Vietnam Will Be A Bright Star In USA Market

At the Commercial Counsellor Conference 2016 of Southern Area held in Ho Chi Minh City on 22^nd, February, commercial counselors in other countries have shared their experience, notice to put products into foreign markets.

Dragon fruit exported to Japan market.

As mentioned at the conference, for large market like USA and fastidious market like Japan, enterprises need to comply with some guidelines for long-term business.

In 2015, Vietnam has accomplished and signed 4 important free trade agreements with large markets: Trans – Pacific Partnership (TPP), Vietnam – EU, Vietnam – Eurasian Economic Union and Vietnam – Korean, which create promising export opportunities for enterprise community.

“Rising star” in USA

With regards to TPP, USA commercial counsellor – Mr Dao Tran Nhan said Vietnam is the leading exporter of textiles and garments into US market. 11 countries who pay 450 million USD of importing tax for footwear into USA, in which Vietnam contribute 445 mil USD. When TPP takes effects, almost all tax on textiles, footwear from Vietnam will be back to 0% in the first year. Meanwhile, Vietnam will be the rising star in US market, gradually replace China’s first place.

Thanks to TPP, Vietnam will increase export by 32%, GDP by 25%. Therefore, Vietnam should research, take advantage of TPP in order to gain export, increase revenue inflow and willing to confront the domestic competitive pressure because we are gradually open to foreign markets.

Referring to food and beverage sector export, Mr Nhan advised the enterprise to study the updated law on food safety and hygiene of USA to follow. At present, USA allowed to import 4 types from Vietnam: dragon fruit, rambutan, lychee and longan. Ministry of Agriculture and Rural Development (MARD) is working with US side to export other 2 types: mango and milk fruit. It takes 5 – 7 years to have license for a fruit from Vietnam to export to US market.

Absolute compliance with food safety and hygiene regulations

With a fastidious market like Japan, it will take relatively the same time as mentioned to bring a new fruit to Japan market. Mr. Nguyen Trung Dung – Vietnam Counsellor said it took 5 -7 years for dragon fruit and 4 years for mango to be present in this market.

Japan Ministry of Agriculture and Rural Development has required Vietnam to provide the priority of fruit types needed to be exported into Japan. Obviously, they turn on the green light for Vietnam to add official export fruits. The remaining tasks reside in the local, associations, enterprises and MARD to discuss what should be present first with the most effectiveness.

According to Mr. Dung, bringing Vietnam products to Japan not only increasse the export value but also implies a significant meaning: a starting point for other products to penetrate the market.

Japan is a difficult market, if they import products from Vietnam, it is a good sign for other countries to import Vietnam goods. In 2009, the dragon fruit was accepted in Japan market. Although being sold with little amount, USA immediately agreed to buy it. When TPP takes effect, Vietnam agricultural food products will enjoy tax incentives but it is compulsory to overcome the safety and hygiene barriers.

Also, in 2015 Vietnam has made adjustments on food safety and hygiene for products exported to Japan with tight control program to prevent unsafe export good containing antibiotic residues or plant protection drugs.

Dung Nguyen

Source: cafef.vn