Ngành xuất khẩu hạt điều là một trong những ngành kinh tế mũi nhọn của Việt Nam, với thị phần ở hầu hết các thị trường lớn trên thế giới, trong đó có Liên minh Châu Âu. Kể từ sau khi chính thức có hiệu lực, EVFTA đã mang lại những tác động tích cực đến hoạt động xuất khẩu hạt điều của Việt Nam sang thị trường này. Hiệp định đã tạo ra lợi thế cạnh tranh đáng kể cho hạt điều của nước ta thông qua các cam kết miễn thuế, từ đó đặt ra những cơ hội phát triển cho mặt hàng điều hạt. Tuy nhiên, hiệp định chưa thể giải quyết được hoàn toàn những rào cản về phi thuế mà nông sản Việt Nam gặp phải. Mục đích của bài nghiên cứu bao gồm phân tích những đặc điểm của mặt hàng hạt điều Việt Nam xuất khẩu và đánh giá ảnh hưởng của hiệp định EVFTA đối với hoạt động xuất khẩu của mặt hàng này sang thị trường Châu Âu. Đồng thời, đề xuất những khuyến nghị đối với các doanh nghiệp xuất khẩu hạt điều sang thị trường Liên minh Châu Âu để có thể tận dụng hiệu quả những lợi thế mà hiệp định đem lại.
ẢNH HƯỞNG CỦA HIỆP ĐỊNH THƯƠNG MẠI TỰ DO VIỆT NAM-EU (EVFTA) TỚI HOẠT ĐỘNG XUẤT KHẨU HẠT ĐIỀU CỦA VIỆT NAM Vũ Huyền Phương Giảng viên Viện Kinh tế Kinh doanh quốc tế Trường Đại học Ngoại thương, Hà Nội, Việt Nam Tóm tắt: Ngành xuất hạt điều ngành kinh tế mũi nhọn Việt Nam, với thị phần hầu hết thị trường lớn giới, có Liên minh Châu Âu Kể từ sau thức có hiệu lực, EVFTA mang lại tác động tích cực đến hoạt động xuất hạt điều Việt Nam sang thị trường Hiệp định tạo lợi cạnh tranh đáng kể cho hạt điều nước ta thông qua cam kết miễn thuế, từ đặt hội phát triển cho mặt hàng điều hạt Tuy nhiên, hiệp định chưa thể giải hoàn toàn rào cản phi thuế mà nơng sản Việt Nam gặp phải Mục đích nghiên cứu bao gồm phân tích đặc điểm mặt hàng hạt điều Việt Nam xuất đánh giá ảnh hưởng hiệp định EVFTA hoạt động xuất mặt hàng sang thị trường Châu Âu Đồng thời, đề xuất khuyến nghị doanh nghiệp xuất hạt điều sang thị trường Liên minh Châu Âu để tận dụng hiệu lợi mà hiệp định đem lại Từ khóa: Hạt điều Việt Nam, EVFTA, xuất hạt điều, hiệp định thương mại tự Abstract: The cashew export industry is one of Vietnam's leading economic industries, with a strong market presence in most major markets around the world, including the European Union Since coming into effect, the EVFTA has had a positive impact on Vietnam's cashew export activity to this market The agreement has created a significant competitive advantage for Vietnam's cashews through its tariff exemptions, providing opportunities for the development of this product However, the agreement has not completely resolved all the non-tariff obstacles that Vietnamese agricultural products face The purpose of this study is to analyze the characteristics of Vietnam's cashew exports and assess the impact of the EVFTA on this product's export activity to the European market At the same time, recommendations will be proposed for cashew export businesses to effectively leverage the benefits of the agreement in the European Union market Keywords: Vietnamese cashew, EVFTA, export cashew, free-trade agreement Overview of Vietnam cashew industry 1.1 Introduction of cashew production in Vietnam Cashew nut is the fruit of the cashew tree, a tropical American tree with a scientific name of Anacardium occidentale Cashew tree is native to northeastern Brazil, but today it is grown in many regions of the world Cashew nut kernels are produced by shelling raw cashew nuts (RCN), which grow at the end of cashew apples Cashew nut kernels are primarily categorized by their size, color and moisture content With each criteria, the cashew nut can be further divided into many types with different conventional symbols Whole cashew nut kernels are the standard, as broken kernels are seen as a quality deterioration These characteristics form the basis of cashew nut kernel grades Whole kernels of an ivory color represent the highest quality grade and the larger the kernels, the higher the price Although Vietnamese cashews are somewhat modest in size, it is quite favored around the world because of its bold flavors and crispiness Towards the sustainable development of industry, Vietnam has been gradually asserting its position in the international arena as one of the largest producers of cashews Output has increased rapidly in recent years thanks to effective application of human resources as well as biotechnology, especially for cashew production and export industry Until this point, Vietnam is the largest shelled cashews producer and exporter in the world 1.2 The potential of Vietnam’s cashew in production and export Vietnam possesses the advantages of tropical climate and fertile soil A country with a strongly developed agriculture like Vietnam has created great conditions for the cashew industry to develop and produce quality products Cashews are mostly grown in the South, especially in the Central Highlands, the