According to the Ministry of Industry and Trade, the export rate of goods in general, including agricultural products, to the European Union (EU) is still low, accounting for only over 2% of the market capacity. On the other hand, after 4 years of implementing EVFTA, the rate of taking advantage of incentives has only reached over 20%. Thus, there is still room to increase agricultural exports to the EU.

Export growth rate reaches 15%/year

After 4 years of implementing the Vietnam - EU Free Trade Agreement (EVFTA), Vietnam's export goods to the EU reached nearly 170 billion USD, an increase of nearly 50%. Of which, agricultural products are one of the main export items; on average, agricultural exports to the EU increase by 15% each year, according to the Ministry of Industry and Trade.

Rice is one of the items that has taken advantage of the EVFTA to increase exports to the EU. In 2023, rice exports to the EU reached nearly 104,000 tons, worth 71.7 million USD, up 10% in both volume and turnover compared to 2022, according to the General Department of Customs. This is also the second consecutive year that rice exports to the EU have exceeded the 80,000 tons/year quota of the EVFTA. Vietnam's rice has been exported to 26/27 member countries in the EU.

In the first quarter of this year, rice exports continued to record impressive growth, with 46,000 tons, turnover reaching 41.4 million USD, up nearly 118% over the same period in 2023. Although the EU only accounts for a small proportion of Vietnam's total rice exports, it is a demanding market but is willing to pay high prices for quality products. ST25 rice is currently one of the popular products in many EU member countries.

Rice is one of the agricultural products that has taken advantage of EVFTA. Photo: Ministry of Industry and Trade

Similarly, fruits and vegetables have also taken advantage of the EVFTA. According to the Vietnam Fruit and Vegetable Association, export turnover to this market has grown by double digits; in 2022, export turnover reached over 200 million USD, and by 2023, it had increased by nearly 300 million USD. According to experts, the opportunity for Vietnamese fruits and vegetables in the EU is huge, because the market size is up to 62 billion euros, equivalent to 43% of the global fruit and vegetable trade value...

The Ministry of Industry and Trade assessed that in reality, the rate of utilizing rules of origin has increased in key product lines such as seafood (nearly 90%), fruits and vegetables (88.3%)... This not only helps businesses take advantage of the 0% tax incentive, but also enhances the recognition of Vietnamese brands, increasing the competitiveness of Vietnamese goods in the EU. Agricultural enterprises have also made efforts to improve product quality to meet strict EU standards, through investing in modern production technology and applying quality control processes from cultivation to packaging.

Actively support businesses to take advantage of EVFTA

After 4 years of implementing EVFTA, although agricultural exports to the EU have achieved many positive results, in general, they have not met expectations. Specifically, the export rate of our country to the EU, including agricultural products, is still low, only over 2% of the EU market capacity. The rate of taking advantage of EVFTA incentives is currently only over 20%, although quite high compared to newly implemented FTAs, it is still low compared to expectations. This means that the opportunity and room for expanding the export market for Vietnamese agricultural products to the EU is still very large.

However, the EU is still a very demanding market with constantly changing regulations. For example, last June, the European Commission published a gazette on reviewing the application of additional inspection measures and emergency measures to manage the import of agricultural products and food from third countries into the EU. Accordingly, Vietnam's agricultural products including chili, dragon fruit, and okra continue to be inspected by the EU with increased frequency and stricter food safety conditions (dragon fruit inspection frequency increased by 30%; chili and okra inspection frequency increased by 50%, accompanied by food safety certificates and analysis results of pesticide residues in the products).

The Ministry of Industry and Trade recommends that, in order to boost the export of agricultural products to the EU, businesses need to overcome existing problems related to rules of origin and improve product quality management. In addition, because the EU's import regulations on fruits and vegetables are very strict and frequently change, exporting businesses must constantly update and closely connect with importers to ensure compliance.

In order to help businesses better take advantage of incentives from EVFTA as well as other FTAs, the Ministry of Industry and Trade determines to continue to grasp difficulties and problems in production and export through close ties with industry associations to promptly resolve them; closely follow the actual situation, promptly direct and flexibly manage the export of rice and other agricultural products. Along with that, the Ministry also presides over and coordinates to negotiate the opening of export markets, especially for fruits and agricultural products; focus on effectively implementing export promotion activities; timely inform businesses and associations about new market needs and regulations...

Source: Dai Bieu Nhan Dan Electronic Newspaper