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Vietnam Agriculture in 2021 to Smoothly Achieve Its Mandates

The COVID-19 pandemic made the Vietnam GDP in the third quarter decrease by 6.2 per cent as compared to the same period last year. Finally, the real GDP growth in 2021 reached 2.5% (General Statistics Office of Vietnam). Before that, both the Central Institute for Economic Management (CIEM), under the Ministry of Planning and Investment, and the World Bank were optimistic about Việt Nam’s economy in 2021, predicting growth of 6.0 per cent and 6.8 per cent, respectively.

The COVID-19 pandemic made the Vietnam GDP in the third quarter decrease by 6.2 per cent as compared to the same period last year. Finally, the real GDP growth in 2021 reached 2.5% (General Statistics Office of Vietnam). Before that, both the Central Institute for Economic Management (CIEM), under the Ministry of Planning and Investment, and the World Bank were optimistic about Việt Nam’s economy in 2021, predicting growth of 6.0 per cent and 6.8 per cent, respectively. Although the COVID-19 outbreak, the Vietnam agriculture sector has increased by 3.16 percent as compared to 2020; including crop products and husbandry of of 3.18%, forestry of 3.85% and fishery of 1.85%.

 

 

Looking ahead, the economy rebounded in the fourth quarter of the year, as restrictions are gradually eased amid a drop in daily Covid-19 cases since their peak in early September. Although, infection rates still remain relatively high; vaccination in whole country promptly extended as a key solution. GDP contracted 6.2% year-on-year in the third quarter of 2021, contrasting the 6.6% growth recorded in the second quarter.

 

The export turnover of agriculture obtained $US 48.6 billion; including agro-products ($ 21.49 billion), husbandry products ($0.434 billion), aqua-products ($8.89 billion) and processed wood & furniture products ($15.97 billion). The communes reached their standard promotion of new rural offered 68.2%. The conversion of rice cultivated areas with low economic efficiency into other crops, fishery, orchards, etc. was recognized as 39,000 ha.

 

 

Rice growing areas developed 7.24 million ha (39 thousand Ha decreased) with rice production of 42.86 million T (1.1 million T increased) and average yield of 6.06 t/ha (0.19 T increased). The high quality rice varieties covered 77% growing areas and 89% rice export volume. The milled rice export of 6.22 million T, obtained its turnover value of $US 3.28 billion with recorded average price of $ 526.9 / T (as compared to $ 499.3 / T in 2020).

 

Maize growing area is 0.902 million ha (4.24% decreased) with average yield of 4.91 t/ha. Total maize production gained 4.43 million T (2.8% decreased).

 

Soybean growing area is 36,000 ha (13.4% decreased) with the production of 57,600 T (11.9% decreased) and its yield obtained 1.6 T/ha.

 

Cassava growing area is 530,000 ha (5,500 ha increased); with the average yield of 20.0 T/Ha and total production of 10.60 million T (1.9% increased). The export turnover of cassava products obtained the value of USD 1.189 billion with the volume of 2,893 T.

 

Sweet potato growing area is 109,100 ha to obtained 1.37 million T, with the average yield of 12.6 t/ha.

 

Groundnut growing area covered 160,000 ha (9,000 ha decreased) with the production of 416,000 T (9,000 T decreased) and average yield of 2.60 t/ha.

 

Vegetable growing areas extended to 983,000 ha (8,000 ha increased) with the production of 18.4 million T (310,000 T increased). The export turnover of vegetable obtained $USD 434 million.

 

Fruit orchards developed 1.18 million ha (44,800 ha increased). Production of mango obtained 940,000 T (5.1% increased), orange: 1.52 million T, banana: 2.37 million T, dragon fruit: 1.40 million T (0.8% increased), pomelo: 922,000 T (6.4% increased), litchi: 374,000 T (18.5% increased), durian: 664,000 T (12.9% increased), pineapple: 733,000 T (3% increased), longan: 608,000 T (7% increased), rambutan: 309,000 T (3.7% decreased due to replanting). The export turnover of fruit obtained $ 2.494 billion.  

 

Coffee growing areas is 694 thousand ha (1,600 ha decreased). Coffee bean production offered 1.83 million T (61,000 T increased). The export turnover of coffee offered $US 2.998 billion with the volume of 1.52 million T.

 

Tea growing area is 121,500 ha (200 ha increased). The total production obtained 1.09 million T (20,400 T increased). The export turnover of tea gained $US 213 million with the volume of 126,000 T.

 

Rubber area is 925,000 Ha (7,000 ha decreased). Average yield: 1.71 t/ha. Total latex production obtained 1.25 million T (2.5% increased). The export turnover of rubber obtained $US 3.313 billion with the volume of 1.97 million T. It became a key factor of agro-exporting product.

 

Cashew nut cultivated area is 305,000 ha. The total production obtained 367,000 T (5.3% increased) with productivity of 1.18 t/ha. The export turnover of cashew nut products offered $US 3.659 billion with the volume of 582,000 T.

 

Black pepper growing areas are promoted over 130,000 ha. Pepper production obtained 282,000 T with productivity of 2.45 t/ha. The domestic price has been better than in 2020. The export turnover of black pepper offered $US 0.938 billion with the volume of 261,000 T.

