Pepper has become a major export to the EU - photo: VNA

Stricter control of produce imports

Recently, the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS Vietnam) received a notification from the WTO (World Trade Organization) SPS Committee Secretariat regarding the EU’s consultation with WTO members on draft SPS measures.

The EU has proposed adjustments to the Maximum Residue Levels (MRLs) of various substances for certain products. Notably, the EU has proposed changes to the MRLs for several agricultural products from Vietnam, such as avocado, bananas, mangoes, papayas, durians, okra, tea, coffee, pepper, rice, cashews, and macadamia nuts. These changes may affect the export of Vietnamese goods to the EU.

This shows that requirements of import markets, especially those with which Vietnam has signed a free trade agreement (FTA) like the EU, are increasingly stringent. Non-tariff barriers are becoming more widely used to protect domestic goods in those markets.

According to Luong Hoang Thai, Director of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, among the new-generation FTAs that Vietnam has signed, EVFTA has yielded the most positive results.

According to the Ministry of Industry and Trade, Vietnam has exported goods worth around US$200 billion to the EU since the EVFTA took effect on August 1, 2020, experiencing an export value growth of 12-15 percent per year. The country has annually exported more than it imported from this market.

However, the requirements of this market have become increasingly strict. Le Thanh Hoa, Deputy Director of the Ministry of Agriculture and Rural Development’s Department of Quality, Processing and Market Development, noted that Vietnamese exports must meet various standards on food safety, animal and plant quarantine regulations, and technical barriers. Proper understanding of market regulations and import-export procedures of the EU will help Vietnamese businesses increase exports to this market, as they are capable producers, especially those in the rice, pepper, coffee, cashew and rubber sectors.

Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association, acknowledged that due to the small scale of production, farmers and businesses still lack full understanding of import market standards, leading to some limitations in the pepper and spice industry. Recently, businesses have been warned by the EU about certain indicators related to pesticide residues, microorganisms, and heavy metals.

A number of exporters have not always complied with import regulations due to varying MRL standards for each substance in different countries. This requires in-depth research and technical knowledge. Additionally, some producers still lack proper methods and plans for using pesticides, antibiotics, and fertilizers. For example, a survey in Thua Thien Hue Province in 2020 revealed that 95 percent of shrimp farms there used antibiotics.

Meeting import market standards a must

According to authorities, even a single violation can result in extremely strict checks for Vietnamese exports. There have been cases where just one batch of 38 kilos of exported chili failed to meet standards, leading to a 50-percent border inspection rate for all chili products from Vietnam. Similarly, seven batches of dragon fruit (400-1,800kg) failed to meet standards, resulting in the border inspection rate of 20-30 percent for this product. Meanwhile, okra was subject to a 50-percent border inspection rate, and durian a 10-percent rate.

Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, observed that if technical barriers are not understood and fully complied with, they can become obstacles for exporters, potentially negating their efforts in opening up markets, which is something already challenging. Therefore, understanding and adhering to market regulations is the only way for goods to be exported smoothly.

Many Vietnamese farmers and businesses have made continuous efforts to improve the quality and safety of their products. However, some businesses still lack sufficient awareness and do not meet export standards. Business associations and enterprises need to continue enhancing product quality and safety to meet the requirements of new-generation trade agreements and the general export of farm produce, forest products and seafood.

The Ministry of Industry and Trade recommends produce and food producers to enhance product quality management to meet EU requirements and ensure stable exports to this market.