Nghiên cứu tác động biện pháp phi thuế quan của việt nam đối với hàng nông sản nhập khẩu tt tiếng anh

INTRODUCTION Research Rationale While the role of tariff has diminished, the application of non-tariff measures as a key policy instruments is becoming an inevitable trend of trade liberalization in the world Thirdly, propose some solutions and recommendations to take advantage of the positive effects and limit the negative effects of non-tariff measures, contributing to manage imported agricultural products effectively until 2025 with a vision to 2030 Research subject and scope Non-tariff measures often have a legitimate purpose for human health, animals and plants, environmental issues or food security and national security The fact that sometimes these measures aim to hide protectionism under the above social objectives Therefore, the impact of non-tariff measures on trade is still an issue to be studied Non-tariff measures vary in the type of application and are constantly changing over time in the specific context of each country Assessing the impact of non-tariff measures still faces many obstacles due to the lack of conceptions on non-tariff measures as well as on the database used for studies of non-tariff measures Therefore, it is necessary to study an appropriate method and fully reflect multi-party information from the design process to the implementation of non-tariff measures, thereby measuring the impact of non-tariff measures to trade based on the purpose of 3.1 Research subjects The thesis studies a number of theories and practices on the impact of non-tariff measures on Vietnamese agricultural imports 3.2 Research scope 3.2.1 The content The thesis studies positive and negative effects of two typical non-tariff measures, namely sanitary and phytosanitary measures (SPS) and technical barriers in trade (TBT) on the probability of market access and on the import value The thesis applies the definition of agricultural products of the World Trade Organization (WTO), which is all of the items listed from chapter to chapter 24 (except for products from fish policy design in a way that is compatible with the international rules of the WTO On the other hand, the extent to which non-tariff measures are applied varies among sectors In particular, agricultural commodities are often most affected by non-tariff measures and more strictly than non-agricultural goods Although agricultural products are the main export items of Vietnam, the import growth rate of agricultural products has also increased steadily from to 11% per year Therefore, the government's management policy is facing challenges in managing and aquatic products) and other commodities Derived from agricultural activities such as basic agricultural products, derivative products, and products made from agricultural products In addition, the thesis studies three main agricultural product groups: Group - animals and products of animal origin; Group - Plants and products of plant origin; Group - agricultural processed products 3.2.2 Time scope imported agricultural products by non-tariff measures in accordance with the provisions of the WTO and other free trade agreements In addition, the current implementation of non-tariff measures in Vietnam has not been effective Based on the research rationale, the author chooses the research topic: "Studying the impact of Vietnamese non-tariff measures on imported In qualitative analysis, the thesis analyses and assesses the current situation of Vietnam's imports of agricultural products and the impact of non-tariff measures on imported agricultural products in the period from 2007 to 2017, then the results suggest solutions to take advantage of positive effects and limit negative effects until 2025 with a vision to 2030 agricultural products" Research objectives and missions 2.1 Objectives Study the positive and negative effects of Vietnam's non-tariff measures on imported agricultural products From there, propose some solutions based on promoting positive effects and limiting negative effects of non-tariff measures to manage Vietnam's imported agricultural In quantitative analysis, the thesis uses structural gravity model with Heckman two-stage model estimation The author uses panel data from 2007 to 2017 (a period of 11 years since Vietnam joined the WTO) 3.2.3 Geography and Location The thesis studies the impact of Vietnam's non-tariff measures with 34 major importers into Vietnam, accounting for 88% of the total value of imported agricultural products into products effectively 2.2 Research missions Firstly, systematize and contribute to clarify some theoretical issues on the impact of non-tariff measures on import flow Vietnam Trade partners are selected by region in the world This includes 16 trade partners for which Vietnam has signed a bilateral or regional trade agreement, and 18 trade partners for which Vietnam has not signed a trade agreement Research Methodology Secondly, analyse the current situation of imported agricultural products and the impact of non-tariff measures on Vietnam's imported agricultural products from 2007 to 2017 4.1 Data collection The study uses data sources from the General Statistics Office, the World Trade Center (ITC), the World Bank (World Bank), the World Trade Organization (WTO), the data system from UNCTAD TRAINS, Economic Research Institute for ASEAN and East Asia The collected data is aggregated in array data with 182 items in the 4-digit HS code, 34 export partners and in the 11- From the results of studying the impact of non-tariff measures on imported agricultural products, the thesis has proposed three groups of solutions, including: (1) solutions to take advantage of the positive effects of non-tariff measures such as: increasing the harmonization of national and international measures; (2) measures to limit the negative effects of non-tariff year period from 2007 to 2017 (namely 68068 observations) 4.2 Qualitative method The qualitative methods include in-depth interviews with businesses and independent experts to analyse the practice of non-tariff measures In addition, the study uses descriptive statistical indicators in the analysis the trade flow among countries and the application of non-tariff measures 4.3 Quantitative methods Quantitative methods are used to estimate the effects of non-tariff measures on imported agricultural products in Vietnam In quantitative research, the thesis examines the impact of nontariff measures on agricultural imports by structural gravity model and