Green transformation in agricultural and food production boosts exports to the European Union

Mr. Le Hoang Tai - Deputy Director of the Department of Trade Promotion - speaking

The event, organized by the Ministry of Industry and Trade in coordination with the European Commission, provided multi-dimensional perspectives from domestic and international experts on market prospects, the ability to deeply participate in the supply chain with EU partners, trade defense, businesses adapting to new regulations and policies, and proposed strategies to promote green transformation in the agricultural sector, in line with the trend of green economy, circular economy...

With the participation of representatives of the European Chamber of Commerce in Vietnam (EuroCham), the Delegation of the European Union to Vietnam, representatives of the Consulates General of EU member countries in Vietnam, localities, domestic and international experts and especially the large participation of the business community, the Workshop opened a comprehensive and multi-dimensional interactive exchange channel, keeping up with market trends and fluctuations, supporting Vietnamese enterprises to grasp information, quickly adapt to maintain and develop green production activities.

This year's program is specifically aimed at supporting Vietnamese businesses to overcome challenges and adapt to green regulations and policies, and seize trade and investment cooperation opportunities in potential areas such as green economy , digital economy, circular economy and energy transition in the EU market.

Speaking at the workshop, Mr. Le Hoang Tai - Deputy Director of the Trade Promotion Agency - affirmed that the EU is one of Vietnam's leading trade and investment partners, making an important contribution to Vietnam's socio-economic development, integration and energy transition. The EVFTA and EVIPA agreements help create favorable conditions for Vietnam in promoting trade cooperation, attracting investment and transferring technology from the EU.

The Deputy Director also pointed out that Vietnam is actively implementing its commitments at COP26, aiming for Net Zero by 2050 through the National Green Growth Strategy. The Ministry of Industry and Trade will continue to support Vietnamese enterprises in applying ESG standards, promoting trade, investing in green technology, and promoting sustainable production models, thereby enhancing competitiveness and deeply participating in the global value chain.

At the workshop, Mr. Jean-Jacques Bouflet - Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham) - also emphasized the importance of the European Green Deal (EGD) in shaping sustainable policies, while pointing out new challenges that Vietnamese exporters face, especially from the Border Carbon Adjustment Mechanism (CBAM) and the EU Deforestation Prevention Regulation (EUDR). He affirmed that compliance with these new standards is not only a mandatory requirement but also brings great opportunities for Vietnamese enterprises to participate more deeply in the global supply chain. In addition, he highly appreciated the cooperation between the EU and Vietnam in areas such as renewable energy, circular economy and technology transfer, thereby promoting the sustainable development goals and carbon neutrality of both sides.

Speaking at the workshop, Associate Professor, Dr. Nguyen Dinh Tho - Director of the Institute of Strategy and Policy on Natural Resources and Environment, Ministry of Natural Resources and Environment pointed out the challenges that Vietnamese enterprises face from ESG barriers imposed by the EU, including the Border Carbon Adjustment Mechanism (CBAM) and the EU Deforestation Prevention Regulation (EUDR). He also mentioned the global context with three main crises: climate change, environmental pollution and biodiversity loss. In this context, Vietnam needs to strongly transition to a green economy, towards a low-emission, resource-efficient and sustainable economy. He also highlighted the role of the Vietnamese Government in policy making and supporting enterprises through strategies such as the National Green Growth Strategy and international cooperation programs, to improve competitiveness, attract investment and meet strict EU standards.

Speaking at the workshop, Mr. Laurent Lourdais - representative of the European Union (EU) Delegation to Vietnam shared about the strict standards that the EU applies to imported agricultural and food products, especially focusing on regulations such as CBAM and EUDR. He emphasized that in order to maintain a presence in the EU market, Vietnamese enterprises need to constantly innovate production, ensuring environmental and social criteria. In addition, he recommended that enterprises build sustainable supply chains and enhance traceability to meet the increasing expectations of European consumers.

Also at the workshop, representatives of the Center for Information Technology Application and Digital Transformation in Trade Promotion (INTEC) and Tridge Company (Korea) introduced the Export Market Development Information System solution, helping Vietnamese enterprises improve their ability to access international markets. The system not only provides detailed data on consumption trends and import standards but also supports businesses in finding new cooperation opportunities.