Southeast and some western provinces, with a cultivated area of 300,000 hectares, of which Binh Phuoc province accounts for the most With the aim of advancing further in the world market, our country has successfully applied the demonstration model of cashew production according to new technology under the national industrial promotion scheme This is a model to improve the reputation of goods as well as cashew processing enterprises of the province in the world market Vietnam is the world's leading producer, processing and supplier of cashew kernels and is placing more emphasis on boosting production capacity in recent years Domestic enterprises are adapting applications of science and technology in their production lines to automate cashews processing to bring in high revenue Binh Phuoc province - the biggest cashew production area of the country, accounting for more than 54% of output - has established cooperatives to produce raw materials, in addition to applying innovative processing technology and increasing automation in the production and processing of raw cashews to ensure food safety and hygiene Besides, the cashew processing capacity in Vietnam is very large In the past, a worker can only process at most 40 kg of kernels per day, while with the new automatic processing machines, businesses can increase productivity by up to more than 100kg per hour This advanced processing technology has helped increase the recovery rate of original kernels of Vietnam reaching 85-90%, while its competitors, such as Brazil and India only reach about 60% Cashew output and productivity has consistently witnessed positive growth in recent years, effectively securing Vietnam’s potential for expansion to international markets, such as that of the EU 1.3 The importance of cashew export in Vietnamese economy For the Vietnamese economy, the cashew export industry contributes to economic restructuring This leads to a series of economic development industries such as research on plant varieties, machinery manufacturing, and irrigation, thereby speeding up the process of structural and economic transformation in cashew growing areas In addition, the cashew production and export industry has also contributed significantly to the state's budget revenue In the past 10 years, the cashew industry has brought the country an average of billion USD/year (Ministry of Industry and Trade, 2022) Cashew exports also play an active role in expanding and promoting Vietnam's external economic relations Currently, Vietnam has successfully exported to more than 90 (Government Electronic Newspaper, 2022) countries and territories, of which the European market is the country's main consumption market This has promoted multilateral cooperation in general and bilateral cooperation in particular to accelerate the process of industrialization and Vietnam's desire to become an exporter Overview of EVFTA 2.1 History and formation The EU-Vietnam Free Trade Agreement (EVFTA) is a free-trade agreement established in 2020 between the Socialist Republic of Vietnam and 27 members of the European Union EVFTA is the first and only FTA Vietnam has had with any country in this region The FTA started going under negotiation on June 26, 2012, and was the beginning of over 14 meetings between the Vietnamese Ministry of Industry and Trade and the European Committee on International Trade On August 4, 2015, Vietnam and the European Nations officially completed all the basis for the EVFTA The text of the agreement was published on February 1, 2016 The official EVFTA was signed on June 30, 2019, and passed in Vietnam on June 8, 2020, in the Vietnamese National Assembly The agreement went into effect on August 1, 2020, marking the start of a potential trading relationship between the EU and Vietnam and opening numerous opportunities for Vietnamese exports of goods, especially cashews - one of Vietnam’s flagship products 2.2 Main contents of EVFTA regarding Vietnamese exports of agricultural products and cashews The EVFTA is compiled of 17 Chapters, Protocols, and some understandings, showing trade commitments between Vietnam and the EU regarding tariffs and non-tariffs measures 2.2.1 Tariffs Regarding the tax incentive that EVFTA offered to Vietnam, the EU commits to reduce or eliminate tariffs completely as soon as EVFTA comes into effect for Vietnamese goods contained in 85.6% of tariff lines, equivaling 70.3% of Vietnamese exporting value to the EU Additionally, within the 7-year roadmap from 2020 to 2027, the EU committed to reduce 99.2% of tariff lines, equivalent to 99.7% of Vietnamese export revenue to the EU For the remaining 0.3% of export turnover, including rice, garlic, sweet corn, mushrooms, tapioca starch, canned tuna, sugar and products high in sugar content, the EU commits to impose an import tariff of 0% on Vietnamese products