January 10, 2012

 

Vietnam posts agricultural exports trade surplus

 

 

In 2011, Vietnam had a trade surplus in agricultural, forestry and seafood exports whereas the price hike on the world market had an impact on export value but not added volume of exported products, stated exporters.

 

In 2011, the agricultural, forestry and seafood sector gained a trade surplus of US$9 billion and opened new export markets, according to the Ministry of Agriculture and Rural Development.

 

The sector enjoyed a on-year increase of 27% to US$25 billion in exports.

 

Growth in export value was mainly due to a surge in export prices while the volume of most products reduced slightly against the previous year, the ministry reported.

 

Only rice and rubber experienced increases in export volume last year at 4.4% and 8.2%, respectively, while the export volume of coffee stood at the same rate as the previous year and exports of other agricultural products, including tea, rice, pepper and cashews, fell.

 

Meanwhile, export prices of all agricultural, forestry and seafood products surged to the highest rate of 66.3% for pepper and the lowest increase of 9.1% for rice.

 

Do Thuc, head of the Vietnam General Statistics Office, said two-thirds of export value growth was the result of export price and volume increases.

 

Growth of the nation's export value could not be based on the agricultural sector because the increase in export value for this sector was not optimistic in 2011 due to the limited availablity of local raw materials for export processing, said Thuc.

 

Advantages in export prices pushed the value up by 33.2% to US$13.7 billion for agricultural products, by 21% to US$6.1 billion for seafood products and 12.7% to US$4.1 billion for forestry products.

 

However, total export value in the three sectors made up 26% of the total national export value in 2011, falling from 26.5% in 2010.

 

In 2012, the agricultural sector is likely to face more difficulty in exporting its products because rice must compete with low-priced rice from India and Pakistan. Seafood exports will be focused on shrimp and tra catfish while rubber will be dependent on the Chinese market, which should account for 60% of Vietnam's total rubber export value. Raw material outputs are expected for tea, cashews and coffee.