Policy Brief

MARD-VIETNAM Briefing Report July, 2020

VIET NAM - In July, although the Central Highlands and the South region were in the rainy season, the agricultural, forestry and fishery production had to cope with various difficulties such as natural disasters, floods, droughts...; The COVID-19 situation in the world was still complicated, especially in countries with important trade relations with Vietnam. However, agricultural production still followed the planned progress, forestry and fishery production gradually restored. Exports regained growth momentum. Some specific results are as follows:


 I. RESULTS IN JULY AND 7 MONTHS: In July, although the Central Highlands and the South region were in the rainy season, the agricultural, forestry and fishery production had to cope with various difficulties such as natural disasters, floods, droughts...; The Covid-19 situation in the world was still complicated, especially in countries with important trade relations with Vietnam. However, agricultural production still followed the planned progress, forestry and fishery production gradually restored. Exports regained growth momentum. Some specific results are as follows:

1. Production and business results:

a) Cultivation:

- Paddy: Focusing on taking care of summer-autumn paddy and harvesting summer-autumn paddy early; speeding up the cultivation of Winter- Spring paddy and autumn-winter paddy; monitoring and promptly preventing pests. Specifically, as of mid-July, the whole country cultivated 6.4 million hectares, decreased 182 thousand hectares over the same period. In which, North provinces cultivated 2.19 million hectares, declined 38.6 thousand hectares (-1.8%) over the same period in 2019; While, 4.19 million hectares were cultivated in the South, decreased 142.8 thousand hectares (-3.3%). The harvested area reached 3.6 million ha, the yield was about 23.15 million tons of paddy.

- Vegetables and crops: As of mid-July, the whole country cultivated 764.9 thousand of maize, equaling 97.6% of the same period last year; 87.4 thousand hectares of sweet potatoes, equaling 93.8%; 28.7 thousand hectares of soybeans, equaling 90.6%; 146 thousand hectares of peanuts, equaling 98%; 84.7 thousand hectares of vegetables and beans, increased 1.9%.

b) Husbandry: In general, in July and 7 months, livestock production grew relatively well, the disease on cattle and poultry was controlled, especially African swine fever (ASF), numerous localities announced epidemic termination; The herd of cows increased around 3.0% over the same period in 2019; The herd of pigs decreased nearly 3.0%; Poultry flock was estimated to increase by 5.5% over the same period in 2019. As of July 24, there was no outbreak of Porcine Reproductive and Respiratory Syndrome (PRRS); 01 outbreak of Avian influenza A / H5N6 in Tien Giang province; 05 outbreaks of Foot-and-mouth disease (FMD) type O in Quang Tri, Nghe An and Kon Tum; 188 communes in 58 districts of 18 provinces and cities have been infected with specialized diseases in less than 21 days.

c) Forestry: Localities in the South focused on taking care of planted forests, provinces in the North and Central focused on the forest fire protection and prevention; The concentrated newly planted forest area of the whole country was approximately 12.7 thousand hectares, decreased 14.0% compared to July 2019; the exploited wood production of the whole country was around 1,459,0 thousand m3 in the same period; exploited firewood production was 1.55 million Ste, increased 3.3%. Accumulated in 7 months, the newly planted forest area of the country was around 119.0 thousand ha, fell 1.5% compared with the same period last year; exploited wood production was 8,985.0 thousand m3, increased 1.7%; the exploited firewood output was 11.4 million steres, decreased 0.3%; Damaged forest area in July was 343.2 ha, a decrease of 59% compared to July 2019. Generally, in 7 months, the damaged forest area was 1,647.2 ha, declined 5.6% over the same period last year, of which, fire damage was 1,243.1 ha, reduced 8.2%; The country has collected VND 1,162 billion for forest environmental services; including revenue from Vietnam Forest Protection and Development Fund was VND 852.4 billion, from the provincial fund, was VND 309.6 billion.

d) Fishery: In July, fishery manufacturing recovered; the fishery production was generally 783.3 thousand tons, 1.5% higher compared to July 2019. In the first 7 months, total production was nearly 4.65 million tons, increased 1.6% over the same period in 2019. Specifically:

- Exploit: In July, the exploited production reached 344.9 thousand tons, increased 2.5% compared to July 2019. Generally, in 7 months, output reached 2.23 million tons, raised 1.5% over the same period in 2019; of which, sea exploitation reached 2.14 million tons, increased 1.7%.