under the tariff rate quotas Accordingly, most Vietnamese agricultural products, vegetables, and fruits will enjoy tax incentives when entering the EU Tax on cashews (both in shell and shelled) is 0% right after the implementation of the agreement 2.2.2 Non-tariffs measures The EU is a demanding market with strict regulations and high technical standards for imported goods, especially agricultural and food products, such as regulations on food hygiene and safety, plant quarantine, requirements on packaging and labeling, and frequently applied trade remedies tools In order to export cashews to the EU market, businesses must overcome these strict nontariff barriers Rules of origins Regarding origins, exported products to the EU need to provide their origins with processing criteria and pure raw materials That is, Vietnamese agricultural products exported to the EU under the EVFTA must originate exclusively from Vietnam, meaning they are not imported from any country Vegetables, fruits, and nuts, such as cashews, are considered to be of pure origin if they are grown and harvested in Vietnam, but their seeds or seedlings could be from other countries The EVFTA Agreement also stipulates that the shelling stage is a simple processing step that will not be taken into account when considering the origin of the product For example, if Vietnam imports unshelled cashews from Cambodia to unshell and exports them to the EU, these shelled cashews are not considered to be of pure origin under EVFTA In addition, the weight of non-originating sugar used in Vietnamese cashew products must not exceed 20% of the product weight Technical barriers to trade (TBT): Within the framework of the EVFTA, Vietnam commits to ensuring compliance with the technical requirements of the EU, in addition to the existing standards of the WTO Accordingly, cashew products exported to the EU market will have to comply with standards regarding seals and labels (information printed on seals and labels, affixing, adding labels, and language of the label) Sanitary and Phytosanitary (SPS): The Sanitary and Phytosanitary measures require Vietnam and the EU to establish and update the lists of pests under control and provide the list to the other party, applicable for pests that the other party is concerned about For imported goods, if there are risks of disease in Vietnam's territory, the importing country can actively segregate the areas that produce these goods into high-risk and low-risk zones The EU can apply different SPS measures to goods exported from different risk zones and may apply emergency SPS measures and request investigations with Vietnam as soon as possible Additionally, if the Vietnamese SPS measure is recognized as equivalent to that of the EU, goods will only have to go through the SPS control procedures in Vietnam without having to repeat this procedure when they arrive at the port of the importing country However, it is very difficult for Vietnamese enterprises to hope for the EU equivalence recognition of Vietnam's SPS measures because the EU is a well-known region in the world for strict SPS measures and rarely recognizes the equivalence of SPS measures with other countries Customs and Trade facilitation: EVFTA includes many commitments related to import and export procedures and goods transit at the border, many of which are already stipulated in Vietnamese law However, the abovementioned commitments are considered to be beneficial to businesses Vietnam cashew export in the context of EVFTA 3.1 Vietnamese cashew export to EU before signing EVFTA 3.1.1 Factors of EU market affecting Vietnamese cashew export Market Demand & Consumption Trends The European Union (EU) is the world's leading market for cashews imports, holding a market share of 35-40% in the total global import value (Tridge, 2022) From 2015 to 2020, EU imports of cashews increased at an average rate of 6.6% per year (in terms of quantity) and 6.32% per year (in terms of value) (Eurostats, 2021) The cashews market in the EU is expected to grow steadily in the long-run This growth is likely to be driven by changes in the consumption patterns of European consumers, including the rising demand for healthier snacking options and vegetable sources of protein (CBI, 2022) Competition within the EU market Vietnamese cashews face competition from exporters both from outside and within the EU According to calculations based on Eurostat data, during the period of 2015-2020, the EU's import growth rate of cashews from intra-EU markets averaged 2.03% per year (in terms of quantity) and 4.74% per year (in terms of value) Imports increased from 49.21 thousand tons, valued at 325 million EUR in 2015, to 54.05 thousand tons, valued at 392.38 million EUR in 2020 Among these, the Netherlands, Germany, and Belgium were the three largest suppliers of