Why are Vietnamese agricultural products passive and dependent on the Chinese market?

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For more than 30 years of exporting agricultural products to China, Vietnamese enterprises have not yet grasped the distribution system in this market, so their goods are passive and highly dependent on key enterprises in China.

In order to support enterprises to boost the export of agricultural and aquatic products to the Chinese market, on 11/11/2021, the Ministry of Foreign Affairs and the Ministry of Agriculture and Rural Development (MARD) coordinated to organize the “Conference”. talks to promote agricultural and fishery exports to China.

BIG MARKET, FULL OF POTENTIAL, AVAILABLE BUT PASSIVE…

Mr. Pham Sao Mai, Ambassador of Vietnam to China, said that with its geographical advantage, it is more convenient to transport Vietnamese agricultural exports to China than other countries; and in the next 10 to 15 years, China is still a huge potential market for Vietnamese agricultural products.

“Although we have been exporting agricultural products to China for 30 years now, so far businesses have not grasped the distribution system in this market, making Vietnamese goods passive and dependent on other businesses. hub in China. To be able to do business smoothly in the Chinese market, businesses need to understand the distribution system of agricultural products here”, Mr. Sao Mai emphasized.

According to Mr. Nong Duc Lai, Trade in China, Vietnam’s agricultural and fishery exports to China must meet increasing requirements on quality standards, food safety (food safety), traceability. origin, packaging must comply with regulations and most recently according to Orders 248 and 249 of the Chinese side.

In addition, Vietnam’s agricultural products are also subject to stiff competition from countries with similar export products such as Thailand and even China-made products of the same type.

Due to the complicated development of the COVID-19 epidemic, China has increased inspection and control of goods and means of entry, and taken samples for inspection of imported goods transported by refrigerated containers as well as by clear containers. often cross the border, leading to prolongation of customs clearance time, causing congestion at the import border gate leading to additional costs for businesses.

In that context, in order to contribute to solving difficulties and effectively exploiting the potential of the stable and sustainable Chinese market, the Vietnamese Counselor in China will coordinate with ministries and sectors to exchange and negotiate with agencies. Chinese customs opened more doors for Vietnamese agricultural and fishery products.

In the immediate future, it is necessary to speed up the process of considering opening the market for durian and sweet potato products, and at the same time, promote the Chinese customs to consider completing the registration documents of enterprises producing, processing and packing seafood. Vietnamese products. Coordinate with domestic ministries and branches to discuss with Chinese customs about the signing of Protocols for agricultural and aquatic products to facilitate the export of agricultural and aquatic products to the Chinese market.

Mr. Dinh Cao Khue, Vice Chairman of the Vietnam Fruit and Vegetable Association (Vinafruit), Chairman of the Board of Directors of Dong Giao Food Export Joint Stock Company, said that the export turnover of vegetables and fruits from January 1 to October 15, reached 2.86 billion USD. In the first 9 months of the year, exports to China reached 1.526 billion USD, accounting for 53.24%, up 6% over the same period last year.

RECOMMENDATIONS FOR NEGOTIATION OF LEGENDARY DECREES FOR AGRICULTURAL AND AQUATIC PRODUCTS

Due to the impact of the COVID-19 epidemic, the cost of transporting goods to other countries increased very high, such as going to Europe by 10 times, to the US by 13 times, but for the Chinese market thanks to geographical advantages, The transportation cost here only increased about 0.3 times.

“Currently, exporting vegetables to China has two forms, fresh and processed. For the export of processed fruits and vegetables, there are advantages thanks to the reasonable price, the partners in China pay very well but the shipping costs are not high, another advantage is that the customers here are familiar with the product. of Vietnam. Therefore, we can promote the export of vegetables and fruits to this market.

However, if you want to export goods to China in large quantities, including fresh fruit, businesses must pay attention right from the stage of cultivation and good management of the planting area, traceability, packaging, etc. If it can be done, I think Export turnover of agricultural products to China will increase and whether you like it or not, “said Dinh Cao Khue.

According to Vice President of Vinafruit, the Chinese market still occupies the No. 1 position for the fruit and vegetable industry and is accounting for nearly 55% of the market share, businesses need to aim to increase to 70 to 80% of the market share.

In order to facilitate fruit and vegetable exports, Vinafruit proposed that the Government negotiate with China on a Protocol for official exports of fruits to China, because currently only one type is officially exported. The other 9 types are still subject to post-inspection.

“SELL VALUE, NOT PRICE”


Minister of Agriculture and Rural Development Le Minh Hoan

Addressing the conference, Minister of Agriculture and Rural Development Le Minh Hoan emphasized that the biggest bottleneck in the agricultural sector is that “farmers think seasonally, businesses think about business, and local authorities think about business. term”.

Enterprises exporting agricultural products to China that are not prepared to learn about this market as well as about the needs, trends and consumption characteristics of the market are very unlikely to succeed.

In order to successfully export agricultural products to the Chinese market, in addition to understanding the market, businesses also have to find out how Thailand and Cambodia’s competitors export to that market, how strategically, but now businesses Vietnam is still vague about the Chinese market and competitors.

Mr. Hoan compared: “We take 6 hours to cut down a big tree, then it takes 4 hours to sharpen the ax. The larger the market, the greater the risk because there is competition from businesses from other countries, so the time to prepare to learn the market is very important.

Doing business needs to optimize the business problem and for successful business, businesses must play the role of a buyer to understand the buyer’s psychology and then become a successful seller.

Enterprises must be sensitive to the market and, together with foreign deals, provide timely information to farmers, because businesses are the ones who lead farmers to produce according to market requirements, while the local government will helping businesses plan the construction of raw material areas to serve the market.

“Let’s cherish each product, don’t let it be exported and returned, we need to give a bigger message, more aspiration, improve the product image with the slogan “Together to cherish agricultural products”. Vietnamese, spread Vietnamese values”, at that time we did not sell goods but sold agricultural products, “Minister Hoan said.

He also recommends that businesses should sell value, not price, sell new high value because surplus value lies in value.

Currently, Vietnamese agricultural products are only sold through the Chinese border gate, while Thai agricultural products have penetrated deeply into the country. Vietnam needs to solve this problem.

“I asked the Ambassador and the Counselors to help provide information on the Chinese market and countries selling similar agricultural products like Vietnam, and then the three ministries: Agriculture and Rural Development, Industry and Trade and Foreign Affairs jointly analyze these issues. strengths and weaknesses of Vietnamese agricultural products to find ways to overcome”, emphasized the Minister of Agriculture and Rural Development.

Nguyen Huyen
Source: Business Lifestyle/ BizLive

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