Need to build digital maps, attract investment resources

Currently, Vietnam has participated in and is negotiating 19 Free Trade Agreements (FTAs) (of which 16 FTAs ​​have been signed and implemented; 3 FTAs ​​are under negotiation) and is the only country to sign Free Trade Agreements with all major economic partners in the world such as the United States, Japan, China, EU, UK, Russia... FTAs ​​have been helping Vietnamese agricultural products, especially cinnamon products, to go further in the international market. Agricultural expert Hoang Trong Thuy had an interview on this issue with Cong Thuong Newspaper.

Lao Cai farmers process cinnamon. Photo: VNA

From the perspective of an expert in the agricultural sector, what advantages and challenges do cinnamon businesses have in taking advantage of incentives from FTAs ​​for export?

Up to now, we have also seen that Vietnamese agricultural products, including cinnamon products, have had many advantages for export and access to many potential markets thanks to incentives from FTAs ​​that Vietnam participates in.

Currently, the market for local products is expanding, many markets have demand and trust in Vietnamese cinnamon products, such as the Asian, European, and American markets...; In addition, we have concentrated raw material areas in Lao Cai and Yen Bai, which are favorable for cultivation and application of science and technology in production. In particular, localities have identified cinnamon as a key crop, so they have focused on policies to support, develop, and promote agricultural extension work...

However, besides the advantages, there are many difficulties and challenges. For example, we currently do not have a national cinnamon industry development strategy, which makes many businesses hesitate to invest. On the other hand, the connection between businesses in the industry is still loose, as well as the lack of quality human resources... has limited the added value of the cinnamon industry as well as the instability of the market in the context of increasingly fierce competition.

Industry associations have not yet clearly demonstrated their role in connecting members, representing and protecting businesses in the market. Support policies have not yet created a fulcrum and promoted breakthrough development for cinnamon products, especially in exploiting and taking advantage of FTAs ​​to access many potential markets.

Agricultural expert Hoang Trong Thuy

From the intertwined advantages and difficulties, how do you evaluate the promotion of ecosystem development for the cinnamon industry, thereby making more effective use of FTAs?

It can be said that building and developing an ecosystem to take advantage of FTAs ​​as well as providing methods, roadmaps for construction and benefits to create conditions for the cinnamon industry to develop and export products is extremely important.

We expect that the establishment of connecting groups between export enterprises and relevant agencies; as well as focusing on brand building and having a strategy to systematically and effectively build an ecosystem for the industry; focusing on improving product quality, developing sustainable markets... will have a positive impact on the cinnamon industry in the process of taking advantage of FTAs.

However, in terms of building an ecosystem for the cinnamon industry, as well as Vietnam's agricultural products, in my opinion, only guidelines have been given so far. Accordingly, it is necessary to promote more strongly in terms of awareness, as well as specific actions. Because the ecosystem is a collective activity, related to the value chain from production, business, and selling products to the market. Because the ecosystem includes many factors, if just one step is blocked, it will affect the whole system.

Cinnamon industry - one of Vietnam's key agricultural export products, in your opinion, in the coming time, what support should the Industry Association and management agencies such as the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development provide to cinnamon industry enterprises?

First of all, I think we need to soon build a digital map of the cinnamon industry so that businesses can clearly understand the area, harvest output, and consumption needs of the market, especially markets with FTAs... When there is such information, innovation and creativity will flourish, thereby avoiding congestion or serious shortages. At the same time, building a digital map of the cinnamon industry will create more favorable conditions for attracting investment resources. Thus, building a database of hometowns... is currently the dream of many production households as well as cinnamon businesses.

In addition, enterprises that want to develop and bring products to large markets, especially FTA markets with strict requirements and regulations, must have strong capital to invest in technology. Meanwhile, the capital resources of enterprises are a factor that needs more attention and resolution.

Accordingly, the Ministry of Agriculture and the Ministry of Industry and Trade need to sit down together to build a development strategy for cinnamon products and the cinnamon industry at the national level. When there is a strategy and development orientation, businesses will determine their scale and recognize opportunities to expand the market for investment.

In addition, the Ministry of Agriculture researches plant varieties, produces quality products; implements small and medium-sized projects... to replicate production models for farmers; as well as promotes the development of cinnamon cooperatives.

As for the Ministry of Industry and Trade, it is necessary to continue to strengthen negotiations, promote trade, and seek markets for cinnamon products; research changes in market demand and consumption trends; and identify adequate factors for the development of the cinnamon industry ecosystem. The Ministry of Industry and Trade needs to strengthen and promote horizontal linkages between ministries and sectors, and vertical linkages along the product path... This will contribute to increasing development opportunities and expanding the market for cinnamon products.

Thank you!

Source: https://congthuong.vn/phat-trien-thi-truong-ben-vung-cho-san-pham-que-can-xay-dung-ban-do-so-thu-hut-nguon-luc-dau-tu-350957.html