From June 14th to 17th, 2023, Le Minh Hoan, Minister of Agriculture and Rural Development, traveled to India with a delegation and attended the G20 Agriculture Ministers’ Meeting. This is the Vietnamese Minister of Agriculture’s first visit to India in ten years. The purpose of the mission is to maintain the growth momentum of agricultural, forestry and fisheries exports and to diversify markets in the face of signs of a slowdown in the world market.

UNDERSTANDING AGRICULTURAL PRODUCTS TRADE POTENTIAL

During this mission, Minister Le Minh Hoan and the delegation had a working session with Mr. Piyush Goyal, Minister of Trade and Industry of India.

Generalizing the state of India’s economic development, Mr Piyush Goyal said India’s GDP per capita will reach US$2,379 in 2022. If economic growth momentum continues, India will overtake Germany to become the world’s fourth largest economy in 2026, and overtake Japan to become third in 2032. A multinational consortium is diversifying its supply chain away from China.

Like Vietnam, India is a country with strengths in agriculture. In 2022, India’s agricultural product exports will reach US$50.21 billion, up 19.92% compared to 2021. Meanwhile, Vietnam’s exports of agricultural, forestry and fisheries products will reach about US$53.22 billion in 2022, up 9.3% compared to 2021. The export of agricultural, forestry and fisheries products from both countries is almost the same.

India is the world’s leading producer of products such as milk, peas, millet; At the same time, it is the world’s second largest producer of fish, rice, flour, vegetables, etc. Agricultural and processed foods play an important role in the Indian economy. In addition to ensuring national food security, India is now expanding production of agricultural products and processed foods for export.

With a population of over 1.4 billion people and a rapidly growing economy, India is one of the world’s largest and potential markets for agricultural products. India’s processed food consumer market is expected to be worth US$535 billion by 2025, at a compound growth rate of 15.2%.

Vietnam and India share a long-standing and traditional friendship. India in particular is one of four countries with a comprehensive strategic partnership with Vietnam. However, bilateral trade in general and trade in agriculture, forestry and fisheries between Vietnam and India in particular is still very modest. While bilateral trade between Vietnam and India will reach a record US$15 billion in 2022, it accounts for only about 1.1% of India’s total import and export turnover.

Speaking to India’s Trade and Industry Minister, Minister Le Minh Hoan said Vietnamese agricultural products exported to India are very diverse, including coffee, tea, pepper, cashews, cinnamon, anise and herbs. Fruits, Rubber, Confectionery, Tra Fish, Basa Fish, Grain Products… In addition, some agricultural products and processed foods from India are likely to develop in the Vietnamese market, such as: B. seafood, broken rice, chili and some spices and vegetables.

Minister Le Minh Hoan commented: The two countries share similarities in agricultural production. In particular, the potential of the fruit and vegetable trade is very large, but the import and export of goods does not correspond to the potential.

Vietnam’s fruit and vegetable production is growing day by day, agricultural products tend to conform to growing standards such as VietGAP and GlobalGAP. The fruits that Vietnam has an advantage in producing are dragon fruit, longan, mango, grapefruit, rambutan, mangosteen, durian, breast milk, lychee, etc.

OPENING OF THE MARKET FOR VEGETABLES

Minister Le Minh Hoan pointed to the obstacles restricting fruit import and export activities between the two countries, saying the reason is the high tax rate. Goods exported to India are subject to a tax rate of up to 70%. because the Indian market is not open yet. Currently, only Vietnamese dragon fruit can be exported to India with a 0% tax rate.

Minister Le Minh Hoan suggested that the two countries open their fruit and vegetable markets and sign bilateral trade agreements to facilitate import and export of agricultural products between the two countries.

“The two sides should work together to facilitate trade and provide a better fresh start for trade relations in agriculture, forestry and fisheries, which have been quiet in the past,” Minister Le Minh Hoan suggested while hoping that India wants to join the campaign in support of Vietnam as the host for the relocation of the World Pepper Organization (IPC) Secretariat, currently located in Jakarta, Indonesia, to Ho Chi Minh City. Ho Chi Minh City, Vietnam.

As part of the business trip, the Vietnamese Ministry of Agriculture and Rural Development, together with the Vietnamese Embassy and the Indian Trade and Industry Federation (FICCI), organized the Vietnam Agribusiness Connection Forum. – India.

The forum was attended by 50 Indian companies and executives from four Vietnamese associations including: Vietnam Pepper Association; Vietnam Coffee – Cocoa Association; Vietnam Rubber Association; Vietnam Cashew Association.

Speaking at the forum, Minister Le Minh Hoan wished that the two countries’ companies would establish ties and promote trade and investment in the fields of agriculture, forestry and fisheries, which offer plenty of scope for the two countries to realize friendly relations. Traditionally, Vietnamese Prime Minister Pham Minh Chinh and Indian Prime Minister Narendra Modi met and reaffirmed business and trade as an important pillar in Vietnam-India relations at their recent meeting on May 20, 2023 in Hiroshima, Japan.

“Vietnam wants to connect and learn from Indian companies on applying science, technology and digital technology to develop green, ecological and sustainable agriculture in Vietnam. This will contribute to global food security and sustainable development,” emphasized Minister Le Minh Hoan.

At the forum, the FICCI representative highly appreciated the rapid development of Vietnam’s agricultural industry and wanted to learn more about Vietnam’s connection with global agricultural value chains.

During the work programme, the delegation will continue to hold meetings with the Indian Ministry of Agriculture and Farmer Welfare, the Club of Indian Business Executives, as well as bilateral working sessions with the Minister of Agriculture. G20 countries should facilitate trade, connect trade – investments in agriculture, forestry and fisheries.