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Cấu trúc

  • I. Definitions

    • 1. Border trade

    • 2. Official trade

  • II. Comparing Border and Official trade

    • 1. Similar points of the two methods of exporting

    • 2. Differences between the two method of exporting

  • III. The actual state of Fruit official exporting from Vietnam to China

  • B. Overview of watermelon export situation from Vietnam to China

    • I. Situation of watermelon production in Vietnam

      • 1. Provinces planting watermelon in Viet Nam

      • 2. Watermelon consumption and export of Vietnam

    • II. Characteristics and requirements of China's market with imported watermelons

      • 1. The production and consumption of watermelons in China

      • 2. Watermelon import situation of China

    • III. Vietnam's watermelon export to China

      • 1. The supply chain and situation of Vietnam's watermelon export to China

      • 2. Competition

  • C. Tariff and non-tariff measures

    • I. Tariff

      • 1. ACFTA

      • 2. Competitors

    • II. Non-tariff measures (NTMs)

      • 1. Sanitary and Phytosanitary Measures (SPS) vesus Technical Barriers to Trade (TBT)

      • 2. Some China’s SPS imposed on Vietnam’s exporting watermelon

      • 3. Some China’s TBT imposed on Vietnam’s exporting watermelon

    • III. Rules of Origins (ROO)

      • 1. What is ROO?

      • 2. Origin criteria of fresh watermelon (HS code: 0807.11)