two-stage Heckman measures such as the mechanism of public-private cooperation in the development of measures, tools and systems for warning of hazards and development technology of measuring the quality of agricultural products; (3) solutions for different groups of imported agricultural products related to quality control of agricultural materials in the production chain The structure of the thesis Chapter 1: Literature review on the impact of non-tariff measures on imported agricultural products Chapter 2: Theoretical basic on the impact of non-tariff measures on imported agricultural products Chapter 3: Research framework and research methodology Chapter 4: Situation of the impact of Vietnamese non-tariff measures on imported agricultural estimator In particular, the impact of non-tariff measures is clearly shown through the fixed costs and variable costs, thereby affecting the probability of market access (extensive margin) and the growth of import value (intensive margin) New contributions of the thesis Firstly, the concept of the impact of non-tariff measures is comprehensive, such as: i) may or may not affect trade flows; ii) not all measures affecting trade flows have protective purposes products Chapter 5: Viewpoints, orientations and solutions to take advantage of positive effects and limit negative effects of non-tariff measures on imported agricultural products to contribute to effective import management such as the concept of "non-tariff barriers"; iii) the impact of non-tariff measures on the supply side through changes in production costs and on the demand side through changes in consumption behaviours; iv) non-tariff measures are built on the basis of facilitating market access and managing import flow, sometimes protecting sensitive industries in the domestic market Secondly, the thesis develops a research framework to measure the impact of non-tariff measures on two levels including the impact on the probability of market access (called extensive margin) and the impact on trade value (intensive margin) through change of production costs The Heckman two-step estimator solves endogeneity and zero data in trade and points out the difference in the impact on the extensive and intensive margin of non-tariff measures Thirdly, the major non-tariff measures have the positive effect on market access for Vietnamese agricultural market and the trend of market shift based on trade liberalization In addition, the non-tariff measure has impacted on imports but is different from the effects of SPS and TBT measures and among agricultural product groups on the intensive margin Moreover, the mechanism for implementing tariff creates implicit costs that negatively affect the effectiveness of the non-tariff measures' effects on imported agricultural products in practice CHAPTER 1: LITERATURE REVIEW ON THE IMPACT OF NON-TARIFF MEASURES ON IMPORTED AGRICULTURAL PRODUCTS 1.1 Theoretical studies on the impact of non-tariff measures The most fundamental theory of the economic impact of non-tariff measures is the work of countries' trade, they still have the opportunity to expand their global markets depending on their ability to meet demand such as prices, quality and regulatory standards under non-tariff measures (Henson and Loader, 2001) Many studies indicate that SPS and TBT are important obstacles in exporting activities of developing countries to developed countries (Wilson et al., 2002; Baldwin (1991) and Deardorff and Stern (1998) The authors have proposed a partial balance analysis of non-tariff measures However, the limitation of impact measurement is not taking into account the difference in quality of goods that creates a difference between domestic prices and reference prices of equivalent replacement goods, as well as costs From such limitations, Beghin et al (2012) analysed the impact of a typical non-tariff measure as a technical barrier in trade by the price difference method in the case of control shipping costs and other commercial costs and hypotheses about product heterogeneity and awareness of the quality of substitutes The reduction of import demand is based on the partial equilibrium analysis model The study by Ganslandt and Markusen (2001) provides a more comprehensive impact analysis based on the overall equilibrium model and adds assumptions about domestic production resources The typical theory describing Michalopoulos, 1999; OECD, 2005) From the enterprise level, the study of Chen et al (2006) shows that prolonged technical standard inspection procedures reduce the export value of developing countries by 9% Thus, most previous studies have pointed out the negative effect of non-tariff measures on trade in developing countries This negative effect usually comes from the capability of exporters to meet the regulations and standards on products In addition, most of the key non-tariff measures such as the SPS measure, the TBT measure, and the quantitative control measure often contribute the most to trade barriers from developing countries However, some studies indicate that positive effects can still occur but depend on the ability of self-defence, or adapt through the process of improving the competitiveness of enterprises in detail the "dynamic" impact of regulatory measures such as SPS or TBT measures is the study of Disdier and Marette (2010) In particular, the author has pointed out the impact of non-tariff measures (such as SPS and TBT) to shift the supply-demand curve In summary, through the review process of studying the impact of non-tariff measures, some key conclusions are drawn from the above theories: - The impact of non-tariff measures on international trade has both positive and negative 1.3 Foreign empirical studies on the impact of non-tariff measures on imported agricultural products On the other hand, studies on the impact of non-tariff measures on imported agricultural products are often approached from the perspective of developed countries imposed on developing agricultural products Most studies on imported agricultural products focus on assessing the impact of two typical non-tariff measures, SPS and TBT, as these are the two measures that have the effects through trade cost The increase in trade costs from the perspective of manufacturers is due to the generation of fixed costs that meet the non-tariff measures imposed on the products and create an impeding trade effect On the contrary, the positive effect is seen from the demand-driven effect due to an increase in the willingness of domestic