Export Situation of Some Key Commodities of Vietnam in the Period 2000 - 2009

Up to now, the total export turnover of agricultural, forestry and fishery products has reached about 15 billion USD, of which agricultural products reached over 8 billion USD, aquatic products over 4 billion USD, forestry products over 2 billion USD. Meanwhile, for the industrial sector, textiles and garments have almost reached the target when the turnover can reach 9.1 billion USD, leather and footwear reached about 4.1 billion USD, wooden furniture exports with many efforts are estimated at 2.7 billion USD, only about 100 million USD lower than in 2008. Of the 24 main export items, there are still 8 items with increased turnover, which are precious stones, precious metals, electronic products, computers and components, machinery, equipment, spare parts, vegetables, tea, pepper, cassava and cassava products, chemicals and chemical products. In 2009, there were 12 items with a turnover of 1 billion USD or more, including textiles, crude oil, seafood, footwear, precious stones, precious metals and products; rice; electronics, computers and components; wood and wood products, machinery, equipment, tools, spare parts; coffee; coal; rubber (Ministry of Industry and Trade 2009).

Thus, in the export structure of goods, especially high-value goods, there has been a change in the direction of increasing the proportion of processed industrial goods and high-quality agricultural products, while reducing the proportion of raw products . The main agricultural export products not only maintain the first and second positions in the world in terms of quantity but also initially reach the quality, price and food hygiene and safety conditions. Many Vietnamese products have continuously affirmed their brands and high class in the international market such as: cashew nuts, rice, coffee, rubber, tea, seafood, handicrafts, ceramics, etc.

Although in early 2009 we faced some difficulties in terms of a decrease in the turnover of some key export groups due to a decrease in export prices, this phenomenon tended to recover in late 2009 and early 2010, promising a new period of export growth.

Thus, it can be said that joining the WTO creates many new opportunities for Vietnam's export goods. Therefore, the selection of export products in this period is not only based on comparative advantages but also takes advantage of all opportunities brought about by joining the WTO.

2. Export situation of some key products of Vietnam in the period 2000 - 2009

2.1. Rice

Vietnam is a country located in the tropical monsoon climate zone, which is very favorable for rice cultivation. In addition, nature has given us two large deltas, the Mekong Delta and the Red River Delta. With such favorable natural conditions, along with the main human resource structure being farmers, rice has become the earliest formed export commodity and also one of the most important export commodities, contributing a considerable value to our country's export turnover. Since 1989, Vietnam has officially entered the international rice market with the scale and quality of exported rice increasing day by day. Thanks to the success in rice production, Vietnam has transformed from a country with food shortages and having to import to become the second largest rice exporter in the world.


Export volume and turnover


Table 4 : Vietnam's rice export turnover and output in the period 2000 - 2009

Unit: Quantity (thousand tons); Value (billion USD)


Year

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Output

3.48

3.72

3.24

3.81

4.06

5.30

4.64

4.5

4.7

6.2

Value

0.67

0.62

0.73

0.72

0.95

1.34

1.27

1.46

2.89

2.46

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Export Situation of Some Key Commodities of Vietnam in the Period 2000 - 2009

(Synthesized from General Statistics Office, 2008. 2009)


During this period, due to the shift in rice production towards intensive investment and increased rice quality, rice exports also increased rapidly in quantity, quality and price. If the amount of rice exported in 2000 was 3.47 million tons, by 2004 the output had increased to nearly 4.1 million tons. In 2005, for the first time, rice exports reached 5.3 million tons, earning the country more than 1.34 billion USD, the average rice price reached 267 USD/ton. Compared to 2004, the amount of rice exported in 2005 increased by nearly 1.2 million tons (25%), the turnover increased by over 400 million USD (45%) and the price increased by 48 USD.

(15%). This is the highest level achieved in all three indicators of quantity, turnover and export price compared to before, since Vietnam officially joined the world rice market.

In 2009, despite being affected by many negative impacts from the global economic crisis and natural disasters, our country still exported rice beyond the plan, reaching 6.2 million tons, worth 2,463 billion USD, up 29.35% in quantity and down 7.49% in value compared to 2008. The average export price reached 407.09 USD/ton, down 28.5% over the same period. This is an impressive record, the highest ever (since 1989 - the first year Vietnam participated in exporting rice to the world market with the figure of 1.4 million tons) ( Kim Hien, 2010 ).

The most important feature marking the development and growth of Vietnam's rice export in the period 2000 - 2009 is that in the context of fierce competition in the world market, the quantity and value of rice export developed quite stably, showing that the quality of Vietnamese rice is increasingly improved.

