Tăng cường năng lực xuất khẩu: Nghiên cứu trường hợp đối với các nông sản chủ lực tại khu vực Tây Nguyên, Việt Nam

Nội dung text: Tăng cường năng lực xuất khẩu: Nghiên cứu trường hợp đối với các nông sản chủ lực tại khu vực Tây Nguyên, Việt Nam

1. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 ENHANCING EXPORT CAPACITY: CASE STUDY OF MAJOR AGRICULTURAL PRODUCTS IN THE CENTRAL HIGHLANDS, VIETNAM TĂNG CƯỜNG NĂNG LỰC XUẤT KHẨU: NGHIÊN CỨU TRƯỜNG HỢP ĐỐI VỚI CÁC NÔNG SẢN CHỦ LỰC TẠI KHU VỰC TÂY NGUYÊN, VIỆT NAM PhD. Hoang Van Long MA. Nguyen Thi Phuong Dung Da Nang Institute for Socio-Economic Development Email: hoanglongjp@gmail.com Abstract This study assesses the export potential of six major agricultural products in the Central Vietnam and Central Highlands, including: coffee, cashew, pepper, rubber, wood products and honey. The study analyzed the current production capacity and forecast production for 2020. In addition, the study identified the target markets with the potential for market diversification. This paper includes the following sections: 1) Section 1: Introduction to research fields, research areas, research purposes, methods and rationale for product selection; 2) Section 2 analyzes indicators, including: (i) Export Performance, (ii) Domestic supply, and (iii) World Market. Analysis of these three indicators requires additional related indicators; 3) Section 3 thoroughly analyzes the selected products based on data from the relative analysis of indicators in section 2 and information collected through interviews and surveys. This section explores SWOT of the specific products and identifies priority issues for the government, the state and stakeholders involved in promoting exports in the future; and 4) Section 4 sets out the conclusions and recommendations for each product. Keywords: Trade, Export, Agricutural Products, Central Highlands, Viet Nam. Tóm tắt Nghiên cứu này đánh giá tiềm năng xuất khẩu của 06 ngành hàng nông sản có thế mạnh ở khu vực Miền Trung và Tây Nguyên, bao gồm: Cà Phê, Điều, Hạt tiêu, Cao Su, Lâm sản gỗ và Mật ong. Trong đó, nghiên cứu phân tích khả năng sản xuất hiện tại và dự báo quy hoạch sản xuất đến năm 2020. Ngoài ra, nghiên cứu xác định những thị trường mục tiêu có khả năng thâm nhập nhằm đa dạng hóa thị trường.Tài liệu này bao gồm các phần: 1) Phần mở đầu giới thiệu về các ngành hàng nghiên cứu, vùng nghiên cứu, mục đích nghiên cứu, phương pháp và lý do lựa chọn các ngành hàng; 2) Phần 2 phân tích các chỉ số gồm Chỉ số 1: Thành tích xuất khẩu; Chỉ số 2: Tình hình cung nội địa; Chỉ số 3: Thị trường thế giới. Để phân tích 3 chỉ số này còn có thêm các chỉ số phụ liên quan; 3) Phần 3 phân tích sâu các ngành hàng: Dựa theo số liệu tính toán từ phân tích tương đối các chỉ số ở phẩn 2 và thông tin thu thập qua phỏng vấn, khảo sát. Phần này sẽ đi sâu phân tích từng ngành hàng cụ thể về SWOT (điểm mạnh, điểm yếu, cơ hội và thách thức); xác định những vấn đề ưu tiên đối với chính phủ, nhà nước và người dân liên quan đến xúc tiến phát triển xuất khẩu trong tương lai; 4) Phần 4 nêu ra các kết luận và kiến nghị cho từng ngành hàng. Từ khóa: Thương mại, Xuất khẩu, Nông sản, Tây Nguyên, Việt Nam. 1. Introduction Small and medium enterprises (SMEs) have substantially contributed to Vietnam's economic growth in terms of both quality and quantity. However, the contribution of these enterprises to export turnover is still quite modest. Vietnam's exports mainly come from the private sector (including joint stock companies) and foreign direct investment enterprises. In fact, Vietnam needs to promote export production in the value chain instead of relying on export advantages with cheap human resources and start exporting high quality products and services. This is also a challenge for Vietnam's small and medium exporters. The country's main export agricultural products are concentrated in the Central Highlands and the potential high value-added exports are Pepper and Honey. Meanwhile, the traditional products that have brought high export turnover are Coffee and Rubber. Wooden furniture and cashew industries have witnessed changes in production methods to meet the requirements of the 418
2. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 international market. Despite their high export value, these two industries have imported the majority of input materials as domestic supply has fallen sharply over recent years. Based on global trade competition and the advantage of Vietnam and the Central Highlands in export agricultural products, this study describes the current situation and analyzes the opportunities and challenges for key agricultural products in the Central Highlands and Central Vietnam in order to make recommendations to enhance export capacity and competitiveness of the agricultural sector, boosting economic growth. 2. Research methodology The objective of this research is to identify potential products for future export growth in the Central Vietnam and Central Highlands. The potential economic sectors for export growth are also identified, with a strategic focus on recommending the government, private sectors and the society towards promising economic sectors. The export potential of a number of products is defined, including those that have been exported with documented data and also non-exported ones which have necessary conditions to be exported. The assessment of the export potential of each product is conducted, based on a number of criteria, including: - The current export situation of the Central Vietnam, such as export value, world market share and export growth; - The ability of local supply, such as product quality and effectiveness of supporting industries; - International market characteristics, such as world demand and international market integration of agricultural products in the Central Vietnam; Overall, the study utilizes 14 indicators and sets the rankings for each research criterion as well as the overall ranking of export potential in order to draw the attention of policy makers. The research is based on information from ITC's Trade Map, Ministry of Agriculture and Rural Development (MARD), Vietnam Pepper Association, Vietnam Rubber Association, Vietnam Coffee Corporation, other small and medium industries and industry experts. The consultant team conducts desk research and local fieldwork based on qualitative and quantitative information. - Quantitative information includes trade statistics and market access data. For market access conditions, tax rates are quoted from ITC's database namely ITC's Market Access Map ( Commercial data from the ITC's TradeMap (www.trademap.org) are the online database of global trade flows and trade barriers to trading and promoting international trade, providing detailed import and export profiles for over 5,300 products in 200 countries and territories. - Qualitative information includes a review of relevant literature and information collected from questionnaire-based surveys prepared by the consultant team and interviews with enterprises and associations. Interviews were conducted to verify some information and research results. In addition, local consultants have identified government strategies for specific products. Table 1: HS code (according to ITC) No. Product HS code No. Product HS code 1 Coffee 0901 4 Rubber 40 Coffee, not roasted, not 090111 5 Wood and articles of wood 44 decaffeinated 2 Cashew 0801 Fuel Wood In Logs, Faggots Etc.; 4401 Wood In Chips Or Particles; Sawdust And Wood Scrap, Whether Or Not Agglomerated In Logs, Briquettes Or 419
3. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 Other Forms Raw cashew 080131 Wood In Chips Or Particles, 440121 Coniferous Cashew Nuts, Fresh Or 080132 Wood In Chips Or Particles, 440122 Dried, Shelled Nonconiferous 3 Pepper 0904 6 Honey 0409 Pepper, neither crushed 090411 nor ground 3. Agricultural export situation Table 2: A review of export potential of agricultural products of Vietnam Low Average High Important export Cashew (the world's largest exporter, Coffee (world leader, in 2013: industry accounting for 25% of market share, in $2.75 billion) (over $1 billion) 2013: $2 billion, growing areas of cashew have shrunk) Rubber (ranked 3rd in the world, Wood and forest products (ranked 6th in in 2013: $2.52 billion) the world, in 2013: $5.37 billion, imported input materials) Average export Pepper (ranked 2nd in the world, industry in 2013: $901 million) Low export industry Honey (ranked 6th in the world, (under $100 million) 2nd in Asia; in 2011: $80 million * The export potential of these products is based only on the current export situation of Vietnam and the international environment. Therefore, research results cannot be used to compare directly with other industries. Table 3: Export data (the General Department of Customs, 2013) Product Value in millions of US dollars (2013) The percentage of export turnover (%) Coffee 2,721.4 2.1% Rubber 2,492.1 1.9% Cashew 1,646.7 1.2% Pepper 889.8 0.7% Wood 5,562.4 4.2% Honey* 75 0.1% Total 13,387.4 10.20% *(preliminary data) Source: the General Department of Customs (updated 02/2014) Table 4: Export data in 2017 No. Product HS Value (in No. Product HS Value (in code millions of code millions of US dollars) US dollars) 1 Coffee 0901 3,309 4 Rubber 40 3,865 Coffee, not 090111 5 Wood and articles of 44 2,765 roasted, not wood decaffeinated 2 Cashew 0801 2,970 Fuel Wood In Logs, 4401 Faggots Etc.; Wood In Chips Or Particles; Sawdust And Wood 420
4. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 Scrap, Whether Or Not Agglomerated In Logs, Briquettes Or Other Forms Raw cashew 080131 Wood In Chips Or 440121 Particles, Coniferous Cashew Nuts, 080132 Wood In Chips Or 440122 Fresh Or Dried, Particles, Nonconiferous Shelled 3 Pepper 0904 980 6 Honey 0409 70 Pepper, neither crushed nor 090411 Total 265,132 ground Source: trademap.org 3.1. Coffee Coffee is one of the most important agricultural exports of Vietnam in general and the Central Highlands in particular. Vietnam's coffee is mainly export oriented, with 95% of products being exported. Coffee production – mainly including a variety of Robusta coffee - has grown rapidly since the late 1980s, and Vietnam has become one of the main exporters of this commodity in the world market. Today, Vietnam is the second largest exporter in the world in terms of volume and the third in terms of value. Vietnam is highly competitive due to favorable environmental and climatic conditions, low production costs and high production in the world. However, Vietnamese coffee has relatively low quality due to poor processing equipment, backward drying and harvesting technologies. Vietnam coffee does not gain strong brand names in the international market and Vietnamese exporters have limited marketing skills. In other words, coffee has high value but export products are still mainly raw with low added value, if observed from the profitability of farmers. Therefore, Vietnamese coffee is only offered at lower prices than the world average. Vietnam has the potential to improve the quality of green coffee exports through investment in research, post-harvest technologies, storage and processing, and by converting to higher-priced Arabica coffee. However, this will require land-use and climate planning. The marketing of Arabica coffee should also be emphasized to increase the price compared to Robusta coffee. Other options are niche markets for coffee such as clean coffee but with limited consumption like Japan. Potential markets for coffee exports in the coming years are South Korea with high incomes and increasing coffee consumption. In addition, increased investment in instant coffee processing technology can be considered as a good way to promote coffee export. On the other hand, coffee trade depends too much on the world market (mainly speculators), causing difficulties for Vietnamese exporters. According to experts in the coming years, Vietnam can thrive to be the leading exporter of coffee in the world. However, in order to achieve this, there is a need for state support in production, processing, quality upgrading and technological innovation and promotion to further increase added value for the brand name “Vietnam coffee”. Moreover, it is crucial to increase co-operation and linkage between enterprises in Vietnam Coffee Association. Finally, with a strong position in the world market and an opportunity to upgrade the quality of processing and post- harvest processing, the export potential of coffee industry is considered high, and the need for support is medium. 3.2. Cashew Similar to coffee, Vietnam has a high potential for cashew export. For seven consecutive years (2006-2012), Vietnam has always been the world's largest exporter of cashew nuts. Vietnam cashews have been exported to more than 100 countries and territories. In 2012, cashew exports continued to reach a new record of nearly $1.5 billion, increasing by 5% from 2011. Cashew markets are seeing strong purchase from the USA and Europe. However, over recent years, domestic raw cashews have 421
5. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 only meet about 50% of the demand, and the remaining have to be imported for export processing. This figure is expected to increase as domestic supply declines. Since 2007, Viet Nam has imported about 200,000 tons of raw cashews every year to serve the domestic processing industry. In particular, the amount of raw material imported from West Africa and East Africa accounted for 80% of import volume. Domestic and international prices continue to be favorable for exporters. However, cashew products are not diversified, with a lack of attractiveness from packaging to quality due to low investment of enterprises. Enterprises are less interested in branding and marketing products in the domestic market. The goal of the cashew industry to 2020 is to keep the cashew growing area from 315,000- 350,000 ha. Of which, the southeastern region will account for 180,000-200,000 ha, the Central Highlands with 90,000-100,000 ha and the southern Central Coast with 25,000-30,000 ha. Output of raw materials for processing will be from 350,000-400,000 tons. In order to take the initiative in raw cashew processing for export processing plants, the cashew industry will move to Cambodia and Laos to form a common raw material area, striving to reach