The Fairtrade certification is recognized as a significant advantage for Vietnamese fruit and vegetable exporters aiming to leverage the United Kingdom – Việt Nam Free Trade Agreement (UKVFTA). This certification is pivotal in ensuring products are produced ethically, encompassing fair wages, safe working conditions, and environmental sustainability, including restricted use of hazardous chemicals and preservation of biodiversity.
Market analysis by YouGov indicates a strong preference among UK consumers for ethically produced goods, with 70% of adults purchasing Fairtrade products from overseas farmers and agricultural workers within the year. Further research by Fairtrade underscores the British public's support for equitable trade and stable income for farmers in developing nations, reflecting a broader concern for social issues among UK consumers.
The UKVFTA presents an opportunity for Vietnamese agricultural exports, with tariffs eliminated on key products such as lychee, rambutan, longan, dragon fruit, and mango. The preference of British consumers for Fairtrade-certified goods suggests a promising market for Vietnamese exports adhering to these standards. Achieving Fairtrade certification, however, demands compliance with rigorous environmental and labor standards, necessitating significant investment in manufacturing and workforce training.
Vietnamese products, including coconut and coffee, have already obtained Fairtrade certification, demonstrating the country's commitment to sustainable and ethical production. The UK, as Việt Nam's third-largest European export market, saw a 23.5% increase in Vietnamese exports, reaching over US$5 billion in the first eight months of 2024, highlighting the growing trade relationship facilitated by ethical certification standards.
Source: VietNamNews