Regarding export markets : Up to now, Vietnamese rice has dominated most of the major rice import markets in the world. The rice market has been continuously expanded thanks to the significant improvement in the quality of Vietnam's exported rice compared to previous years. If in the period 2000 - 2004, Vietnam's main rice export markets were Asia (Singapore, Philippines, Malaysia, Hong Kong), Europe (Switzerland, Netherlands) and the Middle East (Iraq), the US, then by 2005, in addition to traditional markets, Vietnamese rice had penetrated demanding markets with high quality requirements such as Japan, the EU, and the US. By 2009, Vietnam's rice market share occupied most of the major rice import markets in the world including Asia, Africa, America, the Middle East and Europe, in which the Asian market still accounted for the largest proportion but tended to decrease and gradually increase the proportion in the African market and major markets in Europe such as the EU and the United States. These are important outlets for Vietnamese rice and are rice export markets that need to be consolidated and maintained for the long term. In particular, Africa is Vietnam's strongest growing rice export market in recent years. This is a market

Potential markets always have high demand for Vietnam's rice exports, the policy of promoting rice exports to this market has had clear results.

Table 5 : Rice export proportion to markets in 2009

Unit: million tons


Market

Asia

Chau

Fly

America

Middle East

Chau

Europe

Chau

Australia

Turnover

Export

3,238

1,794

455,872

316,076

201,642

4.72

Proportion (%)

53.50

29.64

7.53

5.22

3.33

0.78

(Source: Ministry of Industry and Trade, 2010)


It can be seen that in 2009, rice exports to Asia still accounted for the largest proportion of 53.50% with an export turnover of 3.238 million tons, Africa accounted for the second largest proportion of 29.64% with a turnover of 1.794 million tons, America: 455,872 tons, accounting for 7.53%, of which the Cuban market: 442,910 tons, accounting for 7.32%; the Middle East: 316,076 tons, accounting for 5.22%; Europe: 201,642 tons, accounting for 3.33%; the remaining was the Australian market, accounting for 0.78% of the total export volume.

About rice export price:In general, compared to the world's leading rice exporting countries such as Thailand and Indonesia, Vietnamese rice of the same variety always has a lower price. However, in recent times, the export price of our country's rice has also increased significantly, showing that the quality of our country's rice has been significantly improved. Specifically, the average price of rice has increased from 300 USD/ton in 2006 to 550 USD/ton in 2008 and to 407.09 USD/ton in 2009 (due to the negative impact of the global economic crisis). The price of Vietnamese rice has increased from 39 - 42 USD/ton lower than the price of Thai rice of the same variety in 2006, but now that gap has been shortened a lot, the selling price on the world market of the two countries has almost no significant difference, the export price of Vietnam has almost followed the price of Thai rice. ( Nguyen Sinh Cuc, 2007). This is a good sign showing that the quality of rice as well as the export potential of our country has been significantly improved.

Some difficulties:Although our country's rice export over the past 10 years has achieved remarkable results, contributing a large amount of foreign currency to the country's economy, there are still many problems that need to be solved.

- Regarding the market : Vietnam's rice exports are not yet linked to the market, especially the market in the context of integration. We have not yet established a stable market system with a truly reliable customer network. The reason is that market research has not been focused on while export activities need to promptly grasp all in-depth information about the market to promptly monitor the system and developments in supply, demand and prices.

- Regarding export prices : currently, our country's export prices are lower than international prices and export prices in some other countries. The reason is that the quality of Vietnamese rice is low, the technical level is backward from the breeding stage to the processing stage. Vietnamese rice has not yet created a reputation in the international market, Vietnamese enterprises do not know how to promote and build a strong brand that consumers trust.

- Regarding rice quality : the quality of our country's exported rice is still not high, not commensurate with the location and potential of land, water resources, and rice-growing labor in the regions. In recent years, although the production, harvesting, preservation, etc. of our country's rice industry have been constantly improved, there are many reasons why the quality of the products sometimes still cannot keep up with market requirements. The quality of rice grains is not high, the rice is crossbred with many varieties, and the quality is not uniform, so it is not favored by foreign partners.

2.2 Aquaculture

Vietnam is a country with great potential for aquaculture and is in a period of rapid development, among the 10 countries with the largest aquaculture export output in the world. Based on the comparative advantage of natural resources, this is considered a traditional export product of our country.

Seafood export has been playing a very important role in the country's economic development. Developing the export of this product is also the policy of the Party and the State.

