Agriculture, forestry and fisheries exports to EU rising under FTA

The export turnover of Vietnamese agriculture, forestry, and fisheries products to Europe increased sharply in 2021, from $3.7 billion in 2020 to $5.59 billion; a 51 per cent increase and a major achievement due to the EU-Vietnam Free Trade Agreement (EUVFTA) coming into effect in August 2020.

2021 export turnover of main agricultural products to the EU stood at $2.45 billion, while the export of forestry and fisheries products totaled more than $2 billion.

Rice is one product where the EUVFTA is being put to good use. Prior to it taking effect, Vietnam’s rice exports to the EU were subject to a 45 per cent tax or even 100 per cent or higher in some countries.

However, under the FTA, rice exports are subject to a 0 per cent tax rate with a quota of 80,000 tons per year, and broken rice will be completely liberalized after five years.

According to the Agency of Foreign Trade at the Ministry of Industry and Trade, Vietnamese enterprises are gradually taking advantage of the incentives in the agreement. In the first eleven months of last year, rice exports to the EU reached some 54,000 tons worth $38 million, up 0.8 per cent in volume and 21.6 per cent in value over the same period of 2020.

Thanks to the EUVFTA, other spearhead products of Vietnam, such as coffee, cashew nuts, rubber, synthetic rubber products, fruit and vegetables, and pepper are also subject to favorable tariffs and thus grew in export turnover and/or volume.