Objectives of research: To clarify the scientific base (both theoretically and practically) for recommended solutions to development of export of some key agricultural products of Vietnam in the industrialization and modernization until 2020 and with a vision to 2030.
MINISTRY OF EDUCATION AND TRAINING MINISTRY OF INDUSTRY AND TRADE INSTITUTE FOR TRADE NGUYEN THI CHI EXPORT DEVELOPMENT OF SOME KEY AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION OF VIETNAM Major: Commercial Code: 62.34.01.21 SUMMARY OF PhD THESIS IN ECONOMICS Hanoi – 2015 THE THESIS WAS COMPLETED AT THE INSTITUTE FOR TRADE – MINISTRY OF INDUSTRY AND TRADE Scientific Supervisor: Associate Professor Dr Nguyen Van Lich Institute for Trade Associate Professor Dr Hoang Van Hoan Politics Institute Zone I The thesis shall be defended before the institute-level Thesis Assessment Committee at the Institute for Trade – Ministry of Industry and Trade Address: 46 Ngo Quyen - Hanoi At hour date month year 201 The thesis can be found for further study at: Hanoi National Library Library of Institute for Trade INTRODUCTION Rationale For 30 years of renovation, Vietnam’s agriculture has undergone remarkable improvements; from a country importing food in the 1980s, Vietnam has developed into one of the world’s leading countries in exporting some key agricultural products Thanks to products diversification policy, agricultural production has made outstanding steps forward, creating a large quantity of agricultural products, and integrating in the international market Along with the objective of successful implementation of the country’s industrialization and modernization strategies, Vietnam has been accelerating agricultural development towards large-scale production and application of sciedntific and technological advancements to production in order to improve the quality and added value of agricultural products However, Vietnam’s agricultural exports have faced such challenges as fiercer and fiercer pressure for competition due to lower competitiveness than the world in various aspects including production capacity, processing industry, quality, price, etc., which leads to the fact that most exports are raw products, low added value, little content of science and technology, and too much difficulty in overcoming technical barriers of developed countries, etc Our main exports are almost unknown in the international market Meanwhile, agricultural development has been a great policy of the Party and Government of Vietnam, clearly stated in the National Party Congress Documents and the Government’s Resolutions for the objectives of modernizing agriculture and rural areas, contributing to the implementation of industrialization and modernization strategies in Vietnam, and contributing to the fulfillment of export strategy targets and socio-economic development strategy until 2020 This is also the reason for the author’s choosing the subject “Export development of some key agricultural products in the industrialization and modernization of Vietnam’ for this doctoral thesis Objectives and tasks of research Objectives of research: To clarify the scientific base (both theoretically and practically) for recommended solutions to development of export of some key agricultural products of Vietnam in the industrialization and modernization until 2020 and with a vision to 2030 Tasks of research: To fulfill the objectives of research, the thesis focuses on the following tasks: First, clarifying theoretical issues regarding export development of main agricultural products in the industrialization and modernization; Second, studying experience of some countries in export development of main agricultural products and gaining lessons to be applied in Vietnam Third, analyzing and evaluating the export development of some key agricultural products in Vietnam in recent years; and evaluating achievements, shortcomings, and their causes Fourth, studying and analyzing the background information and prospect for exporting Vietnam’s main agricultural products until 2020 as a basis for proposing orientation and solutions at both macro and micro level for export development of Vietnam’s main agricultural products until 2020 and with a vision to 2030 Subjects and scope of research Subjects of research: The thesis studies the theory and practice regarding export development of Vietnam’s main agricultural products in the industrialization and modernization Scope of research: The thesis focuses on researching into some theories of export development of main agricultural products in the industrialization and modernization; analyzing and evaluating the current situation regarding export development of some key agricultural products (mostly rice, coffee, rubber, and aquatic products) of Vietnam; recommending some solutions to export development of Vietnam’s main agricultural products in the industrialization and modernization until 2020 and with a vision to 2030 Time: Analyzing the current situation regarding export development of some key agricultural products for the period 2003 – 2013 and recommending solutions for the period until 2020 and with a vision to 2030 Methodology General methodology: The thesis is based on the methodology of the Marxism–Leninism in terms of dialectical materialism and historical materialism in combination with the Party’s and the State’s economic development orientation and policy Specialist methodology: Studying secondary documents; collecting and comparing data; consulting experts and enterprises; conducting sociological survey, consolidating, analyzing, and evaluating survey results New contributions