Current policies enough to help boost farm exports: expert
Current policies enough to help boost farm exports: expert
Phan Duc Hieu, vice president of the Central Institute for Economic Management, said at a workshop on November 7 that current policies are enough to help prop up farm exports.
Speaking at the workshop within the framework of Mekong Connect 2019, an annual forum for entrepreneurs, government officials and experts with concerns and interests related to the Mekong Delta region, Hieu said that policies play a vital role in driving the consumption and export of agro products.
It is necessary to make the most of current policies to enhance farm produce exports instead of launching new ones, Hieu stated.
Taking Decree 107/2018 as an example, Hieu pointed out that since the relaxation of requirements in the decree on rice export, replacing Decree 109/2010, rice traders and exporters have had an easier time doing business in Vietnam.
He also noted that free trade agreements (FTAs) between Vietnam and other countries, such as the European Union-Vietnam Free Trade Agreement, have offered local firms a number of benefits, including tax incentives, and opened up opportunities for them to reach out to the global market and increase exports of farm produce.
As such, Hieu proposed the provincial and municipal authorities should not launch new policies, adding that to foster the volume of farm produce exports, it is vital to utilize the existing policies and incentives more efficiently.
Bui Kim Thuy, the country representative for Vietnam at the U.S.-ASEAN Business Council, had earlier said that the agriculture sector was the decisive factor behind the success of the signing of FTAs.
To benefit from FTAs, agro products must meet all requirements on origins set by each agreement for each product, Thuy said.
For example, in the shrimp sector, Vietnam’s shrimp processors and exporters will be entitled to tax incentives for shipments to FTA members if their shrimp meet origin requirements.
However, if processors use preservatives imported from other countries to keep their shrimp fresh, their products will not meet the origin requirements set by some FTA members and will not enjoy tax incentives, Thuy remarked.
As a result, FTAs only bring opportunities, Thuy stressed, adding that to seize these opportunities successfully, firms and exporters must meet all requirements and comply with market rules.