cashews to the regional market While the import growth rate of cashews from Vietnam showed significant growth during the 2015-2020 period, the EU tended to reduce its imports from India However, the EU's imports of cashews from other non-EU markets also experienced high growth during the 2015-2020 period, including Brazil, Ivory Coast, Burkina Faso, Ghana, Mozambique, Benin, and Togo Market Access Before the signing of the EVFTA in 2019, Vietnam faced significant barriers in exporting cashews to the EU One major obstacle was the imposition of a 7-12% tariff on Vietnamese cashews exports to the EU (WTO, 2022) This tariff made Vietnamese cashews more expensive compared to those from countries like India and Brazil, which did not have a tariff when exporting to the EU Moreover, European consumers have extremely high standards regarding product quality, making compliance with export conditions to the EU market a significant challenge for Vietnam's cashew exports The EU is known to be a discerning market with strict regulations and rigorous technical standards for imported goods, encompassing food hygiene and safety, plant quarantine, packaging and labeling requirements, as well as the frequent application of trade remedies (Ministry of Vietnam International Trade, 2022) 3.1.2 Actual exporting situation of Vietnam cashew to the EU Prior to the signing of EVFTA, Vietnam had already been one of the major cashew exporters to the EU It was able to maintain a stable annual growth rate in terms of both quantity and value exported, despite enjoying a less favorable tariff rate than other suppliers According to the data of ITC Trade Map, from 2015 to 2020, Vietnam cashew exporters have achieved a significant increase of 11,78% in quantity, and 8,53% in total value Unit: Quantity: tons; Value: thousand USD Period Quantity Value 2015 68,818 501,158 2016 77,567 636,064 2017 83,876 851,487 2018 61,904 759,409 2019 99,972 736,205 2020 117,449 757,538 Average increase/ decrease from 2015 to 2020 (%/year) 11,78 8,53 Figure 1: Quantity and value of exported Vietnamese cashews to the EU from 2015 to 2020 Source: ITC Trade Map In 2020, Vietnam was the largest cashew supplier of the EU Vietnam cashew expanded its market share in the region from 42,41% in 2015 to 57,3% in 2020, despite the EU's tendency to diversify its cashew supply from other markets, such as Brazil, Burkina Faso, and Gana This proved EU customers’ preferences for Vietnam cashew, and its strong competitive advantage Figure 2: Market share for imported cashews to the EU in 2020 Source: ITC Trade Map Through the analysis, it can be observed that Vietnam's cashews exports to the EU have shown positive growth in recent years, benefiting from a large market demand and untapped potential Vietnam's cashews has established a strong presence in the EU market, consistently holding the leading market share in cashews supply to the bloc for an extended period However, Vietnam's cashew exports were still primarily concentrated in a few key markets that act as gateways to the EU, such as the Netherlands, Germany, France, and Italy Exporters had not sufficiently focused on promoting exports to potential markets and niche segments within the region Although the export growth rate was positive, the volume and value of cashews exported to these potential markets remained relatively low Consequently, the industry's overall turnover did not experience significant growth Furthermore, Vietnam primarily exported pre-processed cashews, with highly processed products accounting for a much smaller proportion, resulting in limited added value gained by exporters, and profits being distributed among numerous intermediaries 3.2 Vietnamese cashew export to EU after signing EVFTA According to the statistics from the General Department of Vietnam Customs, the first year since the implementation of the EVFTA (from January 8, 2020, to July 2021) witnessed the export of cashews from Vietnam to the EU market reaching 113.4 thousand tons, valued at 766.41 million USD This represented a 12.2% increase in volume compared to the same period before the EVFTA However, there was a decline of 3,3% in terms of value Unit: Quantity: tons; Value: thousand USD August 2020 - July 2021 Changes to August 2019 - July 2020 (%) Market Quantity Value Quantity Value All 113.397 766.408 12,2 - 3,3 Netherlands 60.234 378.373 16,3 - 6,9 Germany 16.930 122.511 - 5,9 - 8,7 France 7.377 58.201 30,6 17,2 Italy 7.099 39.053 7,8 - 6,7 Figure 3: Vietnam cashew exports to the EU after year of EVFTA Source: General Department of Vietnam Customs The primary factor contributing to the decrease in turnover was the significant drop in the average export price of cashews, which remained at a low level since August 2020 Nevertheless, the volume of cashew exports continued to demonstrate a robust growth