Diversification lends to turnover advances

Diversification lends to turnover advances

Diversifying export markets is increasingly viewed as a strategic pathway for Vietnam to achieve its target of $70 billion in agricultural, forestry, and fishery export turnover.

Trung An High-Tech Agriculture JSC is bustling with preparations to deliver an order of 2,500 tonnes of ST25 and Japonica rice to Japan in October, following the successful export of 500 tonnes of low-emission rice to the country in June.

Pham Thai Binh, chairman of the Board of Directors, said, “Our products meet international quality certifications, as well as Japan’s Organic JAS certification. This provides a significant competitive advantage, as Japanese consumers are willing to pay a premium for clean, clearly certified products with transparent traceability and stringent standards.”

The Vietnam Trade Office in Osaka said that Japan has a high demand for safe and organic food products that are strengths of Vietnam, including coffee, cashew nuts, tropical fruits, and frozen vegetables. Additionally, with over 634,000 Vietnamese living and studying in Japan, accounting for almost one-fifth of the total Vietnamese diaspora, this represents a significant niche market that helps boost the consumption of Vietnamese agricultural products.

Besides rice, other agricultural products such as cashew nuts, dragon fruit, coconuts, fresh lychees, and dried fruits have become widely available in major Japanese retail chains like AEON, Don Quijote, and Ito Yokado. Notably, the 2025 lychee season saw approximately 200 tonnes of fresh lychees exported to Japan, distributed through supermarkets as well as online platforms.

In the first quarter of 2025 alone, Japan became Vietnam’s fourth-largest fruit export market, with a 22.8 per cent increase compared to the same period in 2024.

Efforts to promote exports to key and emerging markets alike are being supported by state agencies such as the Ministry of Agriculture and Environment (MoAE) and the Ministry of Industry and Trade.

Last month, an action plan was issued regarding promotion of domestic and international trade activities for the rest of the year. Minister of Industry and Trade Nguyen Hong Dien requested specialised units to provide export businesses with updated information on markets, trade policies, consumer trends, and technical requirements of partners in markets with free trade agreements with Vietnam.

“It is a must to coordinate with relevant agencies and organisations to enhance and diversify trade promotion activities to support import and export. This includes implementing large-scale trade programmes tailored to specific industries in key markets,” Minister Dien said.

According to statistics from the MoAE, Vietnam currently exports agricultural products and food to 200 countries and territories. The sector’s export turnover reached $39.7 billion in the first seven months of the year, marking a 14.7 per cent increase over the same period in 2024.

This growth was distributed across various sub-sectors. For instance, agricultural products saw a 17 per cent increase to $21.5 billion, while forestry products grew 8.6 per cent to $10.4 billion, aquatic products climbed 13.8 per cent to $6.1 billion, and livestock products surged 22.1 per cent to $339.2 million.

According to Truong Xuan Trung, first secretary and head of the Vietnam Trade Office in the United Arab Emirates, the UAE’s total annual agro-forestry-fishery trade volume is around $200 billion, yet Vietnam currently accounts for less than 10 per cent of this figure.

“The UAE and other member states of the Gulf Cooperation Council (GCC) operate under a unified customs system. This means that once Vietnamese goods enter the UAE, they can circulate freely to other GCC nations without facing additional tariffs, a notable advantage for market expansion,” Trung explained.

However, he cautioned that this framework could also pose risks. If a Vietnamese product fails to meet UAE standards, all six GCC countries would simultaneously impose strict inspection measures, leading to significant delays. “Exporters to the UAE and GCC must therefore prioritise quality control and ensure compliance with food safety and pesticide residue regulations,” he stressed.

In the European market, Vietnam’s agricultural counsellor in the EU, Tran Van Cong, noted considerable untapped potential for increasing agro-forestry-fishery exports. Nevertheless, the share of processed goods with high added value remains modest, and Vietnam still lacks sustainable distribution networks.

To unlock the EU’s potential, he recommended expanding raw material zones that meet EU standards, as well as establishing disease-free production areas to facilitate negotiations for market access for Vietnam’s animal products. “A long-term communication strategy is essential to counter negative publicity about Vietnamese seafood in the EU, while continuously reviewing and upgrading quality, food safety, and sustainability standards to align with EU benchmarks,” Cong added.

Asia Ingredients Group (AIG) is making significant research and development investments to diversify its deeply processed product portfolio and adapt to changing consumer trends. It is intensifying trade promotion efforts, forging links with global distribution networks, and expanding into Eastern Europe, the Middle East, and Latin America.

“AIG products are now available in over 50 countries and territories,” the representative said. “In the long term, we are pursuing a dual strategy, consolidating core products with global competitive advantages while expanding organic raw material areas, developing premium processed agricultural lines, and increasing technological applications across our factories.”

VIR

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