Vietnam Imposes Restrictions on Agricultural Mechanization: HAS Rice Pakistan Reports
Published on: January 18, 2024.
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Published on: January 18, 2024.
Deputy Minister Phung Duc Tien has highlighted Vietnam’s ambition to enhance its agricultural sector by producing high-quality goods with added value and participating in the global value chain. Speaking at the Workshop on Agriculture and Agricultural Mechanization in Vietnam, Deputy Minister Tien acknowledged the achievements of the agricultural industry in 2023, including a trade surplus of over $12 billion and a record-high GDP growth rate of 3.83%.
Despite these accomplishments, Deputy Minister Tien also identified several challenges that are hindering the progress of the industry. These challenges include small-scale manufacturing, low productivity, and insufficient automation. To improve the quality and value of the industry and establish an international brand, Deputy Minister Tien emphasized the need to strengthen competition and address the slow growth in processing and deep-processing rates, which has resulted in primarily raw exports of agro-forestry-fishery goods.
Deputy Minister Tien expressed hope for collaboration with Italian organizations and equipment enterprises to address these issues. He called for extensive research and interest 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, especially considering its growing population and expanding middle class. He highlighted the domestic consumption market for high-quality products, particularly food. Fabio De Cillis, Director of the Italian Trade Agency in Vietnam, acknowledged the significant share of agriculture in 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. Despite a decrease in cultivated acreage, improved agricultural technology has increased yields, presenting opportunities for farm automation and modernization.
Italian companies, leveraging their agricultural expertise, have expressed their willingness to invest in the Vietnamese market. They have noticed the presence of dominant foreign businesses, particularly from China, South Korea, and Japan, in the Vietnamese agricultural machinery sector. To address the perception that European products are expensive, Italian firms plan to establish a strong network of agents and distributors in Vietnam to improve the accessibility of their machinery.
The collaboration between Vietnam and Italy in the agricultural sector holds significant potential for both sides. Italy sees Vietnam as a reliable partner with a promising market and aims to strengthen its presence in the country. Meanwhile, Vietnam benefits from Italy’s expertise and high-quality agricultural machinery.
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