Vietnamese agricultural exports to EU begin enjoying EVFTA benefits
Vietnamese agricultural exports to EU begin enjoying EVFTA benefits
The Vietnamese exporters have taken advantage from the EU-Vietnam free trade agreement to increase exports to the EU.
Following the first batch of shrimp shipped to the EU under the EU-Vietnam Free Trade Agreement (EVFTA), on September 16 and 17, Vietnamese products such as coffee, passion fruit and dragon fruit will continue to be exported to this market, according to the Ministry of Agriculture and Rural Development (MARD).
Dragon fruits are going to be exported to the EU market. Photo: baodautu
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According to the plan, on September 16, Dong Giao Export Food JSC will start sending passion fruit while Vinh Hiep Co., Ltd (Gia Lai province) will export coffee and Vina T&T Group will ship vegetables and fruits including grapefruit, coconut and dragon fruit to the EU on September 17.
More than a month after the EVFTA came into force, the value of exports of agricultural, forestry and fishery products to the EU in August increased by 17% compared to July, reaching US$350 million.
The EU is the biggest buyer of Vietnamese coffee, accounting for 40% of the total volume and 38% of the total export turnover of the item. On average, the country earned a coffee export turnover of US$1.2-1.4 billion per year in the past five years from the EU.
In August, Vietnam’s coffee export value to the EU market was estimated at nearly US$76 million, up 34.7% compared to July and down 0.2% over the same period last year.
However, turnover from coffee exports to the EU is expected to be higher as the bloc’s tax on all unroasted or roasted coffee products is reduced from 7-11% to 0% and brewed coffee from 9-12% to 0%.
Currently, the EU is the fourth importer of Vietnamese fruits and vegetables. Coupled with tax exemption and reduction under EVFTA commitments, Vietnamese fruit prices in this market would be cheaper compared to rivals without an FTA with the EU such as Thailand, China, Malaysia and Indonesia.
Vietnam’s export value from vegetables and fruits to the EU market in August was estimated at US$14.7 million, up 25.2% over July and 6% over the same period of 2019. Dong Giao, Nafoods and Vina T&T, Vietnam's biggest farm processors, will have great opportunities in the EU as their fresh fruits are produced in a closed-loop chain.
Previously, on September 11, the first batch of frozen shrimp produced by Thong Thuan Company Limited (Vinh Hao, Tuy Phong district, Binh Thuan province) according to the Aquaculture Stewardship Council (ASC) standards was shipped to EU, with the 0% tax rate under the EVFTA.
In 2019, Vietnam’s agricultural, forestry and fishery exports to the EU reached US$4.6 billion. The EU is Vietnam's third largest export market for agriculture, forestry and fisheries.
