RUBBER NEWS

Removing Barriers for Vietnam’s Agricultural Exports

Posted on by content02.vinahugo
14
Oct

Export Growth Amid Challenges

According to MARD, Vietnam’s agro-forestry-fishery export turnover reached USD 17.15 billion in the first four months of 2021, up 24.4% year-on-year.

  • Asia: USD 8.05 billion, up 18.2%

  • Americas: USD 4.73 billion, up 56.7%

  • Africa: USD 249 million, up 11.8%

  • Oceania: USD 239 million, up 29.2%

  • Europe: USD 1.72 billion, roughly unchanged year-on-year

However, the ongoing pandemic continues to disrupt supply chains, cross-border logistics, and market access, requiring adaptive strategies and careful production planning.

China Remains a Key Market

China remains Vietnam’s largest agricultural export destination, recovering strongly after controlling the pandemic.
In the first four months of 2021, bilateral agro-forestry-fishery trade reached USD 5.5 billion, up 27.8% year-on-year, including USD 4.02 billion in Vietnamese exports (up 36.5%).

Local governments such as Lạng Sơn and Quảng Ninh have implemented creative solutions to maintain trade flows at border gates, including:

  • Specialized cross-border trucking teams,

  • Extended customs clearance hours through cooperation with Chinese authorities,

  • Adjusted delivery schedules to reduce congestion,

  • Increased exports via rail and secondary border gates.

At Lạng Sơn, border trade in the first four months of 2021 increased 57.3% year-on-year to USD 1.29 billion. In Quảng Ninh, exports through Móng Cái – Đông Hưng rose sharply, with 374,900 tons of goods transported (up 317%).

Export Trends to Other Major Markets

  • European Union: Exports reached USD 937 million (down 3.7%), with declines in coffee (-24.2%), fruit & vegetables (-4.1%), and cashew nuts (-21.2%).

  • United States: Agro-forestry-fishery exports totaled USD 4.3 billion, up 58% year-on-year, though rising container shortages and shipping costs (over USD 6,000 per 40-ft container to the U.S. East Coast) are causing difficulties.

  • Japan & South Korea: Exports increased 5.9% and 7.2%, respectively, supported by effective pandemic control and stable consumer demand.

COVID-19 Logistics Constraints

Vietnam’s fourth COVID-19 wave in mid-2021 has disrupted transport corridors connecting key provinces to major economic centers such as Hanoi, Hải Phòng, and Quảng Ninh. This threatens the smooth flow of seasonal agricultural goods like lychees, longans, and dragon fruit destined for China.

Shipping costs remain high, container availability limited, and air freight remains too costly for most agricultural products. Meanwhile, the cost of cold storage, electricity, and warehousing continues to pressure exporters as orders slow down.

Policy Recommendations and Support Measures

To alleviate export difficulties, MARD proposed several key measures:

1. Financial Support
The State Bank of Vietnam should implement targeted credit packages, including:

  • Debt restructuring (deferment, interest reduction),

  • Low-interest loans for farmers and agribusinesses,

  • Preferential financing for logistics, cold storage, and processing enterprises.

2. Tax and Fee Relief
The Ministry of Finance should:

  • Extend tax and land rent payment deadlines,

  • Reduce or exempt warehouse, port, electricity, and cold storage fees,

  • Support reduced lending interest rates for agricultural exporters.

3. Customs and Trade Facilitation
The Ministry of Industry and Trade (MOIT), Customs Department, and border provinces should enhance coordination to:

  • Simplify customs clearance,

  • Maintain safe cross-border trade with China,

  • Prevent congestion at major border gates.

4. Logistics and Infrastructure
MOIT should work with logistics associations to assess national cold storage capacity, container availability, and electricity pricing for refrigerated operations.

5. Transport Cost Support
MARD recommended the Ministry of Transport and Ministry of Finance support reduced air and sea freight costs for key markets such as the U.S., EU, and Middle East.

6. Local-Level Coordination
Provincial governments should:

  • Provide timely data on local production and market trends,

  • Establish mobile agricultural purchasing centers,

  • Encourage investment in cold storage facilities and processing infrastructure.

Toward Sustainable Recovery

Despite current disruptions, Vietnam’s agricultural sector continues to demonstrate resilience and adaptability. With effective coordination between ministries, local authorities, and enterprises, agricultural exports can maintain growth momentum, safeguard supply chains, and secure stable access to global markets even amid the pandemic.