of the thesis - The thesis has clearly systematized, analyzed, and interpreted the theoretical background of export development of main agricultural products in the industrialization and modernization In particular, based on the theoretical background, the thesis has identified basic contents regarding export development of main agricultural products in the industrialization and modernization as a basis for establishing a theoretical framework on export development of main agricultural products in the industrialization and modernization - By means of systems of documents and actual survey data, and analyzing tools such as Export Specialization Index (ES), Trade Intensity Index (TI), etc The thesis has pointed out market prospects, the trend of trade flows shifts, and the possibility to develop export of some of Vietnam’s main agricultural products up to now This shows that, export development of Vietnam’s main agricultural products is highly potential This is the basis for orienting policy on export development of some of Vietnam’s main agricultural products in the coming years In addition, the Thesis has also analyzed situation of conditions regarding human resources, commercial infrastructure and conditions on mechanisms and policies, application of technologies to production and establishment of links in development of exporting a number of key agricultural products Accordingly, the Thesis has also identified shortcomings and clearly interpreted their causes in the export development of such products - The thesis has consolidated and forecast the prospect for exporting some of Vietnam’s main agricultural products until 2020 On that basis, the thesis provides the orientation for export development of some key agricultural products in the new context of industrialization and modernization, and recommends specific solutions to developing export of main agricultural products until 2020 Organization of the thesis Apart from the Introduction, Overview of Research Works, Conclusion, List of References, and Appendix, the body of the thesis is divided into three following Chapters: Chapter 1: Theoretical background of export development of main agricultural products in the industrialization and modernization Chapter 2: Current situation in export development of some of Vietnam’s main agricultural products over 2003-2014 Chapter 3: Recommended solutions to export development of some of Vietnam’s main agricultural products in the industrialization and modernization until 2020 OVERVIEW OF RESEARCH WORKS In the intensive globalization of the world’s economy and the rapid development of science and technology, competition among the world’s agricultural products is becoming tougher and tougher, and export development of main agricultural products has received great attention and studied both in and out of the country Export development of main agricultural products in the industrialization and modernization does not merely refer to the development in export scale and turnover, but also requires continuous improvement of export quality through application of scientific and technological advancements to production and improvement of added values of the value chain of agricultural exports However, to my knowledge, there has so far been no systematic and comprehensive research work on export development of Vietnam’s main agricultural products in the industrialization and modernization RESEARCH CONTENTS AND RESULTS CHAPTER THEORETICAL BACKGROUND OF EXPORT DEVELOPMENT OF MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRALIZATION AND MODERNIZATION 1.1 GENERAL ISSUES OF INDUSTRIALIZATION, MODERNIZATION, AND EXPORT-ORIENTED INDUSTRIALIZATION 1.1.1 Definition and contents of industrialization and modernization 1.1.1.1 Definition of industrialization and modernization Industrialization is the process of changing the development modality of one’s economy The economic development modality consists of two facets (two aspects): infrastructure (including technical capacity), and operational mechanism 1.1.1.2 Contents of industrialization (1) Industrialization is the process in which industry is separated from agriculture and transforms itself into large-scale industry (2) Industrialization causes change to technical background of social manufacturing (3) Industrialization enhances capital accumulation and concentration accompanied by expanded re-manufacturing (4) Industrialization is associated with the development of the system of factories and enterprises in the market economy (5) Industrialization is associated with agricultural development and urbanization 1.1.2 Export-oriented industrialization and modernization Export-oriented industrialization is aimed at: (1) Promoting comparative advantages in international labor division; (2) Opening the market to attract direct investment and external capital and technical support in order to create competition and boost export; (3) Making the most of resources to boost export Implementation of export-oriented industrialization normally comes in two phases Phase I: Achieving high growth rate due to utilization of plentiful labor for low costs and medium-level techniques in exports production Cheap labor is a comparative advantage In Phase II, high growth rates are still maintained due to utilization of large capital and high- level techniques for export of industrial goods Exports in this Phase require application of advanced technology 1.1.3 New characteristics of industrialization and modernization The market economy following the trend of integration and globalization helps facilitate industrialization based on promotion of