Opportunities growing to export farm produce to US
Opportunities growing to export farm produce to US
The potential for exporting Vietnamese agricultural products to the US market is very large due to the high demand in the market, according to the Ministry of Agriculture and Rural Development (MARD).
The US needs to import vegetables, fruit, coffee, tea, pepper, rubber, cashew nuts and seafood. Viet Nam has gained significant revenues from exports of furniture and seafood to the US, but export values of rice, coffee and vegetables have been modest.
With a total export turnover of US$3.5 billion, the US became the largest export market of Viet Nam's agricultural, forestry and fishery products in the first three months of 2022. Of which, the export value of timber and wood products accounted for 68.2 per cent.
Those positive signals have opened up opportunities to accelerate more of Viet Nam’s export goods to the US, according to the ministry. To enter this market, Vietnamese enterprises need to ensure stability in the quality of export products.
According to local businesses, agricultural products exported to the US still face many difficulties, especially fresh products. The US has licensed the import of six kinds of fresh fruit from Viet Nam, including mango, longan, lychees, dragon fruit, and rambutan. Other fruits such as coconut and durian are still exported to the US but as frozen products.
Jolie Nguyen, the representative of Luong Nguyen Service Company, said that businesses need to research all factors, especially the potential of their products in the US market.
In addition, to preserve fruit, the businesses need to build their pre-processing facilities and keep products in cold storage, ensuring the value and quality of the products while transporting the products, she said.
Now, many businesses are expanding their export market to the US because they see many opportunities.
Lam Thanh Kiet, CEO of Trinh Van Phu Co, Ltd., said that his company is negotiating with a partner to export organic rice to the US.
The company's rice products have entered Austria and France. In March and April, the company also signed a contract with a partner in the Dutch market.
In April, Pacific Foods Joint Stock Company exported 16 tonnes of agricultural produce and food to the US, including fish sauce, instant coffee, and high-end beverages.
According to the enterprise, its export produce was made under a production chain with a strictly controlled process from raw material harvesting, production and distribution to consumers, meeting the standards of US importers.
Besides efforts from businesses, experts said that the role of ambassadors and trade counsellors in other countries was very important.
Market information, especially information on needs, tastes, and warnings, helps businesses avoid risks and losses and finds export opportunities from other countries.
In addition, businesses need support to promote exports of agricultural products via e-commerce channels, such as the organisation of online markets or participation in large e-commerce platforms such as Amazon and Alibaba.
According to MARD, in the first quarter of 2022, the total trade value of agricultural, forestry and fishery products is estimated at $22.6 billion, up 6.3 per cent on the year, including an export value of $12.8 billion and import value of $9.8 billion. Agriculture gained a trade surplus of $3 billion, up 3.1 times over the same period last year.
