Exporting goods to the EU: Conquering the market with quality

The Vietnam – EU Free Trade Agreement (EVFTA) is opening up prospects for Vietnamese goods to enter the world’s most difficult market.
However, in order to penetrate deeply and dominate the EU market, Vietnamese enterprises must put product quality on top, considering this as the key to realizing the opportunities that the big playground of EVFTA brings.

Impressive export growth
Since the EVFTA officially took effect (August 1, 2020), Vietnam’s export turnover to the EU market has achieved impressive results. According to statistics of the Ministry of Industry and Trade, by the end of December 2020, Vietnam’s export turnover to the EU market reached 15.62 billion USD, up 3.8% over the same period in 2019; the average export value per month is about 3.12 billion USD / month. Loading and unloading area for export at Dinh Vu port, Hai Phong. Photo: Victory In the first 2 months of 2021, Vietnam’s exports to the EU reached US $ 6.3 billion, an increase of 22.7% over the same period last year. Although the EU is a difficult market, Vietnamese enterprises quickly approached and took advantage of EVFTA’s opportunities, resulting in a trade surplus in the first 2 months of the year with the EU market being 4 billion USD, up 36.3% over the same period. period 2020. The items with the highest export growth to the EU include: Rubber products; computers, electronic products and components; iron and Steel; seafood, vegetables, rice … For example, rice, after EVFTA officially came into effect, some rice exporting enterprises signed fragrant rice export orders with higher value to the EU, even having shipments for the first time. are exported for over 1,000 USD / ton. This has spread a positive signal to Vietnam’s rice export situation in both volume and price. Along with rice, a series of shipments exported to the EU market have enjoyed 0% tax rate as committed in EVFTA such as passion fruit, tiger shrimp, pomelo, dragon fruit, suitcase, bag, shoes … seafood products have recorded significant export growth to the EU thanks to the impact of EVFTA earlier this year. Seafood export value in the first 2 months of 2021 reached USD 1.01 billion, an increase of 0.7% over the same period in 2020.
The Director of the Export and Import Department (Ministry of Industry and Trade) Tran Thanh Hai said that the growth figures of exports to the EU are evidences for the efficient exploitation of markets under EVFTA by enterprises. This is also a remarkable result of the industry and trade in promoting propaganda about EVFTA and guiding businesses to take advantage of incentives through the following channels: Free Trade Agreement (FTA Portal), internet , Facebook… In addition, the foreign trade system has captured market information and arising issues affecting Vietnam’s exports such as changes in importing countries’ policies, technical barriers, timely timely information for ministries, branches, associations and businesses to respond promptly.
Adhere to high standards of “rules of the game”
Experts say that EVFTA’s challenges have been creating reasonable pressure for Vietnamese enterprises to adjust and change their production methods and improve their competitiveness. In fact, over the past time, many businesses have made efforts to change, have preparedness, invest in new equipment to process and produce products in accordance with the requirements of the EU market.
For agricultural products, up to now, Vietnam has 39 sets of geographical indications that are recognized for protection in the EU without going through registration procedures, providing great opportunities for businesses and farmers in Vietnam. . This not only ensures the benefits for Vietnamese agricultural products, which have been in this market for a long time, but also opens up opportunities for many new agricultural products to access the market. In addition, many Vietnamese enterprises have the capacity to meet the requirements of EU importers for agricultural products and foodstuffs when more than 6,335 hectares of fruit have been applied VietGAP / GlobalGAP and have been issued with regional codes. Planting meets export standards; more than 5,000 hectares of aquaculture farms were recognized to apply VietGAP / GlobalGAP; 100% of export basa fish farms were issued with a code of origin; 100% of fishing boats commit to say no to illegal fishing …
For the textile and garment industry, enterprises have focused on new investment in yarn production – fabric weaving accounts for a high rate of localization. Many raw material production areas have been opened with an exceptionally large scale, including domestic and foreign enterprises such as: Thien Nam Yarn, Yarn – Nam Dinh Fabrics, Phu Bai Yarn, Yarn – Textile 8/3, Yarn Texhong … Besides, businesses also gradually shifted to import raw materials to markets with trade agreements with the EU, meeting the requirements of cumulative rules of origin that EVFTA offers such as Korea or Japan.
In other industries, businesses are also actively exploring to meet the conditions of origin certification (C / O) to take advantage of incentives and are constantly improving the quality of products and designs. , label packaging as well as focus on information traceability to develop products in the EU market right after EVFTA comes into effect.
Quality is the decisive factor
According to a survey by the Vietnam Chamber of Commerce and Industry (VCCI), in fact, not many businesses can catch up with the standards of this world’s most difficult market. Therefore, in the long term, businesses that want to access this market are forced to continue to change to meet the standards that the EU has specified. “Instead of trying to increase output and compete on prices, Vietnamese businesses need to improve their ability to meet market standards through technology investment, product quality control and improvement; upgrade the foundation of competitiveness in terms of business model, strategy, management, human resources, quality of goods and services according to EU standards ”- VCCI Chairman Vu Tien Loc recommended.
Offering recommendations for exporting enterprises, economist Nguyen Tri Hieu said that businesses must constantly improve product quality. Because European consumers do not care much about the price of the product, but focus on the quality of the product. In particular, the export consignments must ensure uniform quality, if not well maintained, enterprises will only step into the initial EU market, but it is difficult to compete and dominate this market in the long term. . “The tariff incentive is only an advantage for Vietnam to open the door to the EU, but it is difficult to keep market share in this difficult market if EU consumers do not see a quality advantage. Import tax reduction under EVFTA is not as important as whether Vietnamese products brought to the EU can be sold or not ”- Dr. Nguyen Tri Hieu emphasized.
Many experts and managers also believe that, to realize the great opportunities that EVFTA brings, businesses need to firmly, fully and accurately grasp the commitments in EVFTA related to the field and business activities. From that, they have the foundation, the basis for action, prepare resources, develop and implement business plans to exploit EVFTA’s advantages most effectively. According to the forecast of the Ministry of Industry and Trade, in 2021, Vietnam’s exports to the EU will grow positively in the context that the Covid-19 epidemic is expected to be better controlled, and measures to limit gradually. relax and EU economy is likely to gradually recover. This will be an important foundation for Vietnamese enterprises to take advantage of commitments in EVFTA more effectively and gradually dominate the EU market. “In order to protect Vietnam’s export industries from the risks of lawsuits against evasion of trade remedies, the Ministry of Industry and Trade continues to take measures against origin fraud. , enhancing post-inspection; proactively coordinating with competent agencies of the importing country in case verification of origin is required in order to detect and strictly handle cases of counterfeiting the origin of Vietnamese goods. ” – Deputy Minister of Industry and Trade Tran Quoc Khanh “In the coming time, Vietnamese enterprises must learn and grasp information about the EU market, from consumer tastes to regulations and standards of rules of origin, food safety and hygiene. … in order to improve the quality of goods, conquer the market. In addition, build sustainable chains from production to consumption to easily apply technology to production to speed up the quantity. , export product quality control. ” – Chairman of Vietnam Association of Small and Medium Enterprises (VINASME) Nguyen Van Than