(TIỂU LUẬN) TOPIC international trade policies of vietnam on agriculture section during covid 19, on both exports and imports

FOREIGN TRADE UNIVERSITY DEPARTMENT OF INTERNATIONAL TRADE INTERNATIONAL TRADE POLICIES TOPIC: International Trade Policies of Vietnam on agriculture section during Covid-19, on both exports and imports Instructor: Mrs Nguyen Thu Hang Class ID: TMAE301(1+2.2/2021)CLC.1 Group members: Phạm Đức Trung Nguyễn Duy Minh Hiển Tơ Bình Phạm Nhật Huy 1911150567 1911150502 1911150709 1911150533 Hà Nội – 03/2021 TABLE OF CONTENTS I INTRODUCTION: II ABSTRACT: Brief overview of the agricultural commodity market in Vietnam in the preemergence period of COVID-19: .5 The impact of the epidemic on international trade in general: The impact of the epidemic on the international trade of agricultural commodities in Vietnam, on both importing and exporting section: .6 III THE POLICIES ON EXPORTING AGRICULTURAL GOODS IN 2020: Overview of the export situation in Vietnam in 2020: New important export promoting policies in the epidemic era: 12 The impact and effectiveness of exporting policies: 13 IV THE POLICIES ON IMPORTING AGRICULTURAL GOODS IN 2020: 13 Overview of the export situation in Vietnam in 2020: 13 a Importing policies for agriculture products to serve medic purposes: 13 b Importing policies for agriculture products for food use: 14 New important import promoting policies in the epidemic era: 14 a Vietnam promotes agricultural imports from the United States: 15 b Vietnam promotes agricultural imports from China: .16 V The impact and effectiveness of the policies: 18 The impact and effectiveness of exporting policies: 18 The impact and effectiveness of importing policies: .18 Interaction of import and export policies with each other: 18 VI CONCLUSION: 20 Summary: 20 Existing difficulties: 21 Feasible approaches: 22 REFERENCES 23 I INTRODUCTION: The new COVID-19 pandemic has impacted all of humankind at an unimaginable scale However, depending on our position as people and as members of society, the pandemic's influence and effects are felt differently Although some people strive to adjust to working online and homeschooling their children, others are expected to be infected in order to keep society functioning Our various social identities and the social classes to which we belong determine our social inclusion and, as a result, our susceptibility to epidemics For the world, the food industry is one of the sectors most heavily affected, in the negative direction The pandemic has had an effect on the entire food system, exposing its vulnerability Farmers and agricultural workers have been unable to enter markets, including to buy inputs and sell their produce, due to border closures, trade barriers, and confinement measures, disrupting domestic and foreign food supply chains and limiting access to healthy, safe, and diverse diets The pandemic has wiped out jobs and put millions of people's livelihoods in jeopardy Millions of women and men's food security and nutrition are jeopardized as breadwinners lose employment, fall ill, and die, with those in low-income countries, especially the most vulnerable communities, such as small-scale farmers and indigenous peoples, being the hardest hit Although feeding the planet, millions of agricultural workers – both salaried and self-employed – face high levels of working poverty, malnutrition, and poor health, as well as a lack of safety and labor rights, as well as other acts of harm Many of them are compelled to continue working, often in hazardous conditions, due to low and unstable wages and a lack of social support, thus exposing themselves and their families to additional risks Furthermore, when faced with a loss of income, they can turn to negative coping strategies such as asset distress sales, payday loans, or child labor Providing better wages and insurance to all agri3 food staff – from primary producers to those involved in food manufacturing, transportation, and retail, including street food vendors – would be vital to saving lives and preserving public health, livelihoods, and food security With all these above obstacles, it is obvious that government must take action to support the agricultural industry As a group of students in the Economics department of the Foreign Trade University, we recognize the difficulties the global economy faces during the pandemic, as well as the challenges that international trade must confront, especially when it comes to agricultural trade Therefore, we are making this report with the aim of learning about the trade policies that the Vietnamese government has applied to the agricultural sector during this difficult time, on both the import and export section Not only that, this report