This agreement is considered a great opportunity for Vietnamese agricultural products to penetrate increasingly demanding markets. However, it also poses challenges that require agricultural sectors to make strong efforts to innovate in many aspects.
Vietnamese goods are well received by European consumers.
According to the Multilateral Trade Policy Department ( Ministry of Industry and Trade ), the EVFTA is one of the agreements with the highest export turnover benefiting from preferential treatment. Over the past four years, the EVFTA has boosted Vietnam's exports in general, and agricultural and forestry products in particular, as many export tariffs to this market have been eliminated, creating a competitive advantage over goods from other countries that do not have FTAs with the EU. The EVFTA has created and continues to create a "highway" for Vietnamese agricultural products to enter this most demanding market in the world.
According to statistics from the General Department of Customs, in June 2024, the value of goods exported to the EU increased by 7.85% compared to May 2024 and by 19.54% compared to June 2023, reaching over US$4.28 billion.
In the first six months of 2024, Vietnam's exports to the EU reached over US$24.69 billion, a 15.3% increase compared to the same period in 2023. Of this, seafood exports from Vietnam to the EU market saw the highest growth, increasing by 40% in June 2024. Cumulative seafood exports to the EU for the first half of 2024 totaled US$513 million, a 12% increase compared to the same period last year.
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| The "Vietnamese Rice" product 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 the EVFTA, especially agricultural, forestry, and aquatic products, is market opening. For many years, the EU has been one of Vietnam's leading export markets and also one of the markets where Vietnam has a very large trade surplus. The growth rate of trade between Vietnam and the EU has also increased steadily over the years, despite the impact of the Covid-19 pandemic.
Mr. Le Duy Binh, an economic expert and Director of Economica Vietnam, also believes that the EVFTA has helped Vietnamese businesses exploit the absolute or comparative competitive advantages of the Vietnamese economy, especially in the agricultural, forestry, and fisheries sectors.
Besides traditional agricultural, forestry, and aquatic products such as coffee, cashews, pepper, and other forestry or aquatic products, Vietnamese rice has also fully exploited the preferential tariffs from the EVFTA. This is especially true for high-quality and fragrant rice, evidenced by the remarkable growth in export value to some EU markets, which has doubled or tripled compared to before.
For example, Loc Troi rice, under the brand name Com Viet Nam Rice, has successfully made its way onto the shelves of supermarkets belonging to E.Leclerc, a leading French retail distribution group, and the Carrefour distribution system. In 2023, the company exported 20,263 tons of rice to the EU, a 26% increase compared to 2022, with a total export value exceeding $12 million.
In addition, some Vietnamese agricultural products have penetrated modern EU distribution channels, such as pangasius fish, which is sold in supermarkets, wholesalers, and food service outlets throughout the EU, especially in Northern Europe. Vietnamese pangasius fish has also been featured on the shelves of EU retailers, including Albert Heijn and Jumbo in the Netherlands; Tesco in the UK; and REWE in Germany.
Some fruits like dragon fruit and passion fruit, available in limited quantities depending on the season, have also been introduced into supermarkets such as Colruyt, Carrefour, and Grand Frais…
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| The fruit and vegetable sector has many advantages when exporting to the EU thanks to the "support" from the EVFTA. |
Continue to maximize the benefits from the EVFTA.
Referring to Vietnam's overall exports to the European market in recent times, Mr. Tran Ngoc Quan, Vietnam's Trade Counselor in Belgium and the EU, stated that, similar to the global economic situation, the European economy has faced many difficulties in recent years, and exports from many countries to the 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 the economy overcome the difficulties caused by supply chain disruptions in recent times.
For agricultural, forestry, and aquatic products, tariffs on many items were reduced to 0% immediately upon the EVFTA agreement coming into effect, or will gradually decrease to 0% within 3-5 years. Mr. Tran Ngoc Quan affirmed that this is a significant advantage for Vietnamese agricultural products entering the EU market.
Besides the advantages that the EVFTA brings to Vietnam's exports to Europe, Mr. Tran Ngoc Quan also pointed out the difficulties that all goods and countries face. Specifically, the EU is increasingly imposing stricter requirements on quality, sustainability, social responsibility, environmental protection, product lifecycle, food safety regulations, etc., aiming for better value for the environment and society.
The Vietnamese trade attaché in Belgium and the EU stated that these are significant challenges for businesses, including those from Vietnam. Failure to meet market standards will prevent them from entering those markets.
Counselor Tran Ngoc Quan believes that to overcome such challenges, it is necessary to address issues stemming from import markets with standards for sustainable products. Vietnam must shift from mass production to ensure affordable prices to focusing on high value-added, sustainable products to better meet EU standards.
According to him, if Vietnam combines maintaining current export levels with gradually shifting some export-oriented 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, over the past period, the Vietnamese Trade Office in Belgium and the EU has continuously updated and regularly disseminated EU regulations to businesses.
"Some regulations have already come into effect, while others will take effect within the next 4-5 years. However, if we don't prepare now, Vietnam could easily miss these opportunities, and the next three years will be particularly challenging. These aren't about competing to open up markets, but about competing on quality and meeting very stringent standards. Vietnam needs time to prepare to meet these requirements effectively," emphasized Counselor Tran Ngoc Quan.
Source: https://congthuong.vn/duong-cao-toc-de-nong-san-viet-chinh-phuc-thi-truong-eu-336101.html
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