Hanoi (VNA) -♈ While a majority of export industries in Vietnam have been negatively impacted by the global trade recession in 2023, the agricultural sector has emerged as the only bright spot.

Despite constituting only a modest proportion, agricultural exports from Vietnam have surged, providing essential support. The country boasts a varied portfolio in terms of agricultural exports, with rice and durians particularly excelling this year, according to the HSBC report themed “Agriculture exports holding the fort.” Given its abundant resources, Vietnam enjoys a diverse agricultural base. Seafood makes up almost 40 percent of its agriculture export mix, followed by Robusta coffee (14 percent), rice (12 percent), and fruits and vegetables (11 percent). One key factor behind the growth of agricultural exports is Vietnam’s strategic focus on export diversification. Instead of relying solely on rice exports, Vietnam has actively developed its fruit and vegetable sector for export purposes, contributing to the overall growth of agricultural exports. While China is an important buyer of Vietnam’s rice and seafood, it holds a dominant share of 65 percent in its fruits and vegetable products - a reason why the share has increased threefold over the past decade. After China’s re-opening, Vietnam’s tropical fruit exports have increased significantly, partly thanks to the signing of the fruit protocols in 2022. At present, 80 percent of Vietnam’s dragon fruits and 90 percent of its lychees are shipped to China. In particular, Chinese consumers’ new preference for durians has benefitted durian exports in ASEAN significantly. Vietnam has enjoyed a record high level of durian exports to China (up 1,400 percent year-on-year) as of the third quarter of 2023, which has ensured that this category of fruit now takes top spot in its overall fruit exports with a share of close to 40 percent. As the world’s third-largest exporter of rice (after India and Thailand), Vietnam’s rice exports have risen on the back of soaring demand from regional peers and the recent rally in global rice prices. While Vietnam is capitalising on export opportunities, it still aims to strike a balance between domestic food security needs and growing export demands. The country maintains a moderate forecast, expecting to export 7-8 million tonnes of rice this year, representing a maximum increase of 14 percent compared to the previous year. In conclusion, HSBC experts emphasise that in the challenging year of 2023, Vietnam’s agricultural exports have defied adversity and contributed to overall trade dynamics. Although agricultural exports account for less than 10 percent of the total export portfolio, their positive performance helps alleviate trade constraints. Looking ahead, it is crucial for Vietnam to leverage free trade agreements (FTAs) and focus on meeting international standards to further enhance its market potential./.