Vietnamese agriculture 2005

In 2005, Vietnamese agriculture had to face lots of difficulties: large-scale draught, flooding and storms with abnormal factors particularly in the North and the Central; bird flu epidemic, electricity insufficiency; increased price of various materials. However, agriculture and forestry kept growing.

Agricultural production value increased by 3.2%, of which cultivation  increased by 1.3%, husbandry 11.6%, forestry 1.2%  and agriculture services 2.6%. The Gross Domestic Product of forestry is 142,685 billion VND counted as current value, an increase of 14,166 billion VND  compared  with 2004.

As for cultivation, the output of various products decreased due to natural disasters, however, there was still a dramatic increase in output of some products. Crops diversification, capacity increase, quality improvement, cultivation efficiency were kept strengthening.

In 2005 the national rice yield was 35.8 million tons, decreasing by 358,000 tons compared with 2004, mainly in the North and the Central (Winter-Spring crop). The rice output of the Mekong River Delta increased by 667,000 tons. The rice cultivated area was 7.326 million hectares, decreasing by 119,000 hectares, with  yield of 48.9 quintals/ hectare (nearly the same 2004). Sugarcane output was 14.7 million tons, decreasing by 5.9%; coffee output was 768,000 tons, decreasing by 8.2% mainly because of drought. Output of maize and other industrial plants increased dramatically, maize was 3.76 million tons, increasing by 9.5%; an increase of 18.5% and 3.5% for soybean and peanut respectively; tobacco increased by 10,7%; tea 4%; pepper 4.9%; cashew nut 13.3%; rubber 11.8%.

Total area of fruit-tree was 766.1 thousand hectares, an increase of 2.6 mainly due to improvement on miscellaneous gardens and increase in area of trees of highly commercial value. Output of oranges and tangerines increased by 12%; pineapples 13.9%; mango 12.8%, longan 3.7%; grapefruit 15.7% ( lychee decreased by 25.2%).

Cattle livestock, especially pigs and cows increased sharply both in number and productivity. In 2005, the national pig flock was 27.4 million, increasing by 4.9% compared with last year, in which the flock for meat was 23 million  increasing by 8%, and sow was 3.7 million  increasing by 8,5%, especially the imported sow flock  increased dramatically, an increase of 26.5% at Thai Binh  compared with the same period last year was an example.

Cow flock developed strongly nationwide; estimated at 5.5 million, an increase of nearly 12.9%; in which the number of milk cows was 110 thousand with a milk output of 185 thousand tons.

 The percentage of Zebu hybrid cows accounted for 30%  of the total flock of which East Southern and the Mekong River Delta had the highest percentage of 56.4% and 50% respectively. In many areas, the lawn growing movement for husbandry was started.

  Cow raising farms kept growing, by the end of 2004 there were a total of 3,400 farms of which 1,000 in the North  and 2,400 in the South.

Buffalo flock was estimated at 2.9 million, increasing by 31 thousand; horse flock was 113 thousand; goat flock 1.3 million , bee 700,000 nests.

As for poultry, there was only 218 million in 2004 because of bird flu epidemic, increasing by 2 million compared with 2004 ( an increase of 0.8%). In general, wide and strict prevention measures brought about more effective results.

In 2005, meat of all kinds were 2.81 million tons, increasing by 12.2% compared with 2004, of which pork was 2.29 million tons, increasing by 13.7%, beef 250 thousand tons, increasing by 19.6%. Milk output was 198 thousand tons, increasing by 31%.

The 5 hectare- forest project continued to be implemented, strengthening forest protection and development; forest coverage was 37.8%. It was estimated for the whole year 2005, the area of forest protection contract was 2.3 million ha, forest regeneration 760,000 ha, forestation 195,000 ha, increasing by 0.1% compared with 2004; scattered tree planting 205 million, increasing by 1.9%.

There was more state investment in protection and forest fire prevention, but because of complicated weather condition, long period of hot weather causing draught, the damaged area was still at a high level of 10,297ha; increasing by 46.2% compared with last year, burnt forest area was 7,522 ha, increasing by 57.8%. Kon Tum province and Dien Bien province had considerably damaged area of 1,483 ha and 877 ha respectively caused by forest fire.