the area of 600,000 ha by 2020, of which, around 300,000 ha in Vietnam, 250,000 ha in Cambodia, and 50,000 ha in Laos, with yields ranging from 1.2-1.4 tons/ha (currently merely 1 tons/ha). In order to improve the position of the cashew industry in the export market, it is necessary to achieve the following improvements: product design, branding, trademark registration in main export markets. In addition, the development of domestic market should be taken into account because the domestic consumption of cashew accounts for only 1- 2% of output. It is also vital to promote product marketing, expanding distribution networks in stores, supermarkets, trade cooperatives as well as to research the tastes of Vietnamese consumers in order to produce appropriate products to bring about the best use for customers. The Research Institute for Cashew Industry should be established and banks and the State should have policies to create favorable conditions for enterprises to borrow capital in foreign currencies to facilitate international payment. Finally, the issue of keeping production planning in Vietnam and regional countries should also be concerned to stabilize supply for processing and export. The potential for export growth is high based on price development and domestic production. In order to focus on export growth, it is necessary to expand the production of cashew nuts, improve the quality of processed cashew nuts, develop packaged products and diversify the use forms, such as processed foods. 3.3. Pepper Pepper is honored the “queen” product of Vietnam and ranks 1st in the world in 2013 with a production of 133,000 tons and turnover of $901 million, accounting for about 95% of export production and reaching more than 80 countries and territories, while the remaining 5% is consumed domestically. Despite not reaching the export figure of $1 billion, this is one of the products that witnessed an increase by nearly 15% in volume and more than 13% in turnover compared to 2012. The main export markets are the US and Germany, which are Vietnam's two largest markets with nearly 30% of market share. Currently, pepper cultivation area in Vietnam is about 60,000 ha. Potential provinces for pepper cultivation are South Eastern provinces (accounting for over 50% of total area), Central Highlands provinces (31%), and Central Vietnam provinces. Pepper generates high profits for producers. About 60% is the net profit from total revenue. It can be said that pepper is one of the most profitable agricultural products in our country. There are currently about 15 pepper exporters. The stable output and increasing world demand from 3-5%/year have created high economic value to producers as well as organizations and individuals involved in pepper production and trade. Although there are some quality-related issues, Vietnam has attracted new companies and new investments, opening the door to new markets and increasing production rate of high value ASTA pepper. In order to enhance export capacity of pepper industry, there are some remarks that should be made: (i) Stabilize production planning without spontaneous development which will affect farmers' economic condition because pepper can only be grown in certain areas. In particular, the Central Highlands gains the largest area. However, it is not possible to develop 422
6. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 massively to disrupt the planning of other key products such as coffee, cashew, rubber and forests (including natural and plantation forests); ii) Establish the brand of Vietnamese pepper: The large volume and huge area of production enable pepper industry to perfectly build a strong brand name of pepper products; iii) Establish and consolidate brand names and geographic areas for some localities, using pepper products as specialties for tourism development such as Phu Quoc pepper, Tien Phuoc pepper, Chu Se pepper; iv) Establish the Research Institute for Pepper, which is similar to the the Research Institute for Vietnam Rubber Tree. Pepper is a commodity with high export potential and abundant supply to meet the world’s demand. Although Vietnam has a dominant position in the world market, the expansion of production is not a viable strategy, but it is necessary to maintain a stable cultivation area. Vietnam's strategy for black pepper should focus on creating value added by improving the quality of processing, ensuring appropriate cultivation and branding so as to increase product prices. In general for the spice industry, there are Vietnamese dynamite products produced in small quantities with the opportunity to be expanded like mixed spices, cinnamon and ginger. These products need to be studied in greater detail to assess their potential value. 