EVFTA Creates New Opportunities for Vietnamese Agricultural Exports

Sep 2020

Vietnam is expected to significantly increase its agricultural exports to the EU as a consequence of the recently concluded EU-Vietnam Free Trade Agreement (EVFTA). According to the Ministry of Agriculture and Rural Development, leading agricultural exports will include dragon fruit, coffee, coconut, grapefruit, and passion fruit.

The EVFTA will also progressively lower EU tariffs on Vietnamese seafood exports, with the complete removal of tariffs planned in seven years. Importantly, the EU is the biggest market for Vietnamese coffee, accounting for 38% of total exports. Vietnam’s coffee exports are set to rise further when the EU eliminates tariffs on all unroasted and roasted coffee products and processed coffee, which are now 7-11% and 9-12%.

In order to take advantage of this opportunity, Vietnamese companies are looking to upgrade their production systems, increase processing levels and comply with regulations related to technical barriers and food safety and hygiene standards.

An example of a company that is already moving in this direction is Vietnam Rice Company Limited, which has invested in new facilities and recently obtained the certificate of food safety management systems (FSSC 22000) for processing, packaging and distribution by Bureau Veritas – the UK’s leading independent organization for certification. This will enable the company to benefit from the export quota of 80,000 tons of rice per year with a tariff of 0%, provided by the EU to Vietnam under EVFTA.

(Source: Viet Nam News)