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Export of agricultural, aquatic products make a sharp recovery

05:41 - 05/05/2022

After a temporary halt of operation due to the Covid-19 crisis, agricultural and aquatic products export businesses have worked at their full capacity to meet customers’ orders from the beginning of this year.

Additionally, the Ministry of Industry and Trade has frequently organized trade promotional activities in major markets of Europe, Japan, and Africa to help enterprises approach different markets.

A rush of orders

According to the Food and Agriculture Organization (FAO), the world is facing a latent food crisis with an increase in prices, food supply chain disruption, and millions of people who are facing a critical lack of food.

Agricultural and aquatic products export businesses have worked hard to develop their full capacity to complete the contracts that have been signed for the second and third quarters of 2022. In the first quarter, exports of agricultural products hit a surplus of nearly US$5.5 billion, up 12.5 percent compared to the same period last year.

Deputy General Director of Truong Giang Seafood Joint Stock Company in the Mekong Delta province of Dong Thap Hang Van said that the enterprise has signed orders until the end of the second quarter of 2022 with an average export volume of 200 containers per month. The markets of Europe and American markets have seen a good percentage growth of 30 percent and an increase in the prices of products.

In the rice sector, Vietnam's largest rice-consuming markets, including the Philippines and Malaysia have recently promoted purchasing when crops are ready for harvest in the field and balance their quantities. It creates positive effects on Vietnamese rice export, said Marketing Director of Vrice Group Company Limited Phan Van Co.

According to the General Director of Trung An Hi-Tech Farming Joint Stock Company in Can Tho City Pham Thai Binh, the global demand for food has sharply increased. South Korean and European markets have also increased their rice imports, creating positive energy for businesses.

Trung An company has carried out delivery of more than 15,000 tons of 100 percent broken rice to South Korea and rice export contracts of over 100 containers to Europe in 2022, he added.

General Secretary of the Vietnam Fruit and Vegetables Association (VinaFruit) Dang Phuc Nguyen, said that companies of fruit and vegetable export have received orders until the end of the second quarter. The market has witnessed a sharp recovery, creating more opportunities to fruit and vegetable export to potential markets after the long-term effects of the Covid-19 pandemic.

Improve speed to markets

Speaking about export trends in the coming time, Deputy Director of the Export Promotion Center, Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Trade and Industry Nguyen Thi Thu Thuy said that Vietnam’s agricultural export has seen many positive signs in markets of EU, Indian, Japan, Turkey and Africa. The EU market’s import demand for Vietnamese agricultural products has clearly recovered.

After the EU-Vietnam Free Trade Agreement (EVFTA) entered into force on August 1, 2020, about 220 tax lines for seafood products have a base tax rate of 0-22 percent. The remaining tax lines have been reduced to zero percent following a roadmap from three to seven years, opening up opportunities for seafood companies to increase their price competitiveness compared to products in EU countries.

The signs of economic recovery along with the advantage of free trade agreements that Vietnam has signed have created favorable conditions for businesses to speed up approaching export markets, she said.

In order to help businesses shorten the time to reach markets and avoid export risks, the Vietrade has cooperated with Vietnamese trade promotion agencies abroad to carry out many online export consultancy sessions.

Vietnamese Commercial Counselor in Turkey Le Phu Cuong said that the Vietnamese trade office in Turkey has invited speakers who are representatives of Turkish main importers, such as Donmezler Spices Co., Ltd producing agricultural products and spices; IDEAL Agricultural Products Co., Ltd (VERITA) producing fresh fruits; and VT Travel and Trade Company producing handicrafts to share information and exchange import and export experiences for Vietnamese businesses participating in the consulting sessions.

According to importers, Vietnamese enterprises need to actively participate in trade promotion programs, in transactions, promote, and introduce products at large-scale fairs and exhibitions in Turkey to enhance business cooperation opportunities with Turkish processing and distribution enterprises.

Online export consultancy sessions conducted by the Ministry of Trade and Industry aim to update and provide advice, regulations and conditions of countries' imports and exports, requirements for product standards, methods of payment and transportation, import-export insurance, and solving arising problems.

Source: SGGP News

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