As a foreign enterprise, the representative of the UK Import Company - Mr. Ömer Oktay highly appreciated the potential for cooperation between the EU and Vietnam in the field of manufacturing and importing and exporting green standard products. With the growing demand from the EU market for sustainable products, Vietnam has many advantages to exploit, from abundant raw materials to a strong commitment to green development. He emphasized that ensuring high environmental and social standards will not only help Vietnamese enterprises gain deeper access to the EU supply chain in general and the UK in particular, but also increase brand value and competitiveness in the international market.

From the perspective of Vietnamese enterprises, both Vinasoy and Betrimex have affirmed their strong commitment to sustainable development through the application of high technology and resource optimization. Vinasoy representatives emphasized their investment in the Okara-free production process, which helps optimize the use of soybeans and minimize waste in the production of plant-based milk, while meeting green standards. Meanwhile, Betrimex focuses on exploiting the full value of coconuts, minimizing waste to the maximum extent, and implementing carbon offset and renewable energy projects. The company also promotes support for farmers through sustainable and digital farming models, aiming to increase income and improve livelihoods for rural communities. These efforts not only contribute to minimizing environmental impacts but also increase export value, affirming the position of Vietnamese products in the international market.

During the discussion, experts analyzed and answered questions from businesses about major challenges in the context of a volatile global economy, while clarifying the trend of applying increasingly stringent green and sustainable trade standards. Regulations such as the Border Carbon Adjustment Mechanism (CBAM), the EU Deforestation Prevention Regulation (EUDR), and the Supply Chain Due Diligence Directive (CS3D) are considered factors that will strongly affect trade and investment activities between Vietnam and the EU in the coming time. In addition, experts also emphasized that this challenge is also an opportunity for Vietnamese businesses. Compliance with sustainability standards not only helps businesses continue to be present in the international market but also creates conditions for more effective exploitation of existing advantages, enhancing added value and brand reputation, thereby promoting sustainable development and long-term competitiveness.

Through valuable exchanges between experts, consulting organizations and lively discussions among delegates, the Workshop has promoted its role as a channel for policy dialogue, updating practical and effective market information between the management agencies of the two sides and the business community, especially helping Vietnamese enterprises to better prepare to meet green and sustainable trade standards and exploit opportunities from the international market.

In particular, at the workshop, a Memorandum of Understanding (MOU) was signed between the Center for Information Technology Application and Digital Transformation in Trade Promotion (INTEC) under the Trade Promotion Agency, Tridge Company (Korea) and Vietnam Multi-channel Trade Promotion Joint Stock Company (TOPVN), aiming to promote the export of Vietnamese agricultural and food products through modern digital platforms. The three parties committed to cooperating in building and developing a database system for Vietnamese agriculture and food, helping businesses effectively manage and exploit information, thereby improving their competitiveness in the international market. In the coming time, the parties will strengthen coordination and expand access to global markets through the establishment of a Vietnamese Pavilion on Tridge.com, contributing to increasing the recognition and value of Vietnamese products on international e-commerce platforms.

The cooperation program also includes in-depth training activities, raising awareness and skills for businesses on import-export promotion, and organizing events to promote and connect businesses with international partners. Speaking at the signing ceremony, representatives of the three parties emphasized that this cooperation not only helps Vietnamese businesses gain deeper access to international markets but also contributes significantly to building a digital and sustainable economy for Vietnam's agriculture and food industry.

According to the General Department of Customs, after 4 years of implementing the EVFTA, two-way trade turnover between Vietnam and the EU has continuously increased: from 48.9 billion USD the year before the Agreement came into effect to 63.7 billion USD in the 4th year of the Agreement coming into effect, with an average growth rate of 7%/year; in which exports to the EU market increased by an average of 8.7%/year, imports from the EU market increased by an average of 2.8%/year. The EU is currently the third largest export market and the fifth largest import market of Vietnam.

In the first 9 months of 2024, Vietnam's exports to the EU (27 countries) reached 38.02 billion USD, up 17%, equivalent to an increase of 5.51 billion USD over the same period last year. Vietnam is currently in the Top 10 largest suppliers of extra-bloc goods to the EU and is the EU's largest trading partner in the ASEAN bloc.

Source: https://moit.gov.vn/tin-tuc/xuc-tien-thuong-mai/chuyen-doi-xanh-trong-san-xuat-nong-san-thuc-pham-thuc-day-xuat-khau-sang-lien-minh-chau-au.html