 

Sugarcane has become stable with 180,000 Ha cultivated area to obtain roughly 11.1 million T (430.000 T decreased), average yield obtained 63 t/ha. However, the sugar price gradually increased up. It is a new event for the sugar industry. 

 

 

Husbandry: Due to African swine fever virus and COVID19, the heads of pig obtained 28.04 million heads (7,1% increased). Total meat product production obtained 6.69 million T under husbandry law implementation in 2021.

 

There are 2.34 million heads of buffalo and 6.45 million heads of bovine in the country. In addition, 375,200 milky cows produced their milk products of 1.159 million T.

 

There are 525 million heads of poultry (5.8% increased) including 415.7 million of chicken.

 

Egg production of 17.53 billion egg unit. Honeybee production effort reached to 25,300 T. Cocoon silk product offered 13,900 T. Swallow nest product gained 102 T.

 

Vietnam produced 21.5 million T of feedstuff for husbandry (5.9% increased). The export turnover of husbandry products addressed US$ 0.434 billion.

 

Aqua-production obtained 8.73 million T (1.0% increased). Culture products gained 4.8 million T (1.1% increased). Nature products obtained 3.9 million T (0.9% increased).

 

Brackish shrimp culture developed in 737,000 ha with 931,000 T. Pangasius fish production obtained 1.48 million T. Total value of aqua-products increased 1.85% as compared to 2020. The total turnover offered $USD 8.89 billion including shrimp and Pangasius of $3.85 B and $1.51 B, respectively. The seafood sector strived for strong growth in the remaining three months in 2021 so that Vietnam can fulfil the agricultural growth target since there is not much room left for growth in plant cultivation.

 

 

Forestry: In 2021, thanks are due to well-managed varieties (85-90%), newly reforested areas reached to 278,000 Ha (2.7% increased). The well-managed forest areas obtained 486,000 Ha. Beside that 150,000 Ha was replanted. The forest covers 42.02%. The certified and controlled economic wood farms accounted for 90%. Wood production from economic forests was 18.1 million cubic meters (5.4% increased). Total forest product value is $USD 15.97 billion (new record), including cinnamon, processed wood and rattan-bamboo of $USD 273, $14,812 and $880 million, respectively.

 

Salt-marsh areas developed 11,328 ha including industrial processing salt production of 3,528 ha. Salt production obtained 880.9 million T including industrial salt of 320,800 T (33.7% decreased). 

 

Agro-industry: In 2021, some economic groups focused their investment of VND 5,000 billion for agro-product processing industry with 6 projects. Mechanization on land preparation accounted for 97% (rice, sugarcane, maize, vegetable, etc.); then harvesting of 78%. The implementation by 67 food processing factories has been started with the investment of $ 2.58 billion for five years (2016-2020).

 

Domestic consumption: thanks are due to the e-trading network as Alibaba, Amazon, Sendo, Voso, Shopee and the super market as Big C, AEON, Hapro, Vinmart with their high reputation to enhance the domestic consumption successfully. In particular, litchi, fish, banana and fish products, etc. were smoothly consumed under Covid 19 influence.

 

Water irrigation meets the demand of 7.24 million ha of rice growing area. Monitoring was carried out 100% works. The 71% safe damps were registered to meet the demand of natural disaster response of 64%. In 2021, natural disaster was not critical as compared to 2020, but 832 events lead to 108 died persons with the loss of VND 5,100 billion.   

 

Cooperative economy: In 2021, there are 18,327 modern cooperatives (60% effective units) including 91 Unions of agro-cooperative farms, with 3.78 million people. There are 271 scientific units, 586,585 households, 4,028 cooperatives together contributed to link to 1,867 entrepreneurs in production, harvesting, processing and consuming their products successfully.

 

Big and famous enterprises can be cited as Vinamilk, Nafoods, TH, Dabaco Việt Nam, Masan, Lavifood, Ba Huan, Bien Dong. They are key contributors in Vietnam agriculture development. The 933 projects mentioning such linkages were conducted by the provincial approvals as Dak Lak (109), Son La (75), Quang Binh (63), Kon Tum (50), Lam Dong (48); Cao Bang (161), Thai Nguyên (49), Ha Giang (26), Dien Bien (23).

 

Farm economy: In 2021, 19,667 farms offered their new standards. Husbandry accounted for 61.8% of the total farms, then crop farms of 22.0%. Average area is 3.8 ha / farm unit. Average investment is VND 3.52 billion with 3.5 labors per farm. Total mean value from their production can be estimated VND 2.86 billion per year. Their income per capita roughly obtained VND 4.5 million per month.

 

 

The objectives in 2022

 

Agriculture growth will get 2.8-2.9% and product value increases 2.9-3.0%. The total agro-exporting turnover will obtain from USD 49 to USD 50 billion. The new rural commune number will reach to 73% in the whole country and clean water use percentage of 92.5%. Forest coverage will be maintained as 42% but enhance more forest quality rarer than replanted forest quantity.  Vietnam continues his attempting to meet the 2022 mandates under Covid 19 influences, climate change, and market competition pressure. How to improve its production quality and expand markets in the world? This is the main function behind farmer income increased.  

 

Prof. Dr. Bui Chi Buu

January 2022

(All statistical figures are highlighted from the MARD review in December 29, 2021, and the General Statistics Office ).

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