Global Rice News

Deputy Minister Phung Duc Tien, in an address at the Workshop on Agriculture and Agricultural Mechanization in Vietnam, emphasized Vietnam’s ambition to enhance its agricultural sector by producing high-quality goods with added value and participating in the global value chain. He acknowledged the agricultural industry’s achievements in 2023, including a trade surplus of more than $12 billion and a record-high GDP growth rate of 3.83%.

However, Deputy Minister Tien also identified some challenges hindering the industry’s progress, such as small-scale manufacturing, low productivity, and insufficient automation. He mentioned that the industry’s competition still needs to be strengthened to improve quality, value, and establish a respected international brand. Additionally, he highlighted the slow growth in processing and deep-processing rates in recent years, resulting in mainly raw exports of agro-forestry-fishery goods.

To address these issues, the Deputy Minister expressed the hope for collaboration with Italian organizations and equipment enterprises. He called for interest and extensive research in developing agricultural machinery suitable for the Vietnamese market.

Italian Ambassador to Vietnam, Marco Della Seta, praised Vietnam’s potential for business opportunities in agriculture, considering its growing population and expanding middle class. He highlighted the promising domestic consumption market for high-quality products, particularly food. Fabio De Cillis, Director of the Italian Trade Agency in Vietnam, acknowledged that agriculture still holds a significant share of Vietnam’s GDP. The Vietnamese government has implemented programs and incentives to support farmers and agricultural enterprises, aiming to boost production, streamline regulations, and promote sustainable farming practices.

Rice is the leading agricultural crop in Vietnam, followed by sugarcane, cassava, rubber, pepper, cashew, and fruit trees. Improved agricultural technology has increased yields despite a decrease in cultivated acreage, presenting opportunities for farm automation and modernization.

Italian companies, drawing on their agricultural expertise, expressed their willingness to invest in the Vietnamese market. They recognized the presence of dominant foreign businesses, mainly from China, South Korea, and Japan, in the Vietnamese agricultural machinery sector. To overcome the perception that European products are expensive, Italian firms plan to establish a robust network of agents and distributors in Vietnam to improve the accessibility of their machinery.

Overall, the collaboration between Vietnam and Italy in the agricultural sector holds significant potential for both sides. Italy aims to strengthen its presence in Vietnam, considering it as a reliable partner with a promising market, while Vietnam benefits from Italy’s expertise and high-quality agricultural machinery.

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