comparative advantages and intensive participation in the international labor division Industrialization should be based on cutting-edge science and technology, and implemented towards sustainable development Industrialization and modernization should contribute to strengthening internal capacity of the economy and external technological acculturation 1.2 EXPORT DEVELOPMENT OF MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION 1.2.1 Overview of main agricultural products 1.2.1.1 Definition of agricultural products a Definition of agricultural products According to the economic structure of Vietnam, agricultural products are often understood in a broad sense, including products from agriculture (crops production, livestock breeding, fishery, forestry, and salt industry) b Definition of main agricultural products Main agricultural products are locally produced agricultural products which are more economically productive than other agricultural products, which have a broad, stable, and permanent market for consumption (for a relatively long period of time), which are influential in other products, and of which export value accounts for a large proportion in the total export turnover of a country 1.2.1.2 Primary characteristics of main agricultural products (1) The value chain of the agricultural products is not always continuous and often changes quickly (2) Affected by weather, epidemics, and food safety (3) Inconsistent in quality (4) Characteristics in product processing and preservation (5) Value composition of agricultural products ( 6) Characteristics of the market of agricultural exports (7) Lack of compatibility in information of quality of agricultural products provided to consumers (8) Protection of agricultural products within the country 1.2.2 Contents of export development of main agricultural products in the industrialization and modernization 1.2.2.1 Definition of export development of main agricultural products in the industrialization and modernization In the industrialization and modernization of Vietnam until 2020, it is advisable to pay attention to improvement of growth quality Therefore, for main agricultural products, attention should be paid to qualitative transformation apart from quantitative increase On that basis, it can be understood that export development of main agricultural products in the industrialization and modernization includes both extensive and intensive development 1.2.2.2 Extensive export development of agricultural products Referring to the concentration of resources in expanding export scale, reflected through improvement in quantity and export turnover; expanding export scale includes market development, customer development, and product development 1.2.2.3 Intensive export development of agricultural products: Referring to the application of science and technology to production in order to create qualitative change in agricultural exports, reflected through improvement of quality of main agricultural products, change of export modalities, transformation of exports structure, and improvement of resources utilization capacity in order to create stable development and greater added values as well as to ensure harmonized implementation of environmental protection and social welfare 1.2.3 Evaluation targets for export development of main agricultural products 1.2.3.1 Evaluation targets for extensive export development of main agricultural products (1) Export growth rate (2) Market diversification (3) Product line diversification 1.2.3.2 Evaluation targets for intensive export development of main agricultural products (1) Revealed Comparative Advantage Index (RCA) (2) Export Index (Rex) (3) Export Specialization Index (ES) (4) Trade Intensity Index (TI) (5) International Specialization Index (LI) (6) Environmentally safe and friendly 1.2.4 Factors affecting export development of main agricultural products in the industrialization and modernization 1.2.4.1 Product quality The quality of agricultural products as a factor that boosts export development has to comply with normal standards and ISO standards, and be certified and awarded ISO certificates by international organizations 1.2.4.2 Time of appearance in international markets The timely appearance in the market upon request by customers brings even greater added values to exporters than reduction of production and processing costs does 1.2.4.3 Service quality Outstanding service quality of exports in comparison with competitors 1.2.4.4 Brand quality Brand has become an indispensable factor to ensure business effectiveness in the modern economic context Brand quality creates prestige and reputation for products, thus strengthening trust from customers 1.2.4.5 Supporting policy The Government’s macro policy and impacts are the basis for our production and export of agricultural products to take firm steps in the future in the international market 1.3 EXPERIENCE OF SOME COUNTRIES IN EXPORT DEVELOPMENT OF MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION 1.3.1 Thailand’s experience in export development of rice Thailand’s experience in improving export effectiveness and joining the global rice value chain includes: (1) Determining its brand through quality of exported rice, (2) Providing supportive services to entities involved in the rice value chain, (3) Improving added values of exported rice, and (4) diversifying exported rice products 1.3.2 China’s experience (1) Paying attention to promoting strengths of each locality and increasing export of main agricultural products produced by means of new 11 million tons Among key zones in the country, Tay