Rice is loaded at Saigon Port in HCM City (Source: VNA) Hanoi (VNS/VNA) - The new trade agreement between Vietnam and theEuropean Union opens many doors for agriculture, according to experts.
Nguyen Do Anh Tuan, Director of the Department of International Cooperation,Ministry of Agriculture and Rural Development said the newly-ratifiedEU-Vietnam Free Trade Agreement (EVFTA) offers plenty of opportunities.
He said as the EU imports about 150 billion USD agricultural products each yearso the EVFTA would open up a potential market for the local export agriculturalproducts.
Tuan told a discussion hosted by the Government Electronic Portal on the EVFTAin Hanoi on February 14 that: “There is room for Vietnamese agriculturalproducts.”
Agreeing with Tuan, Chairman of Vietnam Chamber of Commerce and Industry (VCCI)Vu Tien Loc said: “The EU is a large market with the world's leading purchasingpowers and the EVFTA Agreement marks a new phase for Vietnam with favourableconditions for the local enterprises, including the agriculture firms, toincrease exports.”
However, Luong Hoang Thai, Director General of the Multilateral Trade PolicyDepartment, under the Ministry of Trade and Industry raised a number ofchallenges for the industry as the strict conditions from the EU market such asthe regulation of origin, quality and labour relating to the agricultureproduction.
Thai added: “Local livestock industry would face increasing competitivepressure from imported products from the EU.”
He thought the small scale of the husbandry would make farmers and locallivestock cooperatives fall behind imported products from EU.
As frozen pork meat would be duty-free after seven years, dairy products afterfive years, and processed food after seven years, and chicken after 10 years,Thai said: “Vietnam should take time to improve the local livestock.”
Currently the EU’s livestock products exported to Vietnam are subject totariffs of 10-40 percent. The reduction of import tariff on livestock productsfrom the EU will improve their penetration of the Vietnamese market and posesignificant competition to domestic products.
Thai added the country should apply further modern technology to ensure cleanproduction as well as avoid child labour in the production to improveagriculture production to better grasp the chance from the EVFTA./.
VNA
