EVFTA: What are the advantages for Vietnamese agricultural products?

There are three main advantages coming from EVFTA that Viet organic describes in this post:

Export trade

Vietnamese agricultural products also have more advantages compared to other countries because the tariff of Vietnamese agricultural products imported to the EU will be 0% within seven years.

The Chairman of the Vietnam Farm and Agricultural Enterprises Association (VFAEA), Lê Duy Minh, noted that the EU is Vietnam’s third largest trading partner and one of the two largest export markets in the world. Exports to the EU of agro-forestry-fishery products amount to almost US$ 5 billion annually.

Therefore, as soon as the agreement came into effect, we seized upon the opportunity, focusing on boosting export orders to take advantage of tariff and quota preferences. According to preliminary statistics, after only one month of the EVFTA agreement, agricultural product exports to the European market could have increased by 15-17% compared to July 2020.

Specifically, with coffee products, we can add value to the EU market whilst enjoying a preferential tariff of 0%. In August 2020, Vietnam’s coffee export value to the EU market was estimated at nearly US$76 million, up 34.7% compared to July 2020.

The EU is also the largest export market for Vietnamese coffee, accounting for 40% of the total volume and 38% of the total export turnover of the whole country (average coffee export value to the EU reached US$1.2-1.4 billion per year for the past five years).

Vietnamese rice exported to Europe also saw positive signals. Nearly one month after the implementation of the EVFTA, the positive effects have spread to the rice industry, in particular, the price of Vietnam’s rice exports to the EU market has increased from US$80-200 per ton.

Thanks to the EVFTA, opportunities for exporting fruit and vegetables to the EU are opening up since August 1. Currently, the EU is the fourth largest export market for Vietnamese fruits and vegetables. The existing platform, along with tariff and quota preferences under the EVFTA are empowering Vietnam to increase the competitiveness of its fruit compared to the competition.

Technology including processing

From the EU through foreign direct investment, and cooperation to enhance management capacity through standards , regulations and resources, Vietnam ‘ agricultural sectors can update by using Europe’s modern processing technologies through FDI investment, through the implementation of the agreement.

Improving governance capacity

Through training cooperation programmes on management and improving skills for market development, for mutual development.