Bright prospects for Vietnamese agriculture

BMI says there are major opportunities for its production, export business and retail sales of traditional products like rice, coffee, livestock and poultry.

Over the past decade, Vietnam's economic growth has witnessed ups and downs due to high inflation and currency volatility that weighed on export competitiveness. However, 2013 looks set to be a major turning point in the economy, with the government pushing for the implementation of policies aimed at maintaining price stability, and addressing macroeconomic imbalances.

The government is strongly committed to restructuring state-owned enterprises, channeling economic resources towards supporting the private sector through infrastructure investment and tax incentives. Vietnam is eager to attract foreign investment in its agricultural and other economic sectors. Foreign direct investment (FDI) in agriculture remains modest, accounting for only 1-3% of Vietnam's total FDI.

BMI says the Government plans to improve agricultural production and business efficiency in the near future and the sector will benefit from the expansion of production and improvement in the business environment.

The results of public private partnership (PPP) programmes in the cultivation, breeding and seafood sectors has reinforce BMI’s forecasts of Vietnam's agriculture sector in the coming years.

The country's fertile soil and its increasing agricultural productivity will support robust growth in various sectors by more than 10% between 2012 and 2017.

Its export outlook is also promising. Thanks to great effort to compete with its traditional rivals like Thailand, Indonesia, India and Brazil, Vietnam is still one of the world's leading exporters of coffee and rice. However, its agricultural products will need to gain a leg on international competition in key markets.

To maintain growth, Vietnam should improve the quality of products and agricultural productivity by applying new technology in cultivation and breeding to ensure strict food hygiene and safety regulations and promote brand names.

Successful implementation of these measures will help the agricultural sector to raise value of exported goods and improve its competitiveness on the world market, according to BMI.