Switch from raw exports to deep processing
According to the Ministry of Industry and Trade, Vietnam is currently the world’s second largest coffee exporter, the largest cashew and pepper exporter, and the third largest rice exporter. Trade agreements have created great opportunities for agricultural, forestry and fishery products thanks to tariff reductions, while attracting high-quality foreign investment into the agricultural sector. This not only helps increase product value but also helps Vietnam penetrate deeper into the global supply chain.
The Government is implementing policies to support the agricultural sector in shifting from raw exports to refined processing, with the aim of improving product quality and expanding the product portfolio.
These policies support businesses in applying new technologies in agriculture and investing in the food processing industry. This transformation not only improves product quality but also meets global consumption trends, helping Vietnam keep pace with the international market.
Thanks to investment in deep processing, many Vietnamese products have had significant added value. For example, deeply processed fruit and vegetable products have a selling price 3-4 times higher than regular fresh products.
Thanks to investment in deep processing, many Vietnamese products have had significant added value.
Mr. Trinh Ngoc Minh - General Director of Phuc Tien Agricultural Products Joint Stock Company said that the company has invested heavily in freezing and deep processing systems, helping to sign many export orders to Europe and Asia. Deep processing not only expands the consumption market but also helps businesses preserve products for a long time, reducing the pressure of dependence on export markets.
Similarly, according to a representative of An Giang Vegetable and Food Joint Stock Company, deep processing helps to handle large quantities of products during harvest season, preventing price reductions due to unsold products.
The seafood industry has also witnessed special interest in deep-processed products at international exhibitions. Value-added processed seafood products have received positive feedback from customers and are highly appreciated for their quality and variety of designs.
Deeply processed products meet the needs of modern consumers, where busy consumers need quick and convenient solutions. This also helps seafood processing enterprises gain better profits thanks to the added value of the products.
Vietnam has advantages in processing level and high skills of workers, allowing the production of goods that meet international standards and preserve the fresh taste of the products.
Future and development direction
Despite many efforts, the rate of deep processing of Vietnam's export goods is still limited. According to the Vietnam Fruit and Vegetable Association, there are currently about 150 modern processing facilities with a designed capacity of 1 million tons of raw materials per year, but this number only accounts for more than 10% of Vietnam's annual raw material output. The fruit and vegetable industry needs to make more efforts to increase the rate of deep processing and expand export markets.
The tea industry also faces similar challenges. According to the Import-Export Department (Ministry of Industry and Trade), tea exports in July 2024 reached 16,000 tons, up 52.8% in volume and 56.2% in value compared to July 2023. However, Vietnam's tea export prices are still much lower than the global average price, showing that deep processing and product value enhancement are in great need of attention.
The Department of Agricultural Product Processing Quality and Market Development (Ministry of Agriculture and Rural Development) said that the value of Vietnamese tea is not high because the exported tea is mainly in raw form, while global consumer demand is shifting towards deeply processed and specialty tea products.
Therefore, the authorities need to shift from agricultural production thinking to agricultural economic thinking, combined with ecological factors and sustainable development. Enterprises need to improve product quality, diversify goods and develop industry value chains to meet the requirements of the world market.
Decision No. 493/QD-TTg of the Prime Minister approving the Strategy for Import and Export of Goods to 2030 has identified the goal of developing new products with high added value, including deeply processed agricultural and aquatic products, and medium and high-tech manufactured industrial products. This is an important driving force for enterprises to continue promoting deep processing and increasing export value, ensuring Vietnam's position in the international market in the coming years.
Source: https://doanhnghiepvn.vn/kinh-te/tang-cuong-gia-tri-hang-xuat-khau-qua-che-bien-sau/20240903112903322
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