consumers to pay for imported goods that largest impact on the agriculture Moenius (2004) used a gravity model to assess the impact of technical standards on trade with a data set covering 471 sectors according to the SITC classification at 4-digit level in bilateral trade of 12 developed countries The results show that the standards applied only to imported goods have a negative effect on the import of food and meet technical standards and regulations - The impact of non-tariff measures on social welfare or the economic interests is due to the movement of supply and demand curves for imported goods, leading to changes in prices and quantities - The degree of impact of technical measures such as SPS or TBT depends on sensitivity to quality factors, so the quality difference between domestically produced goods should be taken beverages, whereas, there is a positive effect on imports of manufactured goods such as oil, chemicals, machinery A study by Melo et al (2014) analysing the impact of SPS and TBT measures on fruits imported from Chile indicates that increasing the strictness in the application of SPS and TBT standard regulations will be effective and inversely affecting the value of fruit exports of Chile Research by Otsuki et al (2001) points out the negative impact of European Union's Aflatoxin residue standards on agricultural products imported from Africa In particular, into account 1.2 Foreign empirical studies on the impact of non-tariff measures Developing countries often lack the ability to assess the impact of non-tariff measures from developed countries, have not effectively participated in dispute resolution and have not been able the more EU standards are (or less compatible with) the CODEX of FAO, the import value of cereal, grain and fruit products (according to the author's calculation is approximately 670 million USD) This level of impact is quite similar to the impact of the Chlopyrifos standard imposed on bananas imported from Latin America, Asia, and Africa to developed countries of the OECD to prove that their measures (developing countries) in accordance with the requirements of developed countries (Saini, 2011) While non-tariff measures may create barriers to developing group Disdier and Marette (2010) 's research focused on the regulation of antibiotic residues in agricultural products applied in some major importing countries 1.4 Vietnamese studies on Non-Tariff Measures The earliest study of Vietnam that brought the issue of non-tariff measures into trade policy is Mai Xuan Hung (1996)'s titled “study of the basic tools of Vietnam's foreign trade policy” However, the study only lists theoretical non-tariff measures and the basic measures applied in Therefore, Vietnam needs to identify both issues that meet the non-tariff measures of other countries, and proactively develop non-tariff measures that are certain to manage imported goods efficiently CHAPTER 2: THEORETICAL BASIS OF THE IMPACT OF NON-TARIFF MEASURES ON IMPORTED AGRICULTURAL PRODUCTS Vietnam such as quotas A prominent research by Dinh Van Thanh (2006) on "Non-tariff measures on agricultural products in international trade" examines the application of non-tariff measures to protect Vietnamese agricultural products In accordance with international practices, this is an elaborate study of achievements in reviewing Vietnamese non-tariff measures on agricultural products and assessing compatibility with commitments in the WTO Agreement on Agriculture Research by Dinh Cong Hoang (2015) has formulated a theoretical framework for trade barriers including tariffs and non-tariffs in the footwear industry From the perspective of studying the impact of non-tariff measures, Dao Thi Thu Giang (2008) has made the assessment of current non-tariff measures in the main export markets of Vietnam Since then, it has proposed a solution to overcome non-tariff barriers in international 2.1 Summary of non-tariff measures With the definition of non-tariff measures in international trade, Baldwin (1970) soon introduced the concept of non-tariff measures as a measure to create the trade distribution process in international goods and services in the direction of reducing the potential real income of the world Meanwhile, some economists approaching non-tariff measures from a cost perspective such as Gourdon and Nicita (2012) argue that non-tariff measures are measures to generate costs arising from production activities to final consumption, excluding tariffs Research by Beghin et al (2012) trade in order to boost the export of Vietnamese goods Also, in the direction of research for export activities, the research of the authors Do Duc Binh and Bui Huy Nhuong (2009) on "Meeting the non-tariff barriers to promote sustainable export of Vietnamese seafood" gave a view on "nontariff barriers" and from the perspective of market access of Vietnamese exports, the ability to overcome non-tariff barriers in import markets In summary, a review of Vietnamese studies on non-tariff measures found that the main emphasized that non-tariff measures are measures that have direct and indirect effects on the volume and price of goods through changing customer preferences and perception for that product Based on practice, UNCTAD (2009) agreed on the concept of non-tariff measures which emphasizes “non-tariff measures are non-tariff policy measures that can have economic impacts on international trade by changing volume, or price, or both” Therefore, based on the applied practice and research overview, in this study, the measures are interpreted as a non-tariff measure issues include: - Regarding terminology: Most researches use the terms "Non-tariff barriers" or "Trade barriers", "Non-tariff policies" Using the above terminology, the studies selected the theoretical framework and approach as a measure to hinder trade, in which Vietnam is the subject of damage when ensuring the following basic points: - Non-tariff measures are all types of measures of trade policy excluding tariff, applied to imported goods (some applied to exported goods) - Non-tariff measures may or may not affect trade flows and negative effects - Regarding the method of determining non-tariff measures: Up to now, very few Vietnamese studies have had a comprehensive system of theoretical frameworks in quantifying non-tariff measures because the non-tariff measure is a difficult variable to quantify, compared to the tariff that has been clearly determined by the ratio calculated by value and published in each period of