Opening the way to export Vietnamese agricultural products to EU countries

Optimistic signal

Dr Arjen Roem, Vice President of Food, Agriculture and Aquaculture Business Division of EuroCham said that in 2021, Vietnam will be the 31st largest partner for goods exported to the EU and a major partner. 11th for EU imports.

In 2021, Vietnam's exports to the EU will reach 46 billion USD, up 14%. “With this growth momentum, Europe is currently one of the largest export markets for Vietnamese agricultural products, accounting for 14% of total export revenue of major agricultural products,” said Dr. Arjen Roem.

The top agricultural products imported from Vietnam are tropical fruits, nuts, fresh and dried spices worth 869 million ERU (39%); unroasted coffee, tea is 868 million EUR (38%); The remaining agricultural products are coffee, tea, rice, noodles, paring cakes, biscuits. Wood and furniture exports to the EU in 2021 will reach 14 billion USD, up 17% compared to 2020

In the first quarter of 2022, Vietnam exported more than 22,500 tons of rice (US$18 million) to the EU, up 4 times in volume and value compared to the same period in 2021. The proportion of Vietnamese pepper exports to the EU increased from 20% in in the first quarter of 2021 to 28% in the first quarter of 2022.

For the Mekong Delta aquaculture industry, Dr. Arjen Roem said that after two consecutive years of decline, exports of pangasius and shrimp from Vietnam to the EU increased by nearly 70% in the first two months of the year. 2022, reaching a total of 190 million USD. Besides, Vietnam's tuna exports in the first two months of 2022 reached US$155 million, up 82% over the same period in 2021.

According to Vietnam Customs, in the first 6 months of 2002, despite many fluctuations in the world situation, especially difficulties in supply chain disruptions, high commodity prices, unstable logistics situation due to the impact of Despite the war between Russia and Ukraine, Vietnam's export turnover to the Netherlands grew well with 29.6% over the same period in 2021, reaching a value of US$5.042 billion. In which, seafood increased by 56.5%, vegetables and fruits increased by 21%, coffee increased by more than 300%, pepper increased by 75.6%, rice increased by nearly 24%.

Opportunity to challenge

The conflict between Russia and Ukraine has caused shortages, delays and cost increases in production lines in many industries across the globe. Now EU countries need an alternative source of cereals and agricultural products.

“Vietnam can strengthen its role in the EU market to replace products from Russia. Taking this opportunity, Vietnam needs to focus on improving its market share in the EU market, which has an increasing demand”, said Dr. Arjen Roem.

Explaining this, Dr. Arjen Roem said that in 2021, Vietnam can only export 60,000 tons of rice to the EU market. Vietnam needs to make full use of the rice export quota of 80,000 tons/year to the EU with a tax rate of 0% under the EVFTA Agreement. This is a favorable time for Vietnam to increase exports of rice and other agricultural products to this market.

Dr. Arjen Roem also noted, one of the main challenges for Vietnam's agricultural exports to the EU is the EU's strict requirements. Because many potential product groups such as vegetables, fruits, rice and processed foods of Vietnam have not yet reached the quantity required for large orders of supermarkets in the EU. The EU's demand is increasing, the number of fruits and vegetables that meet international standards for export to this market is still limited.

Ms. Vo Thi Ngoc Diep, Commercial Counselor, Vietnam Trade Office in the Netherlands also said that dry food products imported from Vietnam continuously received warnings of violations of regulations on ethylene oxide, so businesses Importers of this product have a more cautious mentality, reducing the amount of imported goods.

As for fresh fruits and vegetables, they still cannot meet the requirements of good preservation when transported by sea, so importers do not dare to accept risks when importing large quantities of this product by sea.

“Recently, Ben Tre pomelo was imported into the Netherlands via the port of Rotterdam for distribution to Germany, the Czech Republic, and France with a retail price of 11 EUR/fruit, making it difficult to compete with Chinese pomelos in the long term. The retail price is only 2-3 EUR/fruit, although Vietnamese pomelos are considered delicious and sweeter than Chinese pomelos," Ms. Diep informed.

Over the past time, the EU has continuously updated and strengthened the application of sanitary and quarantine measures for imported agricultural products including feed and plant products. At the same time, increasing the application of new certification criteria related to environmental protection and sustainable development, socially responsible.

“The aim of these regulations is to ensure health and quality standards throughout the EU market. Due to these high standards, Vietnam's entry into the EU market will be challenging", said Dr. Arjen Roem.

Dr. Arjen Roem said that, for Vietnam to restore its international position and reputation for agricultural and aquatic product exports, more attention is required in providing clear and transparent certifications. , honest and accurate.

Strict rules of origin are another challenge for the export of Vietnamese products to the EU.

The reality is that Vietnam depends on many raw materials and inputs from countries outside the EVFTA. This has made it difficult for Vietnamese enterprises to optimize tax exemption benefits. “EVFTA is not a magic wand. In addition to tax reduction, the challenges of EVFTA come not only from the quality and quantity of products, but also from consumer preferences, other standards such as working conditions, banning young workers. children, consumer safety, environmental protection, factory standards, and production facilities... 

All of these needs are aimed at satisfying consumers' expectations for what is called a "moral" code. Vietnamese enterprises need to prepare and improve their production conditions and regulations, improve products, streamline processes to meet the needs of EU consumers, as well as increase their attractiveness in the world. Global market.

In addition, Vietnamese businesses need to update market information, including tariff preferences, food hygiene and safety, technical barriers, rules of origin and brand development. Dr. Arjen Roem recommends.

Vice President of Food, Agriculture and Aquaculture Business Division of EuroCham also said that if Vietnam does not take advantage of the opportunity to take the lead in trade relations, in the future, it will face the risk of facing competition. compete with neighboring countries in Southeast Asia. Because, Singapore has also signed FTAs, and the EU is also negotiating FTAs with other countries in the region such as the Philippines and Indonesia. These are countries that are competing directly with Vietnam in exporting goods to the EU.