Vietnam To Increase in Agricultural Exports to China via Railway

The Prime Minister has issued a directive to enhance agricultural exports to China

The Prime Minister encourages the agricultural exports to China, emphasizing the expansion of railway transportation. This move seeks to complement road transportation and involves a directive to relevant departments and agencies to both boost railway capacity and construct specialized railway lines for the shipment of agricultural goods to China.

The inefficiencies of the existing logistics network, encompassing road, sea, and air freight, have been identified as a critical bottleneck that slow the agricultural exports to China. These inefficiencies have led to elevated costs and diminished the competitiveness of Vietnamese agricultural exports to China. The Prime Minister called for an improvement in the integration and completion of the logistics network to facilitate the flow of goods and agricultural exports to China.

This effort is supported by initiatives from the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade, which aim to implement the strategies outlined in the bilateral statement between Vietnam and China on opening markets and exporting agricultural products. Strategies include the diversification of distribution channels, establishing agricultural logistics centers at border crossings, and leveraging e-commerce platforms.

Furthermore, the Ministry of Finance, collaborating with China’s General Administration of Customs, is advancing the development and expansion of a pilot program for smart border gates equipped with origin tracing features.

In the year 2023, Vietnam’s agricultural exports to China reached an estimated value of 11.5 billion USD, with durian exports alone surpassing 2 billion USD. In addition to durians, a variety of other agricultural commodities, including bird’s nests, sweet potatoes, dragon fruit, longans, rambutans, mangoes, jackfruits, watermelons, bananas, mangosteens, black jelly, lychees, and lemons, were also officially exported to the market.

The Prime Minister has tasked the Ministry of Transport and the Ministry of Industry and Trade with engaging China to explore solutions aimed at reducing costs and transit times for the export of agricultural, forestry, and fishery products.

Immediate actions highlight the utilization of the international multimodal container transport corridor between Vietnam and China. This initiative focuses on standardizing technical specifications and linking railway systems at border crossings, particularly in Lao Cai province, to enhance transport efficiency and alleviate recent road congestion.

Additionally, there’s a push for the negotiation and agreement with China on the construction of specialized roads for agricultural commodities at various border gates near provinces like Lang Son, Cao Bang, Lao Cai, and Quang Ninh within the first quarter.

Benefits of Vietnam to Increase Agricultural Exports to China

Vietnam’s strategic push to increase agricultural exports to China stands as a pivotal move with far-reaching benefits for its economy, agricultural sector, and bilateral relations with its giant neighbor. The expansion of agricultural exports to China not only serves as a catalyst for economic growth but also strengthens Vietnam’s position in the global agricultural market.

Firstly, boosting agricultural exports to China provides Vietnam with a significant economic advantage. China, with its vast population and growing demand for diverse food products, represents a lucrative market for Vietnamese agricultural goods. By tapping into this demand, Vietnam can achieve a substantial increase in export revenues. The trade not only contributes to the national GDP but also supports the livelihoods of millions of farmers and workers involved in the agricultural sector. Products like durians, dragon fruits, and lychees, among others, have already seen a surge in popularity, underscoring the potential for even greater earnings.

Furthermore, enhancing agricultural exports to China encourages modernization and innovation within Vietnam’s agricultural practices. The need to meet the quality standards and demands of the Chinese market drives Vietnamese farmers and companies to adopt advanced farming techniques, invest in technology, and improve supply chain management. This shift not only increases productivity and product quality but also promotes sustainable agricultural practices, ensuring long-term environmental and economic health.

The diversification of export markets is another significant benefit. By increasing agricultural exports to China, Vietnam reduces its dependency on traditional markets. This diversification strategy mitigates risks associated with market fluctuations, trade barriers, and geopolitical tensions. It enables Vietnam to maintain a stable export revenue stream even in the face of global market uncertainties.

Strengthened bilateral relations between Vietnam and China is an indirect yet impactful benefit. Increased trade in agricultural products fosters mutual economic dependence, promoting peace and cooperation between the two nations. This positive trade relationship can pave the way for collaboration in other areas, including technology transfer, investment, and cultural exchanges, further bolstering ties.

Lastly, the expansion of agricultural exports to China has a profound socio-economic impact on rural development in Vietnam. Increased exports lead to higher demand for agricultural products, which in turn results in better prices for farmers and more job opportunities in rural areas. This economic uplift can alleviate poverty, improve living standards, and reduce urban migration pressures.

In conclusion, Vietnam’s focus on increasing agricultural exports to China is a strategic move with multifaceted benefits. It not only promises economic prosperity but also drives agricultural innovation, market diversification, stronger bilateral ties, and socio-economic development. As Vietnam continues to navigate the complexities of international trade, its agricultural sector stands to gain immensely from the vast and growing Chinese market.

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