Farmers, businesses remain indifferent to TPP

In fact, the ASEAN Economic Community (AEC) formation by the end of the year or matters related to global integration and Free Trade Agreements (FTAs) such as the Trans Pacific Partnership (TPP) are little more than some vague concept to them.

Nguyen Thanh Hai, who operates a 5,000 square metre mango tree farm at the Tan Thuan Tay Village in the Cao Lanh district of Dong Thap province, is a typical example. 

Hai was happy to hear the news that Cao Lanh mangoes were allowed to ship to the Republic of Korea (RoK) and Japan, but he is totally unconcerned with whether the RoK is or is not a member of the 12 nations comprising the TPP.

His only anxieties relate to whether or not his mangoes will have a chance to ship to these countries and his sole focus is on increasing mango yields and quality as part of his endeavour to get the best price for them.

Farmers in the Mekong Delta have little to almost no opportunity to collaborate and coordinate with others in the agriculture industry, so they simply hope that the government will help them sell their products stably.

However they are generally cognizant of the fact that they face brisk competition from a wide range of fruits imported from Thailand that have become strong favourites of Vietnamese consumers.

The agricultural industry in the Mekong Delta region is now confronted with pressure to reinvent itself in order to adapt to the fiercer competition resulting from the deep and wide integration process.

“The agricultural industry has only one way but to move ahead,” especially should the TPP be ratified, said Deputy Head Pham Van Du of the Plantation Department, adding that most likely it will need to “shift to a larger scale model”.

Farmers will need to transition from their more traditional production methods and retrain to more modernized and skilled ones, better-witted with market information, Du said.

The TPP, if ratified, will undoubtedly result in an increase in trade exchanges with Japan and the US. A reduction of import duties brought about by the agreement should stimulate exports, especially in agricultural and aquaculture, which are strengths of the Mekong Delta.

Director Tran Dinh Thien of the Central Institute of Economic Management (CIEM) said the output of agricultural is currently primarily mainly consumed by households in the region.

Scientific technology has yet to take root, allowing for increased production and competitiveness in the global marketplace, he underscored.

However, the Mekong Delta region’s advantage rests in agriculture that still applies backwards traditional cultivation methods.

If it thrives and prospers in a post AEC and FTA world it must evolve in a more decisive manner that integrates seamlessly into the global agricultural production chain, Thiem stressed.

The proposed TPP should serve as an incentive for farmers to improve the competitiveness of agricultural and as a consequence more and more Vietnam products will have chances to enter many countries.

On the other hand, more foreign agricultural products will begin to flood the Vietnam market and that’s why it’s high time to help farmers to know what the AEC and FTAs are all about so that they are ready for the onslaught of healthy competition.