The country " combined the export of goods in which the country had a relative advantage (traditional export goods: agricultural, forestry and fishery products, minerals, fuels and textiles) and a number of goods with high technology content including automobiles, motorbikes, electronics and software services ..." ( Documents of the 9th Party Congress, 2001 ) to boost exports. In recent years, the seafood industry has achieved remarkable achievements in all aspects: export turnover increased, products were increasingly diverse in variety, quality improved and the market was increasingly expanding.

Our seafood industry is currently the leading export industry in the economy, after crude oil and textiles. The export value of seafood accounts for a significant proportion of the total export value of the country.


Export volume and turnover


Table 6 : Seafood export turnover in the period 2000 - 2009

Unit: Million USD


Year

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Jar

army

Value

1478.6

1816

2023

2200

2401

2500

3348

3560

4521

4251


Speed ​​of increase

(%)


-


22.8


11.4


8.7


9.1


4.1


3.4


6.3


27


-6


9.6

(General Statistics Office, 2008, 2009 )

Since 2000, the export turnover of aquatic products has continuously increased. If in 2000, the export turnover of aquatic products of Vietnam only reached 1478.6 million USD, then in 2009 it was 4251 million USD. Thus, within 10 years, the export turnover of aquatic products has increased nearly 3 times, with an average growth rate of 9.6%. The above results are due to the significant contribution of offshore aquaculture and fishing projects, ensuring sufficient quantity and quality of goods for processing and export. The growth of most aquatic products is proof of this.

The effectiveness of investment, technological innovation, application of advanced food safety and hygiene inspection, management and control programs and systems, and the capacity to meet the high quality requirements of major markets.

However, under the impact of the global financial crisis in 2008, by 2009, for the first time in 13 years, seafood exports had a negative growth rate (-6%). This was the result of the impact of the global economic recession and the shortage of domestic raw material supply for export enterprises.

Regarding seafood export markets : in recent times, market diversification has been focused on and achieved encouraging results. If at first, Vietnam's seafood exports were only aimed at a few major intermediate markets such as Singapore and Hong Kong, by 2005 this number was 105 countries and regions; in 2007 Vietnam exported to 145 countries and territories, in 2008 it was 159 and by 2009 Vietnamese seafood products were present in over 120 countries and regions around the world. The EU, Japan and the United States are still the main markets for Vietnamese seafood, accounting for more than 70% of the market share ( Synthesized reports of the Ministry of Industry and Trade 2005, 2008, 2009 ). Up to now, the largest and most demanding markets have accepted Vietnamese seafood products. Vietnamese seafood products are increasingly gaining an important position in large markets with strict requirements on quality and food safety such as the US and EU. Recently, the structure of seafood export markets has changed in a positive direction.

Table 7 : Structure of Vietnam's seafood export market from 2005-2009

(Unit: Value: Million USD; Proportion: %)


Year

2005

2006

2007

2008

2009

Market

Value

(Million USD)

Ratio

weight (%)

Value

(Million USD)

Ratio

weight (%)

Value

(Million USD)

Ratio

weight (%)

Value

(Million USD)

Ratio

weight (%)

Value

(Million USD)

Ratio

weight (%)

EU

614.7

21.4

745.6

22.8

978.3

26.6

1149.4

25.5

1096.3

24.1

Japan

Copy

635.4

22.1

723.1

22.2

743.5

20.2

830.6

18.4

757.9

17.8

America

605.1

21.1

635.5

19.4

679.7

18.5

754.6

16.7

713.5

16.8

Weld

Country

156.3

5.4

201.3

6.2

240.4

6.5

297.5

6.6

307.8

7.2

The

other country


858.5


30.0


967.4


29.6


1037.6


28.2


1473.5


32.8


1375.8


34.1

Total

add

2870.0

100

3272.9

100

3679.5

100

4505.6

100

4251.3

100

(Source: Center for Statistical Informatics - Ministry of Agriculture and Rural Development, 2009)


From the above table, we can see that over the years, among the main seafood import markets of Vietnam, the three main markets still stand out: EU, Japan, and the US. From 2005 to 2008, the export turnover and value of seafood always increased with a high and stable growth rate, however, this figure decreased in 2009 in most of Vietnam's seafood import markets.

Regarding the structure of exported aquatic products : according to current statistics, more than 90% of aquatic products are processed for export. Most of which are frozen, semi-processed, and processed. The main products include frozen fish, frozen squid, frozen shrimp, and dried squid.

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