Traders sign contracts according to international practices such as International Commercial Terms Make transactions via banks Have insurance and inspection termsregulations Through international and main border gates
Exporting Vietnamese sweet potatoes to China using official quota: Development and Potentials Group Contents 01 Introduction 02 Development 03 Opportunities 04 Challenges 05 Recommendations Developm ent Overview of the first official export of Vietnamese sweet potato Overview of Vietnamese sweet potato industry before the Protocol Overview of Vietnam’s official quota export Overview of the Protocol on phytosanitary requirement for sweet potato export from Vietnam to China What are the keywords? 01 Official Quota 02 Unofficial Quota ● ● Unofficial-quota goods are goods imported by Traders sign contracts according to international small traders Goods are taxed for consumption practices such as International Commercial Terms and not protected by the State ● Make transactions via banks ● Prefer cash ● Have insurance and inspection terms/regulations ● Clear origin and red VAT invoice ● Through international and main border gates ● Exclusive for border residents, no large enterprises Overview of Vietnamese official quota export Update As of March 2023, the Vietnamese government and authorities have been making efforts to stimulate export via official quota Future It is expected that Vietnam will only export to China via official quota from 2028 onwards Notable trade gate Guangxi province (Quảng Tây) accounted for over 95 percent of trade turnover Future From 2028 onwards, border gates will need bilateral agreements to stay opened and support trades Products approved so far And a few more… Overview of the Vietnamese sweet potato industry before the Protocol List of importing markets for sweet potatoes exported by Vietnam Unit: US Dollar Thousand => Vietnam relied on export via unofficial quota => Decline in sweet potato exports to China Vietnam’s localities: Vinh Long province Where is Vinh Long? In the Cuu Long river delta, where the sweet potato yield is highest in Vietnam What is so special about Vinh Long? 02 Every year: 10,000 hectares of land (1/10 of Vietnam) 300,000 tonnes of yield (1/4 of Vietnam) Your Text Here You can simply impress your audience and add a unique zing and appeal to your Presentations How has Vinh Long developed? Fluctuations: Loss of area + Price drops Other sweet potato localities A B Dong Thap province (Cuu Long river delta) C Dak Lak (Central Highlands) They suffered price drops and losses and had to reduce sweet potato areas for other crops D The future seems not so bright => What now? P Pr ow es erP en o ta int t io n Overview of the Protocol on phytosanitary requirements for sweet potato export from Vietnam to China 03 04 On November 22nd, 2022,P the Protocol was announced Pr ow er => Sweet potatoes as theese13th Vietnamese fruit to be officially P nt oin at t io n exported to China, and the 5th to have a Protocol Summary of the Protocol 01 Registry The planting regions and packaging facilities must be registered with MARD (The Ministry of 02 Phytosanitary testing procedure ● ● Agriculture and Rural Development) of Vietnam, for considerations from The General Administration of Customs of China (GACC) ● Planting regions must apply GAP (Good Agricultural Practices) Sweet potato batches must be sampled and analysed by MARD, based on GACC’s requirements Certificates if meeting requirements and suspensions if failing requirements Summary of the Protocol 03 Packaging requirements Packaging facilities must establish a quality management and product tracking system ● Classification ● Removal of spoilt products and impurities ● Pest control ● Clean packaging and containing 04 Border gate inspection Chinese Customs will conduct inspections and quarantine checks at borders, with strong measures ● ● Returning or destruction of unsatisfactory products Enforcement of laws or regulations in the event of violations Summary of the Protocol 05 Protocol implementation inspection process The General Administration of Customs of China (GACC) will carry out on-site inspections or online inspections with the cooperation and support of the MARD (The Ministry of Agriculture and Rural Development) of Vietnam Overview of the first official export of Vietnamese sweet potato to China ● In April 2023, Binh Tan district, (Vinh Long province), had 28 tonnes of sweet potatoes exported to China ● Vietnam and China continue to cooperate in the future 03 04 P Pr ow es erP en o t a in t tio n P Pr ow es erP en o ta int t io n ● 27 planting areas and packing facilities issued export codes => Good news? Overview of the first official export of Vietnamese sweet potato to China ● Actively restore and expand sweet potato production 03 04 P Pr ow es erP en o t a in t tio n P Pr ow es erP en o ta int t io n ● More involvement from organizations and businesses ● Growing tendency towards organic production ● More requests from China => Really good news Opportunities Opportunities for the Vietnamese sweet potato industry ● More proactive stance for Vietnamese farmers and businesses => prices ● => Rise and stabilize sweet potato More motivation to achieve higher yields Consistent source of revenue Opportunities within the Chinese market for Vietnamese sweet potato ● Increasing market demand ● Free trade agreements => ● => Favorable trade conditions Logistics advantage Potential for sustainable exports Strict regulation Challenges Thorough inspection and testing from Chinese authorities Packaging and labeling Need to prevent contamination and ensure product traceability Complex administrative procedures Involve permits, licenses and other documents Concerns over experience and knowledge to go through documentation Competition Significant domestic food production industry within China Strong exports to China from the United States, Netherlands or Egypt Recommendation Vietnamese governments Assess the current situation and adjust production operations Create favorable conditions for Vietnamese exports and open more border gates for export of potatoes Help synthesize and systematize Chinese import regulations and standards Consolidate the various beneficial Vietnam-China trade agreement provisions for publication Promote robust international relations in order to seek out new markets and opportunities brought about by international economic integration Businesses E-commerce technology should be applied in exporting potato products to China Actively update and strengthen their knowledge and skills, taking advantage of online commerce methods Products need to have suitable prices, good quality, proper origin and be produced sustainably All transactions must be made in the form of a contract under the rules of international trade Monitor and be updated on market information, trade policies, regulations on product quality, and consumer tastes in China Thank You