3.4. Rubber In 2012, export turnover of rubber reached $2.85 billion. However, the value added from rubber is not high enough due to underdeveloped processing technology and supporting industries using rubber products in Vietnam as well as fluctuations in natural rubber prices and a lack of product diversity. Hence, strategies for Vietnam's export development should be focused on improving the efficiency of natural rubber and identifying processing industry prospects. The export turnover of rubber products is not high and Vietnam is still a net importer of most rubber products. Although rubber products are potential exports, they continues to gain the second or third place in the export market and will continue to face fierce competition with latex as this industry targets the local market. By the end of 2012, Vietnam's rubber cultivation area reached approximately 910,500 ha and the output reached 863,000 tons, exporting 1.01 million tons of natural rubber, becoming the third natural rubber exporter and the fifth largest producer of natural rubber in the world (after Thailand, Indonesia, Malaysia and India), which ranks second in terms of productivity and fourth in terms of output. The rubber industry has exceeded the target of 800,000 hectares according to the Government's plan for 2015. Therefore, the government should adjust the size of rubber area to be more suitable, effective and sustainable with a vision to 2030. Increasing area of rubber trees out of control has led to implications related to the conversion of forest land to rubber plantation, which affects the environment, climate change and leaves some impacts on environmental and socioeconomic development. In the rubber industry, efforts are focused on increasing productivity, upgrading processing technology (e.g., the technology of processing smoked rubber sheet is used to produce plastics and also applied extensively in tire making techniques), and exploiting the ability to produce all kinds of rubber to meet high demand and improve the “brand” of Vietnam. The strategy for rubber products development is less obvious and opportunities in the processing industry need to be carefully selected. With 90% of output for export, rubber has become one of Vietnam's most important agricultural exports. The export potential of this industry is considered high. The ambitious plan of rubber industry has been implemented to expand rubber cultivation area; thereby, the output and export turnovers will be likely to increase. Despite its low output and backward technology, Vietnam is still more cost-effective than its competitors in the region. Recently, Vietnam's export situation is relatively good in terms of both value and volume. 3.5. Wood and articles of wood Vietnam's export of wood is relatively strong, but its position is low due to high imports and low value added from the wood industry. Export value in 2012 was $4.6 billion and in 2013 was $5.37 billion, increasing by 15.2%. Vietnam ranks 6th in the world, 2nd in Asia and 1st in Southeast Asia in terms of exports of wood and articles of wood. Wood processing products become the fifth largest 423
7. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 export, after textile, crude oil, footwear and seafood. Wood processing enterprises have shifted from processing natural wood products to plantations such as Acacia and Rubber, while the remaining continue to produce wood products from imported raw materials. In addition, processing technology has also been imported from abroad, which increases costs and even causes losses for enterprises. In 2012, imported raw material wood accounted for 66%, but if the amount of Wood In Chips Or Particles for export (5 million tons, equivalent to 11 million/m3) is included, this rate is only 20%- 30%. On the other hand, international standards of wooden furniture (such as traceability) are also major barriers for exporters with imported materials. In addition, the tastes and habits of using wooden furniture in Vietnam are different from other developed countries in the world, creating a huge gap in the market where domestic producers fail to participate in the export market and vice versa. This causes some disadvantages for enterprises involved in the industry. Therefore, some large enterprises may suffer losses from over-importing or only producing wood for domestic consumption. From the above analysis, it is necessary for the State to provide targeted interventions and support for wood enterprises in terms of production organization, processing technology, product promotion as well as finding customers. The most important thing is to reorganize the wood processing industry into a supply chain. This reduces costs and enhances the standard of Vietnamese wooden furniture in domestic and international markets. The