Exporting vietnamese agricultural products to australia and new zealand in the context of asean

In recent years, Vietnamese agricultural products have increasingly developed and affirmed their position in the world market. Since the ASEANAustraliaNew Zealand free trade agreement (AANZFTA) officially took effect in 2010, the amount of Vietnamese agricultural products exported has experienced significant change. Australia and New Zealand both have high requirements about the quality of imported products, therefore this agreement has opened up new opportunities for Vietnam to increase agricultural exports to these two countries. Based on an assessment of the current situation and challenges Vietnamese agricultural products cope with, the authors provide an overview of the AANZFTA agreement as well as its impact on the export of Vietnamese agricultural products to Australia and New Zealand. In addition, the paper also proposes a number of recommendations to exploit the agreement optimally, making it easier and more efficient to export Vietnamese agricultural products to Australia and New Zealand.

1 Exporting Vietnamese agricultural products to Australia and New Zealand in the context of ASEAN - Australia/ New Zealand Free Trade Agreement (AANZFTA) Instructor: Ms Vu Huyen Phuong (Ph.D) Abstract In recent years, Vietnamese agricultural products have increasingly developed and affirmed their position in the world market Since the ASEAN-Australia-New Zealand free trade agreement (AANZFTA) officially took effect in 2010, the amount of Vietnamese agricultural products exported has experienced significant change Australia and New Zealand both have high requirements about the quality of imported products, therefore this agreement has opened up new opportunities for Vietnam to increase agricultural exports to these two countries Based on an assessment of the current situation and challenges Vietnamese agricultural products cope with, the authors provide an overview of the AANZFTA agreement as well as its impact on the export of Vietnamese agricultural products to Australia and New Zealand In addition, the paper also proposes a number of recommendations to exploit the agreement optimally, making it easier and more efficient to export Vietnamese agricultural products to Australia and New Zealand Keywords: ASEAN-Australia-New Zealand free trade agreement, AANZFTA, agricultural products, export Contact via: k60.2112150054@ftu.edu.vn Methodology In order to illustrate the relationship between the AANZFTA and Vietnam’ agricultural products export, a qualitative method is used in this research paper Secondary data is collected and analyzed to demonstrate the growth in the exportation of Vietnamese agricultural products to Australia and New Zealand before and after the application of AANZFTA Through the process of analyzing data, our group can produce evidence and interpret the opportunities and challenges of the agreement, which lay the foundation for some recommendations to enhance the ability of exporting agricultural products in the context of AANZFTA Literature review During the period of implementing AANZFTA in the development of the nation, significant achievements in exporting Vietnamese products to Australia and New Zealand have been recognized Several papers have been written to show the relationship between this comprehensive foreign trade agreement and Vietnamese exports Tue (2019) used descriptive statistics method and meta-analysis method to demonstrate the connection between AANZFTA and Vietnamese export Her paper shows that although there is big improvement in the trade balance among countries, Vietnamese export value experienced many fluctuations, with unstable market value This paper also pointed out the reasons behind this situation and recommended solutions for enhancing the ability of Vietnam exporting Moreover, according to Phuong (2019), since AANZFTA went into effect in 2010, the structure in the goods exchange of Vietnam with these two countries has shifted in the direction of specialization and exporting more advantageous commodities However, the rate of taking advantage of AANZFTA is still low for Vietnamese enterprises, which decreases the efficiency of that free trade agreement In 2015, the Ministry of Industry and Trade also published a book relating to exporting products to Australia and New Zealand with the advantages from AANZFTA The book focuses on analyzing, evaluating the situation of Vietnam export to Australia and New Zealand in the period 2005 - 2014 in order to give disadvantages, reasons as well as achievements One unique point is that the book compares the level of taking advantage of agreement compared to other countries in ASEAN so that a wider view can be seen Despite the number of studies researching Vietnam’s trade relationship with Australia and New Zealand, those studies are mainly focused on analyzing the impact of the AANZFTA on the entire macroeconomy, which has not given a specific view about structure of goods export Vietnamese agricultural products export is recognized to lack data and information to result in a deeper sight for improvement