Việt Nam targets $5.5 billion in agricultural, forestry and fishery exports to the European Union

Vietnam, July 11 –

HÀ NỘI Việt Nam has set a target that by 2025 the value of agricultural, forestry and fishery products exports to the EU market will reach US$5-5.5 billion.

In 2025, manufactured products will represent 30 percent of the total agricultural, forestry and fishery products of Viet Nam exported to the EU. About 20 per cent of agricultural, forestry and fishery products exported to the EU will be sold directly in the retail channels of this market.

Those percentages will rise to 50 percent and 30 percent, respectively, by 2030, according to a scheme developed by the Ministry of Agriculture and Rural Development (MARD). It is also targeted to increase the value of exports of these products to the EU market to $7.5-8 billion by 2030.

The ministry has put in place many solutions to achieve these goals, such as increasing linkage and participation between ministries, sectors and localities.

It will focus on changing farmers’ awareness and habits in producing agricultural products. In addition, it is also necessary to improve the infrastructure for agricultural production as well as aquaculture and seafood processing to meet EU standards.

It is also necessary to implement economic reforms, particularly in matters relating to agriculture and land, and policies and institutions in science, technology and state administration. This will help Việt Nam improve the competitiveness of agricultural products and achieve sustainable agricultural development in the long term.

The export of Vietnamese agricultural products faces many significant challenges, including internal constraints in the sector development process and increasingly stringent commitments on product quality and environmental standards.

Agricultural exports of Viet Nam have great opportunities in expanding markets, improving the value and quality of export products, attracting investment and modern production technology from joining the EU-Viet Nam Free Trade Agreement to boost exports to this market.

The European Union is currently one of the four major export markets for Viet Nam’s agricultural, forestry and fishery products. The European Union is also one of the world’s three largest markets for agricultural, forestry and fisheries products.

Viet Nam is one of four Asian countries to sign a free trade agreement with the European Union. Therefore, to effectively exploit the advantages of EVFTA, Vietnamese agricultural products must improve their quality and value.

According to Nguyen Trung Kien, Head of International Cooperation at MARD, the European Union annually spends about $1 trillion on food and beverages, including $300 billion on imports.

The Lộc Trời Group Joint Stock Company said about 500 tons of branded “Vietnamese rice” delivered by the company in June will arrive in Germany, the Netherlands and France in July. Of them, “Vietnamese rice” exported to France will be sold at Carrefour, a large supermarket system.

This is the first step in the group’s journey to bring Lộc Trời rice to the global market.

In February 2022, Golden Gate Joint Stock Company cooperated with Western Farm Co, Ltd. To export the first batch of mangoes to the EU market.

This batch of mango made by the Tịnh Thới Agricultural Service Cooperative in Đồng Tháp Province has a price of 11-13 euros per kilogram. The price of this fruit in supermarkets in the European Union is 18 euros per kilo.

However, according to Kane, some Vietnamese agricultural products still have low export volumes to the EU. In addition, Viet Nam’s agricultural exports to this market are facing significant competitive pressure.

Specifically, Vietnamese vegetables and fruits have major competitors from South America, West Africa, South Africa, Thailand, the Philippines, India, and China.

Meanwhile, the coffee, pepper and cashew products of Viet Nam have to compete with those of Indonesia, India, Brazil, Ivory Coast and Mozambique.

Its seafood products face competition from Norway, China, Ecuador and Morocco.

To increase exports to the EU, large companies in Việt Nam need to strengthen export supply chain building to reduce transportation costs and develop their brands, Kiên said.

According to Nguyễn Thị Thương Linh, Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI) branch in Cần Thơ, to benefit from EVFTA in exporting agricultural products to the EU, companies and farmers must cooperate in building supply chains for exports.

Nguyễn Đình Tùng, general manager of Vina T&T, said that the difficulty of exporting agricultural products, especially fruits, today is conservation. The most important factor is the research of preservation technology to keep agricultural products fresh for a longer period.

Besides, companies need support from state administration offices and associations in carrying out advertising and marketing activities.

Dr Nguyen Đắc Bình Minh, Director of the Regional Research and Development Institute of the Ministry of Science and Technology, noted the traceability of export products as this is a mandatory requirement of many multilateral free trade agreements, particularly with the European Union. VNS

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