The agricultural sector needs to strongly develop advanced processing solutions to increase the added value of exported agricultural products

The agricultural sector aims to maintain an annual growth rate of approximately 3.5% to ensure national food security while simultaneously boosting agricultural, forestry, and fisheries exports to reach US$100 billion. To achieve this goal, the sector needs to strongly develop advanced processing solutions and increase the added value of exported agricultural products.

For the European Union (EU) market, the EVFTA agreement has created a foundation for Vietnamese agricultural products to increase their presence in this multi-billion dollar market. However, despite strong growth in export value, Viet Nam's agricultural market share in the EU currently accounts for only about 2% of the bloc's total import value – reflecting significant potential for further development.

The EU is known as a demanding market with very strict SPS (sanitary and phytosanitary) and TBT (technical barriers to trade) standards. In particular, regulations on pesticide residue levels in the EU are very low. Meanwhile, the majority of exported agricultural products remain in raw or semi-processed form, while processed products with high added value are quite limited. This restricts the ability to fully exploit the benefits of a market with such high purchasing power as the EU.

Besides stringent quality requirements, the EU is increasingly focusing on sustainable development and social responsibility. EU consumers want products that are not only delicious and safe, but also environmentally friendly, adhering to criteria related to labor, forest protection, and ecology. These are new standards that, if not quickly adapted to, Vietnamese agricultural products will struggle to survive in this global arena, noted Dr. Ngo Xuan Nam.

Mr. Nguyen Dinh Tung, Vice President of the Viet Nam Fruit and Vegetable Association and General Director of Vina T&T Group , believes that to participate in the global market, farmers and export businesses need to comply with international safety standards, build high-quality raw material areas, and meet the specific technical barriers of each country. The EU currently bans up to 36 pesticides and may conduct random inspections on up to 10% of imported shipments, so caution throughout the entire production chain, from cultivation and harvesting to packaging, is mandatory.

Furthermore, Viet Nam currently lacks a common brand in the agricultural sector on the international stage, unlike Korean peony grapes, American apples, or New Zealand kiwis. Mr. Nguyen Dinh Tung concluded that for Vietnamese agricultural products to make their mark on the international market, it is necessary to build a "common home," establishing close links between businesses and farmers to share risks, commit to long-term purchases, and stabilize supply and quality. Only by closely linking, investing in quality, traceability, developing deeply processed products, and diversifying markets, especially demanding markets; instead of just selling raw products, can we enhance reputation and competitiveness on the international stage. This is the fastest way to increase the added value of Vietnamese agricultural exports.

Source: VTV

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports