To help the province's agriculture overcome the challenges of integration.

(Baonghean) - As a province with the largest natural area in the country, a large population, mostly living in rural areas and still heavily reliant on agricultural production, Nghe An's agricultural production has made progress in terms of output, productivity, and quality in recent years. However, generally speaking, the productivity and quality of Nghe An's agricultural products are not yet high, it lacks strong brands, its competitiveness is still limited, the consumer market is unstable, and exports to foreign markets remain weak.

With Vietnam having joined the Trans-Pacific Partnership (TPP), Nghe An province must certainly pay close attention to the impact of this agreement on its agricultural development goals in the coming years. In our opinion, to overcome the challenges and join the global playing field, the province needs the following solutions:

Firstly, the agricultural sector needs restructuring towards increasing added value. The internal structure, product structure, investment structure, and labor structure all must be restructured. The most difficult area is livestock farming, which needs to be reformed soon. Some experts even believe that the province's livestock industry will face bankruptcy after the TPP, as Nghe An's livestock sector currently exhibits many weaknesses: small-scale operations, high production costs, constant disease outbreaks, and substandard slaughtering and cold storage systems. Therefore, when the market opens, cheap livestock products from abroad will flood in and quickly dominate the market, causing hardship for domestic livestock farmers. However, if livestock farmers become aware of their "weaknesses" and begin to reform and expand production, boldly investing in and developing large farms, importing foreign breeds, equipment, and farming processes from advanced countries to reduce costs and improve product quality, then they might have a chance to gain a foothold.

One of Nghe An's strengths, but also a vulnerable area upon joining the TPP, is agricultural exports. Joining the TPP will bring fierce competition to the sugar, fruit, dairy, tea, coffee, and pepper industries. Limitations in production—fragmented production, low productivity and efficiency, and unprocessed products—need to be addressed quickly. We strongly agree with Mr. Tran Anh Son, General Director of Nghe An Agricultural Products Export-Import Corporation: "In Vietnam, production is fragmented and small-scale. They are moving towards mechanization, while we are relying on manual labor. These two differences make it difficult for our goods to compete. Furthermore, with fragmented and small-scale production, controlling the levels of antibiotic residues in inputs is very difficult. Therefore, upon joining the TPP, we must change our production structure, changing everything from crops and livestock to production methods to meet TPP requirements."

Secondly, developing high-tech agriculture is a sustainable direction and a very good investment for economic development. Therefore, it is necessary to focus resources and strengthen scientific research, technological development, and promote the commercialization of scientific and technological products in agriculture; mechanisms should be created to allow businesses to access and utilize state funds for science and technology development. In addition, there should be mechanisms to encourage the formation of linkages between businesses and farmers, linkages in scientific research and technological development, and the application, transfer, and adoption of scientific and technological products between research institutes and centers. The State needs to have strong support policies for businesses applying high technology and producing in a modern, closed-loop manner from input to output.

Thirdly, establishing a product traceability system is crucial. To benefit from tariff preferences, the biggest obstacle for businesses in Nghe An is the requirement for origin and localization rates. In addition, there are many stringent regulations requiring deep commitment in trade, services, investment, intellectual property, and meeting technical standards, labor safety, and environmental hygiene standards. A weakness of Nghe An products entering the global market is the lack of geographical indications (GIs). GIs essentially prove the origin of a product. Examples include "Vinh oranges," "Quy Chau ducks," and "TH True Milk." In reality, Vietnamese producers and distributors haven't shown much interest in GIs. To protect product ownership, widespread promotion and encouragement of product branding are necessary: ​​including product name, packaging, labels, origin, and international quality standards. On the other hand, it is necessary to focus on controlling product quality. To assess quality, quality standards must be established according to European or US standards. Many Vietnamese agricultural products exported to the world market are returned largely due to violations of committed quality standards. Of particular concern are pesticide residues and preservatives exceeding permissible levels.

Vinh oranges are increasingly establishing their quality and brand. Photo: Dao Tuan

Fourth, developing a service system in the agricultural sector. Comprehensive and convenient services are the dream of any farmer involved in agricultural production. Therefore, agricultural services such as providing plant and animal seeds, fertilizers, veterinary medicines, pesticides, machinery, agricultural supplies, and loan services to support production have emerged as a necessity to meet this need. The more developed the services, the more opportunities farmers have to boost production, increase labor productivity, and contribute to the overall development of the country's agriculture. For agriculture to be effective, it needs well-organized agricultural services such as: loan services to support production, agricultural machinery supply services, fertilizer, animal feed and pesticide supply services, and plant and animal seed supply services.

Fifth, build and develop agricultural product brands. It is crucial to establish and affirm corporate and product brands early on, improving the quality of export goods, especially ensuring food safety and health for consumers. Initially, it is necessary to seek and select markets for consistent supply, not heavily dependent on seasonality. The markets of TPP partners are very demanding, and competition is high; therefore, businesses and producers must prioritize integrity, placing their interests in close alignment with the interests of the community, avoiding opportunistic, short-sighted business practices that prioritize small immediate gains without considering long-term consequences.

Sixth, access and expand domestic and international distribution systems. Connect with international sales networks and actively participate in trade fairs. Conduct thorough research and invest adequately in understanding consumer demand, especially in large markets such as the US, Australia, Malaysia, and Japan. More accurately, it is necessary to study the rules of the TPP, and disseminate complete and accurate information to farmers and businesses. Expand online information channels to connect domestic and international sources regarding fluctuations in supply and demand and agricultural product prices. At the same time, relevant agencies such as the Department of Industry and Trade, the Department of Agriculture and Rural Development, and the Department of Information and Communications must strengthen and improve the effectiveness of disseminating knowledge to businesses, producers, and farmers about international law, the principles of the "rules of the game," and the agreements and commitments of our State with partners (international organizations, countries, governments, foreign businesses, etc.) in the fields of trade, investment, and economic cooperation.

Nguyen Dang Bang