The export turnover of Vietnam's agricultural products to the EU has been still low compared to Vietnam's export potential as well as the EU's import demand.
Trade relations in the agricultural sector between Vietnam and the EU have continuously improved in recent years, especially thanks to the EU-Vietnam Free Trade Agreement (EVFTA).
At the forum "Vietnam - EU Agribusiness" on July 11, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that the items exchanged between the two sides were complementary but not competitive.
The EU is an important market for Vietnamese for commodities such as coffee, cashew nuts, pepper, seafood, wood, and wood products. Meanwhile, Vietnam imports from the EU mainly agricultural materials and equipment, livestock products, and raw materials for animal feed.
Recognizing that the agricultural trade opportunities between Vietnam and the EU is huge, Pham Tan Cong, Chairman of the Vietnam Confederation of Trade and Industry (VCCI), said that the EU was Vietnam's third largest agricultural export market with a turnover of about US$5.5 billion/year, accounting for 15% of the total export value of agricultural products.
However, in 2021, the total value of Vietnam's agricultural exports to the EU accounted for only 4% of the total import turnover of agricultural products of this market. This proportion showed that the export turnover of Vietnam's agricultural products to the EU was low compared to Vietnam's export potential, as well as the EU's import demand.
Tropical agricultural products are well suited to the EU temperate market. Currently, Vietnam has brought a lot of quality products to the EU market such as ST 25 rice, siamese coconut, dragon fruit, and lychee. In contrast, Vietnamese people also have a great demand for high-quality products from the EU such as meat, fruit, beverages, and fresh milk.
“The EVFTA has given both sides opportunities to diversify markets and improve consumer tastes. Therefore, businesses of the two sides need to make joint efforts to further promote cooperation," said Cong.
Agreeing that the two sides have a lot of room to promote trade in agricultural products, according to Tien, in the future, the two sides need to promote trade in commodities such as rice, vegetables, processed products, and products with geographical indications.
Simultaneously, Vietnam's agricultural sector wants to attract FDI projects focusing on developing knowledge agriculture; ecological, circular, and organic agriculture; regional clusters of industry linkages, associated with large specialized farming areas; processing agricultural, forestry, and fishery products, and diversifying products with high added value; and developing trade and logistics infrastructure serving agricultural value chains.
"We hope that Vietnamese and EU businesses will cooperate to build and develop agricultural value chains, connecting the two countries and the global market," said Tien.
From an investment perspective, Cong suggested that EU investors pay attention to the dynamic economic development area, including four provinces in the North of Vietnam, Hung Yen, Quang Ninh, Hai Phong, and Hai Duong, associated with the nearly 300-km-long eastern highway of Vietnam, starting from Hanoi to the border gate with China.
This region is fully suitable for investment in high quality tropical agricultural products to export the EU and other regional and international markets.
“We hope that the EU side will share information and experience and support Vietnam to build policies and models for agricultural development towards green, modern, and effective," said Cong.
Two-way trade turnover of agriculture, forestry, and fishery products between Vietnam and the EU increased from US$4.3 billion in 2015 to US$4.5 billion in 2020; by 2021 this figure reached US$5.2 billion and in the first five months of 2022 it reached US$2.66 billion.
Source: VCN
Keywords: import, export, trade, EU
