The European market, with more than half a billion people, accounts for over 22% of the global GDP is a potent...
The European market, with more than half a billion people, accounts for over 22% of the global GDP is a potential market in Vietnam's agricultural and aquatic exports, including rice.
Immediately after the free trade agreement between Vietnam and the European Union - EU (EVFTA) takes effect, many import and export tariff lines will be removed, creating favorable trade conditions for both goods side. For rice, the EU gives Vietnam 80,000 tons of rice quota (including 30,000 tons of milled rice, 20,000 tons of unmilled rice and 30,000 tons of fragrant rice). In particular, the EU will remove quotas with broken rice. For rice products, the EU will bring the tax rate to 0% after 3-5 years.
Previously, each year Vietnam exported only over 20,000 tons of rice / year to the EU with tariffs ranging from 65 to 211 Eur / ton (estimated at 50% of export value). With this tax, Vietnamese aromatic rice imported to the EU has cost over 1,000 USD / ton, much higher than Cambodian and Myanmar rice because of tax exemption in this market. On the other hand, the EU rice market is also considered a difficult market, these are the two main reasons for "blocking" Vietnamese rice sugar into the EU in recent years.
With the preferential tax rate of 0% for the quota of 80,000 tons of tax rate, according to the representative of the Vietnam Food Association, the rice export quota to the EU is not much but has great significance, this is the "test" of the house. Import before deciding to upgrade the partners. Therefore, Vietnamese rice exporters need to strictly comply with the quality requirements set by their partners. It is required to have a certificate of the right kind issued by the Vietnamese authorities starting that rice belongs to one of the categories eligible for preferential import quotas committed by EVFTA.
According to Mr. Nguyen Van Thanh, Director of Phuoc Thanh Product and Trading limited liability company since Vietnam previously exported rice to the EU with small and negligible production, the importer has not issued official standards. Now the implementation of the EVFTA is committed, it is common sense for the importing country to issue import standards, which is similar to fishery products.
From technical requirements: “Vietnam now has a lot of businesses eligible to export agricultural products to both Japan and the US. These are the two markets are considered the most difficult. The problem that exporters need to be supported by functional agencies is to promote brand promotion and guide procedures and procedures to facilitate exports to this market because this is a new market for many businesses’ rice industry, ” Mr. Thanh proposed.
Via Tai Chinh Magazine