Illustrative image (Photo: VNA)Hanoi (VNA) – Vietnam has many more opportunities to increase export of fruits and vegetables to the EuropeanUnion - the world's largest market, thanks to tariff incentives brought bythe EU-Vietnam Free Trade Agreement (EVFTA), according to analysts.
Before the EVFTA took effect, Vietnam’s vegetables and fruitsexported to the EU market enjoyed preferential tax rates under the Generalised System of Preferences (GSP), but still at a relatively high level of 10-20 percent.
However, after this agreement came into effect, the EUoffers a substantial reduction of about 94 percent out of the total 547 taxlines on fresh and processed vegetables and fruits,including those of Vietnam's strength.
This brings about a huge advantage for Vietnam to compete against agriculturalproducts of other Asian countries, especially Thailand and China that donot have FTAs with the EU.
Data from the General Department of Customs show Vietnam’s vegetable and fruitexport turnover to Europe in 2021 hit 303 million USD, up 17.4 percentyear-on-year.
After the period of isolation and social distance due to the COVID-19pandemic, the demand for foods, especially vegetable and fruit products, in EUcountries was on the rise. Notably, the demand for novel tropical fruits and vegetables increased from 15-20 percent for fresh products and over 30percent for processed products.
Experts said that Vietnam's vegetable and fruit market share inthe EU remains low, at less than 1 percent of the demand ofthe European market.
Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce andIndustry (VCCI), attributed the situation to structural imbalance betweencommodities, instability of output and quality, and barriers related technicalstandards.
To support Vietnamese businesses in increasing the shipments of spice, vegetableand fruit products to the EU market, Oxfam inVietnam and the VCCI developed the project “Enhancing the ExportCompetitiveness of Vietnamese Small and Medium Enterprises in Spice, Fruit andVegetable Sub-Sectors" (SFV-Export), which is funded by the EU Delegationto Vietnam, during 2022 – 2023.
Country Director of Oxfam Vietnam Vu Thi Quynh Hoa said the project aims tosupport Vietnamese spice, vegetable and fruit exporters to increase sales in theEU market.
The project will provide specific technical support packagesdesigned for each enterprise in terms of quality and supply chain management, andmarket development towards pushing up exports to the EU. Connection opportunities between businesses andpotential customers from Europe will also be promoted in both face-to-face andonline forms./.
