126 tons of fragrant rice like Jasmine 85 are on the way to the EU

On the morning of September 22, at Thoai Son Food Factory (one of 5 food companies under Loc Troi Group) in Son Lap hamlet, Vong Dong commune, Thoai Son district, the batch export announcement ceremony took place. Aromatic rice products of Loc Troi Group to Europe under EVFTA agreement. This shipment is 126 tons of Jasmine 85 fragrant rice, packed according to 18 kg specifications, and will be on the way to the European market at the end of September 2020.

Mr. Huynh Van Thin, Chairman of the Board of Directors of Loc Troi Group, shared: Loc Troi Group is well aware that goods that want to be exported to these markets need to meet very high quality standards. And with the strategy of joining the global supply chain and the production capacity always meeting high standards, Loc Troi Group will endeavor to effectively take advantage of the incentives that the State has brought, bringing the rice grain. Vietnam in particular and Vietnamese agricultural products in general to markets around the world.

Loc Troi Group focuses on investing in growing and quality control for the EU market since 2018, and has exported more than 10,000 tons including Jasmine 85, Japonica DS1, OM18, OM5451 … to the market. This is in a variety of specifications. Since August 1, 2020, the EVFTA Agreement officially took effect, Loc Troi Group has prepared in the fields of seeds, growing areas, forces for the next season, actively working with partners. EU partners to capture in terms of quantity, type and other requirements to meet accordingly.

Loc Troi Group has become the first company in the world to achieve 100 absolute points for rice cultivation according to SRP standards in early 2020. In particular, Loc Troi is implementing a roadmap towards Consumption of 1 million tons of rice through the construction and development of a system of 1,000 cooperatives and the application of 1,000 drones in agricultural production by 2024.

With the preferential tax rate of EVFTA, Loc Troi Group understands that quality will be the biggest competitive advantage of Vietnamese agricultural products in general and rice in particular when they want to export to the EU. Therefore, Loc Troi always focuses on quality control throughout the raw material areas and production and processing facilities of the Group.

Loc Troi aims to become one of the biggest exporters to the EU in the near future by concentrating a lot of resources on meeting the EU’s increasingly high quality requirements, increasing acreage areas leading to increased production. export volume, diversifying varieties, building brands of some Vietnamese varieties in the EU market.

Deputy Minister of Agriculture and Rural Development Le Quoc Doanh speaking at the ceremony. Image: Le Hoang Vu.

Awarded the first certificate of fragrant rice variety to enterprises exporting to the EU

At the ceremony of announcing the export of fragrant rice to Europe, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said: Particularly 30 thousand tons of fragrant rice EU requires state management agencies to have a certificate of the correctness of varieties, the origin. The time we negotiate has been 10 years now, of which 9 varieties of fragrant rice have been exported to the EU. Later, during the implementation period, we will adjust more new types of rice to meet the requirements for export to the EU.

Today, we witness the first certification of the Department of Crop Production to the enterprise of Loc Troi Group. In a short time we endeavor to fully document the conditions for export to the EU. We recommend that localities strengthen inspection and supervision including farming, packaging and transparency to ensure the origin that the EU has requested.

For businesses that have done well in the past few years, now need to continue to deepen links with localities and cooperatives. We create a production area that is large enough, centralized, synchronously applied and strictly managed in the farming, harvesting, and packaging processes so that we are fully confident and meet the EU requirements. out in the Agreement signed with the two sides.

The EVFTA Agreement is the key for Vietnam’s agricultural exports to reach a potential market, the EU with 27 member countries, more than 511 million people, GDP per capita of more than $ 35,000 is the market. large schools have high income levels.

EVFTA, EU for Vietnam a quota of 80,000 tons of rice / year including 30,000 tons of milled rice, 20,000 tons of unmilled rice and 30,000 tons of fragrant rice. In particular, the EU will fully liberalize broken rice with this commitment to help Vietnam export an estimated 100,000 tons to the EU annually. For rice products, the EU will bring the tax rate to 0% after 3-5 years.

To take advantage of this, the agricultural sector needs to promote the restructuring of agricultural production in chains, in which there is a close link between cooperatives (cooperatives), businesses with farmers, forming a closed process. from material organization to processing, ensure traceability, food safety and pay attention to packaging and labels. That way, the EU market will be well exploited.

Mr. Piotr Harasimowicz, Head of Representative Office, Polish Trade and Investment Agency in Vietnam. Image: Le Hoang Vu.

Mr. Piotr Harasimowicz, Head of Representative Office, Polish Trade and Investment Agency in Vietnam

Vietnam is not only in the vibrant market of Asia, but also a country with good infrastructure for commercial development, especially the agricultural sector, which has great potential for export to Europe. Currently, many Vietnamese enterprises have proven that product quality meets the standards and tastes of EU consumers.

The EU-Vietnam Free Trade Agreement (EVFTA) removes more than 99% of tariffs on commercial goods of both sides as soon as EVFTA comes into force from August 1, 2020. EVFTA can help Vietnam’s GDP and export growth by 2.4% and 12% by 2030, respectively.

Although Vietnamese rice has penetrated the European market, it faces considerable competition compared to products from Thailand, Cambodia and Myanmar. Exports to the EU only account for 0.38% of the country’s total rice export volume. While the average EU rice consumption is 2.5 million tons / year in the 2016-2020 period.

Therefore, in the framework of EVFTA, the EU is committed to providing a quota of 80,000 tons of rice annually to Vietnam and fully free trade in broken rice. After 3-5 years, the tax rate for rice products will be reduced to 0%. Taking advantage of EVFTA’s advantages, this agricultural sector promises to promote its strengths and become the main export product and a great opportunity for Vietnamese rice exporters to increase their rice sales to the EU and Poland.