countries - Not all measures affecting trade flows are taken for the purposes of discrimination or protectionism as barriers to trade - Non-tariff measures may affect trade flows in terms of trade volume and impact on benefits and costs from production to final consumption - Non-tariff measures are built on the basis of facilitating the process of market access and the regulation of import or protection in an appropriate manner with sensitive areas within the Regarding the assessment of non-tariff measures, this is the concern when referring to nontariff measures in domestic studies However, Vietnam's studies on the issue are limited in quantifying the effects of non-tariff measures At the same time, the previous studies' perspective on the impact of research focuses on the impact of measures imposed by other countries (importing framework of the World Trade Organization (WTO) and regional commitments 2.2 Some basic issues of the impact of non-tariff measures on imported agricultural products a Factors affecting imports of agricultural products countries) on Vietnam's exports However, the process of international economic integration shows that trade liberalization will affect the two dimensions of trade (import and export flows) The response of imports to the effects of non-tariff measures varies across different product groups, as well as across the trade partners However, it is still largely dependent on the level of supply-demand elasticity of the commodity market (Leamer, 1988) and factors affecting trade relations among countries, namely: Factors affecting supply and demand of the exporting or importing country - Per capita income - The labor force in agriculture - The degree of population concentration on agricultural land - Output or value of agricultural products - Relative price of the product Factors affecting trade relations between the two countries - Geographical, economic, historical and cultural differences: - International trade policy (tariffs, non-tariff measures, degree of international economic integration) b Impact of non-tariff measures on imported agricultural products The positive effect - Non-tariff measures have the effect of promoting demand due to the shift of demand curve - Non-tariff measures positively affecting social welfare - Non-tariff measures on imported agricultural products increase consumer awareness and change consumer behaviour related to increased food safety and quality attributes - Non-tariff measures on imported agricultural products increase the linkage in the agricultural food supply chain to ensure food quality and safety CHAPTER 3: RESEARCH FRAMEWORK AND RESEARCH METHODOLOGY 3.1 Framework for studying the impact of non-tariff measures on imported agricultural products In this study, the theoretical basis for building a research framework based on the theory of Melitz's new international trade (2003) In addition, the study is based on the theory of Disdier and Marette (2010) on the impact of non-tariff measures belonging to technical measures such as sanitary and phytosanitary measures (SPS) and technical standards to trade (TBT) On that basis, the framework below, analyses the impact of SPS and TBT measures from the supply side through the production cost In particular, these costs can create an impact on the probability of market access and the supply of goods or trade flow The framework includes important factors to assess the overall impact of non-tariff measures on the flow of agricultural imports such as: i) The first group is a representative of trade policies such as tariff and level of international economic integration; ii) The second group is the factors that belong to the difference between the two pairs of countries such as geographical distance, economic scale, historical culture; iii) The third group of factors influences supply and demand elasticity in the market for agricultural products - Non-tariff measures on imported agricultural products to help solve global issues related to human health, animals and plants The negative effect - Non-tariff measures have an effect of hindering trade to the market entry of exporting enterprises - Non-tariff measures have the effect of hindering trade through reducing the supply of imported goods - Government intervention by non-tariff measures on agricultural products is often of a trade protective nature 10 3.2 Empirical equation for estimating the impact of non-tariff measures on imported agricultural products a Estimating the overall impact of Vietnam's non-tariff measures on imported agricultural products Outcome equation (written as empirical equation) Ln (Hi | Zi = 1) = β0 + β1 lnYijt + β2 lnTariffkit + β3SPSik + β4TBTik +β5lnDistij + β6Rij + β7RTA + uijk Selection equation Zi = β0 + β1lnTariffkit + β3SPSik + β4TBTik +β5lnDistij + β6 Rij + β7RTA Collection of variables in the empirical equation assessing the impact of two typical Vietnamese technical measures (TBT and SPS) on imported agricultural products is as follows: Yit, Yjt: SPSik: TBTik: Rij: GDP per capita of Vietnam (i), of exporting country (j) Number of SPS measures applied to the product k Number of TBT measures applied to product k Differences in other factors (geographic, cultural, historical) including a set of variables (contig - sharing borders, colony - colonial relations, comcol - both countries Tariffkit: Dist: Import tariffs are imposed on goods k in year t The geographical distance between import partners and Vietnam RTA: Dummy variable representing to bilateral or regional trade between the two countries The above empirical equation is to test the correlation of two main variables representing the nontariff measure (SPS and TBT) with the underlying assumptions: - Hypothesis 1: SPS and TBT measures are correlated with the probability of market access to Vietnamese agricultural markets - Hypothesis 2: SPS and TBT measures are correlated with Vietnam's agricultural product import value - Hypothesis 3: The impact of SPS and TBT on the import value of agricultural products is less than the impact of tariffs - Hypothesis 4: The impact of SPS measures on the import value of agricultural products is stronger than the impact of TBT - Hypothesis 5: The impact of SPS and TBT measures is different for different groups of agricultural products 3.3 Methods of data collection The research data is designed the panel data on the bilateral import flow between Vietnam and 34 trading partners for goods classified under the Harmonized System that describes goods with digits (including 182 codes) Data were collected for 11 years from 2007 to 2017 Total observations were 68068 observations (182 commodity codes x 34 trading partners x 11 years) Secondary data sources are collected from international databases Specifically, for the dependent variable, the updated value from the database of the International Trade Center (ITC International Trade Center) of UNCTAD- WTO is specific for each pair of countries and each digits products For the two main explanatory variables, SPS and TBT, the non-tariff measure data were collected from statistical database of the ASEAN and East Asia Economic Research Institute (ERIA) and UNCTAD for 10 ASEAN countries b Estimating the impact of non-tariff measures on groups of imported agricultural products Based on the assumption of differences between commodity groups, there will be different effects of non-tariff measures in Vietnam The author conducted estimations on typical agricultural product groups including: - Group 1: Group of animal products and products of animal origin (corresponding to HS codes from 01 to 05) - Group 2: Group of plant products and products of plant origin (corresponding to HS codes from 06 to 14) - Group 3: Group of agricultural processed products (corresponding to HS codes 15 to 24) CHAPTER 4: CURRENT SITUATION OF THE IMPACT OF VIETNAMESE NONTARIFF MEASURES ON IMPORTED AGRICULTURAL PRODUCTS 4.1 Analysis of the current situation of Vietnam's imports of agricultural products Although Vietnam's import value of agricultural products is lower than export value to ensure a surplus in agricultural trade balance and maintain Vietnam's comparative advantage in exporting agricultural products However, the average growth rate of imported agricultural products in the two periods of years (2008-2012) and (2012-2017) were more than double that of exported agricultural products This shows the government's control over the flow of imports very clearly, however, the trend of growth in imports of agricultural products is still superior to exports 11 12 In terms of imported agricultural products, agricultural processed products (HS15 and above), and vegetable and plant derived products (HS05-14), it accounts for over 80% of the total agricultural export While the group of plants and products of plant origin tends to nearly double (from 24.7% in 2001 to 43.04% in 2017), the group of agricultural processed products tends to Secondly, Vietnam's technical standards and standards have clearly demonstrated the role of overcoming market restrictions in transparency of information flows between suppliers and consumers regarding the characteristics and quality of products, creating more favorable conditions for domestic and international trade decrease to less than 50% of total import value In addition, the import growth rate of agricultural processed products is still much larger than the export growth rate, so this product group still maintains a high trade deficit of - 4.29 billion USD However, when considering the trade balance of the above agricultural groups, even though the group of animals and products of animal origin account for a very small proportion, it has the largest trade deficit (- 4.5 billion USD) or in other words almost absolute imports of this product group 4.2 Analyze the situation of applying Vietnam's non-tariff measures on imported agricultural products 4.2.1 Actual situation of non-tariff measures applied to imported agricultural products by type However, some standards and technical regulations of Vietnam show protection for some commodities (specifically maize, soybean), issues related to genetic modification, although they are redundant However, the lack of information on product labels and warnings about their use have not been widely disseminated to producers, especially farmers The level of application of measures that belong to Vietnam's technical standards is at an average level, in particular, the quantity and value of imports affected by these measures only account for less than 50% of the total traded volume of goods The level of concentration that imposes TBT on one product is low In agriculture, the number and concentration of standards and technical regulations imposed are low compared to other sectors In addition, standards and technical regulations in 4.2.1.1 Sanitary and Phytosanitary measures (SPS) - The improvement of the law has not yet kept up with the growth of all sectors, especially the agriculture and food industry Regulations related to SPS in the country have not complied with international regulations or compared to other countries - Although there are many documents in the field of food safety, the scope and extent of adjustment are still overlapping and not meet the requirements of actual production and agriculture only focus largely on products, while the production process has not been focused, especially not clearly showing the orientation of developing organic agriculture Organic agriculture in standards and technical regulations Vietnamese standards and technical regulations imposed on imported agricultural products have not been effective in enforcing the control due to Vietnam's weak inspection and enforcement process Technology and processes are still lacking in tightness and loopholes The second reason circulation - Regarding the management of importing enterprises, the capacity of inspection agencies is still limited, leading to inconsistent enforcement, increasing the uncertainty for manufacturers Large number of legal documents related to food safety (about 400 documents issued by central is that Vietnam's technical standards are still at a lower level than international standards Moreover, some of Vietnam's imported agricultural products depend on one or two major markets, along with import pressure to ensure production purposes leading to loosen the implementation of technical regulations and standards government and ministries and about 1,000 documents issued by local authorities), leading to overlap and lack of focus clearly - Coordination between agencies, risk analysis and identification system needs to be improved, both at central and local government levels The lack of transparency in information and the harmonization of Vietnam's regulations compared with international regulations are also raised by exporting countries as issues of concern in the implementation of SPS measures for 4.2.2 Actual situation of applying non-tariff measures of Vietnam to imported agricultural products compared to other countries