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The potential of clean agriculture in Vietnam.


5 thg 9, 2021

For many years now, food has always been one of the important economic sectors with great potential for development in Vietnam. Vietnamese food products not only meet the needs of the domestic market but also successfully hold a high position on the world export map. Vietnam is gradually becoming an important and rich source of agricultural products and food for many countries around the world.

With a population of about 10 million people, Hanoi consumes about 1,000 tons of meat, 600 tons of fish, and 3,200 tons of vegetables every day. But in the list of addresses providing agricultural products that have been confirmed to control food safety that the Ministry of Agriculture and Rural Development recently announced, there are only 7 locations in Hanoi. This shows that only a very small percentage of people have access to clean food. But at the same time, this number also reveals a huge business opportunity, when this is an extremely attractive and potential market for development.
Mr. Tran Quan, owner of a chain of 8 seafood and clean food stores, Wolf Bien shared, in Hanoi, although the demand for food is large, the competition in this industry is not really fierce, you can find countless location within 2km radius but no clean food store. With a small store, the profit margin of this item is quite high from 15-30% of sales, the capital turnover is fast, it is almost possible to know profit/loss in a few days... With these two criteria, It can be seen that the clean food industry is quite potential and has room for development.
However, not all brands can open chain stores as quickly as Sea Wolf. Many clean food business ideas after a while of business have "disappeared" in the market, bringing significant losses to investors. Therefore, although the market is still full of potential, it is always open.
It is no coincidence that recently, many foreign investors have "looked" into the agricultural sector. Earlier this year, 13 large Canadian meat exporters went to Vietnam looking for trading opportunities. The Canadian Ambassador to Vietnam said that Canada's pork exports to Vietnam in 2015 increased by 230%, an extremely impressive figure. Meanwhile, US agricultural and food enterprises are not indifferent to the Vietnamese market. Mr. David Lennarz, Vice President of Registrar Corp, said that many US businesses want to invest in Vietnam's food industry through clean food production projects.
This will be a real market wave, following the hastily implemented FTA negotiations, which is an important condition for foreign capital inflows into Vietnam. Former Minister of Trade Truong Dinh Tuyen said: TPP takes effect, clean foreign agricultural products flood in at reasonable prices, then Vietnamese consumers will choose clean food originating from abroad or fresh food. Vietnamese of unknown origin and unsafe? That is a very easy question to answer.
Therefore, experts note, the story now is not only about protecting the health and rebuilding trust of consumers, but also need to consider what Vietnamese businesses will do to not delay. legs than foreign enterprises?
According to experts, for Vietnamese enterprises to seize this opportunity, the urgent issue is to ensure the production of agricultural products, food and the consumption of clean food. To do this, Mr. Tuyen said, it is necessary to develop the agricultural sector in a multi-functional direction based on comparative advantages. At the same time, there should be policies to encourage enterprises to invest in agriculture; strengthen inspection and fight against the production and trade of dirty agricultural products and food and apply strong enough sanctions to prevent the production and trade of dirty food.

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