By 2025 it is anticipated that processed products will account for 30% of total Vietnamese agricultural, forestry, and fishery products exported to the EU, with roughly 20% of exported items to the bloc being sold directly at retail channels in this highly lucrative market.
These percentages could rise to 50% and 30%, respectively, by 2030, according to a scheme developed by the Ministry of Agriculture and Rural Development (MARD). In addition, the export value of such products to the EU market is also aiming to increase to between US$7.5 billion and US$8 billion by 2030.
The Ministry has put into place an array of solutions in a bid to achieve these goals, such as increasing the connection and participation among ministries, sectors, and localities.
It will therefore focus on changing farmers' awareness and habits in terms of the production of farming products, whilst it also being necessary to improve the infrastructure for agricultural production, as well as aquaculture and processing of seafood to meet EU standards.
Furthermore, it can be viewed as essential to implement economic reforms, especially matters relating to agriculture and land, along with policies and institutions on science, technology, and State management. These efforts will help the nation to improve the overall competitiveness of farm produce and achieve sustainable agricultural development ahead in the long term.
The export of Vietnamese agricultural products is currently facing plenty of major challenges, including internal limitations in relation to the development process of the sector and increasingly strict commitments placed on product quality and environmental standards.
Vietnamese agricultural exports therefore have great opportunities in expanding markets, improving the value and quality of export products, attracting investment and modern production technology from joining the EU-Vietnam Free Trade Agreement (EVFTA), and boosting exports to this market.
Currently, the EU is one of the four major export markets for Vietnamese agricultural, forestry, and fishery products, with the bloc also being one of the world's three largest markets for these items.
The nation is one of four Asian countries to have signed an FTA with the EU. Therefore, to effectively exploit the advantages of the EVFTA, Vietnamese agricultural products must strive to improve their overall quality and value.
According to Nguyen Kien, head of the MARD's Department of International Cooperation, the EU annually spends roughly US$1 trillion on food and beverages, including US$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 are set to arrive in Germany, the Netherlands, and France in July. Of which, "Vietnamese Rice" exported to France will be sold at Carrefour, a large supermarket chain.
This represents the first step in the group's journey of bringing Loc Troi's rice to the global market.
In February, the Golden Gate Joint Stock Company co-operated alongside Western Farm Co, Ltd. to export the first batch of mangoes to the EU market.
This batch of mangoes supplied by the Tinh Thoi Agricultural Service Cooperative in Dong Thap province has an export price of between EUR11 and EUR13 per kilo, with the price of this fruit at supermarkets in the bloc being EUR18 per kilo.
However, according to Kien, several Vietnamese agricultural products still have low export volumes to the EU, whilst local agricultural exports to this market are facing great competitive pressure.
Nguyen Dinh Tung, general director of the Vina T&T Company, said the difficulty for faced in the export of agricultural products, especially fruits, is mainly preservation. The most important factor is therefore in researching preservation technology to keep agricultural products fresher for a longer period of time.
Firms also require support from State management offices and associations in carrying out advertising and marketing activities.
Dr Nguyen Dac Binh Minh, director of the Institute of Regional Research and Development under the Ministry of Science and Technology, noted the traceability of export products as this is a mandatory requirement of many multilateral FTAs, especially the EVFTA.
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