rate, which is considered a positive outcome, particularly given the challenging economic conditions and the unpredictable developments caused by the global COVID-19 pandemic These statistics provide insights into the initial impact of the EVFTA on cashews exports from Vietnam to the EU While there has been a decline in the value of exports, the increase in volume signifies a potential growth opportunity for Vietnamese cashews producers and exporters in the EU market It is important to note that the fluctuations in export prices highlight the importance of monitoring and adapting to market conditions to ensure the long-term sustainability and profitability of cashew exports under the EVFTA framework Since the implementation of the EVFTA, the Netherlands and Germany continue to be the main export markets for Vietnam's cashew products in the EU After one year of EVFTA implementation, Vietnam's cashews exports to the Dutch market reached 62.2 thousand tons, valued at 378.37 million USD This represents a 16.3% increase in volume but a 6,9% decrease in value compared to the pre-EVFTA period Similarly, the German market remains crucial for Vietnam's cashew exports to the EU, with approximately 17 thousand tons exported, worth 122.51 million USD However, this reflects a decline of 5,9% in volume and 8.7% in value compared to the pre-EVFTA period Despite the slowdown in cashews exports to these key markets, Vietnam has successfully expanded its exports to other EU member countries Notably, there has been significant growth in both volume and value in exports to markets such as France, Spain, and Poland The most remarkable increase has been observed in exports to the Finnish market, which saw a volume increase of 1.731,4% and a value increase of 1.840,4% compared to the pre-EVFTA period This translates to 3.78 thousand tons of cashews, valued at 27.69 million USD It is evident that Vietnamese enterprises have not only focused on exporting to gateway markets like the Netherlands, France, Spain, and Italy but have also successfully tapped into niche markets in the EU, such as Finland and Poland, leveraging the advantages offered by the EVFTA However, the volume of cashew exports to high-growth markets remains relatively modest, indicating room for further expansion and exploration of new market opportunities 3.3 Barriers in exporting agricultural products to the EU market after the implementation of EVFTA The implementation of the EVFTA has opened up ample opportunities for Vietnamese agricultural products to access the EU market However, despite the benefits brought about by the agreement, there are several unresolved issues related to technical barriers that Vietnamese exporters of agricultural products continue to face, including limited commitments in eliminating non-tariff barriers, limited market access and insufficient focus on intellectual property & brand development These barriers have emerged as the most challenging obstacles for Vietnam's agricultural exports, particularly cashew exportation to the EU market 3.3.1 Limited commitments in eliminating non-tariff barriers In general, there have been insufficient commitments on SPS and TBT provided by the EVFTA When it comes to SPS and TBT, the EVFTA largely reiterates the obligations established by the WTO agreements on these matters While these obligations provide a general framework for trade, they fail to address the specific challenges faced by Vietnamese agricultural exports, especially cashews According to the Ministry of Agriculture and Rural Development of Vietnam, the EU's strict SPS measures have caused significant challenges for Vietnamese agricultural exports In 2020, the EU rejected or suspended 1,700 shipments of Vietnamese fruits and vegetables due to non-compliance with SPS requirements EU’s regulations regarding pesticide residues and maximum residue levels (mg/kg) on cashews (Code number: 0120030) Boscalid Fenazaquin Pyraclostrobin Cyromazine Topramezone Triflumizole 0.05 0.02 0.02 0.01 0.005 0.02 Vietnamese regulations regarding pesticide residues and maximum residue levels (mg/kg) on cashews 0.4 Figure Regulations regarding pesticide residue levels in cashews between the EU market and Vietnamese market In other words, the EVFTA does not introduce new commitments or measures to effectively tackle the challenges faced by Vietnamese cashew exporters concerning SPS Figure is an example of the distinctive differences in regulations regarding pesticide residue levels in cashews between the EU and Vietnamese market The Vietnamese regulations on pesticide residue levels still contain several aspects that have not been updated, specifically the inclusion of certain active substances that have been listed as restricted by the European Commission, such as Fenazaquin, Cyromazine, Topramezone, and others Furthermore, the allowable