News dalla rete ITA

19 Giugno 2018

Vietnam

FRUIT, VEGETABLE EXPORTS SURPASS OIL

In the first four months of 2018, fruit and vegetables for the first time surpassed crude oil in terms of export value, with US$1.32 billion. This year, the Ministry of Agriculture and Rural Development (MARD) is striving to achieve total export value of US$40 billion, with fruit and vegetables to account for about US$4 billion. Given the positive results achieved in the early months of 2018, as well as tight coordination between state authorities and business efforts, we expect this target to be achievable. However, importing countries tend to use technical barriers instead of tariffs to protect domestic production. Therefore, improving quality is crucial to firmly positioning Vietnamese products in traditional export markets. Vietnam’s geographical proximity to China is a favorable condition for exports to this market. The Chinese economy has grown rapidly for years with market demand forecast to continue increasing in coming years. However, its requirements in terms of product quality are also growing. China is promoting the import of agricultural products via official trade channels and tightening management over imported goods, especially in terms of food safety and hygiene. Meanwhile, Vietnamese businesses still lack long-term export strategies, as well as linkages with farmers. Improving product quality is necessary to meet the requirements of not only Chinese importers but also those from other markets worldwide, helping prevent heavy dependence on just one market. The good results of fruit and vegetable exports in the first four months of 2018 are attributed to the linkages between businesses and farmers in the entire production process, from planting to processing and treatment before export. Along with tightening these linkages, it is necessary to intensify the spread of importing countries’ plant quarantine and food safety regulations among businesses and farmers. The Plant Protection Department will negotiate for Vietnamese fruit to enter potential markets with high purchasing power. At the same time, the department will maintain cooperation with the quarantine offices of importing countries to facilitate export activities. (ICE HO CHI MINH CITY)