- Aquaculture: In July, aquaculture production was approximately 438.4 thousand tons, increased 0.7% compared to July 2019. Accumulated 7 months, the production was 2.42 million tons, raised 1.6% over the same period. In which, the fish production was around 1.69 million tons, decreased 0.1% (Shutchi catfish - Pangasius hypophthalmus reached 731.5 thousand tons, declined 2.3%); the shrimp production reached 457.7 thousand tons, increased 6.5% (Giant tiger prawn - Penaeus monodon reached 156.46 thousand tons, increased 1.4%; White Shrimp - Lipopenaeus vannamei reached 217 thousand tons, increased 3.9%).

2. Import and export: In 7 months, the total import-export turnover of agricultural, forestry and fishery products was nearly USD 39.5 billion, of which, the export turnover was USD 22.3 billion, declined 2.8% over the same period in 2019; the import turnover was USD 17.2 billion, dropped 4.6%; the trade deficit was nearly USD 5.2 billion, increased 3.8% over the same period in 2019.

a) Export:

- Export turnover: In July, the export turnover was USD 3.4 billion, raised 4.6% compared to June 2020; in which, the export value of the main agricultural product was generally USD 1.4 billion (decreased by 1.0%), the main forestry products were about USD 1.1 billion (increased 9.8%), the Fishery and Aquaculture reached USD 780 million (raised 8.4%) and the husbandry reached USD 33 million (fell 2.7 %)...[1]Generally, in 7 months, the export turnover of agricultural, forestry and fishery products was USD 22.3 billion, decreased 2.8% over the same period in 2019. In which, the main agricultural product was USD 10.4 billion, decreased 4,0%; the husbandry products was USD 213 million, decreased 24.9%; the Fishery and Aquaculture products was USD 4.4 billion, decreased 6.4%; the main forestry products reached USD 6.5 billion, increased 6.7%. Also, the export value of rice, vegetables, cassava, shrimp, wood and wood products, cinnamon, and bamboo increased over the same period. Specifically, the rice export value reached USD 1.9 billion (increased 10.9%); vegetables reached USD 414 million (increased 9.6%); cassava reached USD 107 million (increased 101.8%), shrimp exports earned nearly USD 2 billion (increased 12.1%); cinnamon reached USD 110 million (raised 15.4%); wood products reached USD 4.5 billion (raised 9.0%); rattan, bamboo, carpet hit USD 305 million (raised 14.7%). Currently, there were 6 groups of export products reached over USD 1 billion, leading was wood products with more than USD 4.5 billion. Additionally, the products with a large decrease in the export value, such as rubber with USD 864 million (declined by 19.5%), tea with USD 111 million (reduced by 7.7%), pepper with USD 395 million (decreased by 22.5%), fruit with USD 1.5 billion (reduced 20.2%), and pangasius with USD 828 million (fell 26.9%).

- Export market: China was still the largest market with the export turnover was nearly USD 5.4 billion, decreased 11.1% over the same period and accounted for 24.1% of the market share. Followed by the United States with USD 5.2 billion, increased 9.5% and accounted for 23.1% of the market share. Exports to ASEAN countries reached nearly USD 2.3 billion, increased 6.2% and accounted for 10.27% of the market share; EU market was approximately USD 2.2 billion, decreased 2.7% and accounted for 9.9% of the market share; Exports to Japan reached about USD 1.9 billion, fell 0.1% and accounted for 8.6% market share.

b) Import: Generally, in 7 months, the import turnover of AFF products was USD 17.2 billion, decreased 4.6% over the same period in 2019. In which, the import value of main agricultural, forestry and fishery products was USD 13,9 billion USD, reduced 6.1%. Except for animal and vegetable fats and oils, wheat, corn, soybeans and livestock with the increased import value (+11.6%, +24.8%, +11.6%, +23.0% and +11.2%, respectively.), other items decreased compared to the same period in 2019. In which, fertilizer decreased by 10.8% (URE decreased 78.7%, NPK decreased 19%), pesticides fell 21.4%, cotton fell 17%, cashews fell 24.6%, vegetables and fruits fell 37.7%, wood and wood products fell 10.3%, seafood fell 6.2%.

3. Irrigation, natural disaster prevention: The Ministry has closely monitored the weather situation, promptly warned localities about hot weather, heavy rain, floods, landslides and the danger of thunderstorms, cyclones. Additionally, The Ministry has updated and directed to overcome the lack of rural domestic water due to drought in the Mekong Delta and South-Central Coast. Also, the Draft Resolution on the riverbank and coastal erosion in the Mekong Delta was completed to submit to the Government. Specifically, in July, the country had 07 heavy rain; 10 thunderstorms, lightning; 09 riverbank landslides in the Mekong Delta;...Generally, in the first 7 months of the year, there were 16 types of natural disasters: 202 thunderstorms, tornadoes, heavy rain in 43 provinces/cities, causing 53 deaths and 137 injuries; 110,222 ha of rice and crops were damaged; 10,734 dead cattle and poultry. Estimated, the economic loss was VND 3,515 billion.

