Export harmonised tariff customs code

Rice for export being stockpiled at SongHau Food Company in Can Tho City. — VNA/VNS Photo Van Lanh

High hopes are pinned on Viet Nam’s rice exports in 2021 when major export markets such as the Philippines and Africa continue to sign contracts to buy rice from Viet Nam, while many others have great demand for fragrant rice and sticky rice – which are advantageous staples of Vietnamese enterprises.

The bilateral and multilateral free trade agreements between Viet Nam and other countries such as the EU-Viet Nam and the UK-Viet Nam FTAs with preferential tariffs would create favourable conditions for Vietnamese rice to compete with that from rival countries, the Viet Nam Food Association said.

According to the Vietnamese Trade Counsellor in the UK Nguyen Canh Cuong, rice shipments to the country this year will sharply rise against 2020. He added more UK firms will purchase Vietnamese rice under the UK-Viet Nam FTA, creating a chance for Vietnamese rice to expand its market share in the UK this year.

In 2019, rice exports from Viet Nam to the UK had a leap forward with a turnover growth of 376 per cent. That meant the UK has great potential as a rice export market for Viet Nam.

In order to tap into the advantages under FTAs, rice export giants such as Intimex JSC, Loc Troi Group, VRICE Co, Trung An High Technology Agriculture JSC are planning to seek new customers in markets where Viet Nam had signed FTAs, especially in the UK, baotintuc.vn reported.

The Ministry of Industry and Trade said it would provide rice export firms with information about the market demand situation in a timely manner while implementing trade promotion activities to help Vietnamese rice exporters better access customers.

Detailed information about the regulations and barriers under these FTAs’ commitments will be also offered by the ministry ​​so that businesses can improve their understanding and draw up suitable business plans.

As part of its efforts to facilitate Viet Nam’s rice exports, the VAF has built up online sales channel and participated in online trade seminars to develop the rice industry.

It suggested rice exporters focus on high quality products with good export results, ensuring food hygiene and safety to be able to enter fastidious markets such as Europe, America and Canada.

Experts have said that if Viet Nam wants to maintain rice export growth in 2021 it needs to focus on building a complete rice value chain and controlling quality in production, processing, and distribution.

According to the Ministry of Agriculture and Rural Development, Viet Nam’s rice output totalled 42.8 million tonnes in 2020, down about 0.2 per cent because of the shrinkage of some 192,000 hectares in farming areas. However, the productivity rose 50kg per hectare from a year earlier.

The areas of high-grade rice varieties have expanded to 74 per cent, compared to 50 per cent in 2015, as a result of the country’s efforts in improving the value of the Vietnamese rice.

Thanks to that, the shipments of high-grade rice made up more than 85 per cent of the total, resulting in the growth of average rice price from US$440 per tonne in 2019 to $496 per tonne in 2020.

The country exported 6.15 tonnes of rice for $3.07 billion last year, down 3.5 per cent in volume but up 9.3 per cent in value year-on-year.

The Philippines was Viet Nam’s leading rice importer, making up 34 per cent of the total. Rice exports to this market in 2020 reached 2.22 million tonnes and $1.06 billion, up 4 per cent in volume and 19.3 per cent in value compared to 2019.

Other outlets with significant export growth in 2020 were Indonesia, (nearly triple 2019’s figure) and China, up 93 per cent year-on-year.

Vice chairman of the VFA, Do Ha Nam described 2020 as a successful year for Viet Nam’s rice exports, which he attributed to increasing demand in many countries and the improved competitiveness of Vietnamese rice around the world.

Amid the difficulties posed by the ongoing COVID-19 pandemic, rice exporters quickly made appropriate adjustments and actively sought new markets while fully tapping into the advantages brought about by FTAs.

The EU-Viet Nam FTA had created a major opportunity for Vietnamese rice to enter European markets and then make inroads into other choosy markets, Nam said. — VNS

The Hanoitimes – The subsidiary of the Vietnamese shrimp manufacturer, MSeafood, has not violated the US trade law.

The US Customs and Border Protection (CBP) has canceled anti-dumping duties on the Vietnamese Minh Phu Seafood Corporation’s frozen shrimp for export to the US.