potential for export of wood products is high, especially for woodchips and wood products from plantations such as acacia and rubber. However, the added value of wood exports is still low as the majority of raw materials have to be imported. The opportunity to develop an export industry based on domestic raw materials is increasing but there is a relatively great domestic competition for wood. The international environment is complex with respect to wood products and conditions for market penetration are quite favorable, although the world demand in recent years is not high. Long-term strategies are to develop processing technology for wood products, wood chips to create higher value added for wood products locally consumed and exported. Finally, a shift in Vietnamese consumers’ tastes from durable wood products to plantation products such as rubber and acacia is contributing to the growth of timber exports and relieving the pressure on the reduction of natural forests. 3.6. Honey Vietnam has the potential and tradition of honey production. Over the past years, honey export has grown steadily at a high level (14%). In addition, the international demand has significantly increased. The international honey export markets have grown rapidly both in terms of turnover and geographical areas for most developed countries such as the USA, Europe, Japan and so on. However, Vietnam is facing difficult conditions for market penetration. Vietnam honey is still mainly exported to the US market at a much lower price than other countries. Vietnam is currently ranked 6th in the world and 2nd in Asia for export of honey. In 2011, the country produced over 30,000 tons of honey. In particular, exports reached 27,000 tons with a turnover of nearly $80 million. In 2012, export volume of honey in the country dropped sharply compared to 2011 and export value only reached $54.8 million. In 2013, total export reached 34,000 tonnes, with 30,000 tonnes exported to the United States, achieving $75.66 million compared to the total turnover of $85 million. However, the export price was low due to low quality ($2.48/kg), which was much lower than the export price of other countries to the USA market. Despite being generating less than $100 million a year, honey production and export now contributed significantly to job creation, poverty reduction, and value creation, improving living standards of ethnic minorities in the uplands such as the Central Highlands and the North West. Therefore, the government and other ministries should give priority to enhancing export capacity of Vietnam honey as follows: - Include honey production in the list of supported industries by the Ministry of Agriculture and Rural Development as well as the government. 424
8. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 - Diversify honey products: honey, pollen, beeswax, royal jelly, and other honey products. - Improve the quality of honey to raise the selling price on the world market. - Explore new markets outside the USA and the EU for Vietnam honey products (e.g. Japan, Korea, Thailand, Indonesia, and Middle East). - Establish a honey quality testing center and grant certificates of organic honey products (e.g. Kon Tum honey, Gia Lai honey, Mint honey in Ha Giang, Son La honey, etc) - Establish the brand name for Vietnam honey, associating honey products with geographical indications (e.g. Daklak Honey (Dakhoney)), or food sources such as peppermint, natural forest, rubber flower, etc. Honey production is considered a small industry that has low export value with medium export potential. The strength of honey production lies in its positive impacts on job creation, poverty reduction, especially for upland ethnic minorities. Along with the development and demand of the world market, Vietnam has a lot of potential to improve its position and export value if there are viable policies to support enterprises as well as individual producers. 3.7. Priorities for each industry This study recommends that Vietnam's strategies for export development should be differentiated and concretized for each industry. Below is a summary of actions that should be prioritized for industries with export potential in the Central Highlands. Table 5: Priorities for each industry Industry Evaluation (Ranked by regional according to consultants Description Priority action 2012 export turnover) (Index)* Coffee Improve the quality of green coffee by investing in research, post-harvest, storage and processing Vietnam is a competitive technologies. Standardizing production and producer of coffee with processing of coffee can increase the price of high production and high coffee in the market through international quality High production costs. Post- certificates such as 4C, Rain forest, Utz