China has recently imposed a number of stringent requirements on goods imported from Vietnam, which requires Vietnamese farmers and businesses to improve their product quality during the entire production process before sending goods to export.
According to statistics from the General Statistics Office (GSO), over the previous 8 months, China has become Vietnam’s second largest export markets behind the US at US$23.4 billion, up 25.2%. China’s stable imports from Vietnam include rice, cassava, rubber, seafood, fruit and vegetables.
High requirements on the quality of products
According to the Ministry of Industry and Trade, Vietnam and China have built and refined legal corridors to spur socio-economic development and trade activities at border areas, and keep up growth targets on import and export revenue.
However, there are a number of challenges for Vietnam’s exports to the giant market as its exports are still conducted via unofficial channels, which pose more underlying risks, hinder access to market information and regulations, and go into tougher competition with Chinese companies.
For the reasons, Vietnamese businesses have failed to manage trade activities resulting in strong fluctuations in prices. Despite having regular trade exchange with China, Vietnamese businesses gain very little information about this vast market due to their poor ability to catch up with market information.
The new regulations on product quality imposed by China have set out higher requirements, particularly on farm produce imported from Vietnam.
In addition to these new regulations, China has raised its quarantine barriers on imported products, tightened controls on food safety and hygiene
At a working session with a Chinese business delegation, Le Hoang Tai, deputy head of the Trade Promotion Agency under the Ministry of Industry and Trade said China has now become a fastidious market that has imposed stricter requirements on the origins and quality of products. Consequently, Vietnamese businesses need to gradually change methods of production and business in order to meet the regulations set by import markets.
To establish Vietnamese brands in the Chinese market, local products should be able to meet new requirements such as providing information on cultivation process, have the correct packaging, and be prepared for products to be quarantined.
Besides, Vietnamese businesses have been advised to apply VietGap and GlobalGap production models with priority given to product labeling using Chinese language and clear product specifications
Giving a boost to trade promotion
According to The Ministry of Industry and Trade underlined the need to further enhance trade between the two nations through trade offices at a number of Chinese locations specifically Kunming, Nanning, Guangzhou, Chongking, and Hangzhou and annual trade fairs that are the effective way to assist Vietnamese businesses in bringing their goods to China.
Over recent years, the northern mountainous province of Lao Cai has carried out a host of measures to boost trade exchanges and to facilitate import-export activities.
Under the memorandum of understanding (MoU) on farm produce consumption between Vietnam and China signed since 2013, Lao Cai province has coordinated with relevant agencies in Yunnan province to allow four types of Vietnamese fresh fruit, including dragon fruit, banana, water melon, and lychee enter Kunming via the Kim Thanh border gate.
Both sides have considered bringing more Vietnamese agricultural products that enjoy preference for exports to the Chinese market via Lao Cai province, including longans, jackfruit, rambutan and mango.
A Hakou district representative from Yunnan province said that China attaches great importance to trade ties with Vietnam. In 2017, Hekou improted 6.42 million tons of goods from Vietnam with a value of US$2.4 billion.
During the nine-month period, Vietnam exported 600,000 tons of fresh dragon fruit to China through the Hekou border gate. To facilitate the activities of Vietnamese businesses, Hekou is building a cross-border economic cooperation zone with the hope that both countries will be able to further develop the zone and sign trade deals soon.