Vietnams agriculture exports on track to reach record high
![Vietnams agriculture exports on track to reach record high](/temp/resize/400x300/upload/news/04-2018/20f363df-5ad81404e49519f25e8b4568.jpg)
The first dialogue to boost Vietnam’s agricultural growth between the Prime Minister and farmers took place in Hai Duong on Monday drawing leaders of ministries, sectors, and 600 farmers. The dialogue is a follow-up to 20 agriculture conferences and forums that the Prime Minister attended last year.
The government has, over the past few years, adopted a number of policies to expand agriculture markets, encourage businesses to invest in agriculture, and solve problems in cultivation land.
Agriculture important to national economic growth
Last year, Vietnam earned a record 36 billion USD from agriculture exports and the export surplus exceed 8.5 billion USD. Vietnam plans to increase agriculture exports to 40 billion USD this year. Agriculture contributes 20% of GDP and make up 23 to 35% of total export value.
Last month, Vietnam and 10 other countries signed the Comprehensive and Progressive Trans-Pacific Partnership Agreement, which will create opportunities for Vietnam’s agriculture. But there are still challenges, including scattered production, low productivity, efficiency, and competitiveness, and loose links in the value chains.
Solutions
The government identifies agriculture and rural areas as priorities for investment. Last year, the Prime Minister asked banks to offer a credit package of 4.4 billion USD for high-tech agriculture. So far, nearly one third of the package has been disbursed. The banks have set a ceiling on lending interest of 7% for priority sectors like agriculture, 1-2% lower that the common rate. The government has issued a decree on credit policy for agriculture and rural areas, and adopted a number of specific policies for agricultural exports including incentives for rice stocking, coffee re-plantation, and offshore fishing.
The government has asked for the re-adjustment of credits without collateral, expanded export markets and is working to attract more investment to agriculture.
In the context of the 4th industrial revolution, the government plans to develop a digital system to introduce effective business models and connect farmers.
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