The leader of the Ministry of Agriculture and Rural Development said that although agricultural, forestry and fishery exports in 2025 will be affected by the new US tax policy, they will still be promoted with many opportunities.
Exports in 2025 may face relatively large challenges related to changes in US protectionist and tax policies. Trade retaliation by other countries, if it occurs, will lead to risks for export markets.
Regarding President Donald Trump's new policies that will impact global trade, including Vietnam's agricultural, forestry and fishery exports, Deputy Minister of Agriculture and Rural Development Phung Duc Tien had an interview with the press about the solutions of Vietnam's agricultural sector to cope with these new issues.
Once you "get in", you have to maintain it.
- What is the Deputy Minister's assessment of the impacts on Vietnamese exports to the US market in the coming time?
Deputy Minister Phung Duc Tien: In 2024, the US will be Vietnam's largest agricultural, forestry and fishery export market, with the export value of Vietnam's agricultural, forestry and fishery products to the US reaching 13.8 billion USD, accounting for 21.8% of total export turnover.
The US President has signed an executive order imposing tariffs on goods from Canada, Mexico, and China, which is expected to create difficulties and challenges when there are trade confrontations between the US and a number of other countries. However, Vietnam and the US have maintained a fairly good relationship and recently a comprehensive strategic partnership. I believe that despite the impact of the new US tax policy, the export of agricultural, forestry and fishery products from Vietnam to the US will certainly be promoted with many opportunities.
- According to the Deputy Minister, what will the agricultural sector need to prepare to be ready to respond and keep pace with changes in the export market in 2025?
Deputy Minister Phung Duc Tien: Currently, the US is the export market accounting for 21.8% of the export value of agricultural, forestry and fishery products. Once we have “entered” the market, we must maintain it. Although policies are changing unpredictably, I firmly believe that we will keep up with the new changes.
Currently, the technology system in the agricultural sector is not large in scale but is the latest, modern technology generation. In addition, when exporting to the US market, we already know the market requirements for: Growing areas, varieties, pesticides, animal product systems, feed, veterinary procedures, disease prevention, biosafety, harvesting, preliminary processing, processing... If these product quality standards regulations change suddenly, they cannot be too unusual.
Vietnam has a Trade Counselor in the US and this is the focal point to grasp information, trends and needs of this market. Therefore, information from the Counselor and the Embassy will help the industry analyze, promote trade and organize production to meet market requirements.
With the close direction of the Government and the Prime Minister, the coordination between the Ministry of Agriculture and Rural Development, the Ministry of Foreign Affairs, the Ministry of Industry and Trade with provinces and cities, it is completely possible to respond and keep up with the uncertain changes of the US market as well as the Chinese market and other markets to maintain the growth momentum of the agricultural sector.
The further out to sea, the more determined you must be.
- One of the solutions to cope with the possible trade war is to expand export markets. Could you please tell us how the development of products and markets will be implemented?
Deputy Minister Phung Duc Tien: Many comments and forecasts have been made showing that the trade war is very close and it is necessary to prepare a system of solutions, in which the Ministry of Agriculture and Rural Development will coordinate with the Ministry of Foreign Affairs to open the Halal market and coordinate with the Ministry of Industry and Trade to deploy the export of agricultural, forestry and fishery products to other markets.
After 40 years of restructuring, the growth rate of the agricultural sector has remained high. Vietnam's agricultural, forestry and fishery products have been exported to more than 200 markets. In addition to the US and China markets, which are two major markets, the European, Japanese, Korean and Philippine markets are also important markets that have been maintained. We are also promoting the opening of new products and markets with great potential and advantages, such as the Halal market with 2.2 billion people. Although Halal is a large market, there are different criteria and standards for each country.
The further out to sea, the more difficult and challenging it will be, and the more difficult and challenging it is, the more determined we must be, organize production seriously, effectively implement traceability, digital transformation, and move towards a green economy, and reduce emissions to maintain growth momentum.
If the agricultural sector builds production and farming areas with digital transformation, applies technology in management, traceability, food safety along the chain and improves harvesting, preliminary processing and processing stages, we will ensure quality and confidently consolidate and expand markets.
- Thank you very much, Deputy Minister!
In the regular Government meeting in January 2025, in the face of the unpredictable developments in the world and the region, directly affecting Vietnam, especially exports, production, business, and the macro economy, Prime Minister Pham Minh Chinh emphasized the need to forecast and closely analyze the situation in February 2025 and the coming time, especially new issues, emerging issues such as the possibility of a trade war in the world, which, if it happens, will disrupt supply chains and narrow export markets; thereby proposing our solutions to respond quickly, promptly, without being passive or surprised, without missing opportunities and maintaining momentum, keeping the rhythm, and maintaining the existing spirit to continue developing. Prime Minister Pham Minh Chinh has proposed a number of solutions such as continuing to focus on renewing traditional growth drivers, promoting new growth drivers; continuing to expand and diversify markets, products, and supply chains, especially new markets such as the Middle East and South America. |
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