The “Farm to Fork” Strategy, adopted on 20 May 2020 is the EU’s key program to enforce the targets of building a fair, healthy and environmentally-friendly food system in the European Green Deal.  

Until now, the EU has been implementing a series of implementation plans for this Strategy, of which some legislative measures directly affect the exports of agricultural and food products from Vietnam to this market.

- Proposal for Regulation on the sustainable use of plant protection products

The Draft of the Regulation was presented by the European Commission on 22 June 2022 and is currently in the consultation process for approval.

This Regulation comprises contents to materialize the target of reducing at least by 50% the use and risk of chemical pesticides by 2030. Although it only governs the use of plant protection products in the EU but it can likely tighten rules of Maximum Residue Level (MRL) for hazardous substances in agricultural and food products (also applicable to imported products), which thereby directly affects specific standards for agricultural and food products imported to the EU market. 

Enforcement of this Regulation means that Vietnamese manufacturers and exporters of agricultural and food products will have to (i) set up and control the whole farming, processing chain of agricultural and food products under new standards which are supposed to be stricter in terms of levels, kinds of plant protection products allowed for use; and (ii) possess the technology to control, exempt or reduce pesticide residue in final products under new standard. 

Box – The trend to minimize the use of chemical pesticides in EU Currently, Regulations on the sustainable use of plant protection products with new specific targets have just been drafted by the EU, not yet approved, however, the EU lawmakers have commenced specific actions in this direction.  Specifically, in the first half of 2023, the EU revised at least 04 existing regulations to change the maximum residue level (MRL) of 09 substances embedded in many kinds of agricultural and food products under Vietnam’s key export groups, including:  - Commission Regulation (EU) 2023/147 dated 20 Jan 2023 amending Annexes II, III and V to Regulation (EC) No 396/2005 of maximum residue levels for cyromazine, topramezone and triflumizole in or on certain products such as fruit and vegetables, tea, coffee, animal products, etc. The Regulation was officially adopted from 12 August 2023;    - Commission Regulation (EU) 2023/334 of 2 February 2023 amending Annexes II and V to Regulation (EC) No 396/2005 of maximum residue levels for clothianidin and thiamethoxam in or on agricultural products and products of animal origin, etc. The Regulation was officially adopted from 07 March 2023; - Commission Regulation (EU) No 2023/465 of 3 March 2023 amending Regulation (EC) No 1881/2006 of maximum levels of arsenic in or on certain products such as rice, juice, nutritious food for children, etc. This Regulation officially entered into force from 26 March 2023; - Commission Regulation (EU) 2023/466 of 3 March 2023 amending Annexes II, III and V to Regulation (EC) No 396/2005 of maximum residue levels for isoxaben, novaluron and tetraconazole in or on some agricultural and food products including:  fruit and vegetables; cashew nuts, coffee, tea, spices, cereals, products of animal origin, eggs, milk, honey, etc. This Regulation officially entered into force from 26 September 2023 Source: Summary of VCCI Research Group

 

- Regulations on veterinary medicinal products

Regulation on veterinary medicinal products was approved on 11 September 2018 and officially, fully entered into force on 28 January 2022. Due to its content in alignment with the targets of F2F Strategy, this Regulation is classified by the EU as policies to be boosted for enforcement within European Green Deal framework.

This Regulation comprises many specific measures (such as prohibition of the use of weight-gain antibiotics for animals), to achieve the target of reducing by 50% sales revenues of antibiotics for animals and aquaculture farming by 2030. This regulation affects not only sale and purchase of veterinary medicines within the EU’s territory but also specific standards for animal products imported to this union. 

- Revision of Food Contact Materials legislation (FCMs)

This Proposal aims to create a fair, healthy and environmentally-friendly food system and improve food safety and public health (in particular, reducing the use of hazardous chemicals), support the use of innovative and sustainable packaging solutions using environmentally-friendly, reusable and recyclable materials, and contribute to food waste reduction. This is the measure to implement both F2F Strategy and the EU’s Chemical Strategy for sustainability.

Currently, the European Commission has just announced the Inception Impact Assessment of Proposal for a revision of FCM legislation dated 18 December 2020 and it is in the consultation process with related stakeholders.   

Once approved and becoming effective, the proposal for the revision of FCM legislation may change methods of production, and packaging design for agricultural and food products exported from Vietnam to the EU.

- Proposal for a revision of the Regulation on Food Information to Consumers (FIC)

The impact assessment of proposal for a revision of FIC Regulation was announced by the European Commission on 23 December 2020 and it is currently in the consultation process with related stakeholders.

