Southern province seeks to turn rice, catfish into strategic products
The southern province of An Giang is a top producer of rice and catfish. Provincial People's Committee chairman Vuong Binh Thanh spoke to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about plans to boost sales. The province has been set an export target for this year of US$800 million. Last year, its exports were worth $650 million. Is this year's target feasible?
The figure was set following forecasts that the national economy and the world's were recovering. Rice and tra catfish are key products, making up 90 per cent of the province's export value. But the sale of these products aboard has stalled recently.
The province only reached an export value of $320 million in the first six months of this year. This means it will be hard for the province to meet its target. However, An Giang is intensifying its efforts to reach an export value of about $700 million this year.
What will the province do to boost exports in the remaining months of this year to reach an export value of $700 million?
The province is asking the Government to recognise the province's rice and tra catfish as strategic products. Once recognised, they will be national products. Then, ministries and industries will be able to act as advisors to the Prime Minister to build policies and mechanisms specific to these two products.
However, the implementation of this request has been far too slow.
Under an instruction by the Prime Minister, for instance, the Government intended to issue a decree on sea food exports and another on rice exports. But nothing has happened so far.
I think every ministry and industry concerned should be made to take more responsibility for implementing the Prime Minister's instructions. The Ministry of Finance, for instance, has yet to introduce policies to support enterprises that took part in building warehouses. These enterprises responded to an appeal by the Government to invest in post-harvest technology. They were supposed to receive a grant of 20 per cent to cover land-compensation paid to farmers.
It is these factors that have had a negative impact on planning and the market and caused unhealthy competition among enterprises.
What do you think should be done to deal with the situation?
I would suggest that the Prime Minister quickly recognise tra catfish and rice as national products. Then, a synchronous policy ranging from defining [tra and rice] products' markets to processing these products for export should be put in place to help farmers get properly paid for the efforts they have exerted growing rice and raising catfish.
When exports began to fall, it was suggested that the growing area of the summer-autumn rice crop be reduced and another cereal crop be grown instead. What is your opinion on this?
There are three crops a year – winter-spring, summer-autumn and autumn-winter. The cost price of the summer-autumn crop is usually high due to the unfavourable weather conditions, while rice productivity and quality are higher for the other two crops.
The summer-autumn crop is planted in-between the other two [on the same land],
I think shifting from growing the summer-autumn crop to growing another cereal would be the best solution, but the decision has to be carefully thought through.
The Ministry of Agriculture and Rural Development has advised the provinces to reduce the summer-autumn crop growing area. Each province however will have to decide which crop should be grown to maximise profits because growing rice is not like growing other cereal crops.
Earlier, we discouraged farmers from growing the autumn-winter crop. But now that particular crop is the leading one.
Whatever is decided, suitable investment will be needed. — VNS