Noticing this research gap, this working paper will analyze the relationship between AANZFTA and Vietnam’s agriculture development, including the current situation, opportunities, and challenges in order to put forward new recommendations about Vietnam’s growth in agriculture ASEAN - Australia/ New Zealand Free Trade Agreement (AANZFTA) 3.1 Overview of AANZFTA: 3.1.1 Overview AANZFTA is a Free Trade Agreement (FTA) between Australia, New Zealand and the countries covered by ASEAN ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam AANZFTA was signed in February 2009, and came into effect on January 1st 2010 The AANZFTA is a comprehensive and single-undertaking free trade agreement that opens up and creates new opportunities for approximately 663 million peoples of ASEAN, Australia and New Zealand - a region with a combined Gross Domestic Product of approximately USD trillion as of 2016 In line with the ASEAN Community Vision 2025 , the AANZFTA aims for sustainable economic growth in the region by providing a more liberal, facilitative and transparent market and investment regimes among the twelve signatories to the Agreement (The ASEAN-Australia-New Zealand Free Trade Area – AANZFTA) 3.1.2 The main content of AANZFTA Main content of AANZFTA includes 18 chapters and annexes The main areas of commitment in the AANZFTA consist of: a Tariff measures Trade of goods The AANZFTA provides for special and differential treatment to ASEAN in recognition of the different levels of development among the ASEAN Member States and between the ASEAN Member States and Australia and New Zealand For trade in goods, the tariff reduction and elimination schedules are differentiated among groups of countries, which are based on the levels of development: ● Group 1: Australia, and New Zealand; ● Group 2: The ASEAN consists of Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand); ● Group 3: Newer ASEAN Member States consists of Cambodia, Lao PDR, Myanmar, and Viet Nam Cambodia, Lao PDR, Myanmar, and Viet Nam enjoy a more gradual phasing and longer gestation for the elimination of tariffs In the case of trade in services, the Parties recognize the importance of according special and differential treatment to Cambodia, Lao PDR, Myanmar, and VietNam through negotiated commitments relating to strengthened domestic capacity; improved access to distribution channels and information networks; and commitment in sectors of export interest to the four countries In recognition of the differences in capacity, the AANZFTA also provides economic cooperation between and among Parties The Governments of Australia and New Zealand have provided funding support for implementing the Economic Cooperation Work Program under the AANZFTA Economic Cooperation Support Program (AECSP) Commitment on tariffs Australia and New Zealand's commitment on tariff for Vietnam: ● Since 2015, Australia has eliminated tariffs for about 97% of tariff lines (only maintaining a low tariff less than 10% for some products such as bamboo shoots, surgical threads, wood and wood products, iron and steel products, fabrics ) ● Since 2015, New Zealand has eliminated tariffs for about 91% of tariff lines (only maintaining low tariff less than 10% for some products such as cakes, sweets, cereal products, wood and wood products, chemicals, components, auto parts, machinery, equipment, tools and spare parts, computers, electronic products and components,…) ● By 2022 (at the end of the schedule), both Australia and New Zealand will completely eliminate tariffs (all Tariffs) for goods from ASEAN countries Vietnam's commitment: ● Since 2018, 86% of tax lines in the Tariff will be eliminated ● By 2022 (at the end of the schedule), 92% of tariff lines in the Tariff will be eliminated (including items such as livestock; pharmaceuticals; sugar; rice; wood; paper; chemicals; cosmetics; etc.) ● 8% of the remaining tax lines will be reduced according to a separate schedule or maintained at the same rate (for example, goods such as fruits (oranges, tangerines); alcohol, cigars, petroleum, tobacco leaves, steel products, etc.) b Non-tariff measures Rule of origin The rules of origin for AANZFTA are set out in Chapter of the agreement They specify the conditions for determining the commercial nationality of goods traded among AANZFTA parties A good is considered to be AANZFTA originating if the good is wholly obtained or produced in a member country, or it meets either of the following conditions: Goods meets the general criteria: ● Regional Value Content (RVC): 40% minimum, or ● Change Tariff classification at the 4-digit level (CTH – non-originating materials must be in a different HS Group from the HS Group of the finished product) Goods with specific rules: some goods not apply the general criteria, but the product specific rules applied to them are specified in the List of Product-Specific Rules AANZFTA Certificate of Origin is the AANZ C/O form Vietnam and ASEAN countries issue a paper C/O while Australia and New Zealand issue an electronic C/O, so the electronic C/O AANZ issued by Australia/New Zealand will be printed out and submitted to the customs