Up to 2018, Vietnam introduced 330 non-tariff measures, lower than Thailand (1566 measures) and Malaysia (689 measures) However, the number of non-tariff measures of Vietnam equivalent to China is 377 measures imported agricultural products 4.2.1.2 Technical barriers to trade (TBT) When Vietnam became an official member of the WTO, the system of standards and technical regulations was established according to the International Standardization Classification For Vietnam, the number of SPS and TBT measures is similar However, compared to other countries, the number of SPS measures applied is quite high, even higher than some strict markets such as the European Union (EU) with 101 measures, Australia with 64 measures (ISC) and referenced and cited international standards in accordance with WTO TBT Agreement 4.2.3 Current situation of applying non-tariff measures of Vietnam to imported agricultural products compared with other industries 13 14 Regarding the frequency of occurrence indexes for each group of industries, agriculture is still the industry that is subject to the most non-tariff measures imposed on almost all agricultural products The average number of non-tariff measures applied to the above non-agricultural products is more than 1, while for agricultural products, there are more than 22 In addition, 90- 4.4 General assessment of the impact of Vietnam's non-tariff measures on imported agricultural products 4.4.1 The positive effects The SPS measure has a positive effect on increasing the foreign market's access to Vietnam 100% of all agricultural products are subject to at least one measure of the non-tariff measure group represented by the Frequency Index (FR) Vietnam applies a non-tariff measure of up to 98% In terms of prevalence index, Vietnam belongs to the group of countries with the highest number of non-tariff measures applied to the group of agricultural products (more than 22 nontariff measures, on average, applied to a certain product) agricultural products) Through statistics on Vietnam's current level of non-tariff application to agricultural products, it can be seen that Vietnam's imported agricultural products are subject to a fairly high degree of non-tariff measures, and strict protection equivalent to developed countries like the United States, or some regional countries such as Indonesia and the Philippines market The reasons are: i) market orientation and commodity orientation in Vietnamese policies; ii) the system of non-tariff measures is gradually approaching the regional and world systems; iii) infrastructure system, equipment and facilities for checking, sampling and measuring the residues of substances in the product are not modern, so it is difficult to detect violations at the border gate The SPS measure has a positive effect on the import demand for agricultural products (group 1, group 2, group 3) The reasons are: i) consumers tend to have increased concerns about hygiene and food safety issues for goods sold in the market; ii) trends in population structure and social structure, as well as the growth of per capita income that influences import demand through behavioral and dietary changes; iii) some food processing and agricultural products industry of Vietnam still heavily relies on imported raw materials due to insufficient domestic supply and For the non-tariff measures applied to agricultural products, it can be seen that SPS measures are the most applicable to all agricultural products, notably food products with SPS Measures and a half as much as the other two groups (75 notifications apply) Similarly, the number of TBT measures applied to groups of food products or preparations from agricultural products is double that of the two groups of raw agricultural products from animals or plants uneven quality Non-tariff measures impact the shift of import markets in the direction of promoting import demand from countries with FTAs The reasons are: i) the market share of import partners of Vietnam has changed significantly The shift is clear from import markets of Asian countries such as India, China, Thailand, Malaysia to countries in Asia - Pacific This may be the result of the cooperation and signing process of the Trans-Pacific Strategic Partnership Agreement 4.3 Results of quantitative analysis of the impact of Vietnam's non-tariff measures on imported agricultural products Some of the overall impacts were estimated as follows: - The non-tariff measure of Vietnam has a clear impact on the possibility of importing Non-tariff measures have a positive effect on the quality control of imported agricultural products to serve the needs of export production as well as domestic production, thereby increasing the quality of products to the market The reasons are: i) some items such as corn, soybean, some vegetables, food additives are often imported to provide raw materials and inputs for the food agricultural products into the domestic market, but the direction of impact differs according to each type of measures - The non-tariff measure of Vietnam has an impact on the import volume but the direction of impact differs by type of measure and by group of agricultural products - In particular, SPS measures create two different impacts: the trade-promoting effect with the ability to import agricultural products and the trade-restricting effect that prevents the import industry; ii) all imported agricultural products are capable of domestic production but the output is not enough to meet the production needs of industries, the quality of harvest is uneven due to production by small households, fragmented and heterogeneous in terms of farming techniques; iii) importing agricultural products enhances the efficiency of the production chain or promotes exports to Vietnam's livestock products or foodstuffs of agricultural products In contrast, technical barriers to trade (TBTs) only have a spurring effect on agricultural imports - However, the impact of non-tariff measures is quite small compared to other independent variables This again shows the key role of traditional measures such as tariffs and strengthening 4.4.2 Negative effects The TBT measure has an impact on the foreign enterprises' ability to access Vietnam market Causes: i) increasing costs mainly for foreign enterprises, higher than Vietnamese ones; ii) difficulty in overlapping standards, unclear or confusing standards implementation guidelines, integration commitments in the management of Vietnam's imports of agricultural products and limited