Types of forests are being adjusted  according to new criteria, delivery of forest contract to households, villages, communes, and forest protection is maintained.

Salt production got more investment in quality improvement to meet domestic consumption demand. Although salt field area decreased by 2.4 % compared with 2004, salt output was estimated at 944,000 tons, an increase of 15% compared with 2004 due to favorable weather conditions and benefits from previous investment in infrastructure.

Agricultural and forestry processing industry, rural trades and mechanization developed at a high speed. In 2005, industrial production value of  agricultural and forestry processing achieved a growth rate of 15.3%. Of which, food and foodstuff had a high growth rate. In sugar processing sector, output decreased by 15% but 26 ( from 24 in 2004) out of  30 factories still earned profits thanks to increased price.

Rural trade continued growing, output value of 11 handy-craft fine art products had an annually average growth rate of 15%, over 40% products of rural trades were exported  with  an export turn-over of 500 million USD in 2005.

In 2005 there was over 310,000 tractors of all kinds, with a total capacity of 3,500,000 power-horse (an annual growth rate of 15%).  Mechanization in all steps of agricultural production kept growing; soil working 67%, irrigation and drainage 80.3%; rice plucking 83,6%. Now the manufacture of combine harvesters is being done to meet the rice harvesting requirements in the Mekong River Delta.

In 2005, sales of agricultural products went smoothly in domestic market. Prices of majority of agricultural products were fairly high, which benefited the producers.

Export of agricultural products increased sharply, of which main exporting items increased both in value and volume.

Total export turn-over of agricultural products in 2005 was estimated at 5.8 billion USD, increasing by 29% compared with last year. Such items as rice, coffee, pepper, cashew-nut helped maintain Vietnam’s  position in terms of agricultural product export.

Rice: estimated export of 5.16 million tons, turn-over was 1.382 billion USD, an increase of 27.1% and 45% in volume and value respectively compared with 2004.

Coffee: output was 880,000 tons, turnover was 7.18 million USD, a decrease of 9.7% in quantity and an increase of 12% in value

Rubber: export of 564,000 tons, turnover of 772 million USD, and increase of 9.9% in quantity and 29.4% in value compared with the last year.

Tea: total output of 85,000 tons, turnover of 95 million USD, the same as 2004.

Cashew nut: a total estimate of 103,000 tons, turnover of 481 million USD; only 97.7% in quantity but an increase of 10.3% in value compared with 2004.

Pepper: total estimated of 106,000 tons, turnover of 146 million USD, only 94.8% in quantity and 95.9% in value compared with 2004.

Vegetables and Fruit: total export of 235 million USD, increasing by 31.3% compared with 2004.

Forest product  export was 1.741 billion USD, increasing by 44.2% compared with 2004; of which wood furniture alone was 1.517 billion USD, increasing by 33.2%.

In 2005, regardless of difficulties, Vietnamese agriculture still kept growing under the guidance from the Government, Ministry of Agriculture and Rural Development, and local governments which had proper  measures against bad effects and good solutions to the problems.

Promotion on Establishment and registration of origin protection for Vietnamese agricultural specialties

Regulated by Vietnamese Laws, rights to a brand  and name of origin only arise  through the registration with  Department of Intellectual Property. A brand or a name of origin which is once registered in Vietnam is only protected within Vietnam  (not overseas)

At present, Vietnam is one of the world’s leading exporters of such agricultural products as pepper with 90% of output for export (world’s biggest exporter), coffee with 95% of output for export ( world’s second exporter), and other products like rice and tea are also exported with big volume. It should be noted that almost all Vietnamese agricultural products are exported under foreign brands by intermediates. Made-in-Vietnam products which are of small number and newly-established are not yet known much in the world’s market.

Vietnam has a variety of ecological areas with their own typical agricultural specialties, which creates an advantage in diversity of Vietnamese agricultural products. From the Northern mountainous area to the Mekong River Delta, each place has its own typical agricultural specialties.

In order to help farmers in sales of their products, creating market-oriented production methods, it is not only the problem of capacity and productivity increase but it is also necessary to increase the competitiveness of agricultural products, to raise income for Vietnamese farmers. At present, Vietnamese have not been aware or have never experienced in solving these problems, as a result, lots of Vietnamese enterprises have been deprived of their brands  which are registered overseas beforehand.

