Great advantage from deep processing
According to Ministry of Industry and Trade, Vietnam is currently the second largest supplier in the world of coffee, first in cashew nuts, first in pepper and third in rice. Trade agreements have created a huge competitive advantage for strategic agricultural, forestry and fishery products and have strengths thanks to commitments to reduce tariffs. At the same time, it has increased attraction of high-quality foreign investment in agricultural sector, participating deeply and sustainably in global supply chain.
Currently, Vietnam has been and is continuing to implement current policies that are supporting agricultural sector to shift from exporting raw materials to increasing proportion of refined exports, creating conditions for enterprises to apply science and technology in agriculture, attracting investment to develop food processing industry. Thereby, contributing to improving quality and diversifying products, diversifying product lines and shifting from developing agricultural supply chains to developing industry value chains, keeping up with consumption trends of global market.
For example, thanks to investing in deep processing, diversifying products, conquering demanding markets, Vietnamese fruit and vegetable products have a selling price 3-4 times higher than that of conventional products. This is one of sustainable solutions for this billion-dollar industry.
Mr. Trinh Ngoc Minh - General Director of Phuc Tien Agricultural Products Joint Stock Company said that the company has increased investment in freezing systems, increased processing and diversified products, so the unit always signs export orders to Europe and Asia. Deep processing helps enterprises create products that go to distant, widespread markets and can be stored, so the output is large.
In parallel, deep processing will help factories to proactively source goods thanks to longer preservation. From there, gradually eliminate pressure to sell quickly and have to depend entirely on export market. In particular, it also effectively consumes raw materials for farmers during the harvest season.
An Giang Vegetable and Food Joint Stock Company added that deep processing helps farmers handle large output at the time of harvest. If we consume fresh products, we may not be able to consume them all and it is easy to lose value.
Regarding seafood products, according to assessment of Association of Seafood Processors and Exporters (VASEP), at international seafood exhibitions in the US and European Union (EU) held this year, value-added processed products received special attention from customers. Processed products are extremely diverse, mixed with many ingredients that customers enjoy and highly appreciate after tasting.
Deeply processed products are suitable for current trend of busy consumers who have little time for cooking. These products also bring businesses better profit margins.
Vietnam has advantages in processing level and high skills of workers. Closed and high-tech production process of value-added products will ensure preservation of fresh taste of seafood, while increasing productivity with high-quality products.
Not only in agricultural sector, but also in processing industry, enterprises focus on increasing processing content of export products. For example, at Garment Corporation 10, after testing direction of selecting complex, small-quantity orders, this year, Garment 10 continues to maintain orders with difficult technical requirements and flexible order receiving time. Selecting difficult orders helps businesses more easily find orders and customers in world markets. Or at Vietnam Textile and Garment Group (Vinatex), in the near future, the group plans to export the first orders for fire-resistant fabrics and clothing to Indonesia, India, the Middle East, and the US.
According to Mr. Le Tien Truong - Chairman of Vinatex Board of Directors, this is a product that can have a very fast growth rate but it will depend a lot on the policies of each country, specific product is not exactly like the product we have made in the past years. This is an item with high technical requirements, legality, copyright, not a regular fashion item, through the cooperation between Vinatex and Coast Group (UK) with a revenue target of 2-2.5 million USD and in the first 5 years, the orientation is to be able to double each year.
Strengthening deep processing of export goods
Although there have been many efforts, rate of deep processing of export goods is not high at present. For example, according to Vietnam Fruit and Vegetable Association, Vietnam currently has about 150 establishments and enterprises with modern processing factories, newly invested. Design capacity is 1 million tonnes of raw materials/year. This number only accounts for more than 10% of the raw materials Vietnam produces annually. Therefore, fruit and vegetable industry needs to make more efforts to enhance deep processing, diversify products and compete for sustainable exports.
Or for tea industry, according to Import-Export Department - Ministry of Industry and Trade, it is estimated that tea exports in July 2024 will reach 16,000 tonnes, worth 29 million USD, up 52.8% in volume and 56.2% in value compared to July 2023. Average export price of tea in July 2024 is estimated at 1,796.3 USD/tonne, down 6.7% compared to June 2024, but up 2.2% compared to July 2023.
Although Vietnam's tea export prices are showing signs of increasing, this price is only less than 70% of average export price of tea in the world. Average global export price of tea in 2023 will reach 2,600 USD/tonne.
Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development) said that value of Vietnamese tea is not high because the types of tea exported from Vietnam are currently mainly in raw form, with low processing content, while demand for tea consumption in the world has changed very quickly, shifting from regular tea products to deeply processed tea products and specialty tea.
Currently, Vietnam is the world's second largest supplier of coffee, first in cashew nuts, first in pepper and third in rice. Trade agreements have created a huge competitive advantage for strategic agricultural, forestry and fishery products and have strengths thanks to commitments to reduce tariffs.
Therefore, on part of authorities, it is necessary to shift from agricultural production thinking to agricultural economic thinking combined with ensuring ecological, environmental, human and sustainable development factors. Meanwhile, enterprises need to improve quality and diversify products, diversify industries and shift from developing agricultural supply chains to developing industry value chains to keep up with development trend of the world market.
Decision No.493/QD-TTg approving Strategy for Import and Export of Goods to 2030 clearly states that in a period of 2026 - 2030, new products with high added value, deeply processed agricultural and aquatic products; medium and high-tech industrial products, applying achievements of 4.0 industrial revolution; supporting industrial products. This is an important driving force to help enterprises continue to make efforts to promote deep processing and increase export value.

Source: Vitic/ congthuong.vn