Vietnam- EU collaborating to enhance their agricultural export efforts

According to Deputy Minister of MARD Tran Thanh Nam, the most important aspect is the establishment of a secure food supply chain between European and Vietnamese enterprises.

Deputy Minister of the Ministry of Agriculture and Rural Development (MARD), Tran Thanh Nam, attended a discussion with Gabor Fluit, CEO of De Heus Asia and Chairman of the European Chamber of Commerce in Vietnam (EuroCham), on May 12.

During the meeting, both parties expressed their perspectives and offered suggestions to enhance the development of an agricultural linkage between Vietnamese and EU enterprises.

During a recent meeting, Deputy Minister Tran Thanh Nam addressed the slowdown in agricultural exports between Vietnam and the European Union. According to the Deputy Minister, in the first quarter of 2023, agricultural import turnover amounted to USD 1.2 billion, which represents a 14% decrease compared to the same period in 2022 (USD 1.4 billion). "This is worth a focus and we are happy to have EuroCham members in Vietnam. We are willing to listen to EuroCham’s suggestions, and our point of view remains: focusing on how to promote trade exchange between two sides”.

Deputy Minister Tran Thanh Nam assessed that the year 2023 is expected to pose significant challenges, particularly in the agricultural trade sector. The Deputy Minister expressed optimism that the exchange between the two sides would serve as a catalyst to encourage businesses from Europe and Vietnam to increase their trade turnover in the near future.

Gabor Fluit has been appointed as the Chairman of the European Chamber of Commerce in Vietnam for the term of 2023 - 2025. In a notable first for the organization, Fluit brings with him an extensive background of experience and expertise in the agricultural sector. The CEO of De Heus expresses his desire to play a more active role in fostering collaboration between EuroCham and Vietnam.

According to Gabor, the export of Vietnamese agricultural products to Europe is solely a concern of the agricultural industry. The purchasing power of the West has been impacted by global fluctuations over an extended period of time. Vietnamese furniture has experienced a notable surge in demand, particularly during the Covid-19 pandemic. Consumers have been primarily purchasing products for domestic use, resulting in a significant growth rate for the industry.

Deputy Minister Tran Thanh Nam has expressed his interest in collaborating to host a forum that will bring together European business leaders and officials from the Ministry of Agriculture and Rural Development. The forum will delve deeper into two key issues.

In an effort to promote food safety, an exchange of information regarding administrative procedures has taken place. The focus of this exchange is to assist businesses in gaining a better understanding of the operating mechanism within the agricultural industry. The focus of the second topic is on the practices implemented in the food safety supply chain.

“Food safety”, and “reducing greenhouse gas emissions” are the keywords throughout the forums of the Ministry of Agriculture and Rural Development. In order to realize Vietnam's commitment at COP26, in recent years, the Ministry of Agriculture and Rural Development has implemented a number of forest carbon projects, and built a project of 1 million hectares of high-quality rice, reducing emissions in Mekon Delta. At the same time, the Ministry of Agriculture and Rural Development directed the construction of the Central Highlands coffee material area to reduce emissions and develop sustainably.

“Projects in areas of raw materials for rice, coffee, and fruits among others are built to serve cooperatives associated with businesses. We call for the participation of European businesses, towards the goal of building material areas, creating quality products for export to your side," said the leader of the agricultural sector.

At the meeting, Gabor made some specific proposals. Firstly, regarding the value chain, a survey from Eurocham shows that Vietnamese localities face many problems in signing association contracts. Gabor expected that in the coming time, the Vietnamese side would foster provinces and localities to remove obstacles and boost the economy.

Second, businesses often face difficulties in accessing bank capital. Eurocham recognizes the positive signals from the Vietnamese Government and hopes that future decisions will enhance the promotion of the agricultural economy, especially for enterprises specializing in exports.

Third, Gabor highly appreciated Deputy Minister Tran Thanh Nam's proposal to organize a conference between Vietnamese and European businesses in the third quarter of 2023. In 2019, the Ministry of Agriculture and Rural Development and Eurocham successfully organized the Vietnam - EU Sustainable Agriculture Forum, creating a great buzz. EuroCham advovates the organization of a forum between the two side this year.