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Vietnamese agricultural corporation developed to lead market

13:33 | 02/03/2020

VCN –Regarding the "rescuing" of agricultural products, economist Vu Vinh Phu said that when we produce a commodity, we need to know about buyers, price, where and when our products shall be sold to get the highest profit. In particular, the State needs to form and develop Vietnamese corporations to have power to lead the market.

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Economist Vu Vinh Phu.

- Regarding production, I think that all must be produced according to planning, according to the advantages of each region and each locality in a scientific, methodical and highly practical manner. Production and consumption must be linkedto be a coherent and legal chain which both manages the goods quality and sharesa harmonious benefit. In addition, agricultural production must build a brand,strictly follow production and market discipline in harvesting, processing, domestic consumption and export.

The situation of redundancy and congestion leading to "rescuing" agricultural products is no longer a new story inVietnamese agriculture. Some argue that production under planning and associated with consumption is a key factor to avoid repeating this story. What do you think about this?

The Prime Minister once directed: "When we produce a commodity, we need to know about buyer, price, where and when our products shall be sold to get the highest profit. Production must be linked with processing areas in factories to raise added value of products and partly oversupply agricultural products in each period.”

In addition to production,transparency in trading also plays an important role in helping Vietnamese agricultural products be more proactive, not to be price squeezed and sluggish. Could you please clarify this?

- In my opinion, trading in agricultural products in the domestic and international markets must ensure transparency and fullness of information on goods and markets. So, these transactions go through independent agricultural commodity exchanges or through wholesale markets which are set up in a modern manner meeting regional and international standards. Trading in goods will be done under contracts and without price squeezing. In addition, there must be big storage for goods in excess or waiting for trading.

vietnamese agricultural corporation developed to lead market
Watermelon is one of the items regularly subject to the list of agricultural products that must be rescued. Photo: N. Thanh

Do you think that besides promoting exports, focusing on the domestic market will be an effective solution to help gradually remove the need to rescue agricultural products?

- Along with the development of commodity production, the supply is increasingly abundant, sometimes even redundant in large quantities, the national distribution channels, including markets, retail shops and trade centers and stores must be givenimportance. These channels are developed according to the general planning of localities and the country. Remarkably, this distribution system must have sufficient capacity to do the domestic consumption, make reasonable benefit sharing, and not to bring private benefit.

Along with that, I think that in the era of Industry 4.0, the use of artificial intelligence, data, internet of things, to collect and process information quickly and scientifically production and consumption should be promoted.

Apart from theeffort of farmers and enterprises, what should the State management agencies do to help the production and consumption of agricultural products become more stable?

In addition to the efforts of production households, cooperatives and enterprises that are being encouraged to invest in the field of production and processing and consumption of agricultural goods, it needs effective support from the State, ministries, branches and localities in order to overcome the existing difficulties, such as accessingland for production development; building commercial and transport infrastructure for goods exchange to reduce logistics costs and other costs for production and business enterprises.

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In particular, the State needs to create conditions for the formation and development of large Vietnamese corporations that are capable to lead the market, master the products of Vietnam manufactured in all favorable conditions as well as difficult times. In addition, it is necessary to support trade promotion and expand export markets so that agricultural exports do not depend on one or two main markets. The State needs to control themarket to combat fraud, counterfeit goods and smuggling, thus causing damage to legitimate enterprises.

Thank you, Sir!

Uyen Nhu/ Huyen Trang