Ninh is the one to reach the highest output, at 2.1 tons/ha, followed by Binh Phuoc (1.98 tons/ha), and Binh Duong (1.85 tons/ha) 2.1.2.3 Coffee The coffee planting area has mildly decreased by 0.24%/year The average growth rate of coffee output in Vietnam has reached 2.5%/year The coffee output has continuously increased; it reached 1,289.5 thousand tons in 2013, and has increased by 3.2%/year on average, making Vietnam the 2nd largest coffee producer, after Brazil 2.1.2.4 Aquatic products The structure for gross output of fishery has shifted towards increasing the gross output of aquaculture and decreasing the gross output of aquatic exploitation The total fishery output has increased 6.33%/year on average Fishery processing: is one of remarkable activities in processing of agricultural products in Vietnam More than 77% of processing facilities in Vietnam are certified to meet food safety and hygiene standards and their output account for around 70% of the total output of the processing industry 2.2 CURRENT SITUATION IN EXPORT DEVELOPMENT OF SOME OF VIETNAM’S MAIN AGRICULTURAL PRODUCTS In the past years, export of Vietnam’s main agricultural products has made considerable contributions to the country’s renovation, acted as one of major driving forces of economic growth, and helped stabilized political and social situations 2.2.1 Current situation in export development of rice In the period 2003-2013, the proportion of the rice export turnover in the total export turnover of Vietnam was 4.25%, which was a considerable proportion The rice export value contributed a substantial part in the GDP, at 2.65% on average The average growth rate reached 13.6% In recent years, Vietnam has boosted export of high-class rice, which has high export price, to a proportion of more than 46% of the total export turnover while export of low-class rice accounts for only 11% Vietnam’s exported rice has a high comparative advantage thanks to its favorable natural conditions and cheap labor However, in the current context, this advantage has had its value lessened as other countries have gained an 12 advantage from application of cutting-edge scientific and technological advancements, thus outweighing Vietnam’s advantage in rice export The contribution made by rice export turnover in the total export turnover and GDP of Vietnam tends to decrease, the capacity to overcome challenges in the global integration and fluctuations of the international market is still limited, competitiveness tends to decrease as Vietnam is mostly competitive in price, the quality of products is uneven, added values of products are still low, and the capacity of rice products to participate in the global value chain is also limited 2.2.2 Current situation in export development of rubber Rubber is among three most productive agricultural products of Vietnam over 2003-2013 The average export growth rate of natural rubber of Vietnam has reached 11.9% in terms of output and 15.5% in terms of value in the past five years Given commercial targets of Vietnam’s natural rubber in comparison with other exporting countries, it can be seen that, export of Vietnam’s natural rubber has a very good competitiveness index in comparison with that of other countries; its RCA index is 67.7, a little lower than Indonesia’s (87.9) and Malaysia’s (75.0) However, in recent years, contributions of rubber export turnover in the total export turnover and GDP of Vietnam have tended to decrease, shifts in the structure of exported products by products having large processing content and by markets have taken place slowly, competitiveness tended to decrease as Vietnam is mostly competitive in price, the quality of products is uneven, added values of products are still low, and the capacity of rubber to participate in the global value chain is also limited 2.2.3 Current situation in export development of coffee Vietnam takes the 2nd position in annual coffee output in the world, only after Brazil, and the 1st position in Robusta coffee export With the total output accounting for about 2% of GDP, the coffee industry makes a great contribution to the country’s economic growth The proportion of coffee export turnover against the total export turnover of Vietnam was remarkable, increasing from 1.92% in 2003 to 3.2% in 2012, but tended to decrease in 2013 and 2014, the capacity to overcome challenges in the global integration and fluctuations of the international market is still limited, 13 competitiveness tends to decrease as Vietnam is mostly competitive in price, the quality of products is uneven, added values of products are still low, and the capacity of coffee to participate in the global value chain is also limited 2.2.4 Current situation in export development of fishery products Since its participation in WTO, Vietnam’s export of fishery products has continuously reached a high turnover and growth rate A positive change in Vietnam’s structure of export of fishery products is the gradual increase in the proportion of processed products Compared with the GDP growth rate for the same period, the growth rate of export turnover is 3.2 times higher (21.2% against 6.6%) while the average growth rate of turnover of exported fishery products is 1.78 times higher (11.8% against 6.6%) Therefore, fishery is the major driving force in economic growth However, in recent years, the proportion of export turnover of fishery products in the total export turnover and GDP of Vietnam has decreased, shifts in the structure of exported products by product lines and by markets have taken place slowly, the quality of products is uneven, cooperation among