Agriculture
From The Report: Vietnam 2017
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The rollout of new free trade agreements gives Vietnam added possibilities to export its agricultural goods, but tapping these markets will require an enhancement of the sector’s sustainability. This effort is likely to involve the consolidation of smallholders, lack of which has so far prevented the country from transitioning into a key agricultural export player. Also on the agenda are food safety, environmental impact, increasing the export of high-end manufactured products, diversification and commercialisation of by-products. The government has put forth sector goals it wants to see accomplished by 2020 that involve drastic reforms in promoting science and technology for increasing productivity and development, and creating high-quality and competitive products, all while improving farmers’ livelihoods.

This chapter contains an interview with Tiet Van Thanh, General Director, Vietnam Bank for Agriculture and Rural Development.

Articles from this Chapter

Overview

Growing pains: Pressure on exports has food producers looking to modernise
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As the economy has industrialised the share of agriculture to GDP has more than halved – from 40% in the mid-1980s to around 16% in 2016. Nevertheless, the agriculture sector remains crucial for Vietnam’s development as it continues to employ nearly half of the workforce. This has meant that swings in commodity markets and the environmental effects stemming from climate change have the potential to reverberate throughout the economy. This was underscored in 2016 when economic growth, though…

Interview

Growth factors: Tiet Van Thanh, General Director, Vietnam Bank for Agriculture and Rural Development (Agribank), on agricultural finance
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Interview: Tiet Van Thanh How can lending programmes for agricultural businesses in Vietnam be expanded? TIET VAN THANH: Loans to the economy reached VND791.45trn ($35.4bn) in 2016, and 70% of these were agricultural and rural loans. Expansions of the lending programmes for agricultural businesses should focus on credit funds to support enterprises with preferential interest rates, simplified procedures for access to credit, shorter project evaluation times and the implementation of a policy for…

Analysis

Grounds for optimism: Despite recent setbacks, coffee looks to remain a major player
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Vietnam has become the world’s second-largest coffee exporter and producer, behind Brazil, with beans grown on around 500,000 predominantly small holdings of 0.8 ha to 1.2 ha each. The country is the largest producer ofrobusta, a low-cost, high-yield family of coffee plants that is normally used in espresso blends or instant coffee powders. Coffee was first introduced into Vietnam in 1857 by French missionaries; some three decades later the first plantations went under cultivation in the…