HIỆP HỘI RAU QUẢ VIỆT NAM (VIETNAM FRUIT & VEGETABLES ASSOCIATION) 24 Trương Định - Phường 6 - Quận 3 - TP. Hồ Chí Minh - Việt Nam Tel : (84-8) 3 9330665; Fax : (84-8) 3 9330664; HP:0903832499 Email : email@example.com Website : http://www.vinafruit.com OVERVIEW OF CURRENT VIETNAMESE FRUIT AND VEGETABLE EXPORT Huynh Quang Dau Vice Chairman of Vinafruit With favourable climate and soil conditions like 70% of the population living on agriculture and fruit - vegetable farming area reaching some 1.5 million hectares, Vietnam has the potential for long-term sustainable development of fruit and vegetable production and exportation once it has a national development strategy. I- Factors affecting fruit and vegetable export development: 1. Pros - Rising demand on global markets. - Bilateral and multilateral trade agreements. - Competitiveness of Vietnam. - Right production and market strategies. - International standardisation and certification. - Added value in products. - Processing and post-harvest technology. - Agreements on plant protection. I - Factors affecting fruit and vegetable export development: 2. Cons - Unfocused supply, limited frozen warehousing system, and limited quality control - Food safety, origin, pesticide/herbicide residue, intellectual property rights. - Impacts of global economic crisis, rising production costs, USD/VND exchange rate. - Regulations on plant protection in some importing countries, technical barriers. - Loss and damage. According to foreign specialists, Vietnam is the fifth largest producer of fruit and vegetables in Asia. II - TÌNH HÌNH XUẤT KHẨU - Năm 2011 kim ngạch XK tiếp tục tăng, 10 tháng đầu năm đạt 515 triệu USD, tăng 40,6 % so với cùng kỳ (10 tháng đầu năm 2010 đạt 366 triệu USD) và đạt 109,5% kế hoạch năm 2011 (470 triệu USD). - Dự kiến năm 2011 kim ngạch đạt khoảng 600 triệu USD. Fruit and vegetable export turnover of Vietnam on 5 major markets 10 months in 2011 1) Strengths: - Exporters have significantly invested for export market expansion. To date, Vietnamese fruits and vegetables have been present in 50 countries in the world, with major shipments destined for China, Japan, the United States, the Netherlands, Russia, Taiwan, Germany, France, the United Kingdom, Ukraine, Australia, Canada, South Korea, Singapore and Thailand. 1) Strengths: Most exporters are aware of the importance of quality control and food safety. A number of big export processors have been certified HACCP, ISO, BRC, Kosher and Halal certificates, etc 1) Strengths: - Companies have accumulated trading experience and practices in major markets like the European Union, the United States and the Middle East. - Vietnamese exported vegetables and fruits are being diversified (individually quick-frozen IQF, fresh, canned, etc) 2) Weaknesses: - Export value growth is steady but the export of fruits and vegetables still occupy a very small proportion of the country’s exports. - Weaknesses of Vietnamese fruit and vegetable sector: Fruits and vegetables are not a major export earner; thus, the Government and concerned agencies do not have as much care and support for it as rice, seafood, rubber, tea and coffee. They lack investment for fruit and vegetable reproduction. Vietnam does not have seedling centres while seedling supply system is not very good, farmers have limited knowledge in food safety and hygiene due to shortage of guidance. In the meantime, these aspects are very good in Thailand, Japan, China and other nations. III- OBJECTIVES: Authorised by the Prime Minister, the Minister of Agriculture and Rural Development signed Decision No. 52/2007/QD-BNN dated June 5, 2007 on ratification of the fruit, vegetable, flower and ornamental plant development plan to 2010, with vision to 2020, as follows. 1) Acreage and production: - Fruit trees: Acreage: 1 million hectares; output: 10 million tonnes. Particularly, the area of staple fruit trees for export is 255,000 hectares. - Vegetables: 700,000 hectares; output: 14 million tonnes. Particularly, 100,000 hectares are set aside for safety and high-tech production. 2) Export turnover: - Export revenue is targeted at US$1 billion in 2015 IV-RECOMMENDED SOLUTIONS TO EXPORT Main solutions recommended by ministries and central agencies are centralised fruit production; processing - preservation; science - technology farming extension; sales; and support policies. Farmers will follow Global GAP production practices and standards; enterprises are provided preferential loans for renovating technology, processing, preservation; supported to strengthen links with other members of the Association, and with farmers, etc. Our Association puts forth some solutions as follows IV-RECOMMENDED SOLUTIONS TO EXPORT Leading standpoints To increase the value, export-driven fruits and vegetables are necessarily treated in the following order of priority: Fresh - frozen - canned - juiced and dried. Develop both domestic and export markets at the same time. The domestic market will serve as a fulcrum for exportation in case of difficulties. Processing and preserving sector can handle all products at peak harvesting time. Form centralised material zones for enterprises from scattered farming areas owned by farmers, thus ensuring stable sufficient supply for them. IV-RECOMMENDED SOLUTIONS TO EXPORT Recommended solutions 1 Have insurance for agricultural investment and long-term sales contracts, particularly for products with relatively stable markets, thus assuring enterprises and minimising risks for them in the process of investing and building material zones 2 Have incentives for production and preservation of fruits and vegetables, especially innovative energy-saving technologies. 3 Have incentives and supports for formation of more export-oriented cooperatives and units on the basis of linking interests of farmers and strengthening the linkage of four stakeholders (State, scientists, farmers and companies). IV-RECOMMENDED SOLUTIONS TO EXPORT 4, Organise training courses with the purpose of raising awareness and skills in marketing, quality control, food safety, farming and post-harvest technologies, out-of-season farming techniques, etc. for exporters, processors and farmers. 5, Have policies and mechanisms to support farmers to change to new crop varieties with higher yield and quality 6, Continue supporting trade promotion programmes with the aim of expanding export markets. In domestic markets, consumers will be directed to use Vietnamese fruits and vegetables. IV-RECOMMENDED SOLUTIONS TO EXPORT 7- Request central government agencies to work with the Vietnam Ship Agents and Brokers Association, transporting companies to introduce programmes in support of Vietnamese fruit and vegetable sector, particularly apply lower fares for transporting Vietnamese fruits and vegetables to key markets like the European Union and the United States to enhance competitiveness and increase export volume IV-RECOMMENDED SOLUTIONS TO EXPORT The Vietnamese fruit and vegetable sector still faces aforesaid difficulties and challenges but its production potentials and prospects remain high. In couple with abovementioned recommended solutions, the Vietnam Fruit & Vegetables Association is determined to work with all concerned authorities, farmers, scientists and companies to unlock potentials, promote advantages to realise the export objectives from now till 2020 and make Vietnam become a major exporter of fruits and vegetables in the region and the the world. Thank you very much.