The EVFTA Agreement will be a golden opportunity, creating a great push for Vietnam’s agricultural, forestry and fishery exports, especially products with strengths such as cashew, seafood, vegetables, rice, coffee, pepper, furniture products….
Displaying high quality agricultural products at the conference. Photo: Hua Chung – VNA
The reduction of import duties in the Vietnam – European Union Free Trade Agreement (EVFTA) will increase competitive pressure on domestic producers not only in terms of price but also on quality and food safety. Products. In which, the livestock sector is forecasted to face the most disadvantages.
This is the information given by experts at the conference “EVFTA – Opportunities to improve the quality of Vietnamese agricultural products participating in the global value chain”, coordinated by the Vietnam Farmers and Agricultural Enterprises Association. Vietnam Fruit and Vegetable Association and Vietnam Chamber of Commerce and Industry – VCCI HCMC branch. Ho Chi Minh City held on October 9 in Ho Chi Minh City. Ho Chi Minh.
According to Mr. Nguyen Anh Dung, representative of Agro-forestry Market Development and Processing Department (Ministry of Agriculture and Rural Development), all items have relatively high tax residue such as chicken and pork with a roadmap. It is quite long (8-10 years), while beef, milk and dairy products have rapid tax reduction schedules, from 0-3 years.
Thus, in the short and long term, the livestock industry will face great competitive pressure from imports from the EU. On the other hand, it is often the situation that countries “retaliate” or “go, get back” in trade negotiations, face great pressure for policy operation in the country.
Another challenge for the agricultural sector to join the EVFTA Agreement is meeting the rules of origin to ensure preferential benefits. Some Vietnam’s current commodity sectors are at risk of having difficulty meeting the rules of origin.
For example, in the cashew industry, the EU has relatively strict regulations on the origin of cashews when considering the process of peeling cashews as simple processing, so it is imperative that Vietnamese cashew nuts want to reach their origin. the origin must be processed from the source of domestically produced raw materials. Meanwhile, for a long time, imported raw materials still accounts for a large proportion in the cashew processing industry in Vietnam.
On the other hand, for seafood, the EU is still applying a “yellow card” warning against illegal, unmanaged and unreported fishing for Vietnam’s imported seafood to the EU.
Currently, the EU strengthens its control over 100% of seafood shipments and increases the frequency of inspection of other agricultural products exported to the EU, creating difficult barriers in taking advantage of opportunities from EVFTA.
Displaying high quality agricultural products at the conference. Photo: Hua Chung – VNA
As soon as honey, according to the EVFTA Agreement, the EU will eliminate tariffs as soon as the agreement comes into effect and no tariff quotas will be applied.
However, to be exported to this market, honey products must meet the strictest requirements on plant and animal quarantine (SPS).
However, experts also said that the above challenges are an opportunity for Vietnam’s agricultural sector to promote quality production to meet market requirements.
In order to do this, domestic production must be reorganized according to the associated value chains in order to absorb the support from all parties towards efficiency.
Mr. Le Duy Minh, Chairman of Vietnam Association of Farms and Agricultural Enterprises, EVFTA Agreement will be a golden opportunity, creating a great boost for Vietnam’s agricultural, forestry and fishery exports, especially products that can strong as seafood, vegetables, rice, coffee, pepper, wooden products….
However, in order to take advantage of this opportunity, agricultural enterprises, cooperatives and farms must actively improve their production capacity, build product brands, to meet the increasing requirements of the market. This relatively fastidious.
According to experts, in order to take advantage of the incentives from the agreement, businesses in the agricultural sector need to carefully understand the tariff commitments, the elimination of tax in the relevant sector and the rules of origin. chemical.
In addition, businesses also need to learn other related agreements such as customs and trade facilitation, trade defense … Only when knowing clearly, businesses can actively master the new “playing field”. this. /.
Hua Chung
Source: Vietnam + / TTXVN
