Vietnam Agriculture to Benefit From Free Trade
World Economy

Vietnam Agriculture to Benefit From Free Trade

Officials and economists see Vietnam’s membership of the Trans-Pacific Partnership bringing more opportunities than challenges for the country’s agriculture sector.
Speaking on the sidelines of a recent seminar on TPP and its impacts on the country’s agriculture sector organized by the University of Economics and Law and Van Hien University, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said: “I don’t think the TPP will hurt Vietnam’s agriculture sector; I think it will bring huge opportunities for speedy development, VNA reported.
“It will present Vietnam the opportunity to assess the strength and weakness of its agricultural sector.” Other TPP members are likely to become huge consumers of Vietnam’s agricultural products, which would help the country reduce its dependence on traditional markets, he said, referring especially to China.
In the first eight months of this year China bought 35% of Vietnam’s total farm exports and sold over 53% of the agricultural inputs it imported.
With tariffs scrapped or reduced to very low levels under the trade deal, Vietnam is expected to steal a march on its non-TPP rivals in exporting seafood, furniture, rubber, pepper and cashew.
The trade deal would also help Vietnam attract more investment, including foreign, in its agricultural sector. FDI in the sector has been worth $3.4 billion this year.
Vietnam is set to straddle the TPP rice market like a behemoth.
Nguyen Dinh Bich of the ministry of industry and trade’s Trade Researcher Institute said Vietnam accounts for 26.7 million tons of the 45.3 million tons of the grain produced annually by TPP members.
The trade deal is expected to provide Vietnam with an opportunity to restructure agriculture by boosting research, improving agricultural infrastructure, and developing production chains.
Now the country’s agriculture is mostly small scale or household-based.
For instance, there are nearly 12 million farming households of whom 80% cultivate less than a hectare. Four million households rear pigs, but 77% have less than five; 7.9 million households raise chicken, 90% have less than 49. Of the 21 million agricultural workers, over 97% have got no training.
But Tuan said TPP membership is likely to usher in comprehensive changes, creating production chains with support from research organizations.


Short URL : http://goo.gl/Xw5pZr
  1. http://goo.gl/nS7jnC
  • http://goo.gl/riu9LW
  • http://goo.gl/8NEClX
  • http://goo.gl/I79WEc
  • http://goo.gl/e04r8r

You can also read ...

Innovation, Technology Should Boost Hong Kong Economy
Innovation and technology will become profitable in Hong Kong...
Annual expansion in the second quarter fell to 4.5%.
Malaysia cut its full-year growth forecast and reported much...
Government data shows the number of jobs created in July fell to the lowest levels in over eight years.
South Korea’s ranking officials revealed a disparity in their...
As technological progress makes people richer in terms of many basic goods and services, it may be inevitable  that more human activity is devoted to zero-sum competition for available income and assets.
Across the global economy, the potential for automation seems...
Trade War Won’t Dent China GDP
Analysts are trying urgently to evaluate the potential impact...
Canada Inflation Surges
Canada’s inflation rate surged to 3% in July, fueled by rising...
Amazon to Challenge TiVo With Live TV Recorder
Amazon.com Inc. is developing a new device that records live...
Italy to Launch New Infrastructure Plan
The government will launch a plan aimed at making Italy’s...