exporters is lacking, leading to difficulties in negotiation of export price, exported products are almost unknown, the capacity to overcome challenges in the global integration and fluctuations of the international market is still limited, competitiveness tends to decrease, added values of products are still low, and the capacity of rubber to participate in the global value chain is also limited 2.3 CURRENT SITUATION OF CONDITIONS FOR DEVELOPMENT OF EXPORTING A NUMBER OF KEY AGRICULTURAL PRODUCTS IN VIETNAM 2.3.1 Conditions on human resources 2.3.2 Conditions on commercial infrastructure 2.3.3 Conditions on mechanisms and policies In the past years, the Vietnamese Government has continuously issued promotion policies in order to facilitate enterprises to improve their export capacity; (1) Policies on industrialization and agricultural and rural modernization (2) Policies on development of exporting agricultural products of Vietnam: Policies on attraction of FDI in export; open-door policies to encourage and support export; policies on export development 14 and environmental protection; and policies on export development and social welfare 2.3.4 Conditions on application of technologies to production and processing of agricultural products in Vietnam 2.3.5 Conditions on establishing effective links in production of agricultural products for export 2.4 GENERAL EVALUATION OF THE CURRENT EXPORT DEVELOPMENT OF SOME OF VIETNAM’S MAIN AGRICULTURAL PRODUCTS 2.4.1 Results obtained 2.4.1.1 In terms of extensive export development of some key agricultural products - Export development of main agricultural products has had positive impacts on the country’s export development and economic growth in the way that it helps shift the economic structure into an export-oriented one, and contributes to the annual economic growth rate - Export scale has continuously increased at a high speed and in a stable manner - Vietnam maintained the export growth rate of some key agricultural products over 2003-2013 - Export development of some key agricultural products has contributed to increasing the openness of the economy - Along with the shifts in economic structure and production structure in Vietnam in recent years, the structure of main exported agricultural products has also witnessed obvious changes - Export development of some key agricultural products helps diversify export products, stabilize export, and enhance export markets 2.4.1.2 In terms of intensive export development of some key agricultural products (1) Export development of some key agricultural products has contributed to boosting economic growth: Export growth of some key agricultural products has a directly proportional relation with economic growth, but the relation is not stable enough (2) Export development of some key agricultural products has contributed to environmental protection: encouraging investment in production 15 and processing to apply modern technologies, thus contributing to improvement of quality productivity and quality, the environmental, and food safety and hygiene (3) Export development of some key agricultural products has contributed to ensuring social welfare: Greatly contributing to creation of jobs and improvement of people’s material and spiritual life 2.4.2 Shortcomings - Agricultural production is still fragmented with little application of scientific and technological advancements - Export growth of some key agricultural products over 2003-2013 was not stable enough due to dependence on the world’s market and overseas investment - Shifts in product structure and export markets of high added values take place slowly and unproductively - Certain improvement in the export growth of some key agricultural products has been made so far, but not stable and there is still a lack of main agricultural products that create high added value based on application of advanced technologies - Exports of agricultural products in general and some key agricultural products in particular are mostly raw products - Competitiveness of Vietnam’s exported agricultural products is still low - Export of some key agricultural products has faced up with major barriers and trade protective measures mostly involved in food safety and hygiene - There has been no stable market for export of some of Vietnam’s main agricultural products - In terms of environmental protection, many exported agricultural and fishery products are dependent on natural resources (land, water, sea, forest, etc.), leading to possible destruction of such natural resources caused by the development of agricultural production - Socially, production and export of agricultural, forestry, and fishery products are sectors that attract the most labors, however, they also cause a lack of social sustainability to the country Due to mostly extensive export 16 of agricultural products, low labor quality, and unstable labors’ income, fluctuations of the world’s markets can create negative impacts on farmers 2.4.3 Causes of shortcomings - First, State management of production and trading of exporting enterprises - Second, technological content and added values in Vietnam’s exports are still low - Third, Vietnam’s joining WTO has, on the one hand, facilitated achievements in export of agricultural products, and, on the other hand, created challenges such as low competitiveness, price support of rich countries, technical barriers, and low investment in agriculture - Fourth, production capacity and ability to shift the structure of agricultural production have not created favorable conditions for production and export development of some key agricultural