residue levels of certain substances like Boscalid and Pyraclostrobin in cashews in the Vietnamese market are permitted at levels of 20 times higher than those in the EU market All of these restraints have not been addressed by the EVFTA, thus preventing Vietnam from overcoming non-tariff barriers In terms of the Technical Barriers to Trade (TBT), technical regulations and standards pose significant challenges for Vietnamese cashew exports to the EU These barriers encompass labeling requirements, product certifications, packaging standards, and product testing procedures Compliance with these technical regulations can be costly and time-consuming, particularly for small and medium-sized cashew enterprises Similar to SPS provisions, the EVFTA's commitments on TBT not introduce new measures to specifically address the technical barriers faced by Vietnamese cashew exporters As a result, Vietnam enterprises find it challenging to capitalize on the EVFTA non-tariff measures since non- compliance with EU regulations may result in rejected shipments or reduced demand from EU buyers 3.3.2 Limited market access faced by Vietnamese exporters Vietnamese cashew exporters face difficulties in accessing the EU market due to limited internal capacity in terms of capital, human resources, and knowledge Many export businesses lack the necessary resources and capabilities to meet the stringent requirements and standards set by the EU This limits their ability to effectively penetrate the EU market and compete with established players in the industry Furthermore, Vietnamese manufacturers and exporters often lack comprehensive information and guidance regarding the EU regulations These regulations are subject to frequent changes, making it challenging for exporters to stay updated and comply with the latest requirements According to Ms Nguyen Thi Hoang Thuy, the Commercial Counselor of Vietnam in Sweden, every six months, the European Parliament and the European Council (EC) convene to review and assess the level of non-compliance with food safety and animal feed regulations of exporting countries to the EU Subsequently, the EU will announce changes in control measures Some products may undergo enhanced control measures, while others may have control measures lifted In addition, there have been certain sustainability risks faced by Vietnamese exporters upon entering the EU market Mr Ngo Chung Khanh, Deputy Head of the Multilateral Trade Policy Department at the Ministry of Industry and Trade, believes that Europeans are placing less emphasis on price and more on the products’ quality and the companies’ sustainable practices regarding the labor, the environment and society This is a characteristic that many Vietnamese companies are aware of, but not all are fully prepared for 3.3.3 Insufficient Focus on Intellectual Property and Brand Development One more key challenge faced by Vietnamese cashew exporters is the inadequate attention given to intellectual property rights and brand development Intellectual property rights is a relatively new content that has only emerged in a few FTAs that Vietnam has participated in, including EVFTA (Minister of Industry and Trade, Mr Tran Tuan Anh) While the EU places great emphasis on these aspects, many Vietnamese businesses, especially new exporters, tend to prioritize export turnover over building strong brands and protecting their intellectual property As a result, they miss out on the potential benefits of establishing a distinct brand identity and fail to safeguard their products against counterfeits and imitation Moreover, the importance of brand development and intellectual property rights in the agricultural product market, including cashew exports, can not be overstated The EU market values high- quality products with strong brands that evoke trust and reliability among consumers Without a concerted effort to invest in brand development and protect intellectual property, Vietnamese exporters risk facing challenges in differentiating their products and effectively competing with established brands in the EU market (World Intellectual Property Organization, 2018) In fact, Vietnam has committed to a relatively high level of protection in terms of intellectual property rights within the framework of the EVFTA Vietnamese laws have fundamentally met the requirements from the EU, with a number of provisions that are more stringent than those of the Agreement on Trade-relateintellectual property rights that is even more intensive than the WTO requirements For example, during Aspects of Intellectual Property Rights (TRIPS) However, the EU’s demand for enforcement of the process of registering for trademarks through the Community Trade Mark (CTM) system, if any of the EU countries refuses the protection, the trademark registration naturally loses its validity