This comes as the Ministry of Agriculture and Rural Development (MARD) held a meeting with businesses in Hanoi on September 14 in an effort to boost the import of agricultural products from the US.
Upon assessing the negative impacts caused by the novel coronavirus (COVID-19) pandemic, including breaking the value chain between the two sides, some business representatives outlined that import tax on agricultural products from the US is higher than that of countries who enjoy tax incentives from free trade agreements with Vietnam.
Most notably, a tax reduction on corn, wheat, and grain products will serve to contribute to increasing the volume of imports as a means of improving competitiveness within the domestic market, not only with other ASEAN members, but many countries worldwide, they said.
With the aim of promoting commitments placed on agricultural exports and imports in order to balance trade between both sides, the past eight months has seen the MARD actively co-ordinate moves to overcome obstacles. This has been done to create favourable conditions for firms from the two countries, such as suspending regulations on the certification of free circulation for imported animal feed materials, the postponement of applications of regulations, and some heavy metals in feed ingredients.
Nguyen Do Anh Tuan, head of the MARD’s International Cooperation Department, said with trade and the export of agro-forestry-fishery products from the nation to the United States increasing, there have been times in the year that the US has risen to be the largest export market for local products.
In relation to the Vietnamese side, the import of agricultural products from the US continued to support agricultural production increases, this includes the import of raw materials for animal feed surging by between 10% to 20% in comparison with the same period last year, in addition to milk imports expanding by 55%.
Furthermore, the MARD will continue working with relevant offices from the US on quarantine procedures, Tuan said, adding that both sides will be active in facilitating the trade of items from the US such as nuts, almonds, and citrus paradisi, along with grapefruits from Vietnam.
Moreover, the nation will strive to boost the export of wood and wood products, aquatic products, cashew nuts, coffee, in addition to rubber and vegetables, to the US, while simultaneously importing cattle feed, soybeans, wood and wood products, vegetables, milk and dairy products, wheat, and cotton from the US market.
At present the US is one of the country’s biggest trade partners, with two-way trade of farm produce enjoying an average annual growth rate of roughly 30%. Indeed, the first seven months of the year saw two-way trade turnover between the both sides reach US$47.1 billion, including US$7.53 billion from import-export turnover of agro-forestry-fishery products, representing a rise of 9% on-year.