Certified, harvest technology, (3.1) Fairtrade. Improved processing of instant coffee is storage and processing also a solution to increase exports and also added technologies are still value for coffee exports. The other options are backward. niche-market coffee production such as clean coffee despite low demand. Rubber High Vietnam is a major Upgrade the quality of rubber products: processing producer of rubber in the technology, supporting industries using rubber (3.1) region and in the world. materials, new seed production in Vietnam to Processing technology, generate high output. Explore new markets for the storage and processing export of raw rubber latex. technologies are still backward; supporting industries using rubber raw materials are also underdeveloped. 425
9. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 Cashew High Vietnam is one of the Establish the Research Institute for Cashew; (3.5) largest exporters in the Promote the production of raw cashew nuts, world, but local supply of improve the quality of processed cashew nuts, raw cashew nuts in the diversify their use and target packaged products. country is not sufficient Establish the brand name of “Vietnam Cashew” or enough. Imported raw “Cashew made in Viet Nam” for cashew products. materials account for about 50%, so the value added from cashew exports is fairly average. Pepper High The industry is mainly The government should prioritize the research and (3.1) export oriented; export development of new varieties, methods of volume accounts for 95% treatment for pepper by establishing the Research of total production. Institute for Pepper. Vietnam is the largest Upgrade the product quality and processing exporter of black pepper technology; Ensure that plantations are properly in the world. Weaknesses invested; Improve the market position of Vietnam include backward pepper. processing technology and low product quality Wood and Average The world market for State interventions are made to orientate and articles of (2.7) wood products is support wood enterprises from production wood characterized by low organization, processing technology, product demand, falling prices and promotion to finding customers. The most oversupply. Vietnam is a important thing is to reorganize the wood net importer and domestic processing industry into a supply chain. This demand for raw wood is reduces costs and enhances the standard of wooden quite strong. furniture in domestic and international markets. Honey Average Small-scale export Include honey production in the list of supported (2.6) industry, fast growth in industries by the Ministry of Agriculture and Rural the dynamic world market Development as well as from the government. despite poor conditions Diversify honey products: honey, pollen, beeswax, for market penetration. royal jelly, and other honey products. Improve the The United States is the quality of honey to raise the selling price on the primary destination export world market. Explore new markets outside the market. USA and the EU for Vietnam honey products (e.g. Japan, Korea, Thailand, Indonesia, and Middle East). Establish a honey quality testing center and grant certificate of organic honey products (e.g. Kon Tum honey, Gia Lai honey, Mint honey in Ha Giang, Son La honey, etc). Establish the brand for Vietnam honey, associating honey products with geographical indications (e.g. Daklak Honey (Dakhoney), or food sources such as peppermint, natural forest, rubber flower, etc. Source for RCA calculation: Trademap; Market Acess Map, survey data of enterprises and business associations in Vietnam * Scale 1 (lowest potential) to 5 (highest potential). Industry rankings need to be interpreted with care, especially when there are only very small differences because many indicators lack precision. However, low rankings may indicate potential areas for improvement. The export potential does not take into account domestic supply conditions due to a lack of comparable data. 426
10. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 4. Opportunities and challenges 4.1. Problems Assessing the export potential and identifying specific policies for each industry may be just part of a larger task which is to address the real challenges of Vietnam. Over the past few years, despite the achieved success, Vietnamese exporters are facing great challenges. Along with the increase in FDI influx, the reform of state-owned enterprises and the emergence of private enterprises have changed the business environment in Vietnam to a great extent. Entrepreneurs and managers from various industry associations and industries have addressed some of the issues in the interviews, many of which are related to the domestic supply. - Low cost competitiveness due to limited production scale and