4. Capital construction investment: The total capital budgeting in 2020 assigned by the Ministry was VND 19,978 billion; in which, domestic capital (including government bonds) is VND 12,148 billion. ODA was VND 1,830 billion. In the first 7 months of the year, the disbursement volume was approximately VND 5,368 billion, equaling 38.4% of the year plan, specifically:

- Domestic budget capital: The disbursement reached VND 709.3 billion, equaling 31.6% of the plan.

- Foreign capital: The disbursement reached VND 557.8 billion, equaling 30.5% of the plan.[2]

- Government bond capital: The disbursement reached VND 4,101 billion, equaling 41.4%.

5. Rural development and new rural construction: Currently, the whole country had 57 cooperative unions and 16,220 agricultural cooperatives, increased 03 unions and 857 cooperatives compared to December 31, 2019; 34,418 farms and 33,418 cooperative groups; 5,312 communes (59.8%) met new rural standards (increased 79 communes compared to June 2020); the national average reached 16.26 criteria/commune; 139/664 district-level units in 46 central-affiliated cities and provinces have been recognized by the Prime Minister to complete the new rural standards (accounting for about 20.9% of the total number of district-level units of the country). There were 38 provinces/cities assessed, classified, and approved for 1,800 OCOP products (reaching 75% of the plan of 2,400 products) of 1,052 participants.

6. Other tasks:

a) Financial plans: Synthesizing and developing the 5-year agricultural and rural development plan 2021-2025; Evaluating the results of the sector restructuring in the period of 2017-2019, developing the sector restructuring plan for the period of 2021 - 2025. Reviewing the list of medium-term public investment projects 2021-2025.

b) Planning: Completing and approving the detailed cost estimates of 04 national sector plans,...

c) Personnel organization: Continuing to synthesize the schemes and plans, consolidating the organizational apparatus, streamlining payrolls, renewing mechanisms,...

d) International cooperation: Preparing to work bilaterally with Korea; Japan, New Zealand, China; Completing the orientation document to attract and use ODA and concessional loans for the period of 2021-2025,...

e) Corporate Management: Continuing to implement the plan to restructure Agriculture Publishing House; holding a Preliminary conference on production and business situation and restructuring in the first 6 months of 2020,...

II. August objectives: In August, the natural disaster, epidemic diseases on livestock and poultry is expected to change unpredictably; Although the consumption of agricultural products (especially for export) will be better, numerous difficulties will still exist. Therefore, in order to achieve the annual growth target, all production sectors need to focus on implementing solutions to prevent natural disasters; promote production, control diseases on plants and animals, especially paddy production, pig husbandry, aquaculture, afforestation, wood gathering; promote trade promotion, open markets. Specifically:

1. Cultivation: Closely monitoring the production situation, promptly guiding localities on the season, seed structure and new technical advances applied in the production; Monitoring and assessing the impact of drought, saline intrusion on crop production. Additionally, grasping the situation of irrigation water sources of dams and reservoirs, using water resources properly; Grasping the production of key fruit trees for export. Also, continuing to grasp the situation of converting paddy land to planting fruit trees in the southern provinces; Strengthening the work of plant protection, closely monitoring the evolution of the source of transplants, especially the autumn acacia worm.

2. Husbandry: Directing the implementation of all measures to control the disease. Promoting the development of poultry and grass-eating cattle herds in linked chains, combining VietGAP husbandry models,...; Coordinating with ministries, branches, localities and enterprises in implementing market development solutions. Also, Controlling, stabilizing and reducing pork prices; Strengthening the monitoring and management of animal food quality; Coordinating with units of the Government Office to complete the procedures for the Prime Minister to approve the livestock development strategy for the period of 2020-2030, vision 2040; Deploying the inspection seed quality plan, animal feed, the implementation of VietGAP certification, certification of conformity.

3. Fishery: Focusing on developing key aquaculture and other high economic value aquaculture species in the direction of increasing commercial value and developing sustainably; Directing to promote production against complicated weather changes (seasonal change, floods ...), environmental quality deterioration, epidemics; Implementing synchronously and effectively the recommendations of the European Union for Vietnam to remove the "yellow card" and work towards sustainable marine fisheries development. Organizing conferences with localities on dealing with fishing vessels in violation of IUU. Synthesizing data of local fishing vessels on Vnfishbase software to adjust fishing quotas; Patroling, monitoring and handling violations related to illegal fishing; Developing and completing a draft environmental monitoring plan for aquaculture in the period of 5 years, from 2021 to 2025.

