Trade promotion boosts produce export recovery
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Nguyen Minh Tien, Director of the Vietnam Trade Promotion Center for Agriculture |
Despite difficulties, farm produce exports have improved thanks to strong trade promotion measures. Could you elaborate on the actual situation?
In the first nine months of 2023, Vietnam’s farm produce exports reached US$34.48 billion, down 5.1 percent year-on-year. In the context of numerous export difficulties, the Government, ministries, sectors and businesses have taken various measures to promote farm produce export recovery.
Vietnam faced a decline in farm produce exports to the US and the EU, mostly wood, forest products and seafood. However, farm produce exports have regained their growth since the beginning of 2023 thanks to the re-opening of the Chinese border after the COVID-19 pandemic. China is a major export market of Vietnamese farm produce, especially fruit and rice.
In recent times, the Government, the Ministry of Industry and Trade (MoIT) and the Ministry of Agriculture and Rural Development (MARD) have accelerated negotiations for the opening of foreign markets to Vietnamese exports. During his two visits to China thus far of 2023, Prime Minister Pham Minh Chinh requested the Chinese Government to open the door for Vietnamese farm produce. During his recent trip to Nanning to attend the opening of the China-ASEAN Expo (CAEXPO) and the China-ASEAN Business and Investment Summit (CABIS) 2023, PM Chinh also requested China to continue opening the door for four additional groups of products: frozen durian, chili, watermelon, and pharmaceuticals.
Trade promotion activities have never been as vibrant as they are this year. We came back from China and Cambodia recently, and in November, two delegations will visit Shanghai and Guangdong to seek market access opportunities for businesses.
In the fourth quarter of 2023, when the stockpiles in the US and the EU decrease, we believe their demand for farm produce imports will increase, promising the recovery of Vietnamese exports by the end of 2023 and in early 2024.
Many export promotion activities have been conducted via digital platforms, helping expand the market for farm produce exports. Could you share some information about these efforts?
We have connected businesses to e-commerce platforms. Many kinds of Vietnamese consumer goods, furniture, wood and forest products are selling well on major e-commerce platforms such as Amazon. The MARD and the MoIT have connected domestic businesses to many e-commerce platforms of the US and Europe to introduce Vietnamese agricultural products.
We have supported business efforts to sell Vietnamese goods via social media platforms such as TikTok Shop and Taobao, as well as livestream sales. We are also seeking e-commerce opportunities through bonded warehouses.
Many e-commerce businesses in mainland China’s provinces have the policy to establish bonded warehouses. When Vietnamese companies export their products through Chinese bonded warehouses and livestream to sell the products via e-commerce platforms, they will be able to benefit from Chinese localities’ policies related to storage charges, customs and verification formalities. Selling through e-commerce platforms is an indispensable trend, and we support business efforts to apply e-commerce not only to sales in Vietnam but also to trans-border sales.
Despite signs of recovery, farm produce exports still face numerous difficulties. Could you share the focus of export promotion activities in the coming time?
In 2024, Vietnam will intensify economic diplomacy, aiming to promote exports through official trade channels to benefit from tariff preferences under free trade agreements.
In fact, domestic businesses have benefited greatly from their participation in fairs and exhibitions. Their presence at Vietnam’s national pavilions at international fairs and exhibitions will help them promote their products and seek new partners. Moreover, they will receive support from the State and the Government for their presence at these events.
In 2024, we hope more Vietnamese goods will be sold via major e-commerce platforms such as Amazon, or Chinese social media platforms such as TikTok and Douyin. Advertising through e-commerce platforms will also be intensified.
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