products - Fifth, measures to encourage export development of main agricultural products has not proven themselves effective enough, thus leading to limited impacts - Sixth, technologies are slowly applied and renovated in production and processing of agricultural exports, and the ability to approach new technologies is still low - Seventh, logistic services for export development, marketing, trade promotion, and market organization at both macro and micro levels have not been well provided - Eighth, competition in the international market has become fiercer and fiercer while main agricultural products for export are poorly competitive - Ninth, weaknesses in development of human resources for agricultural development in general and export development of main agricultural products in particular Tenth, capacity to execute environmental regulations in both local and international markets is still limited Eleventh, no policy has been available on sharing equal interests in export activities and restricting export risks Twelfth, unhealthy competition among exporters of agricultural products Finally, Vietnam has not established its own brand for agricultural products in the world market 17 CHAPTER RECOMMENDED SOLUTIONS TO EXPORT DEVELOPMENT OF SOME OF VIETNAM’S MAIN AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION UNTIL 2020 3.1 LOCAL AND INTERNATIONAL CONTEXTS, AND PROSPECT OF INTERNATIONAL MARKET FOR AGRICULTURAL PRODUCTS BY 2020 3.1.1 Local and international contexts 3.1.1.1 Local context (1) Infrastructure and technical background of the economy are strengthened (2) Reform and renovation continue to be enhanced (3) Vietnam has committed itself to executing its sustainable development strategy in the 21st century (4) Vietnam is going to boost intensive and extensive integration into the regional and global economy (5) Rapid economic growth and acceleration of industrialization and modernization has worsened the quality living conditions (6) The agricultural land fund in Vietnam is limited, however, Vietnam can still be a leading country in exporting some agricultural products in the world and attract long-term investment in the global supply chain of agricultural products 3.1.1.2 International context Fluctuations of the international market have direct impacts on the production and export of Vietnam’s agricultural products due to (i) the trend for stricter and stricter monitoring of product quality and production process, and (ii) the trend for scientific and technological development Demand in the world market for quality, highly valuable, healthy, and environmentally friendly products is rapidly increasing Stricter monitoring of product quality and production process is increasing There is also a trend for application of cutting-edge technologies in genes and control of pestilent insects and epidemics 3.1.2 Prospect of the world market of agricultural products until 2020 It is forecast that trade in agricultural products will continue to grow, and emerging economies will account for the majority of export turnover for raw cereals, rice, oily seeds, vegetarian oil, sugar, beef, poultry, and fish World import of agricultural products will continue to grow from now until 2020 18 3.1.3 Forecast export of some of Vietnam’s main agricultural products until 2020 Given unforeseen changes in the social – trade progress in the country and in the world, mid-term forecast is difficult to be made, might be inaccurate, and will need to be appropriately adjusted for each period in the short term, medium term, and long term Within the context of the thesis, in order to provide scientific bases for mid-term and long-term plans on export development of some key agricultural products 3.2 POLICY AND ORIENTATION ON EXPORT DEVELOPMENT OF SOME KEY AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION OF VIETNAM IN THE COMING TIME 3.2.1 New trend of industrialization and modernization (1) The world economy is shifting to the development age based on a new advantage - knowledge (science, technology, and highly skilled labor) (2) The international labor division system is restructured and operates under a new principle – ‘global value chain’ principle (3) High speed and network structure are two prerequisites of the modern world’s economic system 3.2.2 Policy on export development of main agricultural products in the industrialization and modernization in the coming time First, focus on export development of some key agricultural products towards improvement of output, quality, and effectiveness of agricultural exports in the context of industrialization and modernization of agriculture and rural areas in order to strengthen competitiveness of agricultural exports Second, develop export of some key agricultural products based on full exploitation of comparative advantages and competitive advantages, and guaranteed growth rate and quality in the context of industrialization and modernization of agriculture and rural areas in order to boost economic growth Third, develop export of some key agricultural products based on appropriate exploitation of natural resources, restriction of environmental pollution in the context of industrialization and modernization of 19 agriculture and rural areas in order to improve Vietnam’s compliance with environmental regulations and standards on agricultural exports in the world market Fourth, develop export of with regulations and standards in order to fulfill social objectives such as poverty eradication, creation of jobs, ensured social equity, and appropriate division of interests 3.2.3 Orientation on export development of some key agricultural products in the coming time First, diversify export markets for some key agricultural products in other countries in the world Second, focus on development of processing industry Third, develop export of some key agricultural products in a model that ensures sustainable growth and balance between intensive and extensive development - Fourth, enhance promotion activities for attraction of investment in application of scientific and technological advancements to production in order to improve output and quality of agricultural exports and to encourage large-scale production 3.3 SOME KEY SOLUTIONS 3.3.1 Immediate review of planning on specialized agricultural zones in In the industrialization and modernization of agriculture and rural areas, planning specialized agricultural zones is a necessity This allows for appropriate utilization of comparative advantages for production of agricultural exports, creation of concentrative product supplies with good quality, improvement of investment effectiveness, and exploitation of technical infrastructure for production of agricultural products 3.3.2 Policy and solutions for development of production, processing, and export of some key agricultural products in the coming time - Investment in development of production: In order to be competitive in the world market, what needs to be done first is to focus on increasing output and improving product quality This requires renovation and development of varieties of high output, application of scientific and 20 technological advancements, and re-organization of production in order to provide the market with large lots of agricultural products Mechanization, modernization, and construction of material zones in association with processing factories, and product diversification should be implemented - Development of processing of agricultural products 3.3.3 Rapid development of comprehensive and modern infrastructure for export development of some key agricultural products in the coming time - Focus on investment in construction of infrastructure for production and export for specialized agricultural zones - Strongly focus on highly potential markets and emerging economies to seize opportunities for export development 3.3.4 Reorganization of export structure to ensure necessary safety in the context of integration, and improve competitiveness and export growth quality - Transform the export structure towards an appropriate, effective, and safe structure that participates intensively and extensively in the global value chain - Restructure agriculture with priority given over products with potential for large-scale development - Robustly shifting the structure of agricultural exports towards increase of proportions of exports with high added values 3.3.5 Establishment and development of a national brand In order to establish a sustainable brand for agricultural products, enterprises should first proactively go into production under contracts signed with farmers Second, they should establish family farms for large-scale production of agricultural products to meet demand for materials from processing enterprises in the context of contract-based production Third, it is necessary to establish an organization on behalf of farms, such as cooperatives or associations, acting as a bridge linking processing enterprises and co-operative members The Government should issue a legal framework for smooth implementation of such solutions 21 3.3.6 Policy on development of human resources for production and export of some key agricultural products - Improve quality and renovate methods of using human resources in order to make the most of the advantage in terms of Vietnamese people - Pay attention to training of officials in charge of State management of trade 3.3.7 Establishment and enhancement of bases for rapid and sustainable export development of some key agricultural products 3.3.8 Solutions to harmonizing the relation between export growth of main agricultural products and settlement of social issues Continue to maintain and execute other supportive policies for poverty eradication Establish a mechanism for sharing equal interests in trade Support export lines that attract much labor, such as fishery Take measures to improve environmental status for farmers and also to meet requirements by importers 3.3.9 Solutions to harmonizing the relation between export growth of main agricultural products and environmental protection - Raise awareness of environmental issues for managing authorities and enterprises - Support enterprises in application of environmentally friendly production processes and technologies - Apply economic principles and instruments in environmental management, and enhance inspection in terms of environmental protection 3.3.10 Solutions for some main agricultural exports (1) Rice Promote the implementation of the ‘Big sample fields’ model and connect ‘four entities’ in order to reduce input costs and shorten circulation distance of rice Improve exported rice quality Reduce postharvest loss Accelerate brand development and trade promotion Develop the rice export management mechanism into a more flexible one in order to gain the most profit 22 (2) Rubber Enhance review, adjustment, and preparation of a development plan for the rubber industry Support enterprises in investment in equipment and renovation of processing techniques Promote export and develop markets for rubber products Encourage attraction of overseas investment in rubber processing industries Develop and diversify products (3) Coffee Train human resources for coffee industry in various aspects, from