Vietnamese enterprises need to put quality criteria first when exporting

DNHN - In the EU-Vietnam Free Trade Agreement (EVFTA), the EU has committed to opening up 94% of the total 547 tax lines for vegetables and fruit and vegetable products to Vietnamese imports.

As soon as the Agreement goes into effect, many products that are Vietnam's strengths, such as lychee, longan, rambutan, dragon fruit, pineapple, and melon, will be removed. This has created a significant price advantage for Vietnam's vegetables and fruits, particularly in competition for EU imports with Thailand, China, Malaysia, and Indonesia, which have strengths in fruit and vegetables but no FTA with the EU. PV Enterprise and Integration conducted a brief interview on this topic with Mr. Marko Walde, the Chief Representative of the German Chamber of Commerce and Industry in Vietnam.

The European Union is one of Vietnam's largest export markets for agricultural products. The EVFTA Agreement, which went into effect on August 1, 2020, is viewed as an opportunity for Vietnamese agricultural products to integrate more deeply into large markets, but also as a challenge requiring manufacturing and exporting enterprises to undergo radical transformations. This "difficult" market necessitates a firmer export base for sustained growth. How do you assess the trade relationship between the two nations, the import-export market in Germany, and the potential of this market in Vietnam?

Mr. Marko Walde: Even the import-export aspect of German-Vietnamese trade relations, in my opinion, is excellent and moving in a very positive direction. In recent months, we have observed an increase in the number of German companies investing in Vietnam, and since the Free Trade Agreement went into effect in August 2020, the total import-export volume has increased. Likewise, the two countries grow annually.

In light of the current state of affairs, what factors do you believe Vietnamese businesses must consider when exporting to Germany and Europe?

Mr. Marko Walde: Vietnamese businesses must, in my opinion, focus on gaining a thorough understanding of the market and the current needs of German consumers. The second step is to understand the German and European technical and quality standards. You must also learn about European distribution channels, specifically how businesses can export to Germany most efficiently and sustainably. These are important factors and the strategy employed by Vietnamese businesses when exporting to Europe and Germany. Moreover, in addition to these methods, a free trade agreement between the EU and Vietnam provides Vietnamese businesses with several advantages that increase the competitiveness of Vietnamese export businesses. German consumers are familiar with the green and clean consumption trend of Germans and Europeans, particularly fresh fruit and vegetable products from Vietnam.

Can you elaborate on how export businesses can increase their competitiveness?

Mr. Marko Walde: Through international exhibitions, businesses that wish to export to the German and European markets must acquire knowledge, collect data, and evaluate market information. Learn more about the market and consumer preferences to find partners, and you can learn more about the techniques and technologies used in the industry for production. And the most important aspect is to prioritize technical and quality criteria.

Thank you for contributing

Uyen Nhi (Performed)