Agricultural export businesses largely unaffected by Decrees No. 248 and 249

On the morning of November 29, the Vietnam SPS Office, in coordination with the International Border Gate Management Board of Mong Cai city, organized a conference in Mong Cai city, Quang Ninh province titled "Business guidelines to meet food safety and animal inspection requirements when exporting agricultural and food products to China."

At the conference, Ms. Tran Bich Ngoc, Head of the International Border Gate Management Board of Mong Cai city, noted that 2023 marks a gradual recovery in domestic import-export activities for provinces and cities nationwide, including Mong Cai city, Quang Ninh province,following the severe impact of the Covid-19 pandemic.

According to Ms. Ngoc, customs clearance activities for agricultural and aquatic products are being implemented at all border gates and entry points in Mong Cai city, with forecasts indicating a continuous increase in both variety and quantity of goods, as well as the number of participating businesses.

Agricultural and aquacultural import-export activities were previously concentrated at the floating bridge entrance at Km3+4 Hai Yen and Dong Hung ferry terminal. However, according to discussions between the government of Dong Hung city (China) and the government of Mong Cai city, and the border gate development plan, the North Luan 2 border gate in Dong Hung city will be the designated main gate, as appointed by the General Customs Department of China, for importing fruits, foodstuffs, edible aquatic animals, frozen aquatic products, and pharmaceuticals.

To date, two items, which are fruits and foodstuffs, have been officially approved for export. The remaining three items have been assessed by the General Customs Department as meeting the import-export warehousing requirements. It is expected that they will be officially approved by December 2023. These are highly positive signals for Mong Cai - Dong Hung. Furthermore, they will introduce new opportunities for domestic agricultural and aquacultural import-export activities.

According to Mr. Le Thanh Hoa, Deputy Director of the Department of Quality, Processing, and Market Development, and Director of the Vietnam SPS Office, China is currently Vietnam's largest trading partner and largest import market, as well as the second-largest export market, after the United States. Several groups of agricultural exports to China, including rice, fruits, and coffee, have recently utilized new market openings and favorable prices, resulting in the highest growth rate among export categories. Additionally, China has officially approved the export of 12 Vietnamese vegetables and fruits from over 800 aquatic processing establishments, 40 packaging facilities for live crabs and lobsters, and 5 packaging facilities for whiteleg shrimp and black tiger shrimp, covering 128 types of Vietnamese products and 48 aquatic species.

Most notably, assessments suggest that there is considerable potential for the export of Vietnamese agricultural products to the Chinese market in the near future. This presents an opportunity for Vietnamese businesses to further engage, promote investment in production, enhance integration, seek partners, and fully exploit the potential of this market.

Mr. Hoa emphasized that Vietnam needs to improve its infrastructure system in support of import-export activities, both at the governmental and the business levels, in order to seize this opportunity. Accordingly, investments should be made to increase the capacity of logistics and warehousing services along the supply chain from production areas to warehouses. Furthermore, there should be a focus on the application of science and technology, high technology, and digital transformation to enhance efficiency and reduce costs in the agricultural and aquacultural export chain to China. On the other hand, businesses need to enhance their capacities towards professionalism, compliance with international practices, and adherence to the regulations of the importing country.

Ms. Le Phuong Thuy, Director of Tan Phat Dat Import-Export Company in Bac Giang city, Bac Giang province, shared that her company is currently exporting agricultural products to China. The company's export activities in previous years, primarily through unofficial channels, was challenging. After the Ministry of Agriculture and Rural Development, and the Vietnam SPS Office, provided guidance on standards, warehouses, food safety, etc., to meet the requirements of the Chinese market in 2022, the company's export activities were greatly expanded. On average, the company generates 300 billion Vietnamese dong in revenue each month.

Mr. Tran Van Ut, Director of Vy Tuyen Trading Co., Ltd., headquartered in Mong Cai city, stated that the company is currently processing and packaging aquacultural products, with a focus on exporting to the Chinese market. The company's export revenue in 2022 was estimated at 80 billion Vietnamese dong. However, the company expects a remarkable increase in revenue, reaching approximately 160 billion Vietnamese dong in 2023. According to Mr. Ut, the company's advantageous location in Mong Cai city provides favorable conditions for customer access. Additionally, the local governments, the Ministry of Agriculture and Rural Development, and the Vietnam SPS Office have enabled the company to establish additional connections with Chinese partners. Notably, after the implementation of China's Decrees No. 248 and No. 249, the company conducted in-depth research and complied with Chinese food safety regulations by utilizing its extensive experience in the fisheries sector, resulting in a streamlined export operation.

Mr. Le Thanh Hoa noted that over the last two years, after China required exporting countries to register according to Decree No. 248 for collaboration in managing imported food safety, the Vietnam SPS Office, in coordination with the Ministry of Industry and Trade, the Ministry of Health, and agencies under the Ministry of Agriculture and Rural Development, has systematically implemented various support activities.

"During the initial stages of implementation, there were some difficulties with regards to the export of products such as cashews, pepper, coffee, etc. However, the close coordination between the Vietnam SPS Office, the Chinese customs, and various stakeholders, have addressed many challenges facing export businesses. After June 30, 2023, the majority of Vietnamese businesses have completed the registration process, and received detailed guidance from management agencies to update their records on the electronic portal of the Chinese customs. Furthermore, the Vietnam SPS Office will continue to coordinate with the Chinese customs to assist businesses in updating their records, and if there are any remaining issues, work together to resolve them," said Mr. Le Thanh Hoa.

Within the framework of the conference, representatives from the Department of Animal Health, the Department of Plant Protection, and the Vietnam SPS Office provided guidance and answered questions from businesses in the field of agricultural export. The aim is to enhance product quality and meet the requirements of Decrees No. 248 and No. 249, thereby promoting agricultural product exports to the Chinese market.

Decree No. 248 detailed: "Regulations on the Business Registration Management for Foreign Food Producers."

Decree No. 249 detailed: "Measures for the Management of Food Safety for Import and Export."

With the effective date of January 1, 2022, these decrees issued by the General Administration of Customs of China are mandatory for foreign businesses, including those in Vietnam. GACC requires "STRICT COMPLIANCE" from all businesses exporting agricultural and food products to China, mandating registration with GACC to obtain a GACC code as a prerequisite for export to the Chinese market. The regulation imposes different sanctions on various food product groups.