throughout the entire community This is considered a significant risk that cashew exporters in Vietnam have to overcome Recommendations 4.1 In respect of the government Frequent updates on industry information and insights in the EU market One challenge that Vietnamese cashew producers and exporters have been facing is the lack of comprehensive information and guidance regarding the EU cashew market and regulations Therefore, it is beneficial that the Ministry of Industry and Trade and other trade agencies promote an updated and comprehensive information system on Vietnam and EU cashew markets available for public use, for example, in quarterly or yearly reports, on official websites like trungtamwto.vn or Vinacas website, or research agencies providing services specialized in cashew exports in order to support Vietnamese cashew exporters in producing and promoting more compatible cashew products with the EU market The government can support businesses to find customers, encourage them to invest in deep processing of cashew-related products, diversify export products and timely improve the quality of cashew products that meet the EU regulations and requirements through frequent updates about the EU regulations regarding cashew products, exclusive information on networks of cashew customers and partners in the EU, market insights about customers’ demand and preferences, and accurate cashew demand forecast Implementation of OCOP (One community one product) program The OCOP program is an economic development program in rural areas The focus of the OCOP program is on developing agricultural, non-agricultural products and services with advantages in each locality along the value chain, driven by private economic sectors (enterprises, production households) Cashew production and exports can also be benefited through the implementation of this program In the OCOP program, the government plays a constructive role, promulgating the legal framework and policies for implementation; providing orientations for the production of cashew; manage and monitor product quality standards and also support the stages: Training, coaching, technical guidance, application of science and technology, branding, trade promotion, and product promotion of cashew businesses When registering for OCOP program, Vietnam cashew enterprises can receive support from the government and the community in some of the following aspects: 1) Development of science and technology and protection of intellectual property rights: Developing and implementing science and technology policies for cashew products in the direction of applied research, research and development and product standardization; Developing and implementing scientific research and technology development projects, applying technology to production and trading of cashew products Topics and projects based on specific needs of economic organizations (prioritize cooperatives, small and medium-sized enterprises, with specific addresses); Prioritizing the development, registration, establishment, protection and enforcement of intellectual property rights related to cashew products; Applying management science in building models of small and medium-sized cashew producing enterprises and cooperatives in the community 2) Systems of consultants and partners to support: The system of consultants includes: OCOP program management agencies at all levels; individuals and legal entities that have experience and capacity to comprehensively advise the activities of the OCOP program The system of partners includes: Enterprises participating in the production and trading chain of cashew products; institutes, universities, scientists in the field of the cashew production at science and technology organizations; professional associations; promoting cashew trade organizations, banks, investment funds; radio and television stations at central and local levels, journalists… 3) Resources mobilization: Mobilizing resources from the community such as capital, land, labor, raw materials, technology, etc under suitable regulations, in the process of forming economic organizations, in the form of capital contribution or other activities under the annual OCOP Cycle; Mobilizing credit resources from credit institutions to support economic organizations and production households participating in the OCOP program; The capital source for the implementation of the OCOP program is mainly from socialization sources: capital from enterprises, cooperatives, production households mobilized by themselves, loans from credit institutions, investment funds, development funds, grants from international organizations, In addition, the state budget will partially support, including: The budget to support the implementation of the national target program on building new rural areas, scientific and technological