Three main obstacles in exporting Vietnamese agricultural products

Market Information
icon date25/07/2023

Exporting Vietnamese agricultural products is a challenge due to three main obstacles: the large number of small-scale enterprises in the country, the policies of importing countries and partners, and domestic policies. 

Small-scale enterprises often lack the resources and capacity to meet the rigorous standards and regulations required for international trade. Meanwhile, importing countries and partners have their own policies that can make it difficult for Vietnamese agricultural products to enter their markets. Domestic policies, such as taxes, tariffs, and regulations, also play a role in shaping the export landscape. Addressing these obstacles will require a combination of efforts from both the government and private sector to ensure the growth and competitiveness of the Vietnamese agricultural sector in the global market.

What are the 3 main obstacles in Vietnam’s agricultural export industry?

Mr. Doan Anh Tuan, Chairman of New Generation Tea Company, said that everyone knows the benefits of exporting value-added products, but few people know that there are barriers when exporting. According to Mr. Tuan, there are 3 obstacles that make the export of Vietnamese agricultural products and food unsustainable.

Exporting agricultural products from Vietnam is an important part of the country’s economy, as agriculture is one of its main industries. However, the industry faces several significant obstacles that prevent it from reaching its full potential in the global market. The three main obstacles in exporting Vietnamese agricultural products include the large number of small-scale enterprises, policies from importing countries and partners, and domestic policies.

The first obstacle is the large number of small-scale enterprises in Vietnam. Many of these enterprises are too small to invest in the raw material area or to purchase modern packaging equipment. This means that they are unable to meet the rigorous standards and regulations required for international trade, leading to a lack of competitiveness in the global market. Moreover, these small-scale enterprises are unable to handle large orders and lack the resources to undertake large-scale exports.

The second obstacle is posed by the policies of importing countries and partners. These policies can make it difficult for Vietnamese agricultural products to enter their markets, leading to a reduction in exports. For example, some countries may impose strict regulations on the import of certain products, such as those containing high levels of pesticides, or may require products to be certified by international organizations. This can increase the costs and time associated with exports and lead to lower profits for Vietnamese agricultural producers.

Finally, domestic policies can also pose a significant obstacle to exports. For example, cumbersome export procedures, time-consuming import of raw materials, and high costs of exporting can all discourage producers from exporting their products. Additionally, taxes, tariffs, and regulations can increase the cost of exports and reduce the competitiveness of Vietnamese agricultural products in the global market.

In conclusion, the Vietnamese agricultural sector has a great deal of potential to grow and become a major player in the global market. However, the obstacles faced by the industry must be addressed if it is to reach its full potential. The government, private sector, and other stakeholders must work together to overcome these challenges and ensure the growth and competitiveness of the Vietnamese agricultural sector in the global market. This could include investment in modern processing and packaging equipment, streamlining of export procedures, and efforts to improve the competitiveness of Vietnamese agricultural products through quality assurance and product diversification.

Measures to increase exports of Vietnamese agricultural products

Raising the agricultural export sector is crucial for the growth and development of the Vietnamese economy, and the state needs to take steps to achieve this goal. One of the key measures that can be taken is to have special policies for Vietnamese-branded exporters. This could involve providing financial and technical support to help these exporters to invest in modern technology, improve the quality of their products, and increase their competitiveness in the global market. 

Additionally, the state can create preferential policies for enterprises that are opening distribution systems in foreign countries. This would help these companies to establish a foothold in new markets, build brand recognition, and increase their exports.

Another important step that can be taken is to raise awareness, education, and science and technology in the country. This can be achieved through a comprehensive measure that focuses on investing in research and development, improving the quality of education and training, and promoting the development of the technology sector. This will help to ensure that the Vietnamese agricultural sector remains at the forefront of technological advancements and is well-equipped to compete in the global market.

The state can also create programs to help small and medium-sized enterprises (SMEs) to participate in the global market. This could involve providing technical and financial support to help these companies to invest in modern technology, improve the quality of their products, and increase their competitiveness. Additionally, the state can create partnerships with other countries and organizations to help SMEs to gain access to new markets, build brand recognition, and increase their exports.

In conclusion, in order to raise the agricultural export sector in Vietnam, the state needs to have special policies for Vietnamese-branded exporters, create preferential policies for enterprises opening distribution systems in foreign countries, and focus on raising awareness, education, and science and technology in the country. By taking these steps, the Vietnamese agricultural sector will be better equipped to compete in the global market, increase its exports, and contribute to the growth and development of the Vietnamese economy.

In conclusion, it is clear that Vietnam has the potential to become a major player in the global agricultural market. However, to achieve this goal, the country must focus on addressing the weaknesses that are holding it back. This includes supporting small-scale enterprises, overcoming the challenges posed by policies of importing countries and partners, and addressing the obstacles posed by domestic policies. By focusing on these areas and taking the necessary steps to improve the agricultural export sector, Vietnam can increase its exports, contribute to the growth and development of the economy, and become a major player in the global agricultural market.