The opportunities for expanded commodity exports including rice, coffee, tea, cassava, rubber, cashew nuts and black pepper presented by recently signed free trade agreements (FTAs) is clear.
However, to tap the potential the experts say, the nation needs to reshape its thinking and realize that smallholder farms are fully capable of modernizing their technologies and becoming profitable businesses.
Associated Professor Ngo Thi Tuyet Mai from Hanoi National Economics University (NEU) points out that commodity exports have steadily increased over recent years from US$25 billion in 2011 to US$30.1 billion in 2015.
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Notably, Mai points out that during this fifteen-year period there was a lack of access to foreign markets as most consignments were shipped to regional countries in Asia as opposed to major markets in the EU or North America.
She said now with the enlarged opportunities to access foreign markets presented by FTAs there is more incentive than ever for the nation to invest in modernizing all phases of pre and post-harvest technologies and boosting production.
In the past most farmers produced only a fraction of their lands maximum potential yield, mainly because they were not using improved seeds or fertilizers, she underscored.
Utilizing new varieties of seed and fertilizers the nations farmers could quadruple their yields and diversify field crops. As well, they can use other sophisticated technologies to improve the soils fertility to reduce costs and maximize profits.
Giving top priority to institutional reform
To unlock the potential of the new market access, Mai said the government and development community should, for starters, empower smallholder farmers with more options in seeds, fertilizers and modern farm machinery and equipment.
The government should invest in developing information system on markets, prices and supply and demand to minimize risks for exporters and farmers as well as consider new trade advertising programs to further raise exports.
Director Nguyen Do Tuan Anh from the Institute of Policy and Strategies for Agriculture and Rural Development (IPSARD) agrees and said the answer is all about developing innovative cultivation methods aimed at improving quality.
Luu Duc Khai, head of Director of Agriculture and Rural Development Policy Department, echoes Anh’s views, saying if farmers don’t improve their production and processing methods, they will never thrive.
Deputy Director Nguyen Anh Duong of the Macroeconomic Policies Department said farmers have to transform themselves by further investing in post-harvest and preservation technology to improve the quality of exported products.
Last but not least, economist Pham Chi Lan emphasizes the government must accelerate institutional reforms and reform the legal system in line with development trends in order to cultivate sustainable agriculture.