In the current process of international integration, promotion on brand name establishment and protection registration for agricultural products is very importance so that rights and legal interests of Vietnamese agricultural specialties are protected legally, which benefit those Vietnamese farmers who produce these products in their homeland.

According to a survey on brand establishment for agricultural products conducted at 31 Departments of Agriculture and Rural Development, only 37  out of 173 state-owned enterprises operating in agricultural products and agricultural material, accounting for 21%, has started brand name protection registration for 107 agricultural items within Vietnam, and only 3% of the enterprises has had their brands registered overseas. Since a conference held in Hanoi on August 20, 2002 in which Ministry of Agriculture and Rural Development launched promotion on brand establishment for agricultural and forest products, the number of enterprises carrying out the job is still small and with slow pace, number of enterprises registering for brand protection overseas is too far small, a lot of native and special agricultural products have not been registered for protection.

According to statistics, Vietnam now has 37 branches, 67 sub-branches, 2351 sources of precious and rare genes, lots of which are representatives for a certain ecological area. If Vietnam succeeds in promoting establishment and origin protection registration for agricultural specialties, we will be able to create many trademarks and brand names of agricultural products which are attached to places of origin. However, there is only a small number of above mentioned types has their names of origin protected, the handful rest remains unregistered. Three Vietnamese products which have been recognized as having geographical instruction and origin protection are Phu Quoc fish sauce, Moc Chau Tea (2001) and Buon Me Thuot Coffee(2005).

According to insufficient statistics,  up to now the projects on brand establishment and protection for some Vietnamese agricultural products are as follow

Ø        Binh Thuan Dragon fruit: This trademark is established by Y&D group from Ho Chi Minh Economic University, Faculty of  Trade-Tourism- Marketing, Vietnam Marcom Training Program for Advertising expert  Course 9, for Hoang Hau Dragon fruit - Binh Thuan province, sponsored by Trung Nguyen Coffee and promoted by Chi Lang advertising firm.

Ø        Hoang Gia Nam roi Pomelo: This trademark is established by POMELO group from Ho Chi Minh Economic University, Faculty of Trade-Tourism- Marketing and Vietnam Marcom Training Course Program  for Trademark Manager, Course 2. This trademark is for Hoang Gia Pomelo Enterprise- Vinh Long, sponsored by Trung Nguyen Coffee and promoted by GOLDSUN advertising firm.

Ø        Tam Binh Van Xuan Oranges: This trademark is established by CAM TAM Group from Ho Chi Minh Economic University, Faculty of  Trade-Tourism- Marketing, Vietnam Marcom, Training Program course No.1 for Creativity for Strong bands). This trademark is for Tam Binh Van Xuan Oranges Enterprise, and sponsored by Trung Nguyen Coffee .

Ø        Lo ren Star apple: This trademark is established by Star apple group from Ho Chi Minh University, Department of Vietnam Marcom, Training Programme for Creativity for Strong Bands. This trademark is for Vinh Kim Lo ren Star apple, sponsored by Trung Nguyen Coffee.

Ø        Hau River Hoa Loc mango: This trademark is established by Group 5 from Ho Chi Minh Economic University, Faculty of Vietnam Marcom, Training Programme for Creativity for  Strong Bands. A recognisation system of Hoa Loc mango is established under Trung Nguyen  Coffee‘s sponsorship.

Ø        Sohafarm Rice: This trademark is established by Tay Do group with the sponsorship by  Instant Coffee G7 and promoted by HTH Advertising.

Ø        Luc Ngan lychee: this trademark is under the project on establishing and developing Kim Bien Luc Ngan lychee in collaboration between Vietnam agricultural brand establishment of Sai gon Times Club and Program on  Creativity for Strong Bands from Ho Chi Minh Economic University, Faculty of Trade –Tourism-Marketing and Vietnam Marcom under the sponsorship of Insant Coffee G7.