will analyze the positive impact those policies have on, then give recommendations aligned with the future direction of the government The research will be built on the foundation of government information sources alongside the domestic and foreign economic magazines After collecting all the necessary information, we will make the following objective assessments: The policies on exporting agricultural goods in 2020, The policies on importing agricultural goods in 2020, in which we will study the policies by their direction, the highlighted policies, then, The impact and effectiveness of the policies to study about the effects of the policies and interaction between import and export section Finally, to the Conclusion, we will indicate the existing difficulties as well as offer solutions towards overcoming the obstacles brought by the epidemic Despite our best efforts at research and analysis on the subject, we are only able to address the issues on a very basic level due to time constraints and limited knowledge With limited information, there will be several flaws; the writers hope to receive Ms Nguyen Thu Hang's feedback in order to improve the following reports Our sincere appreciation II ABSTRACT: Brief overview of the agricultural commodity market in Vietnam in the pre-emergence period of COVID-19: According to the report delivered at the conference held by the Ministry of Agriculture and Rural Development in Hanoi on December 23 Despite difficulties and challenges such as the impacts of trade wars between major countries and African swine fever, Vietnam earned 41,3 billion USD from agricultural exports in 2019 which is an increase of 3.2 percent from 2018 The achievements are due to the sector’s prompt control of diseases in cattle and poultry production On the other hand, total import value of agri-forestry-fishery products declined by 1.6 percent to 30.9 billion USD in 2019, resulting in a trade surplus of 10.4 billion USD Vietnam agricultural commodity market in Vietnam in the pre-emergence period of COVID-19 was a huge potential market with an increasingly growing pace The impact of the epidemic on international trade in general: Import and export trends for some of the world’s major trading economies further illustrate how trade patterns changed during 2020 In the first half of 2020, all major economies experienced significant downturns in both imports and exports of goods, with even heavier declines in the trade of services Although improvements have been seen from lows earlier in the year, the value of trade remained lower for nearly all major economies in the third quarter of 2020 than in the same quarter of the previous year Growth of around per cent in Chinese goods exports was the exception to this trend In the fourth quarter of 2020, while trade in goods ameliorated substantially across many major economies, trade in services, in contrast, remained below averages Notably, exports of services from China, and to a lesser extent India, appear to have fared relatively better than other major economies throughout 2020 The impact of the epidemic on the international trade of agricultural commodities in Vietnam, on both importing and exporting section: According to World Bank (WB) senior advisor Hardwick Tchale, COVID-19 has broken many agricultural supply chains, rising food prices, including rice prices In some countries such as the sharp increase in food prices such as Argentina by 39%, Myanmar by 30% this is a great disadvantage for these countries but it is an opportunity for exporting countries food, agricultural products like Vietnam Despite a difficult year in the context of the COVID-19 pandemic, complicated developments of animal diseases, climate change, in 2020, the agriculture and rural development sector has achieved an impressive export turnover of USD 41.25 billion, an increase of 1.6% over 2019 On the afternoon of December 24, reporting to Prime Minister Nguyen Xuan Phuc at the Conference on reviewing work in 2020, implementing the plan for 2021, Minister of Agriculture and Rural Development Nguyen Xuan Cuong emphasized: “In the difficult situation, agriculture continues to assert itself as the pillar of the economy In terms of cultivation, the crop structure has changed more effectively Promoting intensive farming and the application of science and technology, especially for key crops Focusing on improving the plant variety structure, controlling and increasing the rate of using new and high quality varieties” The rice output in 2020 will reach 42.7 million tons, fully meeting the needs of domestic consumption, processing and use as animal feed and export The proportion of high-quality rice accounts for over 85% of export rice, raising the average export