LONDON (VNS) — Leading market research firm, Business Monitor International (BMI), has said Viet Nam's recent economic trends are providing new opportunities for the nation's agribusiness sector.
In a new report released by BMI, Viet Nam's agriculture sector is facing a strong incentive to speed up the production, export and sale of traditional agricultural products, including rice, coffee, livestock, and dairy, to harness new growth opportunities.
However, the report also shows growing competition faced by Vietnamese farmers in traditional markets, highlighting a need for the industry to make improvements to supply chain efficiency and product quality, in order to remain competitive.
Among factors affecting the industry's export growth, the report described tumultuous periods of high inflation and fluctuations in the value of the dong as significantly impacting the value of exports.
However, the report also acknowledged the Government's recent policy efforts in containing rampant inflation from previous years, restructuring State-owned enterprises and addressing imbalances in the economy through tax incentives and investment in infrastructure.
The country is eager to attract foreign investment to multiple sectors, including agriculture, one of the most difficult and high risk areas as perceived by investors. Foreign direct investment (FDI) in agriculture is currently accounting for 1-3 per cent of the country's total FDI.
The Government is hoping new efforts to improve the production capacity and commercial viability of the agricultural sector will attract more investors, particularly in the form of public-private partnerships (PPP), which will be used in specific agriculture sectors, such as cultivation, breeding and seafood industry.
According to BMI forecasts, Viet Nam's rice production, cattle and poultry farming and milk industry are likely to grow by more than 10 per cent between 2012 and 2017.
Viet Nam's exports are also set for periods of growth, with the country still competing favourably with traditional competitors, including Thailand, Indonesia, India and Brazil.
Viet Nam is now one of the world's leading exporters of rice and coffee.
In yet another siren call to the industry, the report affirmed the need for agricultural players to apply new technologies in production and raise standards in food safety to enhance the brand of Vietnamese produce.
Experts say the measures, in the long term, will increase the value of Viet Nam's exports, and increase their competitiveness on the world market. — VNS