Vietnam's agricultural and forestry product exports are expected to reach a turnover of US$7.5 billion this year, an increase of 5.8 per cent over 2006, according to Minister of Agriculture and Rural Development Cao Duc Phat.

The nation's membership in the WTO, Phat said, would create many conditions for Vietnam businesses to approach world markets and expand export markets.

To reach this year's target, the ministry has researched and considered detailed development strategies for each type of agriculture and forestry product and for each period, he noted.

The ministry has launched seven development programs for the sector, concentrated on developing such key agricultural and forestry exports as rice, coffee, cashew nut, rubber, pepper and wooden furniture.

The programs will focus on research and development and technology transfers.

Under WTO commitments, the agro-forestry sector would also face many challenges such as expanding the market to include outside competition and adjusting State policies that support the sector, said Phat.

Export subsidies in the agro-forestry sector will be adjusted or abolished to comply with WTO rules. Some subsidies will be replaced by forms of sector-wide support and trade promotion which complies with WTO rules, such as market consultation and free transportation of export products.

The ministry is also expected to support the sector via strengthened research, science and technology, training, agricultural infrastructure construction and bio-technology.

The export value of agricultural and forestry products is expected to grow more than 3 per cent this year, according to the ministry.

In 2006, export turnover of agricultural and forestry products reached $7.3 billion, a record figure.

Many products earned high export revenues, including rubber at $1.3 billion, an increase of 58 per cent over last year; coffee, $1.1 billion; wood products, $2.16 billion, up 21 per cent over last year; rice, $1.3 billion; and pepper, $190 million.