The Central Highlands agricultural sector receives good news from the European market.

Agriculture sector makes impressive contribution to Central Highlands exports in 2023

According to the report of the European - American Market Department, the agricultural sector of the Central Highlands region has made impressive contributions to export activities in 2023, especially agricultural product groups such as: Rice, vegetables, cashew nuts, etc.

In the European - American market, in 2023, the export of Vietnam's main agricultural products (7 items including: Tea, rice, pepper, cashew nuts, vegetables, rubber, and coffee) to this market will reach approximately 5.3 billion USD, a slight increase of 0.65% compared to 2022.

Vietnam's fruit and vegetable exports to the European and American markets have grown continuously over the past few years. In 2023, the export value to this market reached 615.4 million USD, an increase of 11.2%. In the first 3 months of 2024, the export value of this industry also increased by 25.7%, reaching 159 million USD.

Ngành nông nghiệp Tây Nguyên đón tin vui từ thị trường Âu - Mỹ

Agriculture sector makes impressive contribution to Central Highlands exports in 2023

Notably, Vietnam's rice products are positively received by the European and American markets. In 2023, the value of rice exports to this market increased by 50%, reaching 64 million USD. In the first two months of 2024, the export value increased by 15.8%, reaching 16.0 million USD.

In addition, in 2023, Vietnam's coffee exports to Europe and America successfully reached the target with a value of 2.33 billion USD, a slight increase of 0.1% compared to 2022, despite Vietnam's coffee reserves being very low while supply is tight, inflation is still not well controlled, and high interest rates in both the EU and the United States continue to rise.

Continuing the growth momentum, in the first 3 months of 2024, coffee export value increased by 51.9%, reaching 1.04 billion USD.

Cashew nuts will continue to maintain their position as the largest exporter to the EU and US markets in 2023. By the end of 2023, the export value of this item to the Europe-America region will reach 1.78 billion USD, an increase of 8.2% compared to 2022. In the first quarter of 2024 alone, cashew exports to the Europe-America region will reach 410 million USD, an increase of 22.3% over the same period last year.

In addition, according to Vietnam Customs data in 2023 and 2024, wood and wood products are the top potential items for businesses. Although wood products witnessed a -16.5% decrease in turnover in 2023, in the first 3 months of 2024, wood exports grew dramatically again, reaching 2.16 billion USD, up 35.6% over the same period in 2023.

Some of Vietnam's leading wood export markets in 2023 are: the United States (7.3 billion USD), Canada (205.5 million USD), the United Kingdom (195 million USD), France (405.5 million USD)...

Seize opportunities, overcome challenges to receive good news in 2024

The global economy is entering a new era, full of risks, challenges and unpredictability. In 2024, the economic growth rate of the world and the countries of the Europe-America region is forecast to be lower than in 2023.

In addition, geopolitical conflicts continue to drag on and instability continues to threaten to spread to other regions.

Not only that, developed countries are increasingly concerned with issues of sustainable development, climate change prevention, and consumer safety. This is the premise for establishing new standards and regulations related to supply chains, raw materials, labor, and the environment that are more stringent for imported products.

However, the Central Highlands is considered to have great potential and opportunities. According to the assessment, the Central Highlands has rich land, favorable climate and diverse natural resources. With more than 5 million hectares of agricultural land, including 1.3 million hectares of red basalt soil and advantages in climate and soil suitable for many types of crops.

Therefore, the Central Highlands has become the key production center of the country's key agricultural products such as coffee, pepper, rubber, cashew, macadamia... and many types of fruit trees.

It is necessary to make good use of free trade agreements to develop the Central Highlands agricultural sector. Photo: Ministry of Industry and Trade

Not only that, Vietnam is a country with special export advantages when it owns up to 16 Free Trade Agreements, including agreements with countries and market regions in Europe and America including: EVFTA, UKVFTA, VN-EAEU, CPTPP, Vietnam - Chile.

Demand in the world market and in Europe and America has gradually recovered as inflation has begun to decline since the end of 2023 and is likely to approach the target set by Central Banks for 2024.

The continued promotion of supply source diversification, supply chain diversification, and investment diversification by developed industrial countries has helped Vietnam become an important production and export center in the global value chain.

At the same time, countries in Europe and America are promoting the development of green economy, digital transformation, and circular economy, opening up many new cooperation opportunities as well as providing a lot of credit and technology support to help Vietnam.

If favorable conditions are met, opportunities are seized, and challenges are overcome, the agricultural sector will continue to make breakthroughs, contributing to import-export activities in 2024. Exports to the Europe-America region are likely to achieve a growth rate of 3-5% (of which exports to the EU and the US will increase by about 2%).

In 2024, the European - American Market Department will continue to accompany and support businesses exporting to the European - American market.

Specifically, the European - American Market Department enhances the provision of updated information on fluctuations and trends of major import/export markets, along with assessments of opportunities and challenges for businesses to develop appropriate adaptation strategies/plans.

Actively coordinate with stakeholders, associations, businesses, and localities to implement 4 Development Strategies for 4 market regions: EU, US, Latin America, CIS from now until 2030.

The Department will continue to synchronously deploy from central to local levels the activities of the Project "Promoting Vietnamese Enterprises to directly participate in foreign distribution networks by 2030" approved by the Prime Minister in Decision No. 1415/QD-TTg dated November 14, 2022.

Coordinate with business connection and support programs of Trade Offices in the European and American markets, including business connection webinars, exhibitions, etc.

Source