support from authorities to implementation guidelines; iii) the additional cost of imposing technical standards (TBTs) is usually in the implementation phase of the measure 15 16 The TBT measure has a negative effect on imports of fresh animal and plant products, but has a positive impact on processed agricultural products becauses: i) foreign exporting enterprises have difficulty in meeting international technical standards and national standards at the same time; ii) a number of Vietnamese standards and technical regulations that show protection for some Imported agricultural products are managed according to the market mechanism, effectively exploiting advantages in international economic integration, ensuring equal market access opportunities with all partner countries, ensuring to serve domestic production and consumption needs and national food security issues in the overall strategy of import and export imported plant products (specifically maize and soybean); iii) standards and technical regulations in agriculture only focus on the final product, while the production process has not been focused; iv) Vietnam's technical standards and regulations imposed on imported agricultural products have not achieved effective control of enforcement The impact of SPS and TBT measures is very small compared to the tariff measures The cause: the increasing trend of imports of unfavorable agricultural products in cultivation (such as corn, soybeans, temperate vegetables ) as well as supporting the development of the livestock industry Therefore, when assessing the impact of tariffs and non-tariff measures on importability, the increase in import tariffs does not reduce the ability to import but has an increased effect due to domestic demand with imported agricultural products as production materials is increasing development Encouraging the import of agricultural products, which Vietnam has disadvantages and increasing domestic demand, to reasonably control the import of agricultural supplies for animal husbandry and manufacturing industries Imported agricultural products improve their quality, ensure food hygiene and safety, diversify their consumption, and not affect the sustainable development of domestic agriculture and thus Vietnam's economy Strengthening the management of imported agricultural products based on the system of legal documents providing for non-tariff measures in accordance with international commitments and commitments of bilateral and multilateral free trade agreements The impact of non-tariff measures depends heavily on enforcement capacity The process of implementing non-tariff measures in Vietnam is inconsistent, the control is only formal in document, testing is only probabilistic at the time However, the reality from the promulgation and implementation of non-tariff measures in Vietnam is still very late and there is a great gap The results of the promulgation process have not fully reflected the current situation of applying nontariff measures in Vietnam b Principles to implement solutions to take advantage of positive effects and limit negative effects of non-tariff measures on imported agricultural products The first principle in establishing a system of non-tariff measures is to ensure that the basic principles of the WTO, such as the most-favored nation principle and the national treatment of the WTO, not create discrimination or more preferential treatment for domestic manufacturers for the same product or intentionally adjusting competition opportunities in the domestic market The mechanism for monitoring and enforcement of non-tariff measures limits the effectiveness of the measures The reason is that Vietnam's regulations or standards on food quality and safety control are quite similar but the level of Vietnamese tolerance is often different from that of developed countries or risk control and testing equipment are still very skewed; ii) the The second principle is that the design and development of non-tariff measures should be placed in the market economy mechanism, but ensure they are consistent with the views, orientations and goals in the Import-Export Development Strategy of Vietnam Specifically, the government did not intentionally intervened in the agricultural product market through measures unofficial costs of implementation still stem from gaps in the customs clearance process, as well as the complicated cumbersome of clearance procedures; iii) the cohesion of procedures of a number of ministries and agencies with specialized inspection procedures is not tight CHAPTER 5: VIEWPOINTS, ORIENTATIONS AND SOLUTIONS TO CONSIDER THE POSITIVE IMPACTS AND LIMIT THE NEGATIVE IMPACT OF NON-TARIFF that directly supported domestic producers, or those that were inconsistent with WTO commitments or measures that hinder the market access of partner countries The third principle, the process of adjusting and supplementing legal documents related to non-tariff measures, should be based on international regulations, aiming to reduce costs for businesses by harmonizing between national standards and international standards In addition, government should be based on clear scientific evidence and time for adjustment and reasonable MEASURES ON IMPORTED AGRICULTURAL PRODUCTS TO EFFECT MORE EFFICIENT IMPORT MANAGEMENT 5.1 Viewpoints, orientations and objectives of the management of imported agricultural products by non-tariff measures of Vietnam application, or new international commitments, under the conditions that Vietnam has signed trade agreements The fourth principle, non-tariff measures is formulated and adjusted according to the principle of reducing costs based on pre-impact assessments of benefits and costs of newly a The viewpoints of managing imported agricultural products by non-tariff measures of Vietnam introduced non-tariff measure and impact after implementation to make adjustments 17 18 5.2 Solutions to take advantage of positive effects and limit the negative effects of Vietnam's non-tariff measures on imported agricultural products to contribute to more effective import management a The solution takes advantage of the positive effects of Vietnam's non-tariff measures on imported Vietnam; resolve conflicts and harmonize Vietnamese and international SPS and TBT measures In addition, the government has set up local TBT and SPS inquiry points, but it is necessary to consolidate resources, especially to train consultants on the application of non-tariff measures for domestic and foreign businesses