In recent years, although Vietnam's agricultural products have been exported (exported) to many countries in the region and the world, they still depend heavily on the Chinese market.
Whenever the market of more than one billion people “sneezes, runny nose”, Vietnamese agricultural products are congested at the border gates. Therefore, in order to avoid dependence on the Chinese market, Vietnamese enterprises need to expand export markets in the coming time through exploiting free trade agreements (FTAs).
Depends heavily, risks are great
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Immediately after the Lunar New Year, the outbreak of acute respiratory infections (Covid – 19) spread, China temporarily closed the border, so export activities to this market had to be halted and agricultural products were congested. The latest update of the Ministry of Industry and Trade shows that there are 106 vehicles transporting agricultural products, fruits such as dragon fruit, jackfruit, chili and longan at the border gate of Huu Nghi (Lang Son).
Loading and unloading exports at Hai Phong port. Photo: Pham Hung
Tan Thanh and Coc Nam border gates have 109 dragon fruit vehicles, 10 agricultural vehicles, grocery, cowhide, cosmetics and import and export activities. Chi Ma border gate, with 2 cars left in stock (one car with black agar and 1 pepper car); Dong Dang railway gate still has 41 cars (7 dragon carriages waiting for export, 37 steel cars waiting for import).
Meanwhile, at Kim Thanh II border gate (Lao Cai province) there are more than 300 fruit cars including dragon fruit, jackfruit, watermelon, bananas.
In Quang Ninh province, there are currently 36,800 tons of cassava starch at Van Gia port and inland waterway port, besides there are about 20,000 tons of cassava starch signed a contract and are on the way to Mong Cai city.
In addition, there are 30 fruit cars of all kinds in the city of Mong Cai, equivalent to about 450 tons of un-exported fruit and 500 tons of fruit enterprises that have contracts to buy from the South, preparing to transport to the door. Password.
In fact, the congestion of export agricultural products to China has caused producers and export enterprises to suffer. Director of Dong Thap Department of Industry and Trade Nguyen Huu Dung said that the local agricultural products exported mainly to the Chinese market.
In about a month, Dong Thap's main product is mango with an output of more than 90,000 tons and 11,000 tons of sweet potatoes will be harvested, if China extends the closing time, it will greatly affect the consumption of agricultural products.
Not only did Dong Thap province have difficulty depending on the Chinese market to export agricultural products, Deputy Director of the Department of Industry and Trade of Binh Thuan Ha Le Thanh Chung lamented in February and March, Binh Thuan expected to harvest more than 96,000. tons of dragon fruits, but the disease is making it difficult to export agricultural products.
Although not much affected at the moment, Bac Giang Department of Industry and Trade is also concerned that if the epidemic is not controlled in China, it will greatly affect the consumption of lychee products by the Chinese market every year. Consumption from 45 to 60% of production.
According to Ms. Pham Thi Doan, Director of Son La Department of Industry and Trade, the province has 10 agricultural products for export, of which China is the main market. The suspension of imports by China, many items such as mango, longan, plum, banana, dragon fruit, passion fruit … are in the harvest season will be seriously affected.
Expanding export markets or “dying”
The fact shows that Vietnamese agricultural products have been in a state of congestion many times when China has stopped buying, which shows that Vietnamese enterprises are too dependent on a market, causing Vietnamese agricultural products to fall into a position. passive.
To solve this bottleneck requires businesses and regulatory agencies to look for new, sustainable export markets, avoiding the situation when a market stops buying, Vietnam's agricultural products immediately fall into a difficult situation. towel consumption.
According to the former Director of the Commercial Research Institute – Assoc.Prof.Dr. Nguyen Van Nam, the temporary closure of China is also an opportunity for enterprises to export agricultural products gradually, depending on this market, and to find new markets to diversify. diversify export markets.
“For example, in agricultural products such as rice, although China has temporarily closed the border, the impact is not so great as vegetables and fruits and can actively seek other markets to consume. “- Mr. Nam analyzed.
Agreeing with this idea, Director of the Asia-Africa Market Department (Ministry of Industry and Trade), Mr. Le Hoang Oanh said that in the coming time, along with continuing to maintain stable export activities to China, it is necessary to research and find new export markets for Vietnamese agricultural products. Typically for rice, will focus on the markets of Indonesia, Philippines, South Korea or Africa.
For coffee, it is possible to search for new markets in the Middle East region; with dragon fruit, it is possible to expand the market to Japan, Korea, Hong Kong and Taiwan … “The growth potential of these agricultural export markets is still very large” – Ms. Oanh said.
Talking about searching for new export markets for agricultural products, Director of the Import and Export Department (Ministry of Industry and Trade) Phan Van Chinh shared: Currently, the unit is researching, seeking and expanding export markets, thereby adding for the slump of the Chinese market.
In the immediate future, in order to reduce dependence on the Chinese market, the Department has proposed the Trade Office in Asian countries to allow enterprises to export white and red flesh dragon fruits of Vietnam to actively organize the work. discussing with Association and reputable import enterprises in host countries to connect consumption.
EVFTA – a great opportunity for businesses to expand export markets
On February 12, the European Parliament (EP) officially voted to ratify the Free Trade Agreement (EVFTA) and the Investment Protection Agreement (EVIPA) between Vietnam and the EU, this is an opportunity for businesses. expand export markets of agricultural products. According to the Minister of Industry and Trade Tran Tuan Anh: EU is a market with 508 million people, GDP of US $ 18,000 billion, showing that the EU is one of the most important trading partners of Vietnam.
Especially, the EP approval of EVFTA, 100% of Vietnam's export turnover to the EU will be eliminated import tax right after the agreement comes into effect or after a short roadmap, this is an opportunity for businesses to boost agricultural exports. production into this market.
