Businesses encouraged to export organic farm products to North Europe

Local businesses have been advised to develop organic food in an effort to boost fruit and vegetable exports to Nordic countries, according to the Vietnamese Trade Office in Sweden.

Due to having a cold climate throughout the year, Nordic countries are forced to import fruit and vegetables from other nations, a factor which has created an array of opportunities for Vietnamese fruit and vegetable exporters to gain a foothold in these countries.

Most notably, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in August, 2020 brought about a range of advantages for domestic firms as import duties levied on fresh fruit and vegetables are slashed to 0%.

Nordic consumers have a habit of purchasing safe and organic products, with the consumption of organic food in this market anticipated to enjoy a three-fold increase by 2030.

Nguyen Thi Hoang Thuy, Vietnamese Trade Counselor in Sweden, points to the fact that demand for prepackaged convenience products continues to grow and become more popular in these countries.

Furthermore, she says Nordic consumers are also interested in tropical fruit and vegetables, such as bananas, melons, pineapples, sweet peppers, and lemons, which have a high demand for import all year round.

These factors are anticipated to create a range of opportunities for local businesses to boost their export of fruit and vegetables to these countries in the near future, notes Thuy.  

According to the Vietnamese Trade Office in Sweden, new suppliers of fruit and vegetables from Vietnam are expected to find it difficult to penetrate the Nordic market due to fierce competition between multinational corporations and logistics companies.

Moreover, consumers in this market tend to prefer vegetables grown in the European region due to the low cost of transportation and lower prices in general.

Other factors include geographic distance and a lack of direct flights to North Europe making it difficult for local businesses to export fresh fruit and vegetables to this market.

Thuy therefore advises domestic firms to develop niche markets, push the export of organic products, comply with stringent regulations set by importers, and develop brands as a means of enhancing the consumer experience.