rice price from USD 440/ton in 2019 to USD 496/ton in 2020 “Vegetables and beans increase both in acreage and output The area of about 1.16 million hectares (ha); production reached 18.2 million tons, an increase of 458,000 tons compared to 2019 The area of fruit trees reached 1.1 million hectares, an increase of 40,000 hectares compared to 2019 "- Minister Nguyen Xuan Cuong said In terms of husbandry, there has been a clear change in production organization, farming on farms, family farms, focusing on chains, biosafety Meat output of all kinds reached about 5.37 million tons, an increase of 3.5% compared to 2019; fresh milk reached over 1.1 million tons, an increase of 12.9%; 14.15 billion eggs, an increase of 6.6% The seafood industry develops sustainably in both farming and capture production and is being restructured Total fisheries output reached over 8.4 million tons, an increase of 3.6% compared to 2019; of which over 3.84 million tons of catch, increased by 3.2%, over 4.56 million tons of farming, increased by 3.9% Regarding forestry, forest development continues to be concerned and directed by the Ministry and localities to promote planting, tending, zoning for regeneration of forests and improving the quality of planted forests The country has prepared nearly 850 million seedlings of all kinds for afforestation; newly concentrated planted forest area reached 220,000 ha, reaching the set plan The policy of payment for forest environment services is effective and plays an important role in forest protection and development In 2020, revenue from forest environmental services would reach VND 2,457.8 billion 10 17 b Importing policies for agriculture products for food use: According to Appendix III issued together with the Government's Decree No 15/2018 / ND-CP dated February 2, 2018, agricultural products / groups of agricultural and food products are under the management authority of the Ministry of Agriculture and Rural Development Accordingly, when carrying out procedures for importing these items for food purposes, enterprises must submit a notice of results confirming that the food meets the import requirements as prescribed in Article 19 of Decree No 15/2018 / ND- CP leads above The List of imported plant-derived foods subject to food safety inspection is specified in Appendix 12 of the Ministry of Agriculture and Development's Circular No 15/2018 / TT-BNNPTNT dated October 29, 2018 New important import promoting policies in the epidemic era: According to the report of the Ministry of Agriculture and Rural Development (Agriculture and Rural Development), in November, the export turnover of agricultural products is estimated at nearly 3.72 billion USD Coffee, rice, cashew nuts, vegetables, shrimp, wood and wood products, are Vietnam's agricultural products with a turnover of over $2 billion in 2020 Regarding the export market, for 11 months, the United States continued to hold the largest market share with an export turnover of about US $ 9.8 billion, an increase of 22.3% over the same period and accounting for about 26, 2% market share Next, is China, with an estimation of nearly 9.2 billion USD, down 6.6% over the same period and accounting for 24.6% market share; the EU market is 18 estimated at 3.44 billion USD, down by 0.3% and accounting for 9.2% market share These are the direct results coming from the changes in importing policies during the epidemic era, especially that to the USA and China - two nations who hold the most in Vietnamese market share a Vietnam promotes agricultural imports from the United States: In order to promote the export of US agricultural products to Vietnam, the Prime Minister has issued Decree No 57/2020 / ND-CP amending and supplementing a number of articles of Decree No 122/2016 / ND-CP dated September 1, 2016 of the Government on the Export Tariff, Preferential Import Tariff, List of goods and absolute tax rates, mixed tax, non-quota import duties and Decree No 125/2017 / ND-CP dated November 16, 2017 amending and supplementing a number of articles of Decree No 122/2016 / ND-CP Accordingly, tax reduction for groups of agricultural products such as wheat from 5% to 3%; fresh apples and grapes from 10% to 8%; almonds from 15% to 10%; walnuts from 10% to 8%; pork from 25% to 22%; dairy products have tax reductions depending on type At the same time, both sides are actively opening markets for products such as nuts, almonds, grapefruit from the United States to Vietnam and similarly, Vietnam has also offered to open the door to grapefruit from Vietnam into this market With the recommendations outside of the scope of the Ministry of Agriculture and Rural Development, the ministry will propose to ministries and branches how to get more