“With agricultural products, the EU will cut tariffs to 0%, respectively for the first year and after 10 years, 74.6% and 97.3% of the committed agricultural tariff lines. For fruits and vegetables, the EU also committed to eliminate taxes when EVFTA comes into effect, with seafood products, about 50% of tariff lines will be eliminated, the remaining 50% of tariff lines will be removed in roadmap of 5-7 years ”.
The reduction of import tax of the EVFTA Agreement will further expand the export market of products that we have strengths such as agricultural products (including rice, sugar, honey, vegetables, tubers, fruits, …) and seafood, create conditions for Vietnamese agricultural products to access to markets of the 28 member states of the European Union. From there, Vietnamese agricultural products can expand export markets, reducing dependence on China and Southeast Asia markets.
“EVFTA Agreement is a push for export of agricultural products to recover, is a potential opportunity for Vietnamese enterprises to grow exports as well as contribute to diversifying export markets of agricultural, forestry and fishery products with Vietnam's strengths.” – Minister Tran Tuan Anh affirmed.
Deputy Director of the Institute of Policy and Strategy for Agriculture and Rural Development (MARD) Tran Cong Thang assessed that Vietnam is the second largest producer and exporter of green coffee in the world, while the EU is a In large consuming markets, the export turnover of Vietnamese coffee to the EU will increase after EVFTA takes effect.
“In recent years, many Vietnamese agricultural products have penetrated high quality markets such as the EU and have shown positive signals in production to meet the requirements of high standard markets, The approval of EVFTA will open up opportunities for Vietnamese agricultural products to reduce their dependence on the Chinese market, ”said Mr. Thang.
Need to improve the quality of agricultural products
According to economic experts, although EVFTA and FTA agreements that Vietnam has signed create opportunities for businesses to expand export markets, these are markets that require strict quality and safety. Products. If businesses do not improve product quality, meet the requirements will lose opportunities to exploit the market.
According to Le Thanh Hoa, Deputy Director General of Agricultural Product Processing and Market Development Department (MARD): Currently, the EU has set limits on the amount of pesticide residues (MRLs) used in and on products. food.
For fresh fruits and vegetables, enterprises must strictly comply with the provisions of MRLs and prevent bacterial contamination, which are prerequisites when entering the EU market. Products containing banned or higher levels of pesticides will be denied entry into this market.
Agreeing with this idea, Director of the WTO & Integration Center (VCCI) Nguyen Thi Thu Trang also expressed: Although EVFTA has been approved, it does not mean that export licenses for goods. EV FTA Agreement also does not eliminate the requirements on technical barriers in trade, traceability, food safety …
“EVFTA will make regulations on food safety, traceability of importing countries more and more stringent when reducing taxes. Vietnam will also have to ensure compliance with other regulations on intellectual property, labor, information transparency …
In particular, Vietnamese businesses must comply with the regulations of importing countries, not only on food safety but also on standards of social responsibility, labor issues, gender equality and with it, challenges in controlling commercial fraud… these regulations show that opportunities must be synonymous with quality ”- Ms. Trang said.
In order to improve the quality of agricultural products to meet export conditions in accordance with EVFTA's incentives, economic experts recommend that enterprises and farmers should have a way to organize distribution channels so that they can be effective. compete with imported goods, especially for similar products.
Note on products that ensure rules of origin, technical standards
“In order to make the most of the benefits that EVFTA Agreement as well as FTAs that Vietnam has signed, Vietnamese enterprises, especially small and medium enterprises, need to actively research information to have positive preparation. . The preparation should be carried out comprehensively from studying opportunities and challenges of the EU market to solutions such as improving the quality and design of products; promoting competitive advantages, increasing efficiency … It should be noted that in order to take advantage of the agreement, enterprises need to ensure their products meet the requirements of rules of origin, technical standards and hygiene and safety of EU plants and animals. ” – Minister of Industry and Trade Tran Tuan Anh
Minister of Industry and Trade Tran Tuan Anh
Many advantages for agricultural exports
“EVFTA Agreement, EU countries create favorable conditions for Vietnamese enterprises to export agricultural products through quota regulations. Specifically, for rice, the EU granted Vietnam 80,000 tons of rice (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 completely liberalize broken rice (which makes it possible to export up to 100,000 tons of broken rice to the EU annually). For rice products, the EU will bring the tax rate to 0% after a certain schedule. With sugar, the EU gives us a quota of 10,000 tons of white sugar and 10,000 tons of products containing over 80% sugar.
With honey, the EU will eliminate tariffs as soon as the Agreement comes into effect and no tariff quotas will apply. Other fruits, vegetables, processed fruits and fruit juices will basically be eliminated from tariffs right after the Agreement comes into effect. ” – Deputy Minister of Industry and Trade Do Thang Hai
Deputy Minister of Industry and Trade Do Thang Hai
Vietnam's agriculture must proactively change
“The opportunity to open into big markets for Vietnamese agricultural products with new generation FTAs such as CPTPP, EVFTA … is huge. But in order to take advantage of this opportunity, Vietnam's agricultural production must actively change and overcome inherent limitations of small and weak production in processing.
In addition, in order to develop sustainably in integration, enterprises need to improve their defenses against goods penetration, competition with foreign businesses through promoting production linkages, building successful price chains. for agricultural products. ” – Former Deputy Director of the Central Institute for Economic Management Dr. Vo Tri Thanh
Former Deputy Director of the Central Institute for Economic Management Dr. Vo Tri Thanh
According to economic experts, although EVFTA Agreement and FTA agreements that Vietnam has signed create opportunities for businesses to expand export markets, these are strict requirements for quality and real safety. Products. If businesses do not improve product quality, meet the requirements will lose opportunities to exploit the market.
According to VietnamBiz