Local people are working at a factory of Minh Phu Seafood Corporation. Photo: VGP

The CBP under the Enforce and Protect Act (EAPA) concluded on October 13, 2020 that Minh Phu violated the US commercial law by using frozen warm water shrimp imported from India to avoid dumping tax. In addition, the company did not provide sufficient evidence as required to prove that it did not import India’s shrimps for transshipping to the US. Therefore, Minh Phu’s shrimp exported to the US will be subject to an anti-dumping tax of 10% after the CBP’s eight-month investigation.

However, according to Minh Phu, the CBP’s decision does not base on conclusive proofs. Therefore, the company filed an appeal against it.

Previously, the Vietnamese seafood group actively cooperated and invited the CBP to Vietnam for an investigation, which was not materialized, leading to its inaccurate conclusion on the company’s traceability system on imported and domestic raw material shrimps.

From late July 2019, Minh Phu has stopped importing shrimps from India, as the material source in the country is sufficient for its production and processing activities.

Currently, the company has effectively operated a high-tech shrimp farming model in two farming areas in Kien Giang province and Loc An Commune in Dat Do district in Ba Ria-Vung Tau province with 600 hectares and 300 hectares, respectively.

Besides, the company has established a network to connect and supply shrimps throughout the Mekong Delta region.

Upbeat export prospects for 2021 (source: freepik.com)

According to the General Department of Vietnam Customs, the total value of import and export by February 15 reached $74.15 billion, up 31.1 per cent – equivalent to an increase of $17.58 billion in absolute numbers compared to the same period in 2020. In which, the total import and export value of foreign-invested enterprises (FIEs) reached $53.03 billion, up 39.6 per cent on-year, and the figure for domestic enterprises was $21.13 billion, up 13.6 per cent on-year. Vietnam also witnessed a trade surplus of $2.76 billion from the beginning of this year to February 15

Mobile phones and spare parts held the first position ($7.84 billion) in the group of key export items of Vietnam, followed by computers, other electronic products, and components ($5.5 billion), and machinery and equipment ($4.4 billion). The export turnover of industrial products is mainly brought by well-known groups such as Samsung, Panasonic, and Formosa.

Ho Chi Minh City still claimed the top position of the list of the 10 localities with the highest export and import values. Meanwhile, thanks to the heavy investment of Samsung, Thai Nguyen province ranked the second, followed by Binh Duong and Dong Nai provinces, an industrial hub in southern Vietnam as the third and fourth position.

All well-performing provinces reported that although the COVID-19 pandemic has affected a number of industries, the industrial production value in February was still high compared to the same period last year. Some main industrial products have seen high output over the same period such as computers, electronic products, and components, packaging, clinker consumption, animal feed, apparel, and frozen seafood

According to the Ministry of Industry and Trade (MoIT), Vietnam has risen to become one of the leading countries with high global competitiveness. The country has formed a number of key industries for the economy in the form of oil and gas exploitation and processing; electronics, telecommunications, and IT; metallurgy, iron and steel; and textiles, garments, and footwear, which have created an important foundation for long-term growth, as well as promote the modernisation and industrialisation of the country.

Meanwhile, the country’s export of agro-forestry-fishery products has also encouraged bright spots despite the pandemic.

Tran Thanh Hai, deputy director of the MoIT’s Agency of Foreign Trade, said that achieving good export results in the context of COVID-19 has been possible partly because of free trade agreements (FTAs) and businesses making good use of them.

For instance, in 2020, the number of preferential C/O sets granted saw an increase of 9 per cent on-year, showing that enterprises and exported goods from Vietnam are gradually improving the rate of using preferential tariffs in markets with FTAs.

According to Hai, Vietnamese exports to some traditional markets have faced inevitable difficulties, but exports still maintain positive growth due to enterprises have taken advantage of the opportunity to boost exports to alternative markets.

The key solution deployed to promote import and export in 2021 typically gives priority to export promotion activities and export markets that are recovering as well as expanding export markets, according to Hai. Other strategies include making the most of the FTAs, and grasping market information and early warning signs of arising problems affecting Vietnam’s exports such as changes in policies of importing countries, technical barriers, and payment risks.