non-business capital, industrial promotion, agricultural extension, other integrated capital sources of central and local governments 4.2 In respect of enterprises Apart from the state policies, the cashew production and export businesses themselves need to have strategies to increase the competitiveness of cashew products in the world market and to fully exploit the potentials brought by the EVFTA Meeting the EU market's requirements for phytosanitary inspection: To meet the strict EU regulations on sanitary and phytosanitary, especially phytosanitary inspection, quality management, food safety and hygiene, Vietnamese businesses need to have specific measures to improve standards for agricultural products Enterprises should not only focus on upgrading technology and machinery, but also applying innovative methods to develop the quality of cashew products and make them meet all the requirements from the EU market In addition, businesses also need to continuously update new SPS regulations to timely take appropriate measures to meet the requirements of importers Closer linkage among businesses, farmers and production cooperatives: Most manufacturers in Vietnam are small, self-employed or cooperatives that are accustomed to producing goods traditionally and have not yet met the standards for exports To ensure goods meet all standards and can be sold in the EU market, the production process must strictly adhere to the standards of the importing country However, the link between cashew export businesses and cashew processing businesses is still loose, making it difficult to manage the production process Therefore, businesses need to strengthen their links and cooperation with manufacturers to ensure quality meets market demands Ensuring information tracing of goods: Requirements for the traceability of imported goods into the EU market are becoming increasingly strict, while the demand for transparency in the origin of products for EU consumers is also increasing They tend to use only production, especially imported products with a clear origin and meeting all the special standards of the EU market Traceability of Vietnamese cashew products will enforce the position of this product in the EU market Therefore, the traceability of goods plays an important role in the production and export activities of businesses Actively researching the market and updating changes in import requirements into the EU market Import regulations continuously change and require businesses to keep updated information to avoid producing goods that not meet the regulations of the importing country With the development of Big Data, businesses can easily access important information through certain channels such as Access2Markets.com, which EC built to support import and export operations in the EU For Vietnamese cashew export businesses, Access2Markets can help learn about export data of cashew products to this market Furthermore, this tool also provides information on customs duties, technical barriers, customs procedures, and rules of origin for cashew imports into the EU Enhancing the role and social responsibility Businesses' social responsibilities are important activities in ensuring sustainable development, especially sustainable development in the EU market EU importers are concerned about implementing production processes that ensure food safety and are eco-friendly Besides, issues related to labor, employee benefits, and transparency of labor information are also emphasized Therefore, businesses need to ensure these requirements when exporting goods to this market Conclusion Based on the analysis and findings presented in this research paper, it can be concluded that Vietnam's cashew production and export to the EU market has great potential, especially with the implementation of EVFTA, it has had a significant positive impact on Vietnam's cashew exports to the EU market The 0% tariff reduction on cashew exports under the agreement has resulted in increased competitiveness and price advantages for Vietnamese cashew exporters in the EU market Furthermore, the removal of technical barriers to trade, improvement in customs and trade facilitation, and the strengthened protection of intellectual property rights have all contributed to enhancing Vietnamese cashew exports to the EU However, the study has also revealed potential challenges and limitations that need to be addressed in cashew production and exports, including the limitations in capacity and resources of Vietnamese enterprises to fulfill the strict market requirements for the quality, food safety and hygiene of cashew products, as well as issues with product diversification, intellectual property and branding of cashew exporters that render it hard for them to compete in the EU cashew 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