Ø        Long Khanh Rambutan: This trademark is established by group 6BE1 for Sau Tam enterprise, in collaboration with Agricultural brand name establishment club, Training Programme on Brand Manager, Creativity for Vietnam’s Strong Brands and Economic University, Faculty of Trade- Tourism – Marketing, and is sponsored by Instant Coffee G7.

Ø        Giang Chau Mangosteen: This trademark is established by Minh Thuan, Minh Man, Hong Minh, Ngoc Phuong for Lai Thieu mangosteen enterprise in collaboration with Agricultural brand name establishment club, Training Programme on Brand Manager, Creativity for Vietnam’s Strong Brands and Economic University, Faculty of Trade- Tourism- Marketing, and is sponsored by Instant Coffee G7.

Ø        Ben Tre Coconut Candy: This trademark  is established by CoCofun-Thai Hien for agricultural product enterprise CoCofun sponsored by Instant Coffee G7 and promoted by Tri Vi Design advertising firm.

Ø        Cai Mon Chin Hoa Durian: This brand is established under the collaboration between Vietnamese agricultural trademark establishment club of Saigon Times Club and the United Training Programme of Economic  University,    Faculty  of  Trade  -  Tourism,

Marketing and Vietnam Marcom and sponsored by Trung Nguyen Coffee.

Vietnam is expecting two more products- Lang Son anise and Doan Hung grapefruit to be recognized as having geographical instruction and protected name of origin at the beginning of 2006, and Hai Hau rice will be proposed to be the right next addition to the protected list after consideration.

According to information presented at Conference on geographical instruction held by EC-ASEAN Cooperation Program on Intellectual Property Rights (ECAP II) at Hanoi on November 15-16,2005, there are 150 agricultural products from different provinces of Vietnam which are being considered in the project on Protection of geographical instruction in 10 years’ time, the representatives of which are such famous agricultural products as Phu Quoc Pepper, Tan Cuong Tea, Buon Ho Robusta Coffee.

Some projects are being implemented for establishment and protection for the following products:

Ø     Cai mon durian

Ø     Cho Lach Ben Tre longan

Ø     Lai Thieu mangosteen

Ø     Ninh Phu grape

Ø     Go Cong water melon

Ø     Da Xanh pomelo

In short, Promotion on establishment and protection registration for names of origin is necessary and of great importance in the current process of international integration. This will help Vietnamese farmers produce special products of high competitiveness, which serves as a contribution to poverty reduction program, gradually raising farm household income, taking part in the process of regional and global integration.

Trademark for agricultural specialties is new to Vietnam, as a result, the number of registered products is small regardless of having a variety of famous agricultural specialties. Vietnam is now completing laws, establishing mechanism and policies  which pave a way for the  promotion on establishment and  protection registration  for Vietnamese products’ names of origin. It is expected that Vietnam will have more products to be registered for origin protection  in the coming time.

Agricultural and Forest Product Exports value at nearly US$ 5 billion

Total agricultural and forestry product exports in 2005 are estimated at around US$ 5 billion, increased by 17% in comparison with the last year. Commodities such as rice, pepper and cashew nuts continue to affirm its stand in the world market. Some agricultural and forestry products increasing both in volume and export value are peanuts, rubber, cashew nuts, milk products and fruits. The commodity with the highest export value is rice of about US$ 1.25 billion and then wooden products of US$ 1.21 billion. At present, Vietnam agricultural and forestry products are sold in 100 nations and territories, in which the Asian market is the main consumer of the products such as rice, rubber, vegetables and fruits, pepper, cashew nuts and wooden products; the European market is the key consumer of products such as coffee, bee honey, processed vegetables and fruits and wooden products; America is the main importer of coffee, pepper, cashew nuts, pineapple juice and wooden products and the African market is the importer of rice and tea products. The Ministry of Agriculture and Rural Development has produced agricultural and rural development plan in the next 5 years (2006-2010), in which the average production growth rate is estimated at 4-4.5%/year and the average export value is projected with an increase of 12%/year.

In 2006, the Ministry of Agriculture and Rural Development expects to maintain export volume of key commodities at a stable rate: around 4 million tons of rice, 750.000 tons of coffee, 560.000 tons of dry rubber latex,110.000 tons of cashew nuts, vegetables and Fruits and forest products value at US$ 330 million and 1.8 billion respectively.