Vietnam targets 5.5 bln USD in agro, forestry, fishery export value to EU

Vietnam has set a target that the export value of agricultural, forestry and fishery products to the EU market will reach 5-5.5 billion USD by 2025.
Vietnam targets 5.5 bln USD in agro, forestry, fishery export value to EU ảnh 1Pineapples are being processed for export at a Dong Giao Foodstuff Export JSC factory in Gia Lai province.(Photo: VNA)
Hanoi (VNS/VNA) - Vietnam has set a target that the export value ofagricultural, forestry and fishery products to the EU market will reach 5-5.5billion USD by 2025.

In 2025, the processed products would account for 30% of Vietnam's totalagricultural, forestry and fishery products exported to the EU. About 20% ofthe exported agricultural, forestry and fishery products to the EU would besold directly at retail channels in this market.

Those percentages would increase to 50% and 30%, respectively, by 2030,according to a scheme developed by the Ministry of Agriculture and RuralDevelopment (MARD). The export value of such products to the EU market is alsotargeted to increase to 7.5-8 billion USD by 2030.

The ministry has put in place many solutions to achieve these goals, such asincreasing the connection and participation among ministries, sectors andlocalities.

It will focus on changing farmers' awareness and habits in the production offarming products. In addition, it is also necessary to improve theinfrastructure for agricultural production as well as aquaculture andprocessing of seafood to meet EU standards.

It is also necessary to implement economic reforms, especially matters relatingto agriculture and land, and policies and institutions on science, technologyand State management. Those will help Vietnam improve the competitiveness offarm produce and achieve sustainable agricultural development in the long term.

The export of Vietnamese agricultural products is facing many big challenges,including internal limitations in the development process of the sector andincreasingly strict commitments on product quality and environmental standards.

Vietnam's agricultural exports have great opportunities in expanding markets,improving the value and quality of export products, attracting investment andmodern production technology from joining the EU-Vietnam Free Trade Agreementto boost exports to this market.

Currently, the EU is one of the four major export markets for Vietnam'sagricultural, forestry and fishery products. The EU is also one of the world'sthree largest markets for agricultural, forestry and fishery products.

Vietnam is one of four Asian countries to sign an FTA with the EU. Therefore,to effectively exploit the advantages of the EVFTA, Vietnamese agriculturalproducts must improve their quality and value.

According to Nguyen Kien, head of MARD's Department of InternationalCooperation, the EU annually spends about $1 trillion on food and beverages,including $300 billion on imports.

The Loc Troi Group Joint Stock Company said that about 500 tonnes of branded"Vietnamese Rice" delivered by the company in June would arrive inGermany, the Netherlands and France in July. Of which, "VietnameseRice" exported to France will be sold at Carrefour, a large supermarketsystem.

This is the first step in the group's journey of bringing Loc Troii's rice tothe world market.

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

This batch of mangoes supplied by the Tinh Thoi Agricultural ServiceCooperative in Dong Thap province has an export price of 11-13 euros per kilo.The price of this fruit at supermarkets in the EU is 18 euros per kilo.

However, according to Kien, some Vietnamese agricultural products still havelow export volumes to the EU. In addition, Vietnam's agricultural exports tothis market are facing great competitive pressure.

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

Meanwhile, coffee, pepper and cashew products of Vietnam must compete withproducts of Indonesia, India, Brazil, Ivory Coast and Mozambique.

Its seafood products face competition from products of Norway, China, Ecuadorand Morocco.

Kien said to increase exports to the EU, Vietnam's large enterprises need topromote the building of a supply chain for exports to reduce transportationcosts and develop their brands.

According to Nguyen Thi Thuong Linh, deputy director of the Vietnam Chamber ofCommerce and Industry (VCCI)'s branch in Can Tho, to take advantage of theEVFTA in exporting farm produce to the EU, the enterprises and farmers mustcooperate in building supply chains for exports.

Nguyen Dinh Tung, general director of the Vina T&T Company, said thedifficulty for the export of agricultural products, especially fruits, today ispreservation. The most important factor is researching preservation technologyto keep agricultural products fresher for longer.

Besides that, the enterprises need support from State management offices andassociations in carrying out advertising and marketing activities.

Dr Nguyen Dac Binh Minh, director of the Institute of Regional Research andDevelopment under the Ministry of Science and Technology, has also noted thetraceability of export products because this is a mandatory requirement of manymultilateral FTAs, especially that with the EU./.
VNA

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