productivity. The main reason is improper and ineffective application of science and technology in production, processing and preservation. - Agricultural production should be focused on forming material areas for cashew and plantations. It is possible to convert some ineffective cultivation areas of coffee and rubber into pepper. However, soil and climatic conditions should be researched in advance. - Further reduce taxes, transaction costs for organizations and individuals involved in production, processing and trade. - Limited value added due to excessive reliance on raw material exports - Improve the product quality in order to gradually meet the international regulations on quality, food hygiene and safety - Lack of information, lack of processing and transport infrastructure. - Limited knowledge of foreign markets and international trade issues. 5. Recommendations and conclusion In the context of strong and complex international trade, bilateral and multilateral trade agreements are being negotiated and signed, and Vietnam is facing great opportunities and challenges to enhance export capacity and foster competitiveness. The CPTPP agreement as well as the US-China trade conflict can open the door to great opportunities; however, potential risks to exports and balance of trade may also arise. Therefore, improvements should be made for each major agricultural product so as to meet the international market’s demand while not losing the domestic market. Improving domestic supply ¾ Review the planning of raw material areas and processing plants to ensure a smooth flow of inputs and outputs, to save time and money, and to ensure the efficiency of the entire supply chain from the application of varieties, techniques, harvesting to transportation. ¾ Increase investment in upgrading infrastructure and supporting industries for production, processing, electricity, telecommunications and waste treatment systems to protect the environment. ¾ Review the current state of technology and select the direction of supporting scientific and technological innovation in the industry to suit the export potential and characteristics of each industry. ¾ Promote initiatives and strengthen discipline in establishing and operating linkages in production, processing and consumption to create large-scale production areas, increase the overall competitiveness of the industry in the international market. 427
11. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 Developing export markets ¾ Diversify export markets, develop new markets and facilitate export channels. ¾ Strengthen research and forecast capacity for the world market (supply-demand, tastes, policies of partner countries and competitors). ¾ Improve enterprises’ ability of negotiating, signing contracts and participating in international transactions. REFERENCE 1. Assessment of agricultural export potential in Northern Vietnam, 3/2014. 2. Center for Trade, Investment and Tourism Promotion of Daklak, VICOFA, Center for Coffee Trade in Buon Me Thuot 3. Country guide to timber legality: Vietnam 4. Dr. Vuong Quan Hoang, pp 29-45 b3FBoC&printsec=frontcover#v=onepage&q&f=false 5. Export potential assessment in Viet Nam, 2005, Market analysis section International Trade Centre 6. FAO (2013), “FAO outlook report 2013” 7. General Statistics Office, 2010 8. Gia Lai online newspaper, tieu-2184505/ 9. GTA, the United States Department of Commerce, The United States Census Bureau 10. phe-Viet-Nam/68981.vgp 11. ails=1 12. 13. 14. nam.gplist.117.gpopen.36755.gpside.1.xuat-khau-dieu-tang-8-5-.asmx 15. 16. 17. 1.html 18. Huynh Thi Thu Suong, The doctoral dissertation examines factors influencing cooperation in the wooden furniture supply chain: case study in the Southeastern provinces, Ho Chi Minh city, 2012. 19. Huynh Van Hanh, Vietnam wooden furniture industry and opportunities for ATIBT 20. Ministry of Agriculture and Rural Development (2009), “Strategy for agricultural and rural development in the period 2011-2020” 21. Ministry of Agriculture and Rural Development and Global Trade Atlas (GTA) 22. Ngo Kinh Luan (2013), Vietnam Rubber Industry Report 2013 23. Ngo Van Huan, Lessons from Vietnam’s policies for rubber development 24. Report of Vietnam Administration of Forestry, 2010 428
12. Kỷ yếu Hội thảo quốc tế “Thương mại và phân phối” lần 1 năm 2018 25. The General Department of Customs, General Statistics Office 26. To Xuan Phuc and Tran Huu Nghi (2013). Rubber development and forest protection in Vietnam. 27. Vebimo Vietnam Agro Economics, Vol. 1, No. 2, April 28, 2010 DHVP Economics 28. Website of Department of Trade Promotion 29. Website of Ministry of Finance 30. World Trade Organization (2013). Protocols of accession for new members since 1995, including commitments in goods and services 429