Monday, August 4, 2008

Jason Folkmanis and Van Nguyen

"Vietnam plans to allow massive production of genetically modified crops after 2010,`` said Pham Van Toan, Hanoi-based head of the general office at the agriculture ministry`s science and technology department. The country in 2005 approved the program to cut agricultural imports, he said.

The authorities have completed a draft of a law that will allow such crops, the agricultural attache`s office at the U.S. Embassy in Hanoi said in a report this month. A National Assembly session convening in October is expected to approve the law, the Vietnam News Agency reported on July 1.

"Vietnam remains keen to produce genetically modified crops, particularly soybeans, corn and cotton, in order to reduce the dependence on imports of these key commodities,`` Bui Thi Huong, an agricultural specialist at the U.S. Embassy, said in the report.

Vietnam was Asia`s biggest importer of soybean meal, which is used primarily for animal feed, along with Indonesia last year. The country shipped in 2.4 million tons of soybean meal, according to data from the Foreign Agricultural Service. Vietnam also imported 750,000 tons of corn, the FAS said.

Dependence on Imports

The country is dependent on imports of soybeans, corn and cotton for its ``large feed and textile industries,`` Huong said.

Cotton imports rose 26 percent to 170,000 tons in the seven months through July, according to Vietnam`s General Statistics Office. Cotton is used in the garment industry, to manufacture clothes, the country`s second-biggest export after crude oil.

The trade shortfall widened in the seven months through July to $15 billion, more than all of 2007. The deficit was $6.3 billion in the same period last year. Imports rose 57 percent, slowing from 62 percent growth in the first half.

The agriculture ministry`s science and technology department hasn`t issued any guidelines to ensure genetically modified crops are safe for mass production, Toan said.

Delays in approving regulations mean the 2010 target is unlikely to be met, according to the U.S. report. Vietnam aims for genetically modified crops to account for about 70 percent of production by 2020, the report said.

"Under this plan, Vietnam expects to create new plant varieties, animal breeds and biotech products through application of biotechnology, so as to enhance the competitiveness of Vietnam`s agricultural and fishery products,`` the U.S. Embassy`s Huong wrote.

Copyright © 2008 Bloomberg L.P.