China no longer “easy” market for Vietnamese agricultural product exports

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An overview of the seminar.

Speaking at the seminar entitled “Seeking solutions to promote export of agricultural products to China” held on January 21, Ms. Ngo Tuong Vy, Deputy Director of Chanh Thu Fruit Import Export Co., Ltd said the company has not been affected by the congestion of agricultural products exported to China in recent days.

Chanh Thu Co., Ltd has exported goods to China for more than 20 years and has experience in trading to ensure safety for the company. However, the company has also been indirectly affected due to the decrease in consumption demand and supply chain disruption.

Exporters that are exporting goods to China under the unofficial-quota trade should change their thinking. The problem is whether Vietnamese agricultural products meet the standards set by China.

“The Chinese market is more difficult than the US market. We need to change the thinking that this is an easy market. I hope that the local government, businesses and farmers will change and create initiatives in sources. This is the best time for changing strategy of exporting goods to major markets around the world,” said Ms. Vy.

Director Nguyen Van Tien said China is no longer an easy market. This country has revised standards on food control since 2015, which are on par with EU standards.

Therefore, exports to China should be shifted from unofficial-quota trade to official-quota trade; while major enterprises must meet requirements. It may take from nine to 10 years of negotiations to export products to China.

In the short term, agricultural production should be reorganized under the chain, meeting standards of the importing country, thereby, strengthening official-quota trade, and limiting unofficial-quota trade.

“For the long term, we need to complete solutions on policies, cooperation and negotiations with Chinese partners and agencies, and development of commercial infrastructure,” said Tien.

Chairman of the Board of Directors of Ameii Vietnam Joint Stock Company, Nguyen Khac Tien said currently Vietnam has trade relations with 25 countries.

In the past, the congestion of agricultural products at border gates has taken place. We have perfected the production and export processes to avoid this situation,” said Tien.

Many businesses get used to exporting goods under unofficial-quota trade and feel that the official-quota trade is still new for them. The change cannot be implemented immediate, but businesses should change step by step to avoid risks.

Most of the orders are exported in unofficial-quota trade by Chinese traders. Therefore, Vietnamese enterprises should expand their agricultural exports to other markets instead of being dependent on China.

Regarding the congestion of agricultural products at border gates in recent years,

Deputy Director of Vietnam SPS Office, Ngo Xuan Nam said there needs the stronger application of technology and forecasting.

“The breed, the input, the process of farming, processing, logistics, are all related to science and technology. The export of agricultural products in recent years has sharply increased, the Ministry of Science and Technology should propose the Government to develop a program on science and technology for agricultural product exports," said the Deputy Director.

In the long term, Vietnam needs to develop a national strategy on exporting agricultural products. The strategy should stipulate the implementation and participating agencies based on science and practice, thereby, providing more effective solutions.