EVFTA provides boost for agricultural exports to European Union

Thanks to tariff cuts under the European Union-Vietnam Free Trade Agreement, the door is open wide for many of Vietnamese agricultural products to enter the EU.

Potential products are coffee, passion fruit, grapefruit, coconut, and dragon fruit among others, says the Ministry of Agriculture and Rural Development (MARD), revealing Dong Giao Foodstuff Export Joint Stock Company and Vinh Hiep Co, Ltd are planning to export passion fruit and coffee to the EU market on September 16.

Meanwhile, Vina T&T Import - Export Service Trading Co Ltd (Vina T&T Group) are due to ship batches of local fruit and vegetables, including pomelo, coconut, and dragon fruit, to the demanding market on the following day.

At present, the EU remains the largest consumer of Vietnamese coffee, making up 40% of the country’s overall volume and 38% of total export turnover.

Domestic coffee is expected to enjoy better value in the EU market in the near future due to the EU eliminating tariffs placed on all unroasted or roasted coffee products. Indeed, import duties will decrease by between 7% and 11% to 0%, while processed coffee will also enjoy a preferential tariff of 0% from its previous rate of between 9% and 12%.

Moreover, the nation’s 39 geographical indications, including Buon Ma Thuot coffee, will be protected by the EU, which has offered the Vietnamese coffee industry an advantage when competing with rivals within the EU market.

With the EVFTA bringing about an array of changes, MARD Deputy Minister Le Quoc Doanh has therefore urged the local coffee industry to meet the stringent requirements set by the EU market, particularly in relation to product quality and sustainable development.

Local fruit and vegetables have been able to enjoy a wealth of opportunities to penetrate the EU since August 1 following the EU pledging to offer a substantial reduction of 94% out of total 547 tax lines placed on these products.

Along with tax incentives included in the EVFTA, local fruits will be able to hold a competitive edge in the EU markets in comparison with strong competitors that have not signed an FTA with the EU, such as Thailand, China, Malaysia, and Indonesia.

In fact, the export of local fruit and vegetables to the EU in August witnessed a surge of 25.2% to US$14.7 million from the previous month, marking an annual rise of 6%.

In line with these figures, the country has emerged as a leading exporter of passion fruit in the region, with the item penetrating demanding markets such as France, Germany, and the Netherlands, along with markets outside of the EU such as the Republic of Korea and Switzerland.

Currently, the MARD is negotiating a pathway for fresh passion fruit to enter other major markets like Australia, China, Japan, and Thailand in the near future.

According to the MARD data, a month from the implementation of the EVFTA, several Vietnamese export items have already recorded positive changes in the EU market. This can be seen through the export value of agro-forestry-fishery products to the EU in August which enjoyed a surge of 17% to US$350 million.

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