  • D. Export procedure and required documents

    • I. How to export watermelon to China

    • II. Required documents for export of watermelon from Vietnam to China

  • E. Comment and recommendation

    • I. Opportunities

    • II. Challenges

    • III. Solutions

  • F. References

Nội dung

I Definitions Border trade - Border trade, in general, refers to the flow of goods and services across the international borders between jurisdictions In this sense, it is a part of normal legal trade that flows through standard export/import frameworks of nations However border trade specifically refers to the increase in trade in areas where crossing borders is relatively easy and where products are significantly cheaper in one place than another, often because of significant variations in taxation levels on goods - For example: a company in the US selling goods to a company in Canada; a Chinese merchant buying dragon fruits from Vietnamese farmers; Official trade - Official trade means there are trading contract between firms of two nations In most cases, official trade are agreements between nations, or between a nation and an International economic association/ organization, following international regulations - For example: The Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP), also known as TPP11 or TPP-11, a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam II Comparing Border and Official trade Similar points of the two methods of exporting - Goods being exported through both border trade and official trade have to be checked thoroughly by appropriate authorities before being gotten out of the country - Goods exported both ways have to bare tariffs, although the level of tariffs are not the same Differences between the two method of exporting Border trade - - Occurs between two neighboring Official trade - High internationality, mostly countries, mostly by merchants occurs between big and normal citizens of those importing/exporting companies of countries the two countries Simple procedure - Complicated procedure, requiring strict contracts which follow international laws - Low transporting cost - High transporting and maintaining costs - The amount of each affair is quite small; low stability; might get - Huge amount each affair; high stability price squeezing Conclusion - To many trading companies, border trade is usually the very first choice, since they have to bare lower level of tariff and costs, simple procedure Border exporting required no bills, payment documents nor foreign trading contracts However, border export is not stable and each deal worths pretty small value - Moreover, to export goods to many different countries all over the word and broaden our market, this method of border trading cannot guarantee a firm’s safety As a result, most big and international deals are carried out by official trading method III The actual state of Fruit official exporting from Vietnam to China At the moment (December 1019), there are only kinds of fruit that are being exported officially from Vietnam to China These fruits are: - Watermelon - Rambutan - Mango - Dragon fruit - Banana - Mangosteen - Lychee - Jack-fruit - Longan In this report, we are going to make it clear about the export practices of Watermelon from Vietnam to China B Overview of watermelon export situation from Vietnam to China I Situation of watermelon production in Vietnam Provinces planting watermelon in Viet Nam a) Total area of watermelon production yearly in Viet Nam is 55.000 hectares, consisting of: Region Northern Vietnam Production areas - 15.000 (25%) Crops - Spring crop: from March to - Mainly concentrated in Hai May Duong, Bac Giang, Nghe An - Fall-Winter crop: from July and Hoa Binh during the to late August, early spring crop September - The remaining provinces - Early crop harvested from accounts for 100-1.000 September to December South Central - 15.000 (25%) accordingly - Winter-Spring crop: from Coast - Mainly concentrated in late December to April Quang Nam, Quang Ngai, - This is the main crop with Binh Dinh, Gia Lai and Lam significant production volume Dong - 25.000 (50%) - Lac Hau crop: from - Mainly concentrated in December to Lunar New Long An, Tien Giang, Hau Year's Eve (5-8% planting Giang and Can Tho area) Southern Vietnam - Late September to Christmas (50-65% planting area) -Third crop after the raining Others - Unstable watermelon season On Winter-Spring crop, growing area: approximately production area of 20,000 / year (*) Vietnamreachsappox 18.000, - Watermelon production about 30% of the total fluctuates: 500-600 thousand - The remaining parts are used tons / year (*) in other crops throughout the year (*) Vietnam General Statistics Office, 2014 Watermelon consumption and export of Vietnam In 2017, Vietnam's watermelon production reached about 1.5 million tons Watermelon is mainly consumed in the domestic market accounting for about 80%, exports about 20%, of which the Chinese market accounts for about 95% In 2017, Vietnam's watermelon exports reached US $ 95.4 million Exported Exported value in Exported value in Exported 2014 2015 value in 2016 World 1,463 15,209 106,260 93,291 82,106 China 1,419 15,155 106,226 93,121 81,702 Australia 27 39 163 United Arab Emirates 0 28 95 Russian Federation 14 41 Singapore 10 0 38 Importers Exported value in 2017 value in 2018 Total imports Growth Growth Value Trade exported balance in 2018 2018 (USD (USD thousan thousan d) d) in Share in Viet Quantit exporte y growth in Rankin exporte g of d valueImporters d value Nam's exporte between betwee Share of in value partner of partner countrie partner countrie s in countrie export d in 2014- n 2017- s in world s s (%) 2018 2018 2018 world (%, (%, imports p.a.) p.a.) imports between (%) 2014- Concentratio Average n of all tariff supplying (estimate countries of d) faced partner by Viet countries Nam (%) 0.98 2018 (%, p.a.) World 82,106 81,121 100 168 -12 China 81,702 80,717 99.5 170 -12 10 100 2.2 II Characteristics and requirements of China's market with imported watermelons The production and consumption of watermelons in China According to information from the Department of Industry and Trade, in