Vietnam's agricultural sector, accounting for 73.3% of the economy, prioritizes exports. The US and Europe remain primary markets, with shares of 21.7% and 11.3% respectively by 2024. Tran Tuan Minh from the Vietnam-ASEAN Trade and Investment Promotion Centre highlights tariff barriers such as import taxes, quotas, and preferential tariffs. In the US, Vietnamese coffee faces no import tax, cashew nuts benefit from zero tax, while fresh fruits and vegetables like mango face 5-15% tariffs. Honey encounters anti-dumping taxes between 58-61%. Notably, no Vietnamese agro-products face US self-defense taxes.
The EU's tariff system has evolved post-EU-Vietnam Free Trade Agreement (EVFTA) in 2020, requiring compliance with origin rules, food safety, and quarantine standards. Trade policy impacts the sustainability of Vietnamese agro-exporters, with low export values affecting domestic producers. However, stringent US standards necessitate quality improvements, facilitating market access to the EU, Japan, and Canada. Tariffs incentivize investment in processing technology and sustainable farming, enhancing competitiveness and attracting international investors.
US requirements push Vietnamese enterprises towards transparent supply chains and sustainable practices. Tariff barriers also encourage trade negotiations, potentially leading to future reductions. The EVFTA notably reduces EU import tariffs on Vietnamese products, boosting competitiveness and offering market expansion opportunities. It also spurs agricultural investment, allowing enterprises to innovate and improve quality. Despite benefits, challenges persist with competition, origin rules, and technical barriers increasing costs. EU trade defense measures, such as anti-dumping duties, may impact Vietnamese businesses.
Vietnam aims to enhance export efficiency through trade negotiations and bilateral agreements. Balancing trade with the US and EU, diversifying markets, and focusing on value-added products are key strategies to mitigate tariff impacts.
Source: Vietnam Investment Review