TAILIEUCHUNG - Strategy for markets of agroforestry products of Vietnam in the next decade

Price fluctuation in agricultural commodities is very complicated. Currently, export prices of Vietnam agricultural commodities are equivalent to only 30-40% of the world market price. This urges us to think about ways to improve our product quality to meet world demands and to reduce marketing costs in order to increase profit from exports. This will be investment capital for industry sector in the future. | Strategy for Markets of AgroForestry products of Vietnam in the next Decade Nguyen Vo Linh1 Do Quang Giam2 Nguyen Chi Trung1 I. Overview of Vietnam s Agriculture Over the last decade Vietnam s agriculture has developed at a high growth rate averaging annually. The GDP in agriculture increased times from 1990 to 2000 while the share of the extended agricultural sector including agriculture forestry and fisheries in total GDP decreased from in 1990 to in 2003. Grain output has increased over 1 million tons each year. I ts average reached 408 kg in 1998 while this figure was only 281 kg in 1987. This ensured a solid basis for the national food security. From a rice importer Vietnam has become the second largest rice exporter in the world. Export turnover in total value of agricultural products increased rapidly from in 1990 to in 2003 Table 1 . Specialized regions in agriculture have formed. Agricultural products were produced abundantly to meet domestic food demand and to export. The proportion of agricultural commodities has increased rapidly of which rice accounted for 20 of its output coffee 95 ruby 80 and tea 60 . In 2003 total agricultural export turnover of the whole country achieved over 3 billion USD. The agricultural sector has had significant growth but agricultural commodities with high quality are still limited. Export goods are mainly in raw forms with low values. Comparability of agricultural commodities in the region and in the world market is weak and agricultural markets are not stable. Commercial infrastructure supporting consumption is constrained market systems do not operate smoothly. Trade efficiency is not high and imbalances occurred in profit distribution among the partners participating in the market of each product and in each region market. Price fluctuation in agricultural commodities is very complicated Figure 1 . Currently export prices of Vietnam agricultural commodities are equivalent to only 30-40 of the .

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