China, watermelon is one of people's favorite fruits Watermelons in China are planted in main regions: Yang Zi - Hua Dong River Delta (including Shanghai, Jiang Su, Zhe Jiang, Shan Dong, An Hui, JiangXi, Fu Jian) and south central provinces (Henan, Hu Bei, Guang Xi, Guang Dong, Hainan) The total watermelon production area of these regions combined accounts for up to10% of the country's total vegetable planting area, as reported by the China Ministry of Agriculture, and is increasing in recent years, reaching 1.84 million hectares in 2015 During the 2015-2020 phase, each year China will expand its watermelon planting area by 1% (approx 2.2 million hectares), with the plan is to reduce small production and expand mass production area to boost productivity as well as production volume In terms of production volume, along with the increasing of planting area, watermelon production has also been rising considerably, with a growth from 72 million tons in 2013 to 77.5 million tons in 2016, making China rank top on the world’s list As the planting area is distributed across the country, the crops in China last for about four months from April to August or September, starting from Hainan and then followed by Guang Xi, Zhe Jiang, Jiang Su, Therefore, China tends to increase watermelon import from November to April of the year afterwards With regards to demand and preference, watermelons receive the largest demand before, during and after Lunar New Year holidays Chinese consumers prefer medium-size watermelons with the average weight of about 3-4 kilograms per melon Watermelon import situation of China In general, it can be clearly observed that there has been a downward pattern of watermelon import into China's market According to the statistics of China Customs, in 2016, China imported 201.400 tons with a turnover of 32.2 million USD; increased in quantity but decreased in turnover On average, the price of customs declaration when importing in 2016 was 160.5 USD/ton, decreased by about 26 USD/ton (15%) compared to 2015 In 2017, China imported 188.320 tons with a turnover of 31.86 million USD, declined by 7,78% in quantity and 2,81% in turnover Watermelon imported from Vietnam accounts for 94% about 97% of China's import value from the world However, there is a large number of import Myanmar, Laos and Thailand through border trade, which is not included in the official statistics III Vietnam's watermelon export to China The supply chain and situation of Vietnam's watermelon export to China In 2016, watermelon export reached 238.363 tons with a turnover of 106.32 million USD, which was an increase of 651.1% in quantity and 543.1% in turnover of 2015, as reported by Vietnam Customs During the time span between 2014-2018, according to Trademap.org, China imported an average quantity of 196.777 tons of watermelon per year from Vietnam with an average turnover of about 36 million USD/year Vietnam watermelon prices are generally quite competitive compared to other countries: ~ 190 USD/ton in 2014,2015,2018 and 161-169 USD/ton in 2016,2017 2014 2015 2016 2017 2018 Imported Imported Imported Imported Imported quantity, quantity, quantity, quantity, quantity, Tons Tons Tons Tons Tons World 214,614 200,764 204,199 188,324 219,945 Viet Nam 204,167 188,659 193,288 180,659 217,115 Myanmar 10,430 11,894 10,727 7,665 2,784 Malaysia 17 211 185 46 Exporters Quantity of supplying markets for watermelons imported by China Exporters Imported Imported Imported Imported Imported value in 2014 value in 2015 value in 2016 value in 2017 value in 2018 World 40,722 38,073 32,797 31,864 43,715 Viet Nam 40,046 37,345 32,088 31,530 43,342 Myanmar 655 662 552 334 354 Malaysia 21 66 157 18 Value of supplying markets for watermelons imported by China Official trade exporters Farmers and farms planting watermelon Purchasing dealers Input supply firms and businesses Chinese dealers Border trade exporters Supply chain diagram exported to China Competition Vietnam has a favorable geographical position to exchange and export agricultural products to China Regarding import border, currently watermelons of Vietnam are mainly exported through Tan Thanh - Po Chai border gate into China and are often carried out import procedures in the form of trading products of border residents gender and are exempt from import duties Other major import border gates are Lao Cai - Ha Khau and Mong Cai - Dong Hung Regarding competitors, according to Trademap.org, Vietnam currently occupies the monopoly on exporting watermelon to China with 99.1% The two biggest rivals, Myanmar and Malaysia, only account for less than 1% of the market However, Vietnam's watermelon export into China is still facing with many competitive challenges As stated above, China is reducing small domestic production of watermelon into large-scale production in order to boost productivity and production volume During the 2015-2020 phase, each year China will expand its watermelon planting area by 1% (approx 2.2 million hectares) Since 2016, Chinese farmers have tended to plant off-season watermelon in large area simultaneously, targeting domestic market before and after Lunar New Year holidays As a consequence, the watermelon supplies have risen considerably in recent years Also, the price of this kind of fruits in China decreased sharply in January and late February 2017 Moreover, certain amount of watermelon imported from Laos and Myanmar is also competing with Vietnam's product as they have the similar havesting time to the southern of Vietnam but offer a relatively lower price Exporting watermelons to China is of special interest to the Ministry of Industry and Trade of Vietnam The Ministry of Industry and Trade regularly provides timely supports and recommendations to farmers about how to cultivate and export watermelons to China to meet their required standards 10 E Comment and recommendation I Opportunities Official trade China is a potential export market for many Vietnamese agricultural products However, to take full advantage requires Vietnamese enterprises to improve quality as well as change export methods a Large market capacity: China is a large-scale consumer market and