Investments

The Green Revolution: How Agriculture Soared to a $11.8 Billion Trade Surplus in Just 8 Months

As per the Ministry of Agriculture and Rural Development, exports of the agricultural sector's key products in the first eight months of 2024 outperformed the same period last year.

Administrator

31 August, 2024

Rice export turnover for the first eight months reached US$3.85 billion, up 21.7% compared to the same period last year. (Photo: PV/Vietnam+)

According to the Ministry of Agriculture and Rural Development, in the first eight months of 2024, the total export turnover of agricultural, forestry, and aquatic products reached US$40.08 billion, while imports stood at US$28.28 billion. This resulted in a trade surplus of US$11.8 billion for the agriculture sector, a 68.4% increase.

In August 2024 alone, the export turnover of agricultural, forestry, and aquatic products reached US$5.55 billion, a 12.3% increase compared to the same period last year. This included US$2.99 billion from key agricultural products (up 22.6%), US$1.45 billion from forestry products (up 4.7%), and US$900 million from aquatic products (up 5%). Meanwhile, the export turnover of livestock products was US$46.5 million (down 4.8%), and production inputs stood at US$161 million (down 23%).

For the eight-month period, most product groups witnessed an increase in export turnover, resulting in an overall growth of 18.6% to US$40.08 billion. Specifically, agricultural product exports reached US$21.32 billion, up 24%; forestry products stood at US$10.97 billion, up 19.7%; aquatic products at US$6.23 billion, up 7.6%; and livestock products at US$324 million, up 0.3%. Only production inputs saw a decrease of 6.8% during this period, reaching US$1.23 billion.

According to the Ministry of Agriculture and Rural Development, the export turnover of key products was higher than in the same period last year. These included: Wood and wooden products at US$10.24 billion (up 20.6%); coffee at US$4.03 billion (up 36.1%, with a volume of over 1 million tons, down 11.9%); rice at US$3.85 billion (up 21.7% with a volume of 6.16 million tons, up 5.9%); cashew nuts at US$2.77 billion (up 21.7% with a volume of 487,000 tons, up 22.9%); fruit and vegetable products at US$4.63 billion (up 30.6%); shrimp at US$2.41 billion (up 9.5%); and tra fish at US$1.2 billion (up 8.2%).

Aquatic product exports in the first eight months of 2024 increased by 7.6% compared to the same period last year. (Photo: PV/Vietnam+)

The average export price of several key products also increased, including: Rice at US$625/ton, up 14.8%; coffee at US$3,805/ton, up 54.5%; rubber at US$1,567/ton, up 16.6%; pepper at US$4,810/ton, up 47%; and tea at US$1,756/ton, up 2.2%. Only the price of cashew nuts decreased by 1%, to US$5,701/ton.

In the first eight months of 2024, export values to all markets increased. These included Asia at US$19 billion (up 15.7%); the Americas at US$9.3 billion (up 22.3%); Europe at US$4.8 billion (up 30.5%); Africa at US$747 million (up 5.5%); and Oceania at US$563 million (up 12.8%).

The United States, China, and Japan remained the three largest export markets, with the United States accounting for 21.4% of total export value, an increase of 23.5%. China accounted for 20.4%, an increase of 10.2%, while Japan accounted for 6.7%, an increase of 4.6%.

In the remaining months of the year, the Ministry of Agriculture and Rural Development will focus on developing domestic and export markets, as well as addressing market-related issues to facilitate the export of agricultural and aquatic products, especially to China, the United States, and the EU. The ministry will also aim to take advantage of international trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), to boost exports of key agricultural, forestry, and aquatic products. Additionally, support will be provided to businesses to sign new export contracts.

In addition to major markets like China, the United States, Japan, and the EU, the agriculture sector is also actively working with businesses to explore new markets with significant potential, including Islamic countries, the Middle East, and Africa.

In addition to fresh durian, frozen durian has also been officially exported to China. (Photo: VNA)

In August 2024, during the state visit of General Secretary and President To Lam to the People’s Republic of China, the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China officially signed three important protocols, paving the way for the export of fresh coconuts, frozen durian, and crocodiles to the Chinese market. The opening of the Chinese market to frozen durian and fresh coconuts, which are potential products for Vietnam, will significantly contribute to the export turnover of fruit and vegetable products, as well as agricultural products, in the near future.

Also, in August 2024, the United States Department of Agriculture and the Ministry of Agriculture and Rural Development completed technical negotiations and proceeded with legal procedures to allow the import of Vietnamese passion fruit. Both sides also initiated the process of considering new fruits from Vietnam, such as seedless lemons, guava, and jackfruit. They also discussed diversifying phytosanitary measures to reduce costs and facilitate trade between the two countries.

Hong Kieu