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EVFTA visa for Vietnamese rice

Introducing delicious Vietnamese rice varieties to the EU

EVFTA visa for Vietnamese rice

On the stock market, over the past time, stocks of rice enterprises have gone down because the business results in the first half of the year were not very bright. Therefore, the prospect of exporting to the EU market is an information that is likened to a “rescue” medicine for rice stocks as well as the business situation of many rice enterprises.

EVFTA opens a new door for Vietnamese rice

According to the EU-Vietnam Free Trade Agreement (EVFTA), which officially took effect on August 1, the EU gives Vietnam a quota of 80,000 tons of rice per year; After 3-5 years, the tax rate for rice products will be 0%.

To enter the EU door, many businesses have carefully prepared to obtain the certification “rice belongs to one of the categories entitled to preferential tariff quotas of the EVFTA”. For example, the Vietnam Seed Corporation (Vinaseed) has developed a product from one of the rice varieties that is quality controlled from the selection stage, cultivated with Japanese technology as well as ensuring clear traceability. clear. Meanwhile, Trung An High-Tech Agriculture Joint Stock Company built clean and organic rice fields according to EU and US standards.

EVFTA visa for Vietnamese riceMr. Huynh Van Thon, Chairman of the Board of Directors of Loc Troi Group, said that he has focused on planting and quality control for the EU market since 2018. Loc Troi has exported more than 10,000 tons including Jasmine. 85, Japonica DS1, OM18, OM5451… enter this market with various specifications.

“Quality will be the biggest competitive advantage of Vietnamese agricultural products in general and rice in particular when exporting to the EU. Therefore, enterprises have determined to focus on quality control throughout the raw material areas and production and processing facilities,” said Mr. Loc Troi is approaching the goal of consuming 1 million tons of rice through building and developing a system of 1,000 cooperative cooperatives, applying 1,000 drones in agricultural production by 2024.

In the first 8 months of 2020, Vietnam exported over 15,800 tons of rice to the EU, worth approximately $8.5 million. Rice exports, including fragrant rice, to the EU from now until the end of the year are expected to continue to increase despite still being affected by the COVID-19 epidemic.

In need of a revolution

Although the price of Vietnamese rice exported to the EU market is high, averaging about 700 USD/ton, the export turnover of rice to this market in recent years is still very modest. In 2018, Vietnam’s rice export turnover to the EU reached about 5.6 million USD, this figure in 2019 was 10.7 million USD.

Despite the advantage in price and quality, Vietnamese rice has not yet created a major competitive advantage in the EU compared to rivals such as Thailand, Myanmar, India or China. For many years, one of the important tasks to overcome this weakness has been the strategy of building a Vietnamese rice brand in the European market. Because most of Vietnam’s rice is still exported in bulk bags and labeled with importers.

EVFTA visa for Vietnamese riceThe varieties OM5451, ST20, RVT, VD20, OM4900, Huong Jasmine 85, Nang Hoa 9, Tai Nguyen Cho Dao belong to the list of fragrant rice exported to the EU enjoying preferential tariff quotas, accounting for about 43-46% of the total volume. rice exports annually with over 3 million tons. However, these rice varieties are not yet known in the international market.

Vietnam has a strategy to develop the Vietnamese rice brand until 2020, with a vision to 2030 with the ambition of making Vietnamese rice the world’s leading brand in terms of quality and food safety. In this effort, Vietnam can learn from Thailand’s experience in branding Hom Mali Thai as “the best rice in the world”. The Thai government promulgates many strict standards for the branding strategy of Thai rice such as rice must be grown in Thailand and certified by the agricultural authority, each grain must be no less than 7 mm in length, no width at all. less than 3 mm, starch content must be in the range of 12-19% and moisture must not exceed 14%… Pursuing the path of branding for Malys Angkor rice, Cambodia has also entered the top 5 rice exporters. into the EU. In the first half of 2020, Cambodia earned more than 264 million USD from exporting 397,660 tons of rice, up 41% over the same period in 2019.

According to Dr. Nguyen Dang Nghia, Director of the Center for Tropical Agriculture Research and Consultancy, Vietnam has no shortage of delicious rice to compete with other countries. Vietnam used to have rice varieties with high positions in the international arena such as ST24, AGPPS 103…

EVFTA visa for Vietnamese rice

Exporting to the EU is a journey that sustains strict standards. In fact, many agricultural and fishery products exported to the EU in 2019 not only did not increase but also decreased by 13.09% because they did not meet the standards of food safety and hygiene, even being returned. Vietnam is in the group of countries with the highest number of warning cases and returns from Europe.

Announcement Ceremony of Loc Troi Gao Corporation to introduce Vietnamese Rice to the EU

The limitations of Vietnamese rice and agricultural products show that the EVFTA is not a magic wand to massively bring Vietnamese goods into the EU market. However, this is a very good start for Vietnamese rice grains to penetrate and expand the potential EU market. To take advantage of this, the agricultural industry needs to accelerate the restructuring of agricultural production in chains, forming a closed process from the organization of raw materials to the processing stage, ensuring traceability and food safety. products… EVFTA really becomes a signal for Vietnam to make a comprehensive revolution in agriculture.

(According to Investment Demand)

Emilia Chaney
Emilia Chaneyhttps://agrisearch.net
My name is Emilia Chaney. I'm a social girl from Romania with a big smile and 3 passions: Agriculture, Travel and Social Media. I try to make this blog practical, full of great advice and inspiring ideas.

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