Decreasing sharply in China, fruit and vegetable exports rebound almost throughout

From the beginning of the year until now, fruit and vegetable exports to China have dropped sharply then exports to other major markets such as the US, South Korea and Thailand back in the opposite direction increases sharply, even with the market increase of more than 200%.

This year, exports of vegetables have many positive signals in the context of the Covid-19 pandemic.

According to the Department of Processing and Market development of agricultural products (Ministry of Agriculture and Rural development) from the beginning of the year to the end of six months, vegetable exports reached US$1.79 billion, up 12.2% compared to the same period in 2019.

China’s vertical position in most of the market of imported vegetables of Vietnam in the first five months with 60.4% market share. Vegetable exports to this market reached $906.1 million, a decrease of 29.1% in value compared with the same period the year 2019 (reaching $1.3 billion).

The first five months of the year, except for the Chinese market, have export value decreased, most of the markets are export value increased such as Thailand reaches $68 million (increase 233.4%); Korea reached to 67.4 million (an increase of 21.8%); the US reached $62 million (up 6.1%); Japan reached to $57.7 million (increased 15.5%); the Netherlands reached 34 million USD (increase 9%).

Related to vegetable exports, the bureau of import and export (Ministry of Trade and Industry) review and point it is noteworthy that exports have more positive signals in the context of Covid-19 is still complicated.

For example, such as the bananas of Vietnam were officially on the system Lotte of South Korea; the fabric of Hai Duong and Bac Giang have been exported to markets in Japan, China, the US; the Indian market is very popular with dragon fruit, lychee and rambutan of Vietnam; label Son La guaranteed standard export to the world.

Along with that, the EVFTA has effect from the date of 1/8 to be perceived will create favourable conditions for business sector vegetables expand exports.

Nguyen Quoc Toan, head of the Department of Processing and market development, agricultural products analysis, said the EU is committed to opening doors for vegetables from Vietnam in the EVFTA, namely removing 94% out of 547 line of duty vegetables and preparations of vegetables, many of which are products Vietnam has advantages in as soon as the agreement takes effect.

Even so, according to Toan, the EU market is higher, so deals of the tariff is not entirely rosy.

“If we want to take advantage of good opportunities, agricultural products; aquatic products of Vietnam have overcome the technical barriers and strict standards. From 2016, the agricultural sector has focused on the issue of standards, quality and packaging to work not only with the EVFTA but also many other FTAs. By non-standard goods are not subject to integration sustainable,” said Toan.

Seen from the perspective of business, Dang Phuc Nguyen, secretary General fruit and Vegetables Association of Vietnam said the EVFTA opens the opportunity incredibly large in the EU, the market that is the largest importer in the world. Specifically, Vietnam can export any type of vegetable to the EU, as long as the item is produced in Vietnam.

However, the EU is a very difficult market with the provisions about technical barriers, residues of plant protection drugs and banned substances and is very demanding. If violating, the business will return, causing damage not only private business that both the industry vegetables in Vietnam. Therefore, production safety in the direction of GAP is required.

Another problem is when the production of “clean” according to standards such as VietGAP and Global GAP, the rate of vegetables does not meet the requirements of code templates, form to export fresh will increase.

"Therefore, deep processing would help take advantage of these products as raw materials for processing, from that harness the maximum value of the harvested products was to help farmers increase income of products made by consumption," Dang Phuc Nguyen said.

Value of imported commodities and vegetables months 6/2020 estimated $107 million, bringing the total value of goods imported vegetables 6 months to reach $583 million, up 41% compared to the same period the year 2019. The US, China and Australia are the largest markets for imported vegetables and fruits for Vietnam. Compared to the same period in 2019, imports of vegetables the first five months of the year from the Chinese market, Australia up turn is 34.6% and 17.5%, while imports from the United States market increased by 31.3%.