The start of the year has seen Trung An High-Tech Agriculture Joint Stock Company export 1,600 tonnes of high-value fragrant rice to the Singaporean and Malaysian markets at high prices. The company has also received an export order from Germany for over 2,000 tonnes of rice, a shipment which will enjoy preferential tariffs thanks to the enforcement of EU-Vietnam Free Trade Agreement (EVFTA).
Elsewhere, several other Vietnamese firms have also exported more than 100,000 tonnes of rice to several foreign markets.
Nguyen Trung Kien, vice president and general secretary of the Vietnam Food Association (VFA), anticipates that rice exports will enjoy bright prospects throughout the year as domestic enterprises have strictly met market demand in recent years, especially in major markets that have previously imported huge quantities of Vietnamese rice.
Most notably, a series of local seafood products such as shrimp, squid, tuna, and octopus, along with fruits like dragon fruit and melons have gained entry to demanding markets, such as the European Union, the United States, Japan, Canada, Australia, and China.
Nguyen Dang Nghia, an agricultural expert, believes that the surge in farm produce exports in early January outlines the agricultural sector’s determination to meet the US$44 billion export target the Prime Minister set for the sector at its recent year-end conference.
Nghia reveals that that local agricultural sector will primarily focus on key export products, such as seafood, rice, cashew nuts, coffee, and vegetables, with a specific emphasis on promoting the export of rice and vegetables throughout the 2021 to 2025 period. Currently, China, the Philippines, and Japan have all placed additional orders as Vietnam is enjoying advantages from free trade agreements (FTAs).
Concurring with this viewpoint, Nguyen Dinh Tung, chairman of Vina T & T's Board of Directors, indicates that alongside offering preferential tariffs, FTAs have also created favourable conditions to promote more Vietnamese agricultural products and expand into new export markets.
Experts have advised local firms to improve their product quality to take full advantage of the enforcement of the EU-Vietnam FTA, whilst developing organic products that have a high economic value, thereby ensuring they come up to high environmental standards.
In addition, they are required to meet requirements regarding origin traceability, labeling, food safety, and hygiene in addition to branding in order to expand export markets.