preferential import tax from the United States as well as 19 the proposal from the Chinese side The period to review tax incentives or equivalent recognition for Vietnamese agricultural products such as shrimp to make the procedure more open Representatives of the US Trade Counselor in Vietnam highly appreciated the implementation of Vietnam's commitments Examples are some of the successful activities such as: opening the market for a number of US fruit products; quick review and approval of meat imports into Vietnam, especially in connection with US exporters; actively absorbing US comments on Vietnamese safety regulations The above success is the cooperative effort of the authorities between the two countries b Vietnam promotes agricultural imports from China: Regarding the market opening for agricultural products, China has granted export permits for nine items of vegetables and fruits Currently, both sides are completing the licensing procedures for black jelly products, it is necessary to continue to accelerate the signing of export licenses for this item; at the same time consider authorizing Vietnamese authorities to appraise dossiers, assess risks according to the market-opening protocols for durian, bird's nest, sweet potato, fishmeal in the year 2020 and continue to open the market for pomelo, passion fruit, avocado, custard apple, coconut, cardamom and pineapple Regarding the opening of the seafood market, China has granted export licenses to 137 seafood products and 750 seafood enterprises of Vietnam The Vietnamese side has sent dossiers to the China General Department of Customs to issue official export permits for frozen black tiger shrimp/tag, salted jellyfish, dried 20 sea cucumber, goby fish and request a direct exchange to supplement the profile for the above products as required; at the same time, to coordinate the use of ecertificates for Vietnam's export shipments to China and to exempt or reduce border re-inspection for shipments that already have electronic certificates On border trade, currently, in the context of the complicated epidemic situation, some localities on the Chinese side have strengthened the implementation of many measures to control the disease making it difficult for the customs clearance of exported goods in the border gate in Lang Son province In order to facilitate the import and export of agricultural products, the two sides agreed to establish a list of exporters under the "green channel" that enjoy the priority status of exemption from inspection for cassava flour, cashew nuts, and lobsters to reduce the clearance time through the border; unify a number of items of designated enterprises and recognize the quarantine results for Vietnam's exported goods; Actively coordinating the operation of the "priority channel" through customs clearance, extending the time for imported agricultural products from am to 22 hours (respectively am to 23 pm, Beijing time) through the door pair Kim Thanh (Lao Cai - Bac Son) road international border gate No II Regarding the development of border trade, the Ambassador is requested to discuss with the Ministry of Foreign Affairs, ministries, branches and two provinces of China's Guangxi and Yunnan to consider some proposals/recommendations: Temporary for air vehicles (container or small car of border residents) to the quarantine terminal at Tan Thanh border gate, Lang Son to load goods during the epidemic prevention period to settle Vietnam's inventory (the Vietnamese side will arrange for free mask fees and protective clothing for Chinese 21 drivers, labor arrangements and freeloading and unloading of goods ); Temporarily put into operation the road through landmark 1035 in the pair of Binh Nghi - Binh Nhi border gates during epidemic prevention Importing fruits, agricultural and aquatic products of Vietnam through the pair of bilateral Chi Ma (Vietnam) - Ai Diem (China) border gates; Expand the list of imported agricultural products at Dong Dang - Bang Tuong railway station like the international road border gate Restoring the import of seafood products through the Coc Nam - Lung Nghiu border gate pair on the basis of strict compliance with regulations on disease prevention 22 V The impact and effectiveness of the policies: The impact and effectiveness of exporting policies: The achievements in Vietnam's agricultural export development in 2020 have been achieved by the resilience of the Vietnamese government as well as appropriate sectoral development policies In addition, the EVFTA agreement has contributed a great part to the mission of exporting Vietnamese agricultural goods in 2020 when making the EU market the third country in export turnover, after China and the US The impact and effectiveness of importing