production, farming, and processing, to business operations, trade promotion, and export Re-plan rubber cultivation areas in a more appropriate way Encourage producers to use more organic fertilizers instead of chemical fertilizers Improve infrastructure and renovate equipment and technologies, including drying grounds, warehouses, processing facilities, etc (4) Fishery products The Government should continue to finance research studies on agricultural varieties and cultivation techniques in order to improve output and reduce risks from epidemics Effectively solve the problem of materials for production and processing of fishery exports Improve quality, food safety and hygiene, and competitiveness Enhance trade promotion and expand export markets Strengthen international cooperation in training highly qualified staff in fishery and application of advanced technologies 3.4 OTHER SOLUTIONS 3.4.1 Solutions for enterprises Strengthen investment in modern equipment Enhance communication on regulations of export markets Vietnamese enterprises should pay attention to constructing and completing standard systems on food safety and hygiene, and environmental protection, etc according to international practices Pay attention to shifting export markets Produce clean and environmentally friendly agricultural products using high technologies 23 3.4.2 Solutions for industrial associations (1) Strengthen the current structure towards intensive specialization (2) Enhance trade promotion (3) Accelerate international cooperation with professional organizations and associations in the region and in the world CONCLUSION Main agricultural exports are primary products of a country, requiring large-scale production and supply, high competitiveness, largescale markets, and development potential Agriculture is a sector with continuous export surplus and a high growth rate of export turnover, even in difficult times of the economy Vietnam’s agricultural products have been exported to 160 countries and territories The list of countries importing agricultural products from Vietnam has been expanding to all continents Substantial achievements have been made in export development of some of Vietnam’s main agricultural products However, there are still a number of shortcomings to be dealt with in the coming time This PhD thesis on the subject ‘Export development of some key agricultural products in the industrialization and modernization in Vietnam’ has been completed with an aim to clarify theoretical and practical bases for export development of some of Vietnam’s main agricultural products Basic contents dealt with by the thesis include: (1) Completing the theoretical system on export development of some key agricultural products in the industrialization and modernization, establishing and applying the analysis framework to solving practical issues regarding evaluation of current situations in export development of some of Vietnam’s main agricultural products over 2003 - 2014; (2) Analyzing and evaluating the current situation in export development of some of Vietnam’s main agricultural products over 20032014 based on each identified content, followed by evaluations on the achievements, shortcomings, and their causes regarding recent export development of some key agricultural products; (3) Providing some forecast of the world market of agricultural products from production to export until 2020; on that basis, the thesis provides some forecast of the possibility to develop export of some key 24 agricultural products selected in line with three options (low, medium, and high) until 2020 (4) Theoretically and practically, the thesis has provided a system of policies and orientation, and recommended comprehensive and highly feasible solutions as well as solutions for specific products Proposals have also been made to the Government, related agencies, sectors, industrial associations, and enterprises themselves on export development of some key agricultural products in the context of increasingly intensive and extensive integration, which leads to more and more global competition The above presented results are contributions of the thesis in theoretical and practical aspects to strengthening capacity in exporting Vietnam’s main agricultural products Despite great efforts, mistakes are unavoidable All comments from Teachers and scientists are appreciated RELEASED RESEARCH WORKS Nguyen Thi Chi (2012) Boosting export of Vietnam’s agricultural products in the industrialization and modernization, Theoretical Education Magazine - Issue 190/2012 Nguyen Thi Chi (2014) Some issues on the export of agricultural products of Vietnamese enterprises, Science and Technology Magazine - Issue 4/2014 Nguyen Thi Chi (2014) Export of main agricultural products: Experience of some countries and lessons learnt for Vietnam, Industry and Trade Magazine, Issue - 10/2014 Nguyen Thi Chi (2015) Factors affecting export of Vietnam’s main agricultural products in the coming time, Industry and Trade Magazine, Issue - 3/2015 ... Contents of export development of main agricultural products in the industrialization and modernization 1.2.2.1 Definition of export development of main agricultural products in the industrialization. .. products in the industrialization and modernization Scope of research: The thesis focuses on researching into some theories of export development of main agricultural products in the industrialization. .. ON EXPORT DEVELOPMENT OF SOME KEY AGRICULTURAL PRODUCTS IN THE INDUSTRIALIZATION AND MODERNIZATION OF VIETNAM IN THE COMING TIME 3.2.1 New trend of industrialization and modernization (1) The