Private enterprises as centerpiece for Vietnams agricultural development

Vietnam’s agricultural sector would focus on large scale production and forming agricultural value chains for greater added value, aiming towards sustainable development and deeper integration into agricultural global value chain.

Private enterprises must be considered the centerpiece for a competitive and robust agricultural sector, according to Cao Duc Phat, deputy head of the Central Economic Commission. 

Unfortunately, only 6,000 out of the total 500,000 private enterprises are operating in farming sector, a number which is leaving much to be desired, Phat said at the Vietnam Private Economic Forum 2019 held on May 2. 

According to Phat, Vietnam currently has 10 million farming households at small and micro-sized, each working on an average of 2,000 – 3,000 square meters of farmland, significantly lower than those in the US with 500,000 hectares each. 

Vice Minister of Agricultural and Rural Development Le Quoc Doanh informed in the 2008 – 2017 period, the agriculture posted an average growth rate of 2.66% per year and reached 3.76% in 2018. Additionally, Vietnam’s agricultural products have been exported to over 185 countries and territories. 

Total exports of the sector during the 10-year period reached US$261.28 billion, posting average annual growth rate of 9.24%. In 2018, farm export turnover stood at record high of over US$40 billion, up US$23.55 billion compared to 2008. 

Vietnam currently is the second largest agricultural exporter in Southeast Asia and 15th globally, with 10 categories of products having export value of over US$1 billion each, Doanh said. 

Under the ongoing restructuring effort, Vietnam’s agricultural sector would focus on large scale production and forming agricultural value chains for greater added value, aiming towards sustainable development and deeper integration into agricultural global value chain. 

Meanwhile, Doanh said it is vital to apply international standards and technologies during the production process, saying it would be key to enhance the competitiveness of the agricultural sector with quality and safe products.