European companies growing hot for Vietnam
European companies growing hot for Vietnam
More European enterprises are becoming keen on the Vietnamese food and beverage industry in anticipation of the EU-Vietnam Free Trade Agreement (EVFTA).
Punto Italia has been present on the Vietnamese coffee processing market since 2008. The firm has successfully developed its own coffee brand using local materials and export Vietnamese processed coffee to other countries at the same time. The firm plans to ramp up investments in Vietnam after the EVFTA comes into force.
Late last year, a delegation of 30 Italian food and beverage firms paid a working visit to Ho Chi Minh City to research the market and explore opportunities.
In the meantime, the Italian Trade Commission (ICE) is collecting information to facilitate the entry of Italian companies into Vietnam. ICE Chairman Paolo Lemma said that Vietnam’s dairy and meat processing industries have the potential to grow. Italian businesses are keen on these industries due to a large consumer market and the changing taste of Vietnamese customers.
“Indeed, Italian dairy export to Vietnam continues to grow but it is still below potential. We expect a boost in the export of Italian milk and cheese in the coming time,” he noted.
Similarly, the Polish government selected Vietnam as one of the five most perspective markets in the world. Poland encourages entrepreneurs to enter the market and helps them make the first step, which in the agricultural sector is getting the necessary licenses.
According to the Polish General Statistics Office, in the first eight months of 2016 the export of Polish agri-food products to Vietnam reached $77,8 million, up 10 per cent on-year. Poland expected to have at least $130 million at the end of 2016, which would mean over 12 per cent of the overall European food export to Vietnam.
The most dynamic part of the Polish agri-food exports is animal-origin products which grew by 98 per cent in 2015, including an almost 40 per cent growth on the Vietnamese market. In 2016, 15 per cent of European meat on the Vietnamese tables was from Poland.
Mariusz Boguszewski, economic counsellor of the Embassy of Poland, said that this growth is driven by the EVFTA, which is a huge step forward for European entrepreneurs. The EVFTA contains a range of solutions facilitating bilateral trade and investment, especially in terms of customs duties, administrative procedures, and sanitary and phytosanitary measures.
“EVFTA is beneficial for Vietnamese companies and consumers alike because the range of high quality, healthy, and safe food products in the market will be wider and the same opportunities will be open for Vietnamese entities entering the EU market,” he noted.
In addition, Vietnam is the most important economic partner and the biggest trade partner of Poland in the ASEAN. After the establishment of the ASEAN Economic Community, Vietnam can be considered the gate to all ASEAN markets. It is also one of the most important markets from all non-European countries with a total bilateral trade turnover comparable to India.
