At a fertilizer plant in Vietnam (Photo: VNA)Hanoi (VNA) – Free trade agreements (FTA), including the latest one signedbetween Vietnam and the EU, will benefit the domestic fertilizer sector, withmore diverse import and export markets, experts said.
Statistics show that Vietnam imports about 4 milliontonnes of fertilizer worth about 1.33 billion USD from 48 countries andterritories each year, with 0.22 million tonnes coming from 17 EU countries.
The EU-Vietnam Free Trade Agreement (EVFTA), onceeffective, will lead to reductions in fertilizer export and import duties.However, to optimise the deal, experts suggested the industry make greaterefforts to improve product quality in accordance with EU standards.
According to Pham Minh Lan, head of the FertilizerManagement Bureau under the Plant Protection Department of the Ministry ofAgriculture and Rural Development, fertilizers from EU make up 5.5 percent ofVietnam’s total fertilizer import volume and value, or 0.22 million tonnes and73 million USD.
Meanwhile, Vietnam ships abroad around 0.75 milliontonnes of fertilizer valued at 240 million USD to 47 countries and territoriesannually, including five EU nations – Italy, the Netherlands, Spain, Sloveniaand Portugal. Some Vietnamese organic and inorganic fertilizer products have alreadymet standards set by the selective market.
Currently, Vietnam imports about 0.25 million tonnesof organic fertilizers worth 45 million USD from 33 countries and territories,with 42 percent from nine EU countries, mostly the Netherlands and Belgium.
The EU’s preference for organic fertilizer over recentyears as part of efforts to reduce greenhouse gas emissions and protect the environmentwill help to spur Vietnam’s organic fertilizer development.
Vice President of the Vietnam Fertilizer AssociationPhung Ha said FTAs, including the EVFTA, will benefit the domestic fertilizersector, helping it diversify import and export markets.
Thanks to the benefits of FTAs, Vietnam expects towelcome more investment and domestic firms will have more opportunities toaccess scientific and technological advances from developed countries.
The official suggested agencies map out plans to putan end to the use of chemicals in agriculture in order to help businessesutilize the advantages of FTAs.
Lan also proposed intensified communication activitiesto help enterprises understand more about the EVFTA, thus charting their ownbusiness strategies for both the short and long term towards sustainabledevelopment./.
VNA
