Agricultures, Foods, News & Event
The Middle East and Africa region increased imports of Vietnamese agricultural products
When traditional markets encountered difficulties, agricultural export enterprises proactively exploited new markets with low market share and value but positive growth rates. Among them, the Middle East and Africa region has great potential and prospects.
On the morning of November 24, the Department of Quality, Processing and Market Development (Ministry of Agriculture and Rural Development) coordinated with the Asia-Africa Market Department (Ministry of Industry and Trade) to organize a seminar “Connecting”. information on needs, tastes and dissemination of agricultural market regulations in the Middle East – Africa region”.
This is one of the events in a series of seminars held in 2023 to disseminate information, regulations, and needs of the domestic consumer market and other market areas to localities and businesses. Potential agricultural exports of Vietnam such as: East Asia market, Middle East – Africa market, EU and US markets.
There are many prospects for increasing Vietnamese agricultural exports to the Middle East and Africa
Speaking at the opening of the seminar, Mr. Ngo Hong Phong – Deputy Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Rural Development) said: Up to now, Vietnamese agricultural, forestry and fishery products is present in over 190 countries and territories with export turnover of agricultural, forestry and fishery products in the first 10 months of 2023 reaching 43.08 billion USD, of which the largest consuming regions are Asia (accounting for a market share of 49,000,000 USD). 1%), Americas (market share 22.6%), Europe (market share 10.5%); Two regions with relatively small market shares are Africa (2.1%) and Oceania (1.5%). The products that maintain their growth rate and have a sharp increase in export value compared to the same period in 2022 are vegetables (reaching nearly 4.91 billion USD, an increase of 78.9%), rice (reaching 3.97 billion USD , up 17%), cashew nuts (2.92 billion USD, up 14.8%), livestock products (reaching 402 million USD, up 22%).
According to Mr. Phong, the Middle East and Africa are two large market areas with many countries and territories, are potential and promising markets, with large import demand for Vietnamese agricultural products. especially the food product group.
In recent years, Vietnam’s agricultural exports to these two market areas have tended to increase. The total export value of agricultural, forestry and fishery products into these two areas in 2022 will reach over 1.6 billion USD (up 2.6% over the same period) and in the first 10 months of 2023 will reach nearly 1.6 billion USD (up 2.6% over the same period). 11.7%), of which exports to the Middle East region in 2022 will reach over 836 million USD (up 22.3%), in the first 10 months of 2023 will reach nearly 700 million USD (up 2.6%); Exports to the African region in 2022 will reach over 859 million USD (down 11.3%), but in the first 10 months of 2023 will reach nearly 900 million USD (up 20.1%).
Faced with many difficult export situations in traditional markets in recent times such as the United States, EU, and Japan, businesses have proactively sought new markets, although the market share is still low and the value has reached is still small but the export value growth rate is positive. The growth of some products in the first 10 months of 2023 clearly shows the great demand and potential of the two market regions of the Middle East and Africa.
More information about this market area, Mr. Nguyen Phuc Nam, Deputy Director of the Asia – Africa Market Department (Ministry of Industry and Trade) said: In trade exchanges between Vietnam and the Middle East – Africa region , agricultural and aquatic products are always in the group of important export products, with good growth turnover, contributing to promoting bilateral trade turnover.
“In recent years, agricultural and aquatic product exports to the Middle East – Africa region have prospered,” Mr. Nam said.
In 2022, Vietnam’s total import-export turnover with the Middle East – Africa region reaches 24 billion USD, of which Vietnam’s export turnover reaches 10 billion USD; Agricultural and fishery exports reached 1.6 billion USD, accounting for 16% of total export turnover.
In the first 10 months of 2023, Vietnam’s total import-export turnover with the Middle East – Africa region reaches 20.8 billion USD, of which Vietnam’s exports reach 9.45 billion USD; Agricultural and fishery exports reached 1.54 billion USD.
Mr. Nguyen Phuc Nam said that for the African region, agricultural products with great export potential include: Rice, coffee, pepper, coconut meat, processed agricultural products, canned foods, seafood… While for the Middle East region, potential agricultural products include: Rice, coffee, cashew nuts, pepper, fresh fruit (dragon fruit, passion fruit, lychee, lemon seeds…), seafood…
There are still difficulties and risks
Besides opportunities, Vietnam’s agricultural and aquatic product exports to this market area also face some difficulties. In particular, differences in language, culture, legal systems, business practices, and difficult travel conditions between Vietnam and this region are still barriers limiting the development of relations. economic and trade cooperation between Vietnam and countries in this region.
Because Vietnam’s trade network in the region is still thin, to avoid risks, Vietnamese businesses often export through international intermediaries. This causes the price of Vietnam’s agricultural and aquatic exports to increase, reducing competitiveness and sometimes Vietnamese brands are not known to local consumers.
On the other hand, the cost of logistics services connecting Vietnam and the Middle East – Africa region is still limited, high transportation costs and insurance costs lead to high export costs, which also contribute to reducing competitiveness. of Vietnamese goods in this area.
Notably, the phenomenon of fraud and deception in commercial transactions is still common, along with a lack of partner information, market information, policies and regulations on import and export management of countries in the region. This area causes business risks to remain high.
In addition, because commercial banks in Vietnam and this region have not yet established agent relationships, businesses face difficulties in import and export payments, incurring costs due to having to go through national banks. economic; Difficulties related to payment methods…
At the seminar, representatives of Vietnamese trade offices in the Middle East and Africa region provided information on market potential and demand, import market regulations, notes in exchange, commercial payments and connection, contact, and support businesses doing import and export business, and production orientation for localities.
Experts and representatives of ministries, branches, businesses, localities… participating in person and online exchanged and discussed difficulties, problems, experiences and contributed solutions to promote develop production to meet market requirements and increase import-export market share in these two potential market areas in a sustainable manner in the coming time.