity, with the average annual development rate of 24.6% during the period 2001-2005. The main importers of Vietnam’s cashew include the USA (34%), China (18%), Australia (12%), Holland (11%), England, Russia, the Middle East and Japan. To the end of 2008, about 400,000 ha of land had been used for cashew cultivation, mostly in South Central Coast and the South. It is expected that in 2010 the area for cultivation will be expanded to 450,000 ha and export quota is estimated to reach over 700 million US dollars a year.

Pepper

Vietnam has lead the world in pepper export for a long time. Last year, the country exported nearly 87,000 tons of pepper, a 26% decrease compared to 2006. But as price doubled, at about 3,200 US dollars/ ton, export quota raised to 282 million dollars, ranking 18th among the highest export quotas of the country. Currently, Vietnam’s pepper holds half of the world’s market share and is present in 73 countries such as the USA, the EU and the Middle East. Statistically, pepper cultivation area is 52,500 ha, mainly based in the South East, Tay Nguyen and Phu Quoc. The productivity is quite instant, at 2.3 tons/ ha. To improve pepper quality and raise prices, export firms are encouraged to further invest into processing and increase the yield of white pepper.

Tea

Vietnam ranks seventh among the world’s biggest tea exporters. In 2007, by exporting 114,000 tons, Vietnam’s tea achieved an export quota of 131 million US dollars. It is now present in many countries like Pakistan, India and Russia. Tea is grown mainly in hilly areas in the midland provinces and mountainous regions in the North and Central Coast of Vietnam. Among the 15 types of tea produced in and by Vietnam, O Long tea, black tea and jasmine tea are the most favored worldwide. However, up till now, Vietnam still fails to establish a brand name for its tea; and the tea it has always exported is only of average quality. Therefore, development goals have been set up for the year 2010 that besides improving tea quality, it is essential to expand tea cultivation area to 100,000 ha, increase the yield of dried tea buds to 150,000 tons, and achieve an export quota of about 370 million US dollars.

Fruits and vegetables

The export quota of fruits and vegetables last year was 299 million US dollars. With high potential for development, in recent years, the cultivation area for these products has largely been expanded, with productivity improved significantly. At present, the cultivation area is over 650,000 ha with the largest production areas based in Red River Delta (29% of vegetable production), Mekong River Delta and Da Lat. The most common Vietnam’s vegetables for export are onion, garlic, cabbage, mushroom, carrot, green pea, and cucumber, which are imported into ASEAN countries, East Europe, the EU, the USA, Japan and Taiwan. Fruit plants cultivation area has also been expanded to 600,000 ha (2007), with the most important area situated in Mekong River Delta (30%). The main fruits for export are blue dragon, coconut, pineapple, jackfruit, longan, litchi, rambutan, and mango.  China is the largest export market for Vietnam’s fruits. Every year, it imports 80% of fresh fruits from Vietnam, contributing 50% to the latter’s fruit export quota. In years to come, besides expanding the cultivation area, improving productivity and quality, and establishing a brand name for Vietnam’s fruits will be the priority development strategies for Vietnam

Tags: Vietnam Agricultural Products