According to the Assessment of the proposal for revision, the EU tentatively will require (i) mandatory front-of-pack nutrition labelling (to enable consumers to make informed and health-conscious food choices); (ii) extension of mandatory origin or provenance indications to products (to allow consumers to better identify the origin of food and make smart consumption choices) to avoid food waste.

In case of being approved and becoming effective, this regulation shall force manufacturers, exporters of food from Vietnam to the EU to redesign goods labels, from the content to labelling position, as well as to rebuild calculation methods for products expiry date.

- EU Code of Conduct on Responsible Food Business and Marketing Practices

This Code of Conduct entered into force on 05 July 2021 and is a voluntary initiative, which lists out activities to be recommended for parties engaging in food supply chain (processors, retailers, etc.) to implement to improve and show their sustainable efficiency.  

However, this Code of Conduct may be revised and then become legislation if European Commission assumes that voluntary commitments are not enough. If this Code of Conduct is legalized, foreign manufacturers and exporters shall have to comply with stricter requirements of origin tracking as well as social corporate responsibility if they want to export foods to the EU. 

Currently, it is likely that several manufacturers, exporters of agricultural and food products from Vietnam to the EU are subject to comply with this Code of Conduct as requested by the EU clients. However, if the Code of Conduct becomes binding regulations, the enforcement shall be common requirements for all manufacturers, exporters.

- Proposal for a revision of EU legislation on animal welfare

On 06 July 2021, the European Commission announced an Impact Assessment of the proposal for a revision of EU legislation on animal welfare in many documents, including: (i) Directive concerning the protection of animals kept for farming purposes; (ii) Regulation on the protection of animals during transport; (iii) Regulation on the protection of animals at the time of killing, etc.

With the objective of improving animal health and food quality, reducing the demand for use of medicine and preserving biodiversity, the EU is expected to revise existing related regulations towards:  (i) gradual phase-out and even ban of cages for all kinds of animals mentioned in the European Citizens’ Initiative (ECI) – “End the Cage Age”; (ii) revision of regulations on animal transport and welfare at farm level, including the slaughter and killing; (iii) considering measures of animal welfare labelling to better transmit value through food chain.

Export of animal products, meat from Vietnam to the EU is quite modest, thus, maybe above-mentioned regulations on animal welfare have not created sustainable impacts. However, for businesses with their current/future focus on the EU market, this will be the issue to which their attention should be especially paid because it is relevant to prior-processing steps (farming, transport, etc.), requiring much effort for the whole chain monitoring.

- Regulation EU 2018/848 on organic production and labelling of organic products.

With effect from 1 January 2021, this Regulation comprises specific requirements, conditions that imported goods must comply with for sale under form of “organic products”. Specifically, “organic products” must (i) fully comply with regulations on production and control of exporting countries which have mutual recognition agreement with the EU in place; and (ii) possess the certificate issued by relevant authority agency at exporting country, certifying that the products are compliant with the EU standards.

This means that exported products from Vietnam will be recognized as “organic” in the EU market if they are compliant with new tighter procedures, paperwork processes and ensure to meet EU new standards in the manner accepted by the EU.

Box – Outlines of Regulation on Organic Production and Labelling of Organic Products - Applicable scope: Extended to other secondary agricultural products such as beeswax, sea salt, wool, and other products. - Applicable subjects: Besides product labelling, it is also extended to all statements, indications, trademarks, trade names, pictures or signs concerning a product on packaging, documents, signs, labels, rings or bands accompanying or referring to that product. - Engineered nanomaterials are not allowed for use in organic products - Mandatory models are to be followed, for both EU and non-EU operators, to obtain an organic certificate - New rules apply for group certification (with many changes relating to products from developing countries) - Terms such as organic, organic or ecological, or shorter terms like "bio" and "eco", are only permitted if the product is organic certified    - Packaging design must not be too similar to colors (green, white) and shape (leaf) of EU Bio logo, to avoid misunderstanding for EU consumers - Labels for organic products imported to the EU must include code of control body of export country and code of area for planting agricultural materials to produce organic products.   Source: VCCI Research Group from Regulations EU 2018/848

 

Source: Report "EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries" – Center for WTO and International Trade

• Ways of European Green Deal’s impacts on Vietnam’s exports
• EU Green Deal and Vietnam's export: Impacted sectors
• EU Green Deal and Vietnam's export: Challenges of awareness change and enhancement
• EU Green Deal and Vietnam's export: Challenge in capability of response, compliance
• EU Green Deal and Vietnam's export: Challenge in the capacity of paying compliance fees