offices of ASEAN importing countries Error AANZ C/O can be corrected or renewed C/O AANZ can be issued before, during or after (no more than year) the time of export AANZFTA does not have a provision for Self-Certification of Origin Commitment on Services and Investment Vietnam's commitment on opening up the service market in AANZFTA is equivalent to that of Vietnam's WTO accession commitments, except that education services are broader than WTO commitments, mainly in terms of scope The chapter on Investment in AANZFTA is the largest one of investment commitments that Vietnam has signed before, including both liberalization (opening to foreign investment) and principles of treatment and investment protection However, many contents in this Chapter have not taken effect immediately but depend on further negotiations between the Parties The commitments that have not taken effect immediately mainly relate to the principle of expropriation of investors, compensation in case of armed conflict, and settlement of international investment disputes (ISDS) Customs procedure Customs procedure in AANZFTA refers to the rules and regulations that apply to goods traded among the Parties of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) (Customs Procedures and Trade Facilitation ASEAN Main Portal) The objectives of this procedure are to ensure predictability, consistency and transparency in the application of customs laws and regulations of the Parties, and to promote efficient, economical and expeditious clearance of goods (Chapter Customs Procedures - ASEAN Main Portal) One of the features of this procedure is the advance ruling provision, which allows traders to request a binding decision from the customs authority of a Party on certain matters before the importation or exportation of goods This would help reduce the time and cost of checking and assessing goods at the ports of entry Sanitary and Phytosanitary Measures Under Chapter of AANZFTA, the Parties agree to provide greater transparency in their SPS regulations and procedures, and to explore opportunities for collaboration and information exchange on SPS matters, including technical assistance The Parties also agree to establish an SPS Committee to oversee the implementation of this Chapter and to address any issues that may arise (Sanitary And Phytosanitary (SPS) Measures - ASEAN Main Portal) Safeguard Measures The party entitled to participate shall apply safeguard measures when the imported goods increase suddenly due to the implementation of commitments in AANZFTA This sudden increase in goods has a serious impact on the domestic industry that produces similar goods The condition for applying a safeguard measure is when imports from one Party exceed 3% of the total imports from the other Party and when the total imports from the other Party exceed 9% 3.2 Overview of Vietnamese agriculture in the context of AANZFTA: According to the scientific conference "Promoting trade in agricultural products between Vietnam and Australia in the context of the implementation of Free Trade Agreements (FTAs)" , the growth rate of two-way trade between Vietnam and Australia in the period 2010-2022 reaches 14%/year After AANZFTA came in handy in 2010, the export value of Vietnam’s agricultural products has increased significantly However, expanding market share for these products is not easy because Australia sets strict requirements on labeling and food safety; some standards are even higher than those of the US and EU Import and export turnover of Vietnam - Australia has just set a new record of 15.7 billion USD in 2022, up 27% compared to 2021, of which exports reached 5.6 billion USD, up 26% and imports reached 5.6 billion USD 10.1 billion USD, up 27% Currently, Vietnam is Australia's 10th largest trading partner, while Australia is Vietnam's 7th largest trading partner Source: ITC TradeMap In terms of agricultural products, the Australian market's demand is still low for Vietnamese agricultural products, possibly partly due to a matter of taste Moreover, the quality of Vietnamese agricultural products is not really high and has not met the requirements and import regulations of Australia, together with the fact that the brand value is not high In 2011, only after year since AANZFTA was active, mangoes which were the first kind of fresh fruits from Vietnam were officially exported to New Zealand Until now, Vietnam has received licenses to export fresh mango, dragon fruit, rambutan, lime and pomelos to New Zealand Statistics from the MARD show the trade turnover of agro-forestry-fishery exports between Vietnam and New Zealand in 2021 reached approximately US$550 million, accounting for 41% of the total bilateral trade revenue Both sides also inked an agreement to facilitate customs clearance of agricultural, forestry, and fishery products through the use of electronic certificates in July 2020 Source: ITC TradeMap The situation of Vietnam's agricultural export industry to Australia and New Zealand in the context of AANZFTA 4.1 The situation of Vietnam's agricultural export industry to Australia and New Zealand before AANZFTA came into