Vietnamese agricultural products conquer the European market

 

Exports of flagship products soared

 

Since EVFTA came into effect on August 1, 2020, Vietnam's agricultural exports to the EU have achieved remarkable results
.
Currently, the EU is Vietnam’s third largest agricultural export market, accounting for 10.
1% of total exports, second only to Asia (46.
5%) and the Americas (27%)
.

 

In May 2021, Vietnam’s export of aquatic products to the EU was 23,000 tons, with an export value of 105 million U.
S.
dollars, a year-on-year increase of 48.
5% and 44.
7% respectively
.
In the first five months of 2021, Vietnam’s aquatic product exports amounted to US$390 million, a year-on-year increase of 15%
.
Chen Qinghai, deputy director of the Import and Export Bureau of the Ministry of Industry and Trade, said: “It is expected that Vietnam’s exports of aquatic products to the EU in the third quarter of 2021 will increase sharply year-on-year, because the multi-country economy of the EU is reopening and recovering strongly
.
”

 

　　Vietnam's coffee exports to the EU have also improved
.
In the first five months of this year, apart from the United States, Germany and Italy are the largest export markets for Vietnamese coffee, accounting for 14% and 7.
6% of total exports, respectively
.
The EU is Vietnam’s second largest export market for cashew nuts, with an export volume of 33,800 tons and a foreign exchange earning of US$173 million, accounting for 18.
3% and 21% of total exports and total exports, respectively
.

 

　　It is worth noting that the EU is currently the fourth largest export market for Vietnam's fruits and vegetables
.
In addition to traditional fruits and vegetables, the EU will start importing Vietnamese lychees from June 2021
.
Zhong Zhifeng, President of Pacific Foods, shared: "After successfully transporting the first batch of Qinghe lychees in Hai Duong Province to the Czech airport, the company continues to export Luan lychees in Beijiang Province to the European Union
.
This is the lychee grown in accordance with GlobalGap and Vietgap standards
.
Successfully entering this high-end market will help enhance the status of agricultural products and create opportunities for lychees to enter new markets.

Pacific Foods spent three years understanding the relevant procedures and conditions and negotiating to export lychees to the European Union
.
"

 

　　In addition to the first batch of lychees exported to the Czech Republic and France, the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development have also strengthened trade promotion activities, aiming to export dragon fruit, jackfruit, mango, longan, grapefruit and other agricultural products to EU countries
.

 

　　Overcome obstacles and base on quality

 

　　The prices of agricultural products exported to the EU are much higher than the average market price and the selling price and sales volume remain unchanged
.
However, it is easy and difficult to increase the export of agricultural products to this market, because they have strict requirements on product quality and food safety.
The EU's requirements are even more stringent and supervision activities are more frequent than other markets
.

 

　　Chen Yujun, deputy director of the European and American Department of the Ministry of Industry and Trade, believes that agricultural products are products protected by the EU, because companies exporting to this market have to face many trade protection measures
.
At the same time, EU countries have put forward harsh regulations on issues such as antibiotic residues, pesticide residues, and traceability of agricultural products
.
Ruan Yushan, an expert at the Dutch Export Promotion Center for Developing Countries (CBI), believes that it is common for domestic companies to fail to strictly observe product quality and origin regulations
.
Even some companies strictly abide by the regulations and meet the export conditions in the first year, but no longer abide by the regulations in the second year, so the contract is suspended
.
Obviously, the awareness of domestic enterprises on compliance with the regulations is still limited.
This is the biggest obstacle faced by Vietnamese agricultural products when they are exported to the EU
.

 

　　Many experts in the industry believe that there are too many legal barriers, which forces companies to actively learn relevant information and fully comply with the new regulations in order to achieve sustainable exports
.
Because of the geographical distance and the high cost of entering the market, companies should think carefully about the issues of funding and risks in order to solve the export problem
.
Companies can promote interesting stories about their agricultural production, in order to create a unique value for Vietnamese agricultural products in the EU market
.

 

　　In addition, there are many countries that have signed free trade agreements with the EU, but not many have concentrated on the production of agricultural products
.
This shows that the EU has opened the door for Vietnamese agricultural products to enter the market
.
However, in order to get past this door, domestic companies should pay special attention to product quality
.
Not only the transportation link, but the entire production process must be strictly controlled to achieve product traceability and provide convenience for importers to divert products according to food safety standards
.

 

　　Increase corporate support

 

　　Pointing out the preferential treatment that farmers and enterprises enjoy when they participate in the export of agricultural products to the EU, Ruan Guozuan, director of the Agricultural Product Market Development and Processing Bureau of the Ministry of Agriculture and Rural Development, said that at present, various research institutes in Vietnam have invested in research on modern product preservation and processing technology and Scheme
.
Many of them are homemade in Vietnam, which helps to reduce costs.
Therefore, not only enterprises and farmers, but also farmers can apply modern technology to the harvesting and preservation of agricultural products
.
Accordingly, the shelf life of many fresh fruit products has increased significantly
.
As a result, many fresh fruits and vegetables in Vietnam were successfully exported to the EU market by sea, and the cost was significantly lower than the previous stage, which was mainly by air
.

 

　　Du Shenghai, Vice Minister of the Ministry of Industry and Trade, stated that in the future, in order to increase the export of agricultural products, the Ministry of Industry and Trade has led, is and will soon take the lead and cooperate with relevant departments and associations to implement and guide enterprises to effectively implement the EVTFA agreement, aiming to maximize the use of its belt.
Opportunity to come
.

 

　　However, in addition to the support of national regulatory agencies, companies should take the initiative to prepare in terms of financial resources and supply of goods, enhance their competitiveness through careful formulation of long-term plans, abide by the rules of origin of products, and shape and protect their brands to achieve the EU Sustainable exports
.
In particular, they should take the initiative to carry out cooperation and docking to improve their strength, build a supply chain and prepare for dealing with trade defense cases
.
(Finish)