Agricultural production exported to China –official quota for sustainability

China is the leading agricultural export market of Vietnam, but is no longer an "easy" one. In the context of the Covid-19 pandemic, China has increasingly tightened its conditions for importing goods in many angles. To take advantage of the opportunity from this billion-population market, Vietnamese agricultural products need to promote official exports, improve quality, and fully meet Chinese conditions.

China has been the most important market in Vietnam's agricultural, forestry and fishery exports. Photo: Nguyen Thanh

Opportunities are large, challenges are not small

According to the Ministry of Agriculture and Rural Development (MARD), in the agricultural sector, Vietnam and China have signed 13 documents to promote trade in agricultural products. Minister of Agriculture and Rural Development Nguyen XuanCuongsaid Vietnam exported products to China such asfood, industrial crops, tropical fruits and vegetables andaquatic products. In contrast, China exported to Vietnam items such as agricultural materials and equipment, temperate products and processed agricultural products.

In 2010 - 2019, the trade turnover of agriculture, forestry and fishery between Vietnam and China grew by an average of 15% per year, reaching US$15.7 billion in 2019. In the first 10 months of 2020, the Vietnam - China agricultural, forestry and fishery trade turnover still reached US$11.2 billion; in which, exports from Vietnam to China reached US$8.3 billion, imports reached US$2.9 billion.

The head of the agricultural sector saidthat from the beginning of the year until now, due to the impacts of the Covid-19 pandemic, many agricultural promotion activities were interrupted. However, the two sides had tried to strive through online meetings to overcome difficulties. For example, on December 8, the Ministry of Agriculture and Rural Development and General Department of Customs of China held an online meeting to sign the protocol on official export of black jelly to China.

China has opened the export market for 10 product groups of Vietnam (mango, litchi, longan, rambutan, watermelon, dragon fruit, jackfruit, mangosteen, banana andblack jelly). The two sides are trying to negotiate to promote Vietnam's agricultural products to be officially exported to the Chinese market in the order of priority for products that the two sides need to exchange. Specifically, in the immediate future, durian andsweet potatoes are being promoted to export through official channels to China. All dossiers have been completed, there only remains one step of field inspection, and however, due to the impact of Covid-19, the two parties will choose the appropriate form.

“In the context of the Covid-19 pandemic, the Vietnamese side asked the General Department of China Customs to consider flexibly applying the form of online or video inspection as the way of the swallow nest. Then, Vietnam asked the Chinese side to give priority to licensing pomelo and passion fruit products of Vietnam which have completed the application,”said Minister Nguyen XuanCuong.

The opportunity to promote agricultural exports to China is not small, but at present this is no longer an "easy" market. In fact, in the context of the continuing complexCovid-19 pandemic, a number of countries (including China) are increasing their control of imported food, including sampling for testing Covid-19. The Chinese authorities are also proposing to supplement the content of certification of effective application of anti-Covid-19 as well as online inspection of food safety conditions and measures against Covid-19of some Vietnam’s seafood processing enterprises that exports to China. In addition, in recent times, Chinese authorities have also warned a number of Vietnamese frozen shrimp shipments infected with white spot disease, necrosis disease under the shell and blood-forming organs and some food safety targets.

Setting up a hotline to remove shortcomings

Currently, the Ministry of Agriculture and Rural Development is trying to promote the official export of agricultural products to the Chinese market. In fact, inspection and supervision of the Chinese side to sign the protocol allowing some agricultural products to be officially exported to this market is being interrupted due to the Covid-19 pandemic.

Onthis, Minister Nguyen XuanCuong said: “Through discussions and exchanges, the Ministry of Agriculture and Rural Development and the General Department of Customs of China agreed that some products can be monitored online. However, some products require field monitoring, especially the crop industry. The two sides are very actively looking for appropriate solutions to ensure safety and promote trade in agricultural products early. In the real direction, the two sides agreed to set up a hotline, together to offer solutions to overcome the shortcomings in the agricultural trade among the two sides in a thorough and fastest way. We also agreed that, periodically, both sides should sit down, check what has been committed, and promptly remove difficulties with the desire to strongly promote agricultural trade.”

From the perspective of the industry, Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association said China was the main market for Vietnamese fruits, so it needed investment to meet requirements and avoid undeserved damages. To promote exports to this market, Vietnamese firmsand farmers need to improve the quality of agricultural products to meet the standards set by partners.

Looking broadly, the Chinese market in particular and other export markets in general are attaching importance to the issue of traceability. In this respect, Hoang Trung, Director of the Plant Protection Bureau (MARD) emphasised: “It must be said that most countries have regulations on traceability. As soon as the Vietnam - EU Free Trade Agreement (EVFTA) is signed, one of the mandatory regulations is that the cultivated products, especially vegetables and fruits, must have a growing area code when being exported to the EU. Currently, with the Chinese market and the ’fastidious’markets opening up, the bureau has issued nearly 2,000 codes of growing areas and about 1,800 packing facilities. The bureau is instructing and training localities to ensure that the allocation of growing area codes must comply with regulations ensure quality and meet export requirements, effectively prevent impersonation and use. Incorrect growing area codes happened over the past time.”

The "commander" of the agricultural sector Nguyen XuanCuong also said that currently, not only China but all markets had different requirements, standards and regulations forfood safety. If enterprises want to export agricultural products, they must ensure those standards. This is not a strict requirement but an inevitable requirement. To achieve this, it is necessary to continue restructuring the agricultural sector towards chain production, monitoring from input to processing and consumption; forming a link between enterprises, cooperatives, cooperative groups and production households into a large production area, with control andtraceability and access to international standards.