effect 4.1.1 Trade barriers between Australia and Vietnam, New Zealand and Vietnam before the AANZFTA Prior to the implementation of the AANZFTA, trade between Vietnam and Australia was subject to import tariffs According to the World Bank, In 2009, Australia’s average HS tariff rate across imports from Vietnam was 5,27%, while its average MFN tariff on imported products from Vietnam was 5,5% (The average HS tariff refers to the average tariff rate applied to goods classified under the Harmonized System (HS) of product codes The Most Favored Nation (MFN) represents the average rate of tariffs imposed on all goods imported into a country without preferential treatment) NTB: 10 ● Australia is one of the markets with the strictest regulations on inspection, hygiene, and product safety ● Vietnam was among the top 10 countries with the highest number of agricultural imports rejected by Australia or with the highest import value refusal during the period of 2003-2010 ● Among these, the primary reasons for the rejection of Vietnamese agricultural exports to Australia were ○ labeling issues (265 times), ○ contamination (129 times), ○ residue of veterinary drugs (44 times), ○ food additives and ingredients (14 times) ● Additionally, there were also reasons such as excessive levels of other pesticide residues, falsification/missing documentation, and packaging (According to VCCI) 4.1.2 Agricultural export values The context of Vietnam's agriculture export industry to Australia before the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) is characterized by a growing trade relationship and significant export opportunities 13 ● Export value of agricultural products from Vietnam to Australia in the period from 2016 to 2021 Source: ITC Trade map Fruits is the group of goods with the largest import turnover, the trend has almost no change in value during the period 2016 - 2021 In 2016, the value of Vietnam's fruit exports to Australia was 137,287 thousand USD and increased to 9.9% in 2017 (150,943 thousand USD) From 2018 to 2020, the export value returned to a stable figure of about 135,000 thousand USD, and even decreased slightly in 2021 Import value of coffee and tea (the group with large turnover) second) as well However, this group tends to decrease slightly from year to year In 2016, the export value of coffee and tea from Vietnam to Australia was 52,082 thousand USD , by 2020 it will only be 37,017 thousand USD Thus, the two main groups of agricultural export products of Vietnam tend to keep stable or gradually decrease in value Meanwhile, other commodity groups tend to increase Cereals increased times Vegetables increase times b) Exports value of agricultural products from Vietnam to New Zealand 14 ● Export value of agricultural products from Vietnam to New Zealand in the period from 2010 to 2015 Source: ITC Trade map ● Export value of agricultural products from Vietnam to Australia in the period from 2016 to 2021 Source: ITC Trade map 15 From this figure, it can be seen that the fruit group is the most exported Vietnamese agricultural product to New Zealand with a trend of many fluctuations In 2017, New Zealand's import of Vietnamese fruits had a strong growth, but in the following years it decreased gradually Even the value of the fruit group in 2020 is lower than in 2016 and it will only be improved in 2021 Next is the group of coffee and tea This group of agricultural products also tends to increase in the period 2016 - 2018 and decrease in the following years and then increase again in 2021 Meanwhile, the cereal group has a small value in 2016 2017 but has a strong growth from 2018 to 2021, reaching 7075 thousand USD Meanwhile, vegetables’ export turnover remains quite stable throughout the years Thus, it can be seen that the New Zealand market is only for Vietnam with tax incentives in accordance with the commitments in the AANZFTA or CPTPP, but the acceptance and market expansion for Vietnamese agricultural products is still limited New Zealand offers a lot of strict requirements on technical, packaging conditions, preservation, transportation and it is also difficult to get permission to bring a specific product into the domestic market We can see that The similarity between the two import markets of Vietnamese agricultural products, Australia and New Zealand, is the ratio of import value between groups of goods Fruit is always the group with the highest import value Then came coffee and tea Next are cereals, vegetables and then other commodity groups 4.2.3 Development in Vietnamese agricultural export industry after AANZFTA came into effect In recent years, aquaculture and fruit production in Vietnam have increased and become more export-oriented Australian consumers now enjoy an increasing variety of agricultural produce and foodstuffs from Vietnam In 2020, Australia’s major imports from Vietnam included fruit and nuts (AUD 176 million), crustaceans (AUD 119 million), prepared or preserved seafood (AUD 115 million), fresh and frozen fish (AUD 79 million) and coffee (AUD 52 million) Vietnam currently has market access to Australia for mango, lychee, longan and dragon