Progress and challenges

The Vietnam - UK Free Trade Agreement (UKVFTA) has helped many Vietnamese agricultural products gain a competitive advantage in the UK market compared to similar products originating from countries that do not have an FTA with the UK. However, to build a position and compete in this potential but demanding market, Vietnamese agricultural products must face many challenges. Mr. Nguyen Canh Cuong - former Trade Counselor of Vietnam in the UK had a discussion on this issue with the Industry and Trade Newspaper.

Thanks to quality improvements and the UKVFTA, Vietnamese agricultural products are increasingly gaining a foothold in the UK market. Photo: Phuoc Tuan

Sir, Vietnamese agricultural products have made great strides in accessing international markets in recent times, especially in the UK. What do you think about this impressive result?

Over the years, Vietnamese agricultural products have made a strong impression on the international market, especially in the UK - one of the most demanding markets in Europe. In the UK market, products such as rice and fruit are now available in major supermarket chains such as Tesco, Sainsbury's, and Asda.

In addition, the presence of large agricultural exporters such as Cuu Long Seafood Import-Export Joint Stock Company with pangasius and giant freshwater prawn products has opened up many opportunities for Vietnam in the UK market. In 2023, Cuu Long Joint Stock Company achieved a revenue of 30 million USD from exporting pangasius to the UK, accounting for 10% of the company's total export turnover.

Currently, many key products such as rice, coffee, and tropical fruits (such as dragon fruit, mango, durian) have expanded their exports to the UK thanks to improved quality and compliance with international standards. This is a major effort by businesses and authorities, as well as the benefits of the UKVFTA since the agreement came into effect in May 2021.

Notably, before the UKVFTA, many Vietnamese agricultural products could hardly compete with those from Thailand, Malaysia, Indonesia, South Africa or India. However, up to now, the UKVFTA has helped many Vietnamese agricultural products gain a competitive advantage in the UK market compared to similar products originating from countries that do not have an FTA with the UK.

Mr. Nguyen Canh Cuong - Former Vietnamese Trade Counselor in the UK

In the coming time, to be able to penetrate deeper into the UK market as well as gain a stronger position, what do you think are the challenges facing Vietnamese agricultural products?

Although the UKVFTA has brought tariff advantages, ensuring quality and complying with EU food safety and environmental regulations is a major challenge for Vietnamese agricultural products. Accordingly, sustainable development and meeting EU food safety standards are also important factors helping Vietnamese agricultural products maintain their market share in the UK.

Although a large market, the UK market also requires high quality agricultural products, vegetables and fruits and is very competitive. Therefore, Vietnamese agricultural products need to demonstrate sustainability and transparency in the supply chain to compete with other countries such as Thailand and India. In this regard, Cuu Long Joint Stock Company has also taken advantage of the UKVFTA to increase exports of pangasius and shrimp to the UK, benefiting from preferential tax rates and meeting the standards of this market.

At the same time, fierce competition from countries such as Thailand, Peru, and Colombia is one of the major bottlenecks for Vietnamese agricultural products that businesses need to pay attention to. Accordingly, to cope with this challenge, businesses need to increase the application of modern technologies such as AI, IoT, and big data analysis to improve production efficiency and reduce costs.

From your experience as a trade counselor for many years, can you suggest some solutions to help Vietnamese agricultural products be more widely promoted to the UK market?

To be successful in the UK market, in addition to ensuring a stable supply in both quantity and quality, Vietnamese enterprises need to promote their brands. Accordingly, enterprises need to focus on improving their product promotion websites with content, language and images according to international standards. The website needs to provide full information about the products, food safety certificates, professional images, helping UK importers easily search for information and evaluate product quality before deciding to cooperate.

In addition, the pioneering role of large enterprises such as SS Food Vietnam and Cuu Long Joint Stock Company in promoting and developing their brands in the UK is very important. SS Food Vietnam has maintained its number one position in the UK shrimp market, accounting for 24% of the country's total shrimp imports. These enterprises have not only built strong distribution networks but also opened up opportunities for small and medium-sized enterprises.

Thus, the combination of website improvement, digital technology application, sustainable development and cooperation with strategic partners will help Vietnamese agricultural products increase their opportunities to penetrate the UK market and achieve long-term success.

In order to understand the needs and consumer tastes of the British, what specific measures do you think Vietnamese businesses need to take?

Businesses should conduct market research through reports, consumer surveys and trends in UK agricultural consumption. This may include using professional market research services or consulting reports from reputable organizations such as Mintel, Euromonitor, or Nielsen. These reports provide detailed insights into consumer trends, changes in food preferences, and potential customer segments.

Participating in international trade fairs. Specifically, participating in international trade fairs and events such as the International Food & Drink Event (IFE) and The London Produce Show will help Vietnamese businesses have the opportunity to meet directly with distributors, retailers and importers in the UK. Through these events, businesses can grasp market feedback and the latest trends in agricultural products.

British consumers are increasingly interested in sustainable, organic and traceable products. Businesses need to meet these requirements by adopting organic certification, GlobalGAP or other international food safety standards. This not only helps to increase trust but also creates a competitive advantage over other countries.

Online tools such as Google Trends, Facebook Insights, and Amazon Best Sellers can provide useful information about British search trends, preferences, and consumer behavior. By monitoring these tools, businesses can gain a better understanding of the types of products British consumers are searching for and adjust their export strategies accordingly.

Along with that, linking up with distribution partners and the Vietnamese community in the UK. Accordingly, cooperation with Asian food distribution companies such as Longdan, Viet Grocer, and Wing Yip can help businesses easily reach Asian consumers, especially the Vietnamese community in the UK. This is an important market that has a significant impact on the demand for agricultural products from Vietnam.

Thank you!

Source: https://congthuong.vn/nong-san-viet-nam-chinh-phuc-thi-truong-anh-buoc-tien-va-thach-thuc-347181.html