policies: In months, the total import-export turnover of agricultural, forestry and fishery products was estimated at nearly 39.5 billion USD, of which exports were estimated at 22.3 billion USD, down 2.8% over the same period in 2019; import is estimated at 17.2 billion USD, down 4.6%; trade surplus was nearly 5.2 billion USD, up 3.8% as compared to the same period in 2019 Thanks to the import reduction measure, in 2020, despite the influence of COVID 19, Vietnam is still one of the export surplus countries in Southeast Asia, as well as with neighboring countries, such as Thailand, India, the Philippines Interaction of import and export policies with each other: In 2020, the total value of goods imported and exported of the whole country reached 545.36 billion USD, up 5.4% from the previous year In which the value of export goods reached 282.65 billion USD, up 7.0%, respectively increased by 18.39 billion USD and imports reached 262.70 billion USD, up 3.7%, respectively up 9, 31 billion USD 23 For the whole year 2020, the country's balance of trade in goods has a surplus of US $ 19.95 billion The General Department of Customs recorded the total import and export value of foreign direct investment (FDI) enterprises in the month reached 38.48 billion USD, up 9.6% from the previous month, bringing the value of import and export The export volume of FDI enterprises in 2020 will reach USD 371.90 billion, an increase of 11.8%, equivalent to an increase of USD 39.26 billion compared to 2019 In which, the export of goods of FDI enterprises in this month reached 20.44 billion USD, up 8.2% from the previous month, bringing the export value of this sector in 2020 to 202.89 billion USD increase 10.7% over the previous year In the opposite direction, the import value of FDI enterprises in December 2020 reached 18.04 billion USD, up 11.3% from the previous month, bringing the import value of this sector in 2020 to 169, USD billion, up 13.1% compared to 2019 The calculation of the General Department of Customs shows that the balance of trade in goods of FDI enterprises in December 2020 had a surplus of 2.4 billion USD, bringing the trade balance in 2020 to a surplus price 33.87 billion USD Success in increasing the export of key products, focusing on agricultural products of national strength, especially the remarkable rise of export of processed agricultural products together with import policies Wise import of raw materials has contributed to increasing the value of surplus from import and export of Vietnam in 2020 To achieve this success, tax control policies have operated effectively and greatly reduce the burden on domestic import-export enterprises, creating opportunities for foreign businesses to participate in the Vietnamese market 24 VI CONCLUSION: Summary: COVID-19 has undoubtedly become the highlight of 2020 and, probably, the 21st century up to the moment Mankind has witnessed ceaselessly unprecedented challenges in every aspect of life ever since the outbreak of this pandemic The world’s economy and trade have gone completely frozen under the impact of Covid-19, including developed countries such as the U.S and European countries being highly vulnerable Thus, over the past 12 months, the pandemic has harmed the developing and poor the most, and it is threatening to push millions more into poverty However, Vietnam has sparked the light of hope for the global economy’s development in the middle of this crisis In order to prevent any further damage causing by the epidemic, Vietnam’s government and authorities have timely implemented beneficial policies in various sectors, which highlight the International Trade Policies of Vietnam on agriculture section during Covid-19, on both exports and imports Indeed, while the world economy has experienced the worst recession since the Great Depression 1929 - 1933, Vietnam is still able to maintain its development with a number of agricultural goods exported at nearly 282.5 billion USD, up to 6.5% compared to 2019 This impressive turnover can be attributed to the impact of EVFTA (EU – VIETNAM trade and investment agreements) which has removed tariffs, simplified import and export procedures, and created a more accessible market in Europe for Vietnam’s exported agricultural goods Given the importing section, Vietnam’s government has carefully identified and clarified what kinds of agricultural goods should be imported based on primary purposes: medicine and food use And Vietnam has wisely reinforced promoting agricultural imports from foreign countries such as China and the United States It can be said that with resilience, timely action, and appropriate policies, 25 Vietnam has successfully survived the pandemic and become a bright spot in the