"Highway" for Vietnamese agricultural products to conquer the EU market

This agreement is considered a great opportunity for Vietnamese agricultural products to penetrate more and more deeply into demanding markets. However, it also poses challenges requiring the agricultural sector to make strong efforts to innovate in many aspects.

Vietnamese goods are welcomed by European people

According to the Multilateral Trade Policy Department (Ministry of Industry and Trade), EVFTA is one of the agreements with the highest preferential export turnover. Over the past 4 years, the EVFTA has created momentum for Vietnam's export activities in general and agricultural and forestry products in particular when many export tax lines to this market have been eliminated, helping to create a competitive advantage compared to goods from some other countries that do not have an FTA with the EU. EVFTA has been creating a "highway" for Vietnamese agricultural products to enter this most demanding market in the world.

Statistics from the General Department of Customs show that in June 2024, the export turnover of goods to the EU increased by 7.85% compared to May 2024 and increased by 19.54% compared to June 2023, reaching over 4.28 billion USD.

In the first 6 months of 2024, the total export turnover of goods to the EU reached over 24.69 billion USD, an increase of 15.3% over the same period in 2023. Of which, seafood exports from Vietnam to the EU market had the highest growth rate, up 40% in June 2024. In the first half of 2024, seafood exports to the EU reached 513 million USD, an increase of 12% over the same period last year.

The product "Com Viet Nam Rice" is sold at Carrefour supermarket (France). Photo: Luc Tung

According to Mr. Ngo Chung Khanh - Deputy Director of the Multilateral Trade Policy Department, the biggest advantage for Vietnamese goods in EVFTA, especially agricultural, forestry and fishery products, is the opening of the market, because for many years, the EU has been one of Vietnam's leading export markets and is also a market where Vietnam has a very large trade surplus. The growth rate of trade between Vietnam and the EU for this market has also increased steadily over the years despite being affected by the Covid-19 pandemic.

Mr. Le Duy Binh - Economic Expert, Director of Economica Vietnam also said that EVFTA has helped Vietnamese enterprises exploit the absolute competitive advantages or comparative competitive advantages of the Vietnamese economy, especially in the fields of agriculture, forestry and fisheries.

In addition to traditional agricultural, forestry and aquatic products such as coffee, cashew nuts, pepper and some forestry or aquatic products, Vietnamese rice has also taken full advantage of preferential tariffs from EVFTA, especially high-quality rice and fragrant rice, as evidenced by the remarkable growth with export turnover to some EU markets 2 or 3 times higher than before.

For example, Loc Troi rice with the brand Com Viet Nam Rice has successfully entered the supermarket chain of France's leading retail distribution group E.Leclerc and the Carrefour distribution system. In 2023, the enterprise exported 20,263 tons of rice to the EU, an increase of 26% compared to 2022, with a total turnover of over 12 million USD.

In addition, some Vietnamese agricultural products have penetrated the EU’s modern distribution channels, such as pangasius, which is sold in supermarkets, wholesale and food services across the EU, especially in Northern Europe. Vietnamese pangasius has also been placed on the shelves of EU retailers, including Albert Heijn and Jumbo in the Netherlands; Tesco in the UK and REWE in Germany.

Some fruits such as dragon fruit and passion fruit, with limited seasonal quantities, have also been introduced to supermarkets such as Colruyt, Carrefour, Grand Frais...

The fruit and vegetable industry has many advantages when exporting to the EU thanks to "support" from EVFTA

Continue to maximize benefits from EVFTA

Referring to Vietnam's general export of goods to the European market in recent times, Mr. Tran Ngoc Quan - Vietnam's Trade Counselor in the Kingdom of Belgium and the EU said that, like the world economic situation in general, the European economy has faced many difficulties in recent years, and exports of many countries to this continent have declined. However, Vietnam has maintained a good export growth rate to the EU, and one of the reasons for this positive result is the entry into force of the EVFTA. Figures in the EU's trade balance also show that this is one of the successful agreements and one of the solutions to help this economy overcome difficulties in supply chain disruptions in recent times.

For agricultural, forestry and fishery products, the tax on many items has been reduced to 0% as soon as the EVFTA agreement comes into effect or will gradually decrease to 0% within 3-5 years. Mr. Tran Ngoc Quan affirmed that this is one of the great advantages for Vietnamese agricultural products entering the EU market.

In addition to the advantages that EVFTA brings to Vietnam's export of goods to Europe, Mr. Tran Ngoc Quan also pointed out the difficulties that all products and countries face. Specifically, the EU is increasingly imposing more stringent requirements on quality, sustainability, social, environmental, product life cycle, food safety regulations, etc., aiming for better value for the environment and society.

The Vietnamese Trade Counselor in Belgium and the EU said that these are huge challenges for businesses, including Vietnam. Failure to meet market standards will make it impossible to penetrate that market.

Counselor Tran Ngoc Quan said that to overcome such challenges, it is necessary to address issues from the import market with standards on sustainable products. Vietnam must transform from mass production to ensure reasonable prices to focusing on products with added value and sustainability to increasingly meet EU standards.

According to him, if Vietnam combines maintaining current exports with gradually shifting some export production sectors towards sustainable development, it will be able to access the European market in a more sustainable way.

Mr. Tran Ngoc Quan added that in recent times, the Vietnam Trade Office in Belgium and the EU has continuously updated and regularly disseminated EU regulations to businesses.

"Some regulations have come into effect, others will come into effect within the next 4-5 years. However, if we do not prepare now, Vietnam will easily miss these opportunities and the next 3 years will be very special opportunities. These are not issues of competition in opening the market, but competition in quality, meeting very strict standards. Vietnam needs time to prepare to meet those requirements well," Counselor Tran Ngoc Quan emphasized.

Source: https://congthuong.vn/duong-cao-toc-de-nong-san-viet-chinh-phuc-thi-truong-eu-336101.html