Agricultural restructuring focuses on improving product quality

Vietnam's agricultural sector has been restructured in recent years to ensure growth.

PM Nguyen Xuan Phuc at an online conference to review the performance of the agricultural sector in 2016 and set directions for 2017. (Photo: Tran Hai)

Top priority has been given to creating link chains and increasing product value in addition to dealing with challenges caused by climate change and fierce competition in the international market.  

Vietnam’s growth in agriculture, forestry, and aquaculture has declined in recent years due to changes in the world market and climate change. Growth fell from 4% in 2014 to 2.6% in 2015 and 1.3% in 2016.

The Prime Minister has approved a project to restructure the agriculture sector to increase added value and sustainable development so as to boost exports and competitiveness in the global market.

Le Van Binh, Deputy Director of the National Assembly Office’s Economic Department, said the project is very important given the current situation.

“Vietnamese agriculture will find it harder to achieve the same growth as in previous years but the sector can grow in quality. To produce qualified agricultural products, we should invest much more in science and technology, breeds, cultivation methods, and link chains,” said Binh.

The most important things the agricultural sector can do now is define the market, improve processing technology, and remove hurdles related to policies on land and preferential credit for investment attraction.

Nguyen Xuan Duong, Deputy Director of the Husbandry Department of the Ministry of Agriculture and Rural Development, said a series of bilateral and multilateral trade agreements have taken effect, forcing farmers to face stiff competition from foreign products and challenging the rise in value of farm produce and the sector’s overall growth.

“It’s more important to invest in processing than to expand production. This means we are moving to selling processed products in order to increase product value and command higher prices,” according to Duong.

Nguyen Do Anh Tuan, Director of the Institute of Policy and Strategy for Agriculture and Rural Development, said that in order to create a breakthrough, the sector should focus on innovative ways of thinking to improve the quality and value of farm produce.

Tuan particularly insisted on the importance of programs that promote agricultural high-tech and cooperation in vocational training between businesses and farmers. 

He said, “We need to review policies and mechanisms related to restructuring agricultural land, and investment attraction to better address actual needs. More investment should be made in science and technology while getting more businesses involved in the public-private partnership model.”