Vietnam has many high-quality, diverse, and abundant agricultural products which may export to other countries. China is the second-largest consumer market for Vietnamese agricultural and aquatic products, following only the United States. However, exporting agricultural products to China is not accessible due to strict requirements regarding quality, safety, and source traceability. So, what challenges does Vietnamese agricultural product export to China face? What are the prospects for this industry in the global economic context and after the COVID-19 pandemic? Let's explore the following article by VICO Logistics.
1. Export Market of Vietnamese agricultural products to China
1.1 Update on the Export Situation of Vietnamese Goods to China
In 2022, the import-export situation of goods across the northern border between Vietnam and China faced many difficulties and congestion due to the impact of COVID-19. China implemented the "Zero COVID" policy and tightened disease control measures at border gates.
However, starting January 8, 2023, China lifted the "Zero COVID" policy and opened its borders for commercial activities. According to the announcement from the General Administration of Customs of China, Vietnamese goods exported to China no longer require COVID-19 testing from this date onwards. This has helped alleviate difficulties in cross-border import-export activities in the northern region and created better conditions for commodities like fresh seafood, fruits, and vegetables to be consumed in the Chinese market.
1.2 Key Agricultural Export Items to China
Major agricultural export items to China include vegetables, cashew nuts, black pepper, coffee, rubber, rice, sugarcane, wheat, corn, potatoes, and cassava. Vegetables have the highest export turnover, with over 2 billion USD per year.
Various types of fruits and vegetables are exported to China, including dragon fruit, lychee, longan, mango, banana, and jackfruit. Other fruits such as pomelo, coconut, passion fruit, pineapple, and durian have also been officially imported into China.
2. Global Economic Context and Prospects for Exporting Vietnamese Agricultural Products to China in the New Context
2.1 Identifying the Opportunity for Agricultural Product Export to China
Another opportunity for Vietnamese agricultural exports is that China's demand for importing agricultural products is increasing due to its large population, rising income, diversification of consumer needs, and improved quality of life.
Primarily influenced by the COVID-19 pandemic and food security issues, China has increased its imports of agricultural products to ensure a stable supply and price.
One of the most significant opportunities for Vietnamese agricultural product export to China is the Vietnam-China Free Trade Agreement (VCFTA) signed between the two countries in 2015, effective in 2016. According to this agreement, China committed to opening its market to 90% of Vietnamese agricultural products with preferential tariffs.
2.2 Favorable Factors for Agricultural Product Export to China
Vietnam and China are geographically close, sharing a border over 1,400 km long and having many international border gates. This helps reduce transportation costs and shorten delivery times for agricultural exports.
Both countries have a long-standing relationship with cultural, historical, and psychological ties, fostering trust and cooperation between businesses.
Vietnam has a variety of high-quality agricultural products that meet the requirements of the Chinese market. Vietnamese fruits are highly regarded for their taste, color, and nutritional value.
2.3 Challenges and Competitive Pressures in Agricultural Product Export
However, exporting Vietnamese agricultural products to China also faces challenges and competitive pressures:
China is a market with frequent fluctuations and changes in import-export management policies, depending on the time. This makes it difficult for Vietnamese businesses to forecast and plan their agricultural product exports.
China has increasing demands for imported agricultural products' quality, safety, and source traceability. Vietnamese businesses must enhance their production, processing, preservation, and quality control capabilities.
China also has a developed agriculture sector, producing many competitive agricultural products that rival those from Vietnam. Additionally, China imports agricultural products from other countries, such as Thailand, Indonesia, Malaysia, and India.
3. Standards for Exported Agricultural Products to China
To export agricultural products to China, the following requirements must be met:
• Have a plant quarantine certificate issued by the authorized agency.
• Comply with safety and quality regulations for exported agricultural products according to Chinese law (as per Orders 248 and 249 of China).
• Clearly label the goods when selling them on the market.
Furthermore, if the product has a quality certificate, it will be labeled as safe. The label must have relevant information in Chinese for all goods circulating in the Chinese market.
4. Considerations for Agricultural Product Transportation
To export agricultural products to China safely, efficiently, and cost-effectively, Vietnamese businesses should consider the following:
- Choose a transportation method suitable for the type of goods, delivery time, and cost.
- For perishable goods such as vegetables and seafood, land or rail transportation should be chosen to shorten transit time.
- For bulk goods with less time-sensitive deliveries like rice, rubber, and coffee, sea transportation is recommended to save costs. Select a reliable and experienced logistics service provider with expertise in exporting to China.
- Prepare all relevant documents for goods and transportation. These documents must be prepared correctly, stamped by authorized agencies, and notarized if necessary.
- Monitor the status of goods during transport to ensure they are not lost, damaged, or delayed. Any issues should be reported promptly for timely resolution. Ensure that your agricultural products meet the import and export regulations of both the importing and exporting countries to avoid unnecessary expenses due to a lack of updated information.
5. VICO Logistics and Solutions to Enhance Agricultural Product Exports
5.1 VICO Logistics - Professional Export Service
VICO Logistics is a reputable international transportation service provider in Indochina with over 30 years of history since its establishment. VICO specializes in diverse logistics services, including air and sea transportation.
With a skilled and dynamic team, VICO Logistics is ready to meet all customer needs in exporting agricultural products to China. VICO Logistics provides the following services:
• Domestic and international transportation
• Direct import-export consolidation
• Customs procedures completion
• Completion of import-export documents
• Warehouse solutions - E-commerce goods transportation
• Cargo insurance
5.2 Effective Export Proposals from VICO Logistics
To help customers export agricultural products to China efficiently, VICO Logistics suggests the following measures:
- Enhance the quality and safety of agricultural products: Implement good agricultural practices (GAP), use pesticides and fertilizers responsibly, and control raw materials and finished product quality.
- Diversify products and markets: Research Chinese consumer preferences and diversify product offerings accordingly. Expand markets to larger provinces and cities in China, not just focusing on border areas.
- Build a brand and promote products: Establish a brand for products by naming, designing a logo, creating a slogan, and using distinctive colors.
- Enhance cooperation with reliable import-export partners: Seek and collaborate with trustworthy partners in exporting agricultural products to China. Sign clear contracts with terms protecting the rights and interests of both parties.
- Choose a reliable logistics service provider and efficient transportation solutions to ensure timely and safe deliveries while saving costs.
6. The Role of VICO Logistics in Promoting Agricultural Product Exports to the Chinese Market in the New Context
6.1 Mission of VICO Logistics
Exporting agricultural products to China is an essential and potential industry for Vietnam. However, for successful export, Vietnamese businesses must overcome challenges and competitive pressures while seizing opportunities and favorable factors.
VICO Logistics will be a reliable partner for Vietnamese businesses in exporting agricultural products to China by providing consulting services, customs procedures, cargo transportation, and cargo insurance.
With its mission, VICO is committed to:
• Providing high-quality, low-risk, and efficient import-export services.
• Creating customer satisfaction and trust, delivering goods on time, and promptly addressing any issues.
• Keeping updated with market information, legal regulations, and the latest technology in the field of import-export.
• Contributing to sustainable development and social responsibility.
6.2 VICO Logistics - Reliable Freight Partner
If you are a Vietnamese business looking to export agricultural products to China, contact VICO Logistics for consultation and support. VICO Logistics will help you maximize time, costs, and efforts in import-export activities.
In this article, VICO has analyzed and explored the prospects for exporting Vietnamese agricultural products to China in the new context. Recognizing opportunities and challenges when entering the Chinese agricultural product market, VICO Logistics will continue to connect Vietnamese products to the international market.
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VICO LOGISTICS – Indochina Logistics Expert
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