fruit, with export volumes growing strongly Vietnam was Australia’s largest overall supplier of prawns and prawn products for 2019 and 2020 16 As for New Zealand, in 2022, Viet Nam and New Zealand signed an agreement on exporting Viet Nam’s pomelos and limes to New Zealand besides mango, dragon fruit and rambutan, raising the number of fruits allowed to enter the New Zealand market to five Viet Nam is currently the 16th largest trade partner of New Zealand The bilateral trade value increased from USD 300 million in 2009 to USD 1.3 billion in 2020 In the past nine months of 2011, two-way trade hit USD 1.1 billion, a year-on-year increase of 13.6 percent Opportunities and challenges of Vietnam's agricultural export industry in the context of AANZFTA 5.1 Opportunities of Vietnam's agricultural export industry in the context of AANZFTA 5.1.1 Market access a) Reduced import duty The AANZFTA agreement has created new possibilities for Vietnamese agricultural products to enter Australian and New Zealand markets by reducing import taxes With the implementation of AANZFTA, Australian and New Zealand have eliminated many MFN tariff lines that previously applied to Vietnamese agricultural goods However, additional opportunities for exporting Vietnamese agricultural products are possible when the remaining items on the tax reduction schedule are included For example, the goods in chapter 52 ( Cotton including threads, yards and fabrics), with Australia most tariff lines are applied at 5% or 10% Only a few lines are duty-free (5 lines out of 139).All tariffs in this product group were eliminated from 2010 except for lines which have a tariff of 10% The tariffs on these two lines were reduced to 8% in 2011, to 5% in 2012, and 0% in 2015 b) Non-tariff incentives AANZFTA Agreement also prevent non-tariff measures from becoming trade obstacles It streamlines the movement of goods through specialized regulations on customs procedures, rules of origin, technical standards, SPS, and 17 conformity assessments This is remarkable since Australia and New Zealand have strictest SPS requirements and technical standards Australia, New Zealand, and ASEAN nations collaborate to meet rules of origin criteria through workshops, conferences, and construction aid Vietnam focuses on biosecurity and food safety for improved trade, human, animal and plant welfare The AANZFTA Agreement aims to enhance cooperation and transparency on standards, procedures, and rules of conformity through the STRACAP program, with tailored events organized by Australian and New Zealand experts 5.1.2 Increase competitiveness: AANZFTA boosted Vietnamese agricultural products through incentives (tariff and non-tariff), enabling Vietnam to excel in the market and become a key export partner, most notably with Australia Export values and market shares demonstrate this success With coffee, in Australia, Vietnam is only ranked after the big countries in this product: Brazil, Switzerland, Columbia Vietnam holds 7.8% market share of imported coffee With HS code 081090 "Fresh tamarind, cashew apple, jackfruit, litchi, sapodilla plum, passion fruit, star fruit, …, In Australia, Vietnam surpassed the two major exporting countries, the US and China, leading with 48.4% value of imported goods With code 03 Fish and crustaceans, molluscs and other aquatic invertebrates, Vietnam from mid-2018 surpassed New Zealand and in mid-2019 surpassed China to become the leading exporting country leading exporter to this market After 2020, after countries ease the application of measures to limit movement, Vietnam's seafood exports to Australia will simultaneously skyrocket to nearly 280 estimated in 2022 The growth rate in 2022 is also is recognized kept at a very high level of 48% Vietnam is the third highest importer of rice to Australia with 1006 rice The market share has increased from 4.3% in 2018 to 13% in 2022 We overtook Pakistan in 2018 and are catching up to Thailand and India In New Zealand, we rank third after Thailand and Australia 18 With code 08 Edible fruit and seeds; peeled citrus fruit or melon, Vietnam since 2010 has had an increasing and stable export value in the period 2018-2022 Particularly in 2020-2021, Vietnam's export value of this item will grow negative -4% With code 071410 Cassava roots and tubers ""cassava" fresh, chilled, frozen or dried, whether or not sliced maintained high-valued per unit despite lower export volumes in 2018-2020 In 2020, Fiji officially surpassed Vietnam after a long time we ranked first in export value for this item, with Vietnam accounting for 26.6% of market share 5.2 Challenges of Vietnam's agricultural export industry in the context of AANZFTA 5.2.1 Strict market Australia and New Zealand have transparent trade and tax policies but enforce strict non-tariff barriers on imported food items such as regulations on quality, food safety, and hygiene (such as SPS and TBT) Compliance with SPS regulations is mandatory for agricultural products For instance, Vietnamese seafood exports to Australia face challenges due to strict food safety and biosecurity regulations, which can damage Vietnam's reputation and