Vietnam's agricultural exports to the UK: Seize the opportunity brought by UKVFTA as soon as possible to expand market share

(People’s Daily) The “Vietnam- UK Free Trade Agreement” (UKVFTA) has helped many Vietnamese agricultural products to have a competitive advantage in the UK market compared to products from countries that have not signed a free trade agreement with the UK
.
However, Vietnamese companies can only take advantage of this competitive advantage if the product meets the quality requirements and meets the preferences of British consumers
.

 

　　Potential to be tapped

 

　　Every year, British companies import a large amount of fruits, vegetables and agricultural products to meet the consumer demand of the market
.
In 2020, the United Kingdom imported more than 5.
7 million tons of fruit, with an import value of nearly 6.
4 billion pounds (US$9 billion)
.
Among them, imports of fruits and vegetables from Vietnam amounted to US$11,597,093 million, accounting for 0.
18% of the market share
.

 

　　Some Vietnamese agricultural products have been admitted to the British market, such as coffee, cashew nuts, pepper and other products sold in large supermarkets
.
According to the Commercial Office of the Embassy of Vietnam in the UK, in 2020, Vietnam exported more than 16,000 tons of cashew nuts to the UK , with an export value of more than US$92 million, accounting for 71% of the market share; exports of pepper to the UK amounted to more than 5,620 tons, accounting for more than 5,620 tons.
The market share is nearly 40%; coffee exports to the UK amounted to 27,915 tons, accounting for nearly 5% of the total coffee imports in the UK
.
At the same time, rice, longan, lychee, dragon fruit and other fruits are also allowed to enter the British market, but they are mainly sold in small supermarkets serving the Vietnamese community and a small number of Asian communities, and have not yet entered the major supermarkets in the UK
.

 

　　This shows that there is still a lot of room for Vietnamese agricultural products and fruits and vegetables to enter this market
.
In particular, thanks to the UKVFTA that came into effect on January 1, 2021, 94% of the tax items (547 tax items) related to the export of fruits and vegetables and fruit and vegetable products to the UK will be zero
.

 

　　Nguyen Jingqiang, Commercial Counselor of the Vietnamese Embassy in the UK, said that UKVFTA has helped many Vietnamese agricultural products to have a competitive advantage in the UK market compared to products from countries that have not signed a free trade agreement with the UK
.
Before the entry into force of UKVFTA, many agricultural products in Vietnam could hardly compete with agricultural products in Thailand, Malaysia, Indonesia, South Africa or India
.

 

　　Mr.
Ruan Jingqiang emphasized that, however, only when products meet quality requirements and meet British consumer preferences can Vietnamese companies take advantage of this competitive advantage
.
This can be seen as a challenge that not all Vietnamese companies can overcome
.

 

　　Seize the opportunity quickly

 

　　Mr.
Ruan Jingqiang said that although UKVFTA has brought opportunities, the British government is determined to speed up the process of joining the "Comprehensive and Progressive Agreement for Trans-Pacific Partnership" (CPTPP) and is seeking bilateral free trade agreements with other major trading partners.
Opportunity does not wait for anyone, and it will not last long
.
Therefore, export companies must quickly use Vietnam's advantages to enter and expand the country's market
.

 

　　As a big market, the British market has high requirements for the quality of agricultural products and fruits and vegetables, and the competition is also very fierce
.
Mr.
Ruan Jingqiang also pointed out that Vietnamese companies intending to go deep into the foggy country must follow Global Good Agricultural Practices (GlobalGAP) or European Good Agricultural Practices (EurepGAP) to produce and apply international management standards (ISO, SA—Social Responsibility Standards, ILO—Labor Standard)
.
In addition, Vietnamese companies must ensure a stable supply source of quantity and quality in order to promote the sustainable development of partnerships with British partners
.

 

　　In order to support Vietnamese enterprises in exporting agricultural products to this market, the Commercial Office of the Embassy of Vietnam in the UK has worked hard to hold various trade matching activities
.
Recently, the Commercial Office of the Vietnamese Embassy in the UK successfully held an agricultural product seminar and trade matchmaking online on July 15, 2021, to connect Vietnamese export companies with some British import companies
.
After the seminar, some Vietnamese companies have the opportunity to export fruits and vegetables to the Birmingham Wholesale Market, one of the UK's largest fruit and vegetable wholesale centers
.
Some British import companies also plan to import dried fruits, cashews, and dried coconuts from Vietnam
.

 

　　In addition, the Commercial Office of the Embassy of Vietnam in the UK is also preparing for a seminar on agricultural trade to be held in London on September 28, 2021.
The main guests are purchasing managers of major supermarket chains and agricultural import companies in the UK
.
Mr.
Ruan Jingqiang hopes that famous Vietnamese export companies will participate in this seminar to put Vietnamese high-quality products on the shelves of major supermarkets in the UK
.
(Finish)