Agricultures, Foods, News & Event
Exporting agricultural products to the EU seizes opportunities from EVFTA
The EU is one of the largest export markets for Vietnam’s agricultural products. The EVFTA is considered an opportunity for Vietnamese agricultural products to deeply integrate into large markets with high selling prices, but also a challenge that requires manufacturing and exporting enterprises to change more drastically to sustainable export growth to this “difficult” market.
* The Ministry of Industry and Trade is the focal agency to implement the EVFTA Agreement
According to data from the General Department of Customs, the total export turnover of Vietnam’s main agricultural products (including coffee, cashew nuts, rubber, vegetables, pepper, rice and tea) to the EU market in In the first 11 months of 2021, it will reach about 2.2 billion USD and increase by 10.1% over the same period in 2020. With this result, the EU is one of the largest export markets for agricultural products in our country, accounting for 13.7%. in the total export turnover of main agricultural products. Regarding the structure of export products, the proportion of Vietnam’s main export products to the EU is as follows: coffee (accounting for 42.2% of the total export turnover of main agricultural products to the EU), seeds cashew (accounting for 33%), rubber (accounting for 7.9%), vegetables (accounting for 7.8%), pepper (accounting for 7.4%), rice (accounting for 1.7%) and tea (accounting for 0 ,first%). Structure of Vietnam’s agricultural products to the EU in the first 11 months of 2021 (% of value)
Regarding the export market to EU member countries, despite being affected by the Covid-19 epidemic, the export turnover of agricultural products to Vietnam’s key markets in the EU region either grew positively or only decreased slightly. : Germany (accounting for 28.8% of the total export turnover of Vietnam’s main agricultural products to the EU, reaching US$641 million, up 24.4% over the same period in 2020), the Netherlands (accounting for 22.5 %, reaching 500 million USD, up 1.9%), Italy (accounting for 12.8%, reaching 285 million USD, up 3.2%), Spain (accounting for 9%, reaching 202 million USD, a slight decrease 0 .6%), France (accounting for 6.4%, reaching US$142 million, up 25.2%),… In addition, some markets have small export turnover but strong growth, for see export potential: Finland (up 198%), Hungary (up 86.9%), Czech Republic (up 49.2%),…
Exporting fruits and vegetables to the EU
The EU is committed to opening up very strongly for Vietnamese vegetables and fruits in the EVFTA, 94% of the total 547 tax lines for vegetables and fruits and fruit and vegetable products (including many products that are Vietnam’s strengths such as litchi, longan, etc.) rambutan, dragon fruit, pineapple, melon, etc.) shall be removed as soon as the Agreement comes into force. Most of the tariff lines that the EU has committed to abolish immediately have an average MFN tax rate of over 10%, especially for fruit and vegetable products that are subject to a tax of over 20%. Therefore, this level of commitment of the EU is considered to create a great advantage in price for Vietnamese vegetables and fruits (especially in the competition to import into the EU with countries that have strengths in vegetables and fruits that have not yet had an FTA with the EU). such as Thailand, China, Malaysia, Indonesia).
Vietnam’s fruit and vegetable exports to the EU market after the EVFTA came into effect and went into effect has achieved positive results. In the first 11 months of 2021, the export turnover of vegetables and fruits to the EU reached 173 million USD, up 7.6% over the same period in 2020. The main types of vegetables and fruits exported to the EU are: HS code. 20098999 – Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter – Other (according to USD 28 million, down 23). .5% over the same period in 2020 and accounted for 16% of the total export turnover of vegetables and fruits to the EU); HS code. 8109094 – Pomegranate, custard apple, custard apple, custard apple, custard apple, passion fruit, red alligator fruit, custard apple, and earth strawberry (reaching USD 22 million, up 19.8%, accounting for 13 %); HS code. 08119000 – Fruit and nuts, whether or not cooked by steaming or by boiling in water, frozen,
In the first 11 months of 2021, the EU is Vietnam’s fourth largest fruit and vegetable export market, accounting for 5.3% of the total export turnover of this item. Among EU member markets, Vietnam’s vegetables and fruits are exported mainly to the following countries: the Netherlands (reaching US$71 million), France (US$35 million) and Germany (US$20 million). Consumption of vegetables and fruits tends to increase in the EU due to eating habits to protect and promote health. However, the EU market is very demanding on traceability and product quality standards, especially food safety and hygiene. Therefore, businesses need to learn and grasp information about the market, from consumer tastes to regulations and standards on rules of origin, food safety and hygiene, etc. increase the quality of goods, conquering this “difficult” market.
In the coming time, the export turnover of Vietnam’s agricultural products to the EU market is forecasted to grow stronger when the Covid-19 epidemic is controlled, the EU gradually relaxes epidemic prevention measures, opens the door to trade. More conveniently, our export businesses also go through a period of adaptation to commitments in EVFTA, especially commitments on rules of origin. These are important prerequisites for Vietnam’s agricultural product industry to boost exports, build brands, and expand market share in European markets.