result in discounted prices in the Australian market if violations are found Due to the flourishing domestic agricultural sector, Australia and New Zealand have a population that is used to consuming their own fruit, fish, meat, dairy, and cereals As a result, Vietnamese exporters wishing to enter these markets must prioritize product quality rather than price Additionally, consumers in Australia and New Zealand are also interested in packaging, design, and branding 5.2.2 Competitors Our agricultural exports face tough competition in Australian market, especially our Vietnamese fruits (mangoes, longans, lychees, and dragon fruit) which compete against Australian and other countries' products This makes increasing export revenue or venturing into other commodities harder.But perhaps the market where we need to focus 19 on improving competition is New Zealand In New Zealand, Vietnam's achievements are limited compared to Australia In New Zealand, Vietnamese coffee exports ranked 6th due to the appearance of more rivals, Papua New Guinea, Honduras, and Peru Vietnamese coffee only accounts for 4.4% of the country's imported coffee HS code 08109 fresh fruits including tamarinds, cashew apples, jackfruit, lychees, sapodillo plums, passion fruit, and carambola: In New Zealand, Vietnam ranks second in export volume (153 tons) behind the US (190 tons), but fourth in value with a 12.6% market share With code 03 Fish and crustaceans, molluscs and other aquatic invertebrates: In New Zealand, Vietnam still faces stiff competition from China and India, the market share in the year from 14% in 2018 decreased to only 11% in 2022 Although China is the leader in seafood export value to this market, it also suffered a sharp decline in market share (from 26.5% in 2018 to 16% in 2022) It can be seen that our main rival is India when it has achieved outstanding growth rates in both output and value: from a modest 3.7% market share to 13.5% Value growth rate India's exports in the period of 20212022 are 104% (while that of Vietnam is 19%), showing fierce competition in the future from India It is also important that Vietnam has an advantage over India in terms of travel distance between the exporting country and the destination market Vietnam needs to exploit this advantage further to increase the value of seafood exports to this market With the code 1006 rice, Vietnamese rice exports to Australia and New Zealand have lower product unit values compared to competitors: 724 in Australia (compared to India's 1,055 or Japan's 2,323) and 892 in New Zealand (compared to Thailand's 1,020 and Australia's 1,226), despite high export volumes With code 08 Edible fruit and nuts; peel of citrus fruit or melons, Vietnam ranks only 5th in export value behind the US, Australia, Ecuador, and the Philippines In 2022, Vietnam's market share was only 7.2% and experienced a -5% growth The Philippines, with a growth rate of 38%, surpassed Vietnam in export value during this period 20 With code 071410 Fresh, chilled, frozen or dried roots and tubers of manioc "cassava"", whether or not sliced …, Vietnam is behind Fiji and Tonga in exporting this item Although the value per unit is very high 1,175 (compared to 1,103 for Fiji and 246 for Tonga), Vietnam still has a huge export value gap with these two countries because they have advantages in geographical distance 5.2.3 Lack of competitiveness from Vietnam in undertaking AANZFTA and causes From 2010 to 2022, Vietnam's use of AANZFTA preferences has been limited The preferential utilization rate was only 8.9% in 2010 and reached its peak at 40.2% in 2020 but decreased slightly to 39.2% in 2021 and 39.3% in 2022 due to Covid-19 trade restrictions Utilization is modest compared to other agreements like AIFTA, VN-EAEU FTA, and VCFTA where rates are higher (66.9%, 59.4%, and 64.6% respectively) Vietnam can mainly take advantage of tariff preferences (in the field of trade in goods) but with non-tariff preferences (in other fields such as rules of origin, SPS, TBT, investment) utilization is limited AANZFTA reduces taxes for Vietnamese exports to Australia and New Zealand, but in 13 years of implementation, Vietnam's agricultural exports growth to these markets (7.8% and 7% respectively) has not matched its potential or the partners' import demand Causes of subjective limitations of Vietnam To improve trade with other countries, Vietnam has reformed administrative and import-export procedures However, obtaining a certificate of origin and customs clearance is still complex, time-consuming and costly compared to other countries Customs clearance in Vietnam takes days, while Thailand, Malaysia, and Singapore take fewer days Similarly, preparing export documents takes 12 days in Vietnam, compared to only a few days in Thailand, Malaysia, and Singapore Vietnam's inadequate quality control and certification agencies at all levels, with outdated testing equipment, coupled with suboptimal management of goods quality and food hygiene and safety, result in violations of Australia's and New Zealand’s food safety regulations and challenges in meeting SPS and TBT requirements under AANZFTA