Minister Do Duc Duy: 'Need to establish criteria for classifying export markets'

Several local enterprises and producers still market their products as soon as they are produced, without researching the target market," the Minister of Agriculture and Environment stated in a meeting with the National Authority for Agro-Forestry-Fishery Quality, Processing, and Market Development (NAFIQPM) on March 11.

 Production must be closely associated with the market, as per the Minister.  It is essential to clearly define between markets that necessitate immediate opening, rapid trade promotion, or meticulous consideration and calculation.

 The Minister of Agriculture and Environment underscored the necessity of additional supportive policies to assist businesses in maintaining their market share, citing the U.S. market, which imports substantial quantities of wood and marine products.  This is particularly crucial as President Trump is considering imposing reciprocal tariffs on countries with significant trade deficits. 

 In contrast, the Halal market has significant potential and a high export value; however, each Arab nation has its own unique requirements.  "We must determine whether to enter the Halal market through the FTA signed with Israel or through the UAE, where there is a high demand for agricultural and food products," the Minister stated to the question. 

 Other markets, including Côte d'Ivoire, have developed robust agricultural trade relationships with Vietnam.  In recent years, Vietnam has increased its paddy exports to the West African nation and has also imported a substantial quantity of cashew nuts.  This trade relationship establishes a strong foundation for the establishment of sustainable partnerships. 

 Minister Do Duc Duy subsequently directed NAFIQPM to undertake research and propose a comprehensive market development program in collaboration with the Ministry of Industry and Trade, embassies, trade offices, agricultural attachés, and relevant organizations. This instruction was based on the aforementioned. 

 He emphasized the importance of being aware of the specific requirements that businesses must satisfy before entering a market, outlining the key points.  It is imperative to ascertain the markets that can be accessed, the standards that must be met, and any technical or tariff barriers that must be resolved for each agricultural product. 

 "We must sell what the market needs, rather than just what we have," the Minister stated, illustrating his point with an example from North America.  While the U.S. imports a large amount of seafood, Canada’s import demand fluctuates.  This is partially attributable to Canadian consumer behaviors, as they may opt for more cost-effective alternatives such as pork and beef during economic downturns.

 However, the CPTPP bloc includes Canada, which grants Vietnamese exporters tariff advantages.  Consequently, the Minister has ordered a comprehensive analysis and evaluation to enable comparisons.

 In addition to market entry conditions, the Minister of Agriculture and Environment underscored the necessity for NAFIQPM to work in close collaboration with market access negotiation teams to ascertain the most suitable strategies.  He observed that negotiations with a market that boasts an existing free trade agreement (FTA) would differ from those with a market that is either entirely new or influenced by diplomatic factors. 

 Included in the evaluation are tax policies, domestic protectionist positions, cultural characteristics, and political institutions.  The Minister emphasized the necessity of distinguishing market development strategies in light of these complexities.  He recommended initially examining essential trading partners, high-potential markets, and those with complementary trade relationships with Vietnam. 

 The Minister stated, "We must conduct a comprehensive assessment of our standards in relation to global benchmarks and determine whether they are outdated, which could potentially impede access to major and highly selective markets." 

 On the basis of these analyses, Minister Do Duc Duy directed NAFIQPM to expedite the development of a set of criteria for the classification of export markets for Vietnam's primary agricultural, forestry, and fishery products.  This classification system would allow the government and the Ministry of Agriculture and Environment to assess the feasibility and urgency of entering specific markets. 

 He suggested a variety of evaluation criteria, including the size of a market, its tax policies, the condition of domestic production, and the existence of an FTA with Vietnam for the targeted Vietnamese exports.  This classification would designate a score to each product category in each market. 

 "If a market scores above 80 points, it means we must enter as soon as possible.  If it scores between 50 and 80, we should consider entry.  If it scores below 50, we should reassess the timing," the Minister explained.  He further stated that this criteria framework would assist the Ministry in developing an export roadmap for Vietnamese agricultural products for the 2026–2030 period. 

 The Minister assigned NAFIQPM the task of enhancing processing capacity and strengthening value chain linkages, in addition to continuing to develop raw material production areas that meet export standards in the short term.  Furthermore, the agency is required to collaborate with pertinent ministries and sectors to establish warehouses and logistics systems for the storage of agricultural products, thereby increasing the consumption capacity of farmers. 

 Deputy Minister Tran Thanh Nam noted that the value and volume of forestry and fishery products had increased in the first two months of 2025 when reflecting on export performance.  Certain agricultural exports, such as Vietnam's staple products, exhibited indicators of unsustainable expansion.  While some commodities experienced an increase in value but a decrease in volume, others experienced the opposite trend. 

 The Deputy Minister also recognized that the government's 2025 export target is exceedingly ambitious, necessitating that all stakeholders in the value chain intensify their efforts from the outset of the year.