Adhering the Trans-Pacific Partnership Agreement (TPP), Vietnam Vegetables sector will be more confident; conversely, Livestock industry will be put under pressure.
It is said by some experts about the products of these Vietnam sectors in the validation of the Trans-Pacific Partnership Agreement.
Exporting vegetables is potential
According to Dr. Nguyen Huu Dat, the member of the Executive Committee of Vietnam Fruit and Vegetables Association, since 2004, the State has started to pay attention to the export of fruits to “hard” markets requiring high standards of goods quality.
In the US market, we have exported to this market 4 types of fruits including dragon fruit, rambutan, longan and litchi. It is expected that Vietnam will export star apples to this nation. Also, Vietnam will export mango and dragon to Japanese market, and dragon fruit, litchi, mango to Australian market.
He also said that most “hard” markets are participating in the TPP. The fruit and vegetables exported to the markets of the member nations of the TPP have steadily increased over the years with the earned value 4-6 times higher than the normal market.
Due to be familiar with the market of many member nations of the TPP over the years, so far, Vietnam enterprises exporting vegetables and fruits are very confident with new prospects.
The initial success of exporting certain agricultural products to “hard” market will create a good premise for many other agricultural commodities. However, many experts said that if Vietnam cultivation want to sustainably develop in the integration process, the overall solutions would be in need.
Mr. Luong Van Tu, the chairman of Vietnam Cocoa and Coffee Association (Vicofa), stated that we need to promote the regional planting plan, support the breeds, guide technique and provide the policies for concessional credit.
Besides, according to agricultural experts, in order to raise the value of Vietnam agricultural products in general, it is necessary to focus on the production and deep processing to enhance the value of goods, avoid surplus and depending on the market due to the seasonal nature of agricultural products.
Pressure on the livestock sector
Dr. Doan Xuan Truc, the Deputy Chairman of Vietnam Association Livestock, revealed that joining TPP, the livestock sector will faster access to new technologies, new animal breeds and other forms of advanced manufacturing. Besides, the livestock sector has also benefited (tax of 0%) when importing feed ingredients and veterinary drugs, breeding, animal husbandry equipment, contributing which contributes to reduction of input costs in the livestock sector.
However, two major challenges that the industry are facing when joining the TPP are the price and quality of food safety.
Accordingly, the price of Vietnam livestock products is 25-30% higher than it of other countries joining the TPP (such as the United States, Canada, Australia, New Zealand). The main causes of this problem are small livestock, low seed quality, high input costs, low labor productivity, usual disease threats, weak livestock chain linkage, many intermediaries and high bank interest rates.
Along with that, the product quality and food safety are poor due to the manual slaughterhouse, many farmers not performing the animal husbandry with the VietGAP and GlobalGAP standards and not ensuring biosafety.
According to Mr.Truc, the livestock sector needs to accelerate the restructure and reorganization of production, depending on the products (at least since 2 years).
In this process, developing the value chain links in the livestock sector is very important to eliminate the intermediate steps, lower costs, create products in the quality assurance and food safety, inquiry the product origin, limit the risk of diseases and make up conditions for bank loans when needing.
Mr. Truc said that through the reality surveys ( September,2015) in some enterprises in HCM City, Hanoi and Dong Nai, the closed value chain links in breeding has helped to reduce production costs from 12 -22%. The key subjects to build and develop the farming production chain link are enterprises. Hereby, the enterprises are considered as both the investors and producers who organize the production and apply the scientific and technical progress and ensure the consumer market.
According to enterprises in the livestock sector, in order to reduce difficulties for the sector in the integration period and contribute to lowering the production cost, the competent authorities can apply special credit schemes for the livestock sector including loaning in preferential interest rates following the cyclical and seasonal production with seed production facilities, commercial breeding, slaughter, processing and preservation of products. The enterprises also hope that the Government shall issue the Decree on the new agricultural cooperatives in which there are the including cooperatives and farming cooperative team.
The Ministry of Agriculture and Rural Development and the Ministry of Finance have been continuously checked and eliminated unreasonable fees and charges of the animal husbandry and veterinary.
Source : chinhphu.vn
Keyword : Adhering to TPP, Vietnam is confident with, vegetables sector, but stressful, with livestock industry.
