Despite weaknesses in complying with world food safety standards, and the agricultural sector's poor track record in attracting foreign investment, agricultural exports continued to grow in 2007.
The general Statistical Office reported that the value of coffee exports rose 52% year-on-year, while rice exports rose 14%, seafood exports 13%, and fruits and vegetables 15%.
Of the 10 exports that generate over US$1 billion per year in revenues, five are agricultural products: seafood (US$3.8 billion), wood products (US$2.4 billion), coffee (US$1.85 billion), rice (US$1.45 billion), and rubber (US$1.4 billion).
With overall agricultural export value estimated of US$12.6 billion, agriculture contributed 25% to the country's total exports.
Agricultural production generated 20% of the nation's GDP in 2007, although it grew only 3.25% in 2007, compared to average growth in GDP of 8.44%.
For the first time, Vietnam rice earned as high a price on export markets as Thailand's. The average export price for Vietnam rice has mounted to US$295 a tonne, US$41 higher than 2006's average, according to Truong Thanh Phong, president of the Vietnam Food Association.
Rice export volume has continued to fall year by year. Vietnam exported 5.2 million tonnes in 2005, 4.65 million tonnes in 2006 and only 4.53 million tonnes in 2007. Pepper earned Vietnam US$284 million in export revenue in 2007, up 48% from 2006 despite a 27% reduction in export volumes.
Coffee, by comparison, brewed up higher export earnings through both higher prices and higher volume. The world's second largest coffee exporter, Vietnam exported 1.2 million tonnes of coffee beans in 2007, up 22% year-on-year, and earning US$1.85 billion, up 52%.
Vietnam overtook India as the world's leading cashew exporter last year and earned US$650 million through the export of 153,000 tonnes of cashews in 2007, up 20.4%.
Vietnam's rubber has found new markets in South Korea, Taiwan, Malaysia, and Germany, with exports to Malaysia alone tripling. The traditional market for Vietnam rubber -mainland China -is now the destination of only 59% of rubber exports.
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