agricultural products - The Government should continue to improve the legal documents on non-tariff measures in the direction of simplification and transparency, increasing the degree of harmonization with international regulations and commitments - The Government provides import market orientation to diversify import markets and continue to take advantage of preferences from markets with FTA agreements with Vietnam - The Government needs to strengthen the control of the quality of agricultural materials for production by quarantine measures - Enhancing the forecast of import demand and world price fluctuations for agricultural products 5.3 Some recommendations a From the industry association - Coordinate with inquiry points on SPS and TBT in the country and in provinces to provide two-way information such as updating regulations and legal documents related to businesses as quickly as possible, providing guidance on implementation and advice and support to solve difficulties for businesses In addition, the industry association needs to capture information about difficulties in implementing and responding to non-tariff measures of enterprises to agencies that issue and implement non-tariff measures - Supporting market access for foreign businesses: First of all, the industry association b Solutions to limit the negative impact of Vietnam's non-tariff measures on imported agricultural products - Control and prevent risks by developing an early warning system, assessing the impact on the whole industry as well as important agricultural products, proactively classifying risks and assessing business capacity Enterprises import by level of risk, apply risk management tools such as insurance, warehouse systems, transaction diversification needs to review and provide information about foreign enterprises wishing to access Vietnam's agricultural market through the network among industry associations of Vietnam, embassies in other countries - Support in resolving disputes and conflicts: In the process of implementing SPS or TBT measures as well as other non-tariff measures, Industry Associations as a third party may receive feedback from foreign partners, as well as from domestic enterprises, submit them to state agencies - Enhance the effectiveness of the implementation of non-tariff measures on imported agricultural products such as the mechanism of cooperation between the state and the private sector, propagandize and disseminate guidance and technical support for documents laws to facilitate business implementation, coordination mechanisms among line ministries for timely adjustment b From the import business - For importing enterprises, before entering Vietnam's agricultural market, it is necessary to carefully understand about the legal environment, business environment and development c Other solutions - Strengthen the management of the quality of agricultural materials for production and export, thereby controlling the production chain in agriculture and processing industries - Continue to improve the effectiveness and efficiency of food hygiene and safety management; minimizing biological pollution and residues of chemicals and antibiotics in production and trading of agricultural products and foods, meeting requirements on food safety for environment of Vietnam's agriculture through the system of question and answer points SPS, TBT, trade promotion units - In terms of increasing market access and expanded benefits, importing enterprises need to establish a strategic and sustainable relationship and participate in the production chain of Vietnam's agricultural products to support the supply of animal, important agricultural investment for long-term export production In addition, for businesses which import final consumer domestic consumption and expanding export markets - Increasing the use of agricultural materials in an organic manner, promoting the development of organic products and products meeting VietGAP, GlobalGAP and equivalent standards agricultural products need to ensure the quality requirements for the domestic market and strengthen links with domestic distribution businesses - Strengthen advisory units related to SPS and TBT to provide direct support in announcing trade concerns from Vietnam or receiving foreign concerns on existing measures enforced in - Firstly, within the scope of the study, the author chooses only the two most typical measures of the system of non-tariff measures, sanitary and phytosanitary measures (SPS) and 19 20 5.4 Limitations of research and future research directions technical barriers to trade (TBT) to measure the impact on agricultural products, thereby making general conclusions about the impact and degree of impact of non-tariff measures on agricultural product groups However, the results given may not be general - Secondly, on assumptions in research and measurement of the impact of non-tariff measures based on the database of the number of Vietnamese non-tariff measures applied to each agricultural product (4-digit HS codes) from 2007 to 2017 Therefore, the impact results are based on the assumption that the level of impact of the component measures is the same, so it does not fully reflect the nature of the component measures as well as the different effects of component measures In addition, the hypothesis does not take into account the factors of the non-tariff implementation process In fact, this may be a new discovery factor and affect the effectiveness of non-tariff measures Some research directions may be proposed in the future, such as studying the impact of non-tariff measures on different goods sectors, or on typical commodities encouraging export and import of Vietnam; studies exploring factors related to the implementation process such as business environment, trade facilitation index, implicit factors such as corruption, institutions affecting the effectiveness of measures non-tariff of Vietnam 21 ... non-tariff measures 4.3 Quantitative methods Quantitative methods are used to estimate the effects of non-tariff measures on imported agricultural products in Vietnam In quantitative research,... very few Vietnamese studies have had a comprehensive system of theoretical frameworks in quantifying non-tariff measures because the non-tariff measure is a difficult variable to quantify, compared... THE IMPACT OF VIETNAMESE NONTARIFF MEASURES ON IMPORTED AGRICULTURAL PRODUCTS 4.1 Analysis of the current situation of Vietnam's imports of agricultural products Although Vietnam's import value