The workshop Viet Nam Agricultural Businesses and WTO looked at ways of improving the competitiveness of agricultural enterprises when the country enters the WTO. Viet Nam News listened to delegates’ opinions.

American ambassador to Viet Nam, Michael Marine:

We have been impressed with the great progress that Viet Nam has made in developing its agricultural exports. The list of success stories is quite impressive. From virtually no agricultural exports 20 years ago, Viet Nam has become the world’s second-largest exporter of rice and coffee, and a major exporter of fish and seafood, as well as a range of tropical products including rubber, pepper, cashews and tea. This ability to effectively compete in the world marketplace has been quite remarkable, and notably it has all happened before Viet Nam has become a member of the World Trade Organisation (WTO).

Many in the United States – which, barely a decade after restoring trade ties with Viet Nam, now imports a billion dollars’ worth of agricultural and aquatic products from Viet Nam while only exporting US$250 million in these products to Viet Nam – expect Vietnamese agro-enterprise to handle WTO entry with ease.

Lower tariffs on consumer agricultural goods are as important as lower tariffs on inputs. They will lead to lower prices, helping to increase the general welfare and, in the long term, allowing more of Viet Nam’s agricultural resources to be devoted to proven, successful agricultural endeavours. We strongly believe that Viet Nam would benefit greatly from going beyond its WTO commitments by further lowering tariffs on meats, fresh temperate fruits and processed potato products, for example.

But the United States does not want to just tell Viet Nam what it should do. We have a stake in the continued growth of Viet Nam, and we want to become actively involved in assisting your agricultural sector. It is not an easy task to build the government institutions and regulatory mechanisms needed for the continued strong growth of Viet Nam’s agricultural industries, and this is where we feel we can help the most.

We have committed to work with the Government of Viet Nam to help build its plant health system, in particular to enable Viet Nam to export tropical fruit to the United States. In addition, we wish to continue to contribute to the creation of a sound food safety system here.

The US has already been working with Viet Nam on its general Intellectual Property Rights (IPR) framework, and specifically on establishing and implementing effective protections for plant genetics. We hope to broaden co-operation with Viet Nam to other important agricultural IPR areas.

Former deputy chairwoman of the Viet Nam Chamber of Commerce and Industry, Pham Chi Lan:

When Viet Nam enters the WTO, farmers will be the first to be affected. As a result, agricultural enterprises will also face difficulties.

The tax-cutting on imported agro-products as per agreements will push a burden on to domestic products to become more competitive. The current domestic agro-product prices are very high, which makes for a big disadvantage.

Viet Nam’s enterprises are facing many opportunities but challenges also. Businesses must quickly study issues of integration to build suitable business and competition strategies. Farmers and enterprises should co-operate together to form a solid network if they are to survive.

Minister of Agriculture and Rural Developments, Cao Duc Phat:

We can predict difficulties that the agro-sector must face. First of all, many agro-products still have high prices but lack any internationally famous brand-names. The weak competitiveness of some fields will lead to a loss of jobs in rural areas, especially in poor and remote areas.

However, in general, integration will help agriculture and other sectors improve. In addition to the chance of approaching a big market that includes 149 countries, we will get the benefits of tax cuts and equal rights with many other countries.

The agricultural sector has built and implemented an action plan aimed at restructuring the agricultural and rural economy and upholding its competitive advantage. The ministry has conducted many programmes in bio-technology, animal and seed, and agricultural infrastructure to improve the productivity, quality, and competitiveness of agricultural products.

On behalf of the sector, the ministry will also ask the State for supports in line with WTO regulations. It will minimise procedures, and reorganise state-owned enterprises in readiness for integration.

The ministry has re-organised more than 700 state-run farms nation-wide and revoked nearly 500 million ha of improperly used land that has as a result been assign to other enterprises or households.

Source: Vietnamnnnews