Positive results from the Vietnam - China agricultural trade forum

In compliance with Official Dispatch No. 492/CD-TTg dated May 31, 2023 on urgent measures to reduce congestion and promote agricultural product exports at northern border gates, the Ministry of Agriculture and Rural Development sent a delegation led by Deputy Minister Tran Thanh Nam to visit the Departments of Customs in Guangxi and Yunnan provinces in China.

In addition, both parties organized a forum to connect agricultural, forestry and fishery trade between Vietnam and China through Guangxi and Yunnan provinces. The event saw the participation of 17 major Vietnamese agricultural producers and trades, and 117 Chinese businesses.

According to the Ministerial report to the Government on June 6, the leaders of both countries engaged in cordial and transparent discussions that produced fruitful outcomes.

Vietnam and China have agreed to direct their respective local customs and quarantine agencies at border gates to establish a framework for cooperation. Accordingly, parties will regularly exchange information and coordinate to expedite the customs clearance process. Most notably, fresh in-season agricultural products will be prioritized in order to reduce congestion and promote agricultural trade through the border gates of Guangxi and Yunnan provinces.

Additionally, both parties have agreed to alternately organize annual border trade promotion fairs in corresponding provinces in order to create opportunities for local businesses to meet and trade.

In order to increase the cohesion and initiative of businesses between the two countries, both parties have agreed on the policy of promoting the establishment of Vietnam - Guangxi and Vietnam - Yunnan agricultural business associations.

Regarding long-term cooperation, Vietnam and China urged relevant focal points to expedite the signing of a Memorandum of Understanding on agricultural cooperation between the Ministry of Agriculture and Rural Development and the local governments of Guangxi and Yunnan. The signing ceremony is expected to take place in September 2023 during the China-ASEAN Expo.

The Memorandum of Understanding will will cover a range of topics, including information sharing; collaboration in research, technology, and human resource development in agriculture; a framework for coordination between the two governments to address issues faced by local businesses.

Improving customs clearance capacity

At the working sessions between the Ministry of Agriculture and Rural Development of Vietnam and the Departments of Customs of the two provinces, the parties have arrived at an agreement on the following contents.

Firstly, a number of solutions were proposed to increase customs clearance capacity. Namely, increasing the number of prioritized businesses; establishing a one-stop import-export cooperation; implementing a mechanism for exchanging samples of quarantine certificates and mutual acknowledgement; researching to put the smart border gate system into pilot operation, etc.

Secondly, a mutual contact point will be assigned to promptly coordinate and address challenges in the trade of agricultural, forestry and fishery products.

Thirdly, an annual alternating meeting will be held in November every year between the Departments of Customs of Guangxi and Yunnan provinces with the Ministry of Agriculture and Rural Development of Vietnam. The goal of this annual meeting is to conduct yearly review and evaluation for the trade of agricultural, forestry and fishery products as well as provide directions for the following year.

Fourthly, Vietnam shall coordinate with the General Administration of Customs China to promptly expand the list of permitted fruit and aquatic product exports. Additionally, several Vietnamese businesses have requested China to approve the export of their agricultural and aquatic products. On the other hand, Vietnam has recommended the General Administration of Customs China to allow the export of live Vietnamese seafood through the border gates of Yunnan province.

The Ministry of Agriculture and Rural Development will continue to implement the tasks assigned in the Official Letter by the Prime Minister as well as the details agreed upon with the Chinese government.

Deputy Minister Tran Thanh Nam believes that Yunnan and Vietnam's border provinces can complement one another greatly, because they both have strengths in fruit trees and industrial plants in addition to an open market.

“Yunnan province shares over 700 kilometers of border with four provinces in Vietnam, namely Lao Cai, Lai Chau, Dien Bien, Ha Giang. Yunnan features many advantages in agriculture such as tea, rubber, sugarcane and fruit trees. The neighbouring Vietnamese provinces also share these similar strengths. I strongly believe that we can grow together in an open, multi-demand market.”