Minister Le Minh Hoan: The 'storm' of input prices is haunting

Two major problems clearly revealed through the pandemic

Looking back at the agriculture and rural development industry in 2021, which event left the deepest impression on you, Minister Le Minh Hoan?

The disruption of the value chain of industries can be mentioned as the agricultural industry’s biggest terror in the past year. The unprecedented pandemic has caused confusion and discord between localities while implementing epidemic prevention and control measures.

The second terror is the "storm" of input price. High material prices leading to an increase in both export and import values makes things difficult for Vietnam as we mainly import agro-inputs.

We must accept the fact that added value is not proportional to the figures in the agricultural export value. Farmer’s income seems to have increased, though incommensurate to the industry’s potential.

These two major issues are now evident through the Covid-19 pandemic.

So, in the face of such terrors, what action programs have MARD and related units initiated to remove difficulties for producers?

Under the direction of the Prime Minister, MARD has established two special working groups in the North and the South to directly take charge of agro-products production and consumption.

Apart from being an act to intercept the current situation, MARD also considers this an opportunity to look back and decipher the story of why the supply chain is congested and find a solution for local agro-products.

We will aim for transparent agriculture in terms of information in production and market. We will also put more effort into reducing ambiguity in the management of sectors associated with domestic consumption and export.

The National Assembly sets on “discussing” instead of “keeping” the 3.5 million ha of rice land

The National Assembly has recently passed the “Resolution on the National Land Use Planning for the 2021-2030 period, vision to 2050”. So does this mean that the National Assembly has decided to keep the 3.5 million ha of rice land until 2030? There are opinions saying that the people of the Mekong Delta should not have to “carry rice forever”. As a resident of the Mekong Delta, what is the Minister's thought regarding this issue?

Firstly, we must first clear this misunderstanding: the Resolution never mentions forcing people to “carry rice forever”.

And secondly, some newspapers go off with titles such as “The National Assembly sets on ‘keeping’ the 3.5 million ha of rice land”, which few words have been omitted. The National Assembly sets on “discussing” instead of “keeping” the 3.5 million ha of rice land. Those are two entirely different matters.

The rice land will likely remain 3.5 million ha, as the Resolution dictates, but people are allowed to use it in a flexible manner during the process of rice land's stable usage planning.

The Ministry of Agriculture and Rural Development indeed encourages farmers to produce rice to ensure national food security, but at the same time the sector also motivates them to modify crop structure to increase added value per area unit.

In 2022 the MARD will direct institutes, academies and agencies to study local models for a more comprehensive assessment. Experts will focus on research concerning the conversion from three-crop rice production to the high added value intercropping model in the Western watershed.

In the context of the Covid-19 pandemic, agro-products exports have encountered technical trade barriers due to countries’ protectionist tendencies. So how will the MARD coordinate with relevant ministries, branches and units to solve this problem?

We need to get familiar with the story of trade protectionism, starting from enterprises. Vietnamese enterprises used to pay little attention to the regulations of each specific market, and it’s common knowledge that the markets are everchanging.

MARD, through industry associations, will strengthen communication and timely make announcements to farmers and businesses about new regulations thereby promoting dynamism and proactiveness in businesses.

Agro-products exportation - towards the sustainable circular direction

It is expected that the export value of Vietnam's agro-products in 2021 will reach a record high of approximately USD 47.5 billion. Does that result match the word “sustainable”? Has the Ministry of Agriculture and Rural Development set a higher target this year?

After visiting many countries in the EU, I have come to a realization that Vietnam’s export value over the past few years lacks sustainability and consistency despite its high increase rate.

In most cases, it is the company that took the initiative to create connections with foreign markets. We have yet a sustainable export strategy for each type of market.

To be fair, we are happy that Vietnam's agro-products have been recognized by world markets.

The MARD is consulting with embassies and foreign trade agencies, firstly the EU and China, to develop a sustainable agro-products export scheme. We will no longer wait until the harvest season to collect for export. The establishment of a standardized material area is imminent.

In the near future, the MARD will form an alliance of agro-products exporter associations and include the participation of logistics enterprises for the first time. The ultimate goal of the coordination is to reduce intermediary costs.

When the sustainable agro-products export scheme is put into operation, I think we will not only achieve the USD 47 billion mark. Higher and more stable figures are within reach.

Thank you, sir!