Vietnam’s agro-forestry-aquatic product exports expect robust growth next year

Do Ha Nam, Chairman and General Director of Intimex Group, described 2024 as a highly successful year for Vietnam's agricultural sector. The sector’s export turnover of over US$62 billion far exceeded the government’s target of US$54–55 billion.

This achievement was largely driven by record-setting exports of rice, coffee, and fruits. The key contributors to this growth included coffee exports (up 56.9%); pepper (up 53.3%); rubber (up 24.6%) and rice (10.6%).

Vietnam set unprecedented records in both rice export volume and value, with approximately 9 million tonnes worth US$5.7 billion. The average export price reached an all-time high of over US$600 per tonne.

Nam highlighted a strategic shift in Vietnam’s rice production, focusing on premium, high-quality fragrant rice varieties and gradually reducing lower-grade rice production.

Fruits and vegetables lead growth

The opening of new markets - such as pomelos to the Republic of Korea, passion fruit to Australia, and expanded trade protocols allowing frozen durians and fresh coconuts to China - has driven remarkable growth in fruit and vegetable exports.

Annual export turnover in this sector is forecast to reach US$7.2 billion, a 28% increase from 2023, with durian alone potentially achieving a record of US$3.5 billion. These milestones solidify durian’s pivotal role in the fruit and vegetable sector.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien praised the sector for maintaining high growth and broad development despite challenges such as market fluctuations, natural disasters, and diseases. Agro-forestry-aquatic product exports emerged as a bright spot, contributing 65–72% of the total trade surplus in the national economy.

Tien attributed the sector's success to consistent restructuring and the adoption of scientific and technological advances. Efforts such as combating saltwater intrusion, recovering swiftly from natural disasters, and developing supply chains connected to processing and export markets have propelled sustainable growth. Trade protocols and market access agreements have also provided a solid foundation for significant export breakthroughs.

China remains a critical market for Vietnamese agricultural product exports, particularly fruits, cassava, rubber, and seafood. Nong Duc Lai, Trade Counsellor at the Vietnamese Embassy in China, noted that urban Chinese consumers increasingly favour high-quality products with clear origins.

Thus, Vietnamese businesses are encouraged to comply with quality standards, quarantine regulations, packaging, and traceability requirements while investing in brand building. Strengthening quality control is essential to enhancing the reputation of Vietnamese agricultural products.

For the European Union (EU), the world’s third-largest market for agro-forestry-aquatic products, Tran Van Cong, Vietnam’s Agricultural Counsellor in the EU, emphasised the need for stricter inspections and solutions for items subject to increased scrutiny. Developing raw material zones compliant with EU standards will be crucial for accessing this demanding market, he added.

Beyond traditional markets, Vietnam is also exploring new opportunities, particularly in the Halal market of the Middle East. Deputy Minister Phung Duc Tien described this as a significant chance for Vietnam’s agro-forestry-aquatic products to expand, noting that the sector is focusing on accelerating trade promotion to penetrate the Halal market and unlock new growth potential.