Insight:
- The EU maintains a 20% inspection rate on Vietnam’s instant noodles while easing some controls.
- Inspection rates increase for dragon fruit, chili, okra, and durian with stricter requirements.
- Vietnam must meet updated EU standards in MRLs, food safety, and traceability to sustain exports.
Latest EU regulations on agricultural imports
As of July 2nd, the European Union (EU) has issued a new regulation, Commission Implementing Regulation 2024/1662, which exempts Vietnamese instant noodles from specific food safety checks. However, these products will still be subject to random inspections at EU border checkpoints at a rate of 20%.
This latest regulation updates the previous Implementing Regulation (EU) 2019/1793, which had temporarily increased official controls and emergency measures for imports of certain goods from specific third countries. These measures were based on Regulations (EU) 2017/625 and (EC) No 178/2002 of the European Parliament and of the Council.
Additionally, the EU has made adjustments to inspection requirements for other Vietnamese agricultural products:
- Dragon fruit: The inspection frequency for dragon fruit at border checkpoints has been increased from 20% to 30%. This adjustment reflects heightened scrutiny to ensure that imported dragon fruit meets all required safety and quality standards.
- Chili peppers: The inspection frequency for chili peppers, which is outlined in Annex I, remains at 50%. However, there is now an added requirement for additional safety certificates and pesticide residue test results.
- Okra: The inspection frequency for okra continues at 50%, consistent with previous standards.
- Durian: The inspection frequency for durian remains unchanged at 10%. This stable inspection rate reflects ongoing confidence in the current procedures for monitoring the safety and quality of durian imports.
Note: During a transitional period, Vietnamese chili peppers shipped before the new EU regulation (EU 2024/1662) came into effect can still enter the EU until September 2, 2024, without the need for sampling, analysis results, or the official certificates specified in Articles 10 and 11.
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Monitoring food safety regulations for Vietnamese exporting businesses
According to Mr. Ngo Xuan Nam, Deputy Director of the Department of Plant and Animal Health Safety Information and Investigation (SPS Office), accelerating exports to the EU requires strict adherence to local regulations, specifically including:
- Enterprise registration: Ensure that your business is officially registered with the appropriate authorities, complying with all necessary legal and administrative requirements for operation and export activities.
- Maximum residue levels (MRL) for plant-based products: Adhere to the EU regulations on the maximum allowable levels of pesticide residues in plant-based products to ensure safety and compliance with import standards.
- Antibiotic residues for animal-based products: Maintain strict controls on antibiotic residues in animal-based products to meet EU standards and ensure that all products are safe for consumption.
- Food additives: Comply with EU regulations regarding the use of food additives, ensuring that all additives used in your products are approved and meet safety standards.
- Materials in contact with food: Ensure that all materials that come into contact with food products, such as packaging and processing equipment, are safe and compliant with EU regulations.
- Mixed Products: Follow EU guidelines for mixed products, ensuring that all components meet safety standards and are properly documented and labeled.
- Disease-free zones: Operate within designated disease-free zones to prevent contamination and ensure that all products are produced in environments that meet health and safety standards.
- Food safety assurance: Implement robust food safety management systems to ensure that all products meet EU food safety requirements throughout the production and supply chain.
- Traceability for processing facilities: Maintain comprehensive traceability for all processing facilities, allowing for clear tracking of products from origin through production to final export.
- Illegal, unreported, and unregulated (IUU) fishing: Comply with regulations concerning IUU fishing to ensure that all seafood products are sourced from legal and sustainable fisheries.
- EU deforestation regulation (EUDR): Adhere to the EU’s regulations on deforestation to ensure that products are not linked to deforestation practices and are sourced sustainably.
- Other relevant regulations: Stay informed about and comply with any other EU regulations that may impact your products and their export, ensuring comprehensive compliance with all applicable standards.
Support from the SPS Vietnam office
The SPS Vietnam Office plays a crucial role in keeping government agencies, local authorities, and industry associations informed about updates and changes in EU regulations. By providing timely and detailed notifications, the office ensures that Vietnamese businesses are well-prepared to adjust their production processes, enhance their quality control systems, and maintain compliance with the stringent requirements of the EU market.
