Prospects in Agri-Food Trade between Vietnam and EU

EU Commissioner for Agriculture Janusz Wojciechowski speaks at the event. Source: European Union in Vietnam

A Vietnam – European Union (EU) agricultural business forum was held on July 11 to mark the official visit to Vietnam by EU Commissioner for Agriculture Janusz Wojciechowski.

According to VOV, the forum featured the participation of senior officials of both sides, along with approximately 50 European firms specialising in areas such as wine, beverages, meat and meat products, agricultural products, as well as fruit and vegetables.

This can be viewed as a prime opportunity in which Vietnamese businesses can meet and discuss new co-operation opportunities with European partners.

Appreciating the initiative to organise the forum, Wojciechowski said that his trip to Vietnam and Singapore is designed to ramp up joint ties in agricultural and food trading within the frameworks of signed free trade agreements.

According to him, his working visit to the nation comes at a time when the EU hopes to facilitate trade in exchanges and agreements between European and Vietnamese companies operating in the agri-food industry.

At the event. Source: European Union in Vietnam

Speaking at the forum, Pham Tan Cong, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that currently, the EU represents the third largest export market of Vietnamese agricultural products with a turnover of roughly US$5.5 billion annually. The bloc therefore accounted for 15% of the nation’s total agricultural export value in 2021, but making up only 4% of the EU’s total agricultural import value.

The figures remain far below the country’s export potential, as well as the import demand of EU countries, stressed Cong.

He therefore expressed his hope that through the forum, the EU side will share information and experience, as well as supporting the nation in building agricultural development policies and models in a green, modern, and effective direction to reduce the impacts of climate change on agricultural activities.

The VCCI representative affirmed the agency’s resolute resolve to actively support EU firms.

Representatives from Vietnamese State management agencies proposed that European investors pay greater attention to several dynamic economic zones, such as Hung Yen, Quang Ninh, Hai Phong, and Hai Duong, all of which are near Hanoi and boast both good infrastructure and abundant labour.

Vietnam also has set a target that the export value of agricultural, forestry and fishery products to the EU market will reach US$5-5.5 billion by 2025, VNA reported Monday.

In 2025, the processed products would account for 30% of Vietnam's total agricultural, forestry and fishery products exported to the EU. About 20% of the exported agricultural, forestry and fishery products to the EU would be sold 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 Rural Development (MARD). The export value of such products to the EU market is also targeted to increase to US$7.5-8 billion by 2030.

Currently, the EU is one of the four major export markets for Vietnam's agricultural, forestry and fishery products. The EU is also one of the world's three 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 agricultural products must improve their quality and value.

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

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

According to Nguyen Thi Thuong Linh, deputy director of VCCI's branch in Can Tho, to take advantage of the EVFTA in exporting farm produce to the EU, the enterprises and farmers must cooperate in building supply chains for exports.

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