On the afternoon of December 18, Prime Minister Nguyen Xuan Phuc attends the Forum on “Market Development for Vegetables, Fruit and Vegetables and Solutions for Development of Logistic System for Agriculture and Rural Areas” organized by Dong Thap and the Ministry of Agriculture. and Rural Development Organization.

Speaking at the forum, the PM said that Vietnam’s fruit and vegetable sector has great potential and recently had strong growth. In 2017, the export turnover of vegetables and fruits reached about $ 3.5 billion out of $ 36 billion in total agricultural exports. As a result, the vegetable and fruit sector has outperformed rice and oil sectors.
Recognizing the inadequacies and shortcomings that need to be overcome in the coming time, the Prime Minister pointed out that while Vietnam’s economy is in the top 50 in terms of GDP, Vietnam’s export value only accounts for 1% world. Productivity is low. Quality and efficiency are the challenges.
Even, the market situation is not stable with many problems like “good season but price drops” “good price but lost season”. Biotechnology, especially in breeding stage, has many problems. Post harvest losses are very high, over 30%. In the $ 3.5 billion of exportation, the new processing accounted for 8%, so the value added is low. It needs to overcome.
Another disadvantage is the infrastructure, especially logistics with low competitiveness. According to the World Bank (WB), logistics costs of Vietnam are expensive compared to other regions and the world. The logistic cost is about 18-20%, almost double the growth rate and 4% higher than the global average, affecting the selling price of vegetables and fruits. The logistics capacity index decreased 16 levels (from 48 in 2014 to 64 in 2018)
The policy of promoting the production of this field is unclear. “Now in Dong Thap there are twenty thousand hectares of vegetables and fruits that we want to increase three times more. Therefore, what policy is used to attract?” The Prime Minister questioned and proposed after the conference. The Prime Minister Ministries, branches, especially MARD, will discuss and take better measures to bring the Vietnamese fruit and vegetable sector into line with its potential.
Agreeing with the opinions of the delegates, the Prime Minister said that the demand forecast vegetables and fruits in the domestic and international markets are very large. The domestic market with 100 million people is a great opportunity and people have the right to enjoy fresh, quality food. Therefore, it is necessary to catch and forecast to calculate the average turnover increase over 20% per year and export value in this field by 2020 reach nearly 5 billion USD. We need to determine the key to success: quality and cost.
Prime Minister Nguyen Xuan Phuc witnessed the Signing Ceremony of the Memorandum of Understanding on the development of the Logistics and Infrastructure Development Strategy in Dong Thap province
With that spirit, the PM suggested concentrating on implementing some tasks. It is to complete long-term agricultural production planning in line with market requirements in the context of climate change, infrastructure planning to make it more convenient and suitable to reduce transportation costs including development of services logistics.
Improve investment policies, including raw material areas and processing plants, encourage the development of linkages in the value chain to reduce the middle class, especially the policy of respecting Enterprises, prioritize the development of collective economy, including cooperative groups and cooperatives. Do not let the factory keep producing materials that are not available.
Continuing to innovate awareness and awareness in market development and commodity production, application of scientific and technological advances to preservation, processing and trade promotion, making use of the achievements of the industrial revolution 4.0. to catch up with the regional level of the world, improve the competitiveness, quality and efficiency of the vegetable industry
It is necessary to improve the logistic services in the value chain of vegetables and fruits in particular and agricultural products in general. It is not possible to go on the path of production scattered, spontaneous, run by productivity, poor quality, raw export that we need new ways, more practice to strongly improve the business investment environment. It is included reducing transportation costs, doing the best logistics services, improving the connection between production and the market, reducing commercial costs and lowering production costs.
Develop diversification of production models such as enterprises, large corporations, cooperatives, households, not rigid model any.
In terms of resources and credit, the state always supports organizations and individuals to invest in vegetables and fruits. The Prime Minister said and affirmed that the Government always cares to promote this sector.
At the forum, Prime Minister Nguyen Xuan Phuc also witnessed the signing of a memorandum of cooperation on research and investment promotion of sustainable agriculture towards international market integration – Mekong River Delta in Dong Thap Province, Memorandum of Understanding on Strategic Development of Logistics and Infrastructure in Dong Thap Province, Memorandum of Understanding for the Construction of Agricultural Product Value Chain in Dong Thap province as well as a number of cooperation agreements between enterprises on the consumption of agricultural products …
Source: Dau tu Newspaper