4. Forestry: Concentrating on directing the implementation of measures to restore production, processing and export of the forest products; Directing localities to organize the implementation of forest fire fighting and prevention plans; Conducting and reviewing the implementation of the Vietnam Forestry Development Strategy for the period 2006-2020; Developing the Forestry Development Strategy for the period 2021-2030, with a vision to 2050. Developing the Sustainable Forestry Development Program for the period of 2021-2025; Implementing the Information Disclosure and Communication Acting Plan to perform the VPA/FLEGT Agreement; Coordinating with the People's Committee of Nghe An province to prepare a series of events "Vietnam Forestry-75 years of establishment and development" held in Nghe An province. Preparing the Conference " Evaluation of 5-year results on the development of macadamia trees in Vietnam" and National Parks and Nature Reserves Ecotourism Investment Promotion Conference.

5. Irrigation, natural disaster prevention: Closely monitoring weather changes; promptly disseminating information to authorities and citizens to actively prevent natural disasters; Continuing to implement the tasks of Resolution 120/NQ-CP according to the plan for 2019, the agricultural development program in the Mekong Delta to adapt to the climate change; Implementing the Resolution No.76/NQ-CP on natural disaster prevention...; Urging localities to perform Directive No.04/CT-TTG dated January 22, 2020, on the implementation of urgent measures to prevent the natural disaster; Preparing to organize Natural Disaster Prevention Conference in the Central region and the dike protection and flood prevention technical training conference

6. Processing and market development: Closely coordinating with Ministries, Departments and Branches to monitor the price movements, the supply and demand of essential agricultural commodities in the countryMeanwhile, proactively propagating to diversify the market, directing consumers to change their food usage habits to reduce pressure on the current pork supply; Regularly updating the developments as well as the situation of the key markets affected by the disease; Focusing on solving technical barriers, negotiating to expand the market; With Chinese market particularly: Researching and organizing the implementation of solutions to promote the export of agricultural products to the Chinese market; disseminating the new regulations of The General Administration of Customs of China on the regulations on inspection of imported seafood; Finalizing the draft for the project "Developing the fruit and vegetable processing industry to strive to be among the top 5 countries in the world". Preparing to organize the Sugarcane crop annual summary conference 2019-2020.

7. Food quality and safety management: Continuing to implement food safety and hygiene monitoring programs; Urging localities to sign the commitments to comply with the food safety regulations; Replicating and expanding the safe agricultural, forestry and fishery supply chain associated with traceability through electronic packaging, labelling and stamping; Proactively solving the food unsafety incidents and negotiating to address the technical barriers, expanding the export markets for Vietnamese agricultural, forestry and fishery products; Disseminating of laws, information on quality management of agricultural materials, food safety,..

8. Rural development and new rural construction: Implementing the Scheme to develop 15,000 cooperatives. Synthesizing and orienting the strategy of developing the collective economy and cooperatives in agriculture in the period 2021-2030; Preparing the meetings of the State Appraisal Council on the investment policies for the Program in the period 2021-2025. Implementing the Science and technology program for new rural construction; Project 712 about the environment;…

9. Capital construction investment: Guiding units and investors to implement the 2020 public investment plan; Examining the disbursement of projects to ensure the disbursement rate is at the highest level under the direction of the Government; Coordinating with the Investor to review the Overall plan of each project, adjusting the mid-term capital budgeting for 2016-2020; Urging and resolving problems of 04 projects (Ban Mong reservoir project, Nam Cut reservoir, Dong Son water drainage and Ia Mor reservoir).

10. Other missions:

- Financial plan: Developing and completing the annual sector development plan; Completing the sector development plan for 2021, the 5-year sector development plan 2021–2025, the public investment plan in the period 2021-2025,...

- Planning: Continuing to select and implement 04 National sector plans.

- Personnel organization: Continuing to implement the tasks of organizational apparatus and personnel work.

- International cooperation: Preparing contents of the delegation work with South Korea; Japan, Australia, New Zealand, China, Fiji...

- Corporate Management: Accelerating the development of legal documents, administrative reform activities,... 

More details

[1] Compared to July 2019: AFF export value decreased by 1.8%; in which, the export of main agricultural products decreased by 13.3%, main forest products increased by 20.2%, seafood decreased by 1.3%, husbandry decreased by 32.2%.

[2] Not including VND 1,808 billion of ODA which was proposing to be transferred.

Ministry of Agriculture and Rural Development