PM sets GDP growth target of 3.5-4% for Vietnam agriculture sector

Vietnam’s Prime Minister Pham Minh Chinh has asked the agricultural sector to overcome obstacles in 2024 by turning "nothing into something, and difficulty into ease" to reach GDP contribution growth of 3.5-4%, with a minimum of $55 billion from exports.

The prime minister congratulated the agriculture sector for its overall success last year on Wednesday during a meeting to make 2023 reviews and outline tasks for 2024.

Sector overcomes headwinds

According to the PM, through a period of turmoil, the agricultural sector has overcome headwinds and achieved respectable results. "Vietnam's agricultural industry has changed from being passive to being proactive and creative, offering many initiatives to turn the situation around. Regarding production and processing, farmers and businesses have also changed from a defensive approach to making breakthroughs in agriculture," he emphasized.

The prime minister noted that Vietnam's economy is a bright spot in the region, according to assessments by multilateral development banks. In particular, agricultural, forestry, and fishery trade contribute to stabilizing people's lives.

A major contributor to export value was the fruit and vegetable sector, with a record figure of $5.6 billion, an increase of 50% compared to the previous record set in 2018 of $3.81 billion. Durian rose to become the number one exported fruit and vegetable product, with a turnover of more than $2 billion in 2023.

Five other farm products posting record-high export revenues were rice with $4.78 billion, up 38.4%; cashew with $3.63 billion, up 17.6%; coffee with $4.18 billion, up 3.1%; shrimp with $3.38 billion, down 21.7%; and wood and wooden products with $13.37 billion, down 16.5%.

Last year, Vietnam had a trade surplus of $28 billion, partly due to reduced imports of processing materials. Businesses and farmers tended to use domestic input materials, contributing to stabilizing the market.

Vietnam used to be a food importer, but after 30 years of innovation, it is now one of the top three rice exporters in the world. Despite a 9,000 hectare reduction in land, rice production in 2023 reached 43.4 million tons, up 1.7% from 2022, largely due to new varieties, improved quality, and technological advancements.

With a GDP per capita of roughly $4,300, Vietnam’s economy is estimated to reach $430 billion in 2023, placing it third in Southeast Asia. "The agriculture sector had a solid harvest and good prices when looking at the total accomplishments of the entire nation. People's lives have greatly improved, and people have more faith in the leadership of the Party and Government. I acknowledge and thank the achievements of the entire industry," he said.

Export target of over $55 billion

Regarding the goals and tasks for 2024, the prime minister asked the Ministry of Agriculture and Rural Development to set a GDP contribution growth target of 3.5-4% for the entire industry (the Ministry of Agriculture and Rural Development set 3-3.5%) and agricultural, forestry, and fishery export turnover of $55 billion or more (the Ministry of Agriculture and Rural Development set $53-55 billion).

The prime minister asked the agriculture sector to "turn nothing into something, and turn difficulty into ease" in order to accomplish this goal, closely adhering to the government's motto.

He requested the agriculture ministry to stabilize the organization to build a lean workforce and promote digital transformation, green transformation and the circular economy.

Chinh also requested the agriculture ministry to make good supply and demand forecasts, supply sufficient market information, and successfully implement free trade agreements.