Proactive and confident to enter the EU market

VCN – A series of programs and solutions are being actively implemented by ministries, sectors, localities as well as enterprises to help Vietnam’s agricultural, forestry and fishery products effectively utilize the benefits of the EVFTA as soon as it comes into effect.

proactive and confident to enter the eu market
Fruits that are grown according to safe production processes will have many opportunities in the EU market. Photo: N.H

Enterprises are proactive

Mr. Pham Thai Binh, general director of Trung An Hi-tech Agriculture Joint Stock Company, said that the current tax rate for Vietnamese rice in the EU is 175 EUR per ton for milled rice, 65 EUR per ton for broken rice and 211 EUR per tonfor paddy. In the future, under the EVFTA’s commitments, the quota for milled rice and broken rice will be 80,000 tons, the tax rate in the quota is zero.

Especially, the rice consumption in the EU has increased to an average of 2.5 million tons per year in the period of 2016-2020. For this great opportunity, Mr. Binh said Trung An Company was ready to promote rice exports to the EU market when the EVFTA officially comes into effect.

Mr. Dang Hoang Giang, Vice Chairman, General Secretary of Vietnam Cashew Association (Vinacas), said that many companies have fully prepared to meet the requirements of standards, facilities and capacity to export to the EU, such as finance, human resources, factories and technology. Accordingly, in order to meet the consumer demand for products of organic standards and traceability, many companies have planned clean raw material areas and grown in line with organic standards.

Similarly, many fruit exporting enterprises such as Vina T&T Group and Chanh Thu Fruit Export Co. Ltd., have invested in material areas to meet the standards of demanding markets. In particular, Chanh Thu is managing 25 codes of fruit growing areas of about 400 hectares. The material area of Vina T&T is also occupying over 50 percent of the southern fruit area. All are cultivated in line with safety standards of VietGap and Global Gap. In particular, with export experience to many fastidious markets such as the US, Australia and Japan, it will be a solid foundation for Chanh Thu and Vina T&T fruit to conquer EU consumers.

Ministries and branches are active

Along with the initiative of enterprises, ministries, branches and localities are also actively deploying necessary activities to support businesses in the preparation for when the EVFTA takes effect.

At the conference on “Supporting businesses to take advantage of opportunities to develop exports of agriculture, forestry and fishery products to the EU, to effectively implement the EVFTA” held in Ho Chi Minh City, Minister of Industry and Trade Tran Tuan Anh and Minister of Agriculture and Rural Development Nguyen Xuan Cuong agreed to set up a working group to receive proposals from enterprises, both directly and online, in order to quickly solve problems to support enterprises to export to the EU and take advantage of opportunities from the EVFTA.

The two Ministers also affirmed that they would simplify the relevant procedures to support businesses to quickly enjoy the benefits from this agreement.

Accordingly, the common view is that complying with the requirements of the import market but not increasing the procedures or sub-licenses that makes it difficult for enterprises. Even in case the Government has not yet approved, the two ministries will also study a temporary mechanism to support businesses.

Particularly in the agricultural sector, Mr. Cuong said he would issue a separate implementation plan. It focuses on production to improve product quality in line with international regulations; develop and harmonize standards and regulations that meet the technical requirements of the EU market.

The Ministry of Agriculture and Rural Development also reviews the law during the implementation process to propose timely adjustments and supplements of legal documents. Specifically, the Ministry is currently developing a decree guiding the process of registering certification of rice categories for export to the EU to enjoy tariff quota incentives. It will be submitted to the Prime Minister for signing right after the EVFTA takes effect.

The agriculture sector has also strongly implemented the establishment of planting area codes, geographical indications, ensuring traceability, quality and food safety, and applied sanitary and phytosanitary (SPS) measures in accordance with the EU regulations.

At the same time, focus on removing the “yellow card” of IUU for Vietnamese seafood products. Quickly implement the VPA/FLEGT Agreement to promote the export of sustainable timber and timber products. Attract and promote exporters, increase investment in deep processing to increase added value, take advantage of incentives from the EVFTA, especially for processed agricultural, forestry and fishery products.

Recently, the Ministry of Industry and Trade has also issued the Circular No. 11/2020/TT-BCT regulating goods origin rules in the EVFTA to help businesses meet the origin rules to enjoy policies of the agreement.

Chairman of Ho Chi Minh City People’s Committee Nguyen Thanh Phong said that Ho Chi Minh City is building an Export Development Plan to 2025to orient export activities in the direction of shifting to export support services. The goal is to make the city a hub for export services to the southern provinces and cities.

At the same time, restructure the export industry towards shifting to export refined products with high scientific and technological content and high added value. It is needed to both keep export turnover growth and diversify fastidious markets like the EU.

At the same time, Ho Chi Minh City is also developing a logistics development plan to 2025 to develop infrastructure and improve the quality of logistics services, create a foundation for economic development and support export activities in the city. In addition, Ho Chi Minh City will also have specific solutions to support businesses to improve competitiveness in the process of international integration.

With thorough and active preparation of both the State and enterprises, Mr. Cuong is confident that Vietnam’s agricultural, forestry and fishery products will “win” in the EU market.

“Previously the tax was very high, but Vietnamese products still managed to enter the EU. When the EVFTA takes effect, most of the tax lines will be at zero, our goods will “win” more, achieve higher efficiency if the Government, enterprises and farmers work well together, “said Mr. Cuong.

Minister of Industry and Trade Tran Tuan Anh:

We will build an e-commerce platform with the EU

This e-commerce platform will include public sector, public administrative services, including electronic C/O issuance, as well as customs procedures, logistics services, electronic authentication activities and electronic invoices to ensure enterprises have access to public administrative services on both sides. Small and medium enterprises will be at an advantage in exploiting the advantages of e-commerce to have a sudden growth in the EU market.

By Nguyen Hien/KieuOanh

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