international trade of agricultural goods on both exports and imports 26 Existing difficulties: Viet Nam’s deeper integration into the global economy, including through trade agreements such as the CPTPP and EU-Vietnam FTA, brings opportunities for the agricultural sector to expand and diversify exports and markets But these agreements also pose challenges, for example, increased competition from imports as agro-food tariffs are reduced and the require for domestic producers to meet stringent food hygiene, safety, and technical standards in export markets Water overuse is exacerbated by the low cost of water and increases the agricultural sector’s vulnerability to drought Further efforts are needed to improve the sector’s competitiveness and environmental sustainability Most of the easy sources of lifting production – expanding the agricultural land area and using higher rates of fertilizers – have been fully exploited, and negative environmental impacts are increasingly seen 27 Feasible approaches: Viet Nam’ authorities should open opportunities to adopt new technologies, create incentives for farm consolidation to increase the scale of production, and focus attention on improving quality To improve the allocation of scarce land resources, farm consolidation could be encouraged, including through various forms of co-operation between farmers, and restrictions on crop choice should be removed This can also help small-scale farming households connect to market opportunities and participate in value chains To improve the competitiveness and quality of Viet Nam’s rice exports, additional reforms could be considered to further ease restrictions on rice exporters, in particular, deregulating the export floor price The current system risks cuttingoff potentially profitable rice exports and creates uncertainty in engaging in export transactions if the minimum export price is likely to be changed Re-introducing a fee for irrigation services: a fee based on a per unit of water charge – rather than on area or crop type as previously applied – would encourage greater water use efficiency 28 REFERENCES VietnamPlus, 2019 Vietnam's agriculture sector surpasses many goals in 2019 [Online] Available at: https://en.vietnamplus.vn/vietnams-agriculture-sector-surpassesmany-goals-in-2019/165993.vnp [Accessed: March 6, 2021] United Nations, 2021 Global Trade Update [online] Available at: https://unctad.org/system/files/official-document/ditcinf2021d1_en.pdf [Accessed: March, 2021] Kylie Nguyen, 2020 [online] Available at: https://www.agribank.com.vn/en/ve-agribank/tin-tuc/dtl? current=true&urile=wcm:path:/agbanken/ve-agribank/news/agriculturalmarkets/the-agricultural-sector-achieved-a-record-export-turnover-of-usd41.25-billion [Accessed March 2021] LuatVietnam, 2020, Official Letter 2756 / TCHQ-GSQL 2020 on import of agricultural products for food use through border gates [Online] Available from: https://luatvietnam.vn/xuat-nhap-khau/cong-van-2756-tchqgsql-2020-nhap-khau-nong-san-lam-thuc-pham-qua-cac-cua-khau-183127d6.html [Acessed: March 6, 2021] Nhân Dân Điện Tử, 2020, Vietnam - China promotes trade in agricultural products in the face of the Covid-19 epidemic [Online] Available 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ID=1901&Category=Ph%C3%A2n%20t%C3%ADch %20%C4%91%E1%BB%8Bnh%20k%E1%BB%B3&Group=Ph%C3%A2n %20t%C3%ADch [Acessed: March 6, 2021] 11 TẠP CHÍ TÀI CHÍNH ONLINE, 2020, EVFTA “opens a big door” for Vietnamese agricultural products to EU [Online] Available from: https://tapchitaichinh.vn/su-kien-noi-bat/evfta-mo-canh-cua-lon-cho-mathang-nong-san-viet-nam-sang-chau-au-327930.html [Acessed: March 6, 2021] 12 CỔNG THÔNG TIN ĐIỆN TỬ ỦY BAN QUẢN LÝ VỐN NHÀ NƯỚC TẠI DOANH NGHIỆP, 2020, Total import-export turnover in months reached nearly 39.5 billion USD [Online] Available from: http://cmsc.gov.vn/xem-chitiet/-/asset_publisher/WqvULR6gmpvh/Content/tong-kim-ngach-xuat-nhapkhau-nong-nghiep-7-thang-at-gan-39-5-ty-usd?1083085 [Acessed: March 6, 2021] 13 Oecd-ilibrary.org 2021 Viet Nam | Agricultural Policy Monitoring and Evaluation 2020 | OECD iLibrary [online] Available at: [Accessed March 2021] 30 31 ... highlight the International Trade Policies of Vietnam on agriculture section during Covid- 19, on both exports and imports Indeed, while the world economy has experienced the worst recession since... impact of the epidemic on international trade in general: The impact of the epidemic on the international trade of agricultural commodities in Vietnam, on both importing and exporting section: ... than other major economies throughout 2020 The impact of the epidemic on the international trade of agricultural commodities in Vietnam, on both importing and exporting section: According to World