'Eagles' pour 71,000 billion into investment, good harvest and falling prices are no longer a curse

VietNamNetVietNamNet14/05/2023


As a country with strengths in agriculture, most of Vietnam's agricultural products have an output of several million to tens of millions of tons per year, some even ranking among the top in the world.

Statistics show that in 2022, grain output will be 47.1 million tons, vegetables of all kinds 18.8 million tons, fruits of all kinds 18.68 million tons, meat output of all kinds 7.05 million tons, seafood about 9.03 million tons, eggs 18.3 billion...

Maintaining the supply and demand of food and foodstuffs not only ensures national food security, but also contributes to stabilizing the macro-economy and ensuring the major balance of the economy. In 2022, the export turnover of the entire agricultural sector will reach 53.5 billion USD - a historical record.

Many large enterprises and corporations spend huge capital investing in agricultural product processing and preservation (Photo: Hoang Ha)

However, for many years, the agricultural sector has been plagued by the curse of fragmentation, small-scale, and spontaneous production. In addition, post-harvest processing and preservation of agricultural products is a weakness of this industry.

The main practice is to harvest agricultural products, especially fruits and vegetables, and sell them fresh, so farmers often face the situation of "good harvest, low prices" and have to rescue agricultural products. Meanwhile, the export of raw or pre-processed agricultural products accounts for a high proportion and has low added value.

Industry experts have mentioned that we still mainly sell in quantity, agricultural products are packaged and exported raw, so the income is meager.

In the report on the implementation results of Resolution No. 62/2022/QH15 on questioning activities at the 3rd session (15th National Assembly), the Ministry of Agriculture and Rural Development recently mentioned the investment situation in developing the agricultural processing and preservation industry, and enhancing deep processing.

Accordingly, in the value chain, post-harvest processing and preservation is a weak point but is gradually being improved. Our country has formed and developed an industrial system for processing agricultural, forestry and fishery products with nearly 7,600 industrial-scale establishments associated with export with a design capacity to ensure processing and preservation (including preliminary processing) of over 120 million tons of agricultural raw materials each year.

In addition, there are tens of thousands of small, retail, and household agricultural processing facilities of all types spread across the country, performing preliminary processing and processing mainly to serve domestic consumption, increasing farmers' income.

Many large private enterprises and corporations have paid attention to and implemented investment projects in the field of agricultural, forestry and fishery processing, including modern facilities with advanced processing technology for vegetables, shrimp, pangasius, poultry slaughter, coffee, etc. 76 large processing projects have been started and some have come into operation, with an investment scale of more than 71,000 billion VND.

Investing in agricultural processing not only increases product value but also helps farmers avoid the situation of good harvest but low prices (Photo: Hoang Ha)

Promoting investment in the agricultural, forestry and fishery processing industry has contributed to increasing the added value of agricultural products, reaching about 8-10%/year, strongly affecting the change in the structure of crops and livestock. Along with that, product quality and food hygiene and safety are guaranteed; although post-harvest losses are still high at about 10-20%, they are gradually decreasing, about 0.5%/year.

The Ministry of Agriculture and Rural Development said that a number of modern processing complexes invested in over the past five years have achieved advanced technological levels and capabilities; the export value of deeply processed products has high added value, reaching about 35% of the total value of agricultural exports.

Initially forming links, creating a close connection between the processing industry with raw material production and consumption markets; helping to stabilize production, avoiding the phenomenon of good harvest, low prices or having to "rescue" farmers; helping to change the long-standing small-scale production practices of the agricultural sector; transforming the structure of livestock and crops, contributing to increasing the value of Vietnamese agricultural products...

In recent years, “eagles” such as TH Group, Nafoods Group, Dong Giao Food Export Joint Stock Company, Lavifood Joint Stock Company, VinaT&T... have invested in projects and agricultural processing complexes with huge capital. Farmers participate in cooperatives to create raw material production for processing factories.

Previously, Minister of Agriculture and Rural Development Le Minh Hoan also said that many large enterprises and corporations invest in the agricultural sector, especially in deep processing.

According to him, the agricultural sector needs “eagles” to lead and bring agricultural products to the “global market”. Cooperatives and small and medium enterprises in localities will combine with “eagles” to form an ecosystem, thereby creating added value for Vietnamese agricultural products.

The strength of 40 billion USD, waiting for the 'magic wand' for millions of people to benefit

Most of Vietnam's agricultural products have an output of several million to tens of millions of tons, earning 40 billion USD in export revenue. However, the rate of processed agricultural products is still too low, leading to a situation where there are many products sold but little money earned.



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