
The Ministry of Agriculture and Rural Development (MARD) has set a target to export 30 percent of the country's farm produce valued at US$1.8-2.1 billion to the European Union (EU) by 2010. Key exports will include coffee, tea, vegetables and fruit, rubber, honey, wood furniture, and oil-rich seeds like cashewnut, groundnut and sesame.
The figures were revealed at a conference in Hanoi on Friday to boost farm produce exports to the EU. MARD said it is working hard to increase the volume of processed farm produce to gain greater export earnings.
Farm produce processors have renewed technology to raise productivity and quality of products; applied ISO product management standards and the HACCP international standard on food safety and hygiene, and accelerated trade and trademark promotion activities. They have also joined hands with farmers, industrial associations, state management agencies and foreign partners, to achieve this target.
MARD's statistics showed the country grossed US$577 million from farm produce exports to the EU in 2003, making up 18 percent of the total value, and doubling the 2000 figure. Coffee topped the export list with 391,000 tonnes, earning US$262 million, or 50 percent of Vietnam's total coffee export.
Dao Thi Mui, Secretary General of the Vietnam Coffee and Cocoa Association, said Vietnam was the second biggest coffee supplier to the EU in the three successive years of 2000, 2001 and 2002. Vietnam's Robusta coffee is favoured by Germans. Giant coffee processors like Kraft Foods, Nestle and Sara Lee use up to 60 percent of Vietnamese coffee in their instant coffees.
However, Vietnamese coffee has met only 4-5 percent of the EU's annual demands, Mui said.
Exports of Vietnam-made furniture to the EU have leapt in recent years, notching up from US$135 million in 1998 to US$580 million in 2003. In the first half of this year, furniture exports to this market earned US$490 million, an 88 percent rise year on year. Therefore, furniture has become the second largest hard currency earner from the EU market although it has accounted for only 1 percent of this potential market.
However, economists pointed out exporters’ weaknesses in diversifying their products to satisfy customers’ demands, and in promotion and marketing activities in the market. EU protection policy for agricultural products is another hurdle, they noted.
They said the EU is now keen on organic farm produce and this is an ideal opportunity for Vietnamese exporters to supply this market with their own products.