According to the Deputy Director of the SPS Vietnam Office, the office processes and disseminates an average of 100 notifications and draft regulations related to SPS (Sanitary and Phytosanitary) measures each month. These updates include critical information on proposed amendments to maximum residue limits (MRLs) for pesticides and veterinary drugs, the classification and treatment of quarantine objects, and regulations governing materials used in products. The proactive distribution of this information is essential for helping businesses navigate complex regulatory landscapes, minimize risks, and sustain their competitiveness in the global marketplace, especially within the highly regulated EU market.
Recommendations from the Ministry of Industry and Trade on agricultural exports
According to the Vietnam Institute for Trade and Industry (VIOIT), developing Vietnam’s agricultural products with a focus on quality standards and food safety, based on the EU’s stringent criteria, is crucial. Vietnam’s Resolution No. 52/NQCP calls for domestic enterprises to modernize and sustain agriculture, produce large quantities of goods, apply science and technology, and foster innovation to enhance productivity, quality, efficiency, and competitiveness, thereby improving the living standards of farmers and building modern, civilized rural areas.
To achieve this, Vietnamese enterprises should apply traceability technology in crop cultivation, production, and processing. Traceability enables consumers to trace product information upstream and understand every stage of processing and distribution. By adopting this technology, enterprises can better integrate into the international market and produce high-quality products.
The export potential of Vietnamese agricultural products to the EU market
The EU is a key export market for Vietnamese goods, particularly in agriculture and food. Key features of the European Union include:
- Member States: The European Union (EU) comprises 27 member countries, each contributing to a vast and unified market.
- Population: The EU is home to over 448 million people as of January 2023, making it one of the largest consumer markets globally, with a high demand for diverse goods and services.
- Economy: The EU boasts a strong and stable economy with a GDP per capita of €35,220 (approximately $37,813) in 2022, reflecting the region’s substantial purchasing power and economic resilience.
- Market Potential: The EU imports agricultural products worth approximately $160 billion annually, representing a significant opportunity for exporters, including those from Vietnam, to tap into a thriving market.
- Trade Relations: Vietnam’s agricultural exports are particularly well-positioned in the EU market, thanks to the EU-Vietnam Free Trade Agreement (EVFTA). Under this agreement, 94% of Vietnamese vegetables and fruits now benefit from zero tariffs, providing a competitive advantage and facilitating greater market access.
- Regulations: Despite the attractive opportunities, exporters must navigate the EU’s rigorous regulatory framework. The region is known for its stringent food safety and environmental standards, including strict requirements for maximum residue levels (MRL) for pesticides. Compliance with these regulations is essential for exporters looking to maintain market access and build long-term trading relationships in the EU.
Hình ảnh: Export opportunities for Vietnamese agricultural products in the EU market
According to the latest data from VIOIT, Vietnam’s agricultural exports to the EU have reached approximately $5.5 billion annually, accounting for 15% of Vietnam’s total agricultural exports. Following China and the United States, the EU is Vietnam’s third-largest export market. Despite the growing bilateral trade, Vietnamese products currently account for only about 4% of the EU’s agricultural imports, which are valued at approximately $160 billion annually.
This presents significant potential for Vietnamese agricultural exporters. Since the EU-Vietnam Free Trade Agreement (EVFTA) came into effect on August 1, 2020, the EU has eliminated tariffs on 94% of the 547 tariff lines for fresh and processed fruits and vegetables from Vietnam. This has given Vietnamese exports a competitive advantage over neighboring countries like Thailand and China, which do not have free trade agreements with the EU.
Conclusion
The European Union (EU) represents a vast and promising market for Vietnamese agricultural exports, offering significant growth opportunities. However, the stringent import regulations and high standards imposed by the EU present notable challenges for Vietnamese exporters. These requirements, though demanding, also serve as an incentive for businesses to enhance their product quality, safety measures, and overall competitiveness. Implementing the EU-Vietnam Free Trade Agreement (EVFTA) has opened doors for easier access to the EU market, granting Vietnamese products more favorable tariff conditions. Nonetheless, exporters must rigorously adhere to the EU’s detailed and complex standards to fully capitalize on these opportunities.
To assist Vietnamese businesses in navigating these challenges, SourceVietnam.com provides an extensive B2B platform tailored to support their export needs. The platform offers various tools and resources designed to help businesses connect with international buyers, optimize their export processes, and maximize profitability. By utilizing SourceVietnam.com, Vietnamese enterprises can streamline operations, reduce compliance risks, and enhance their presence in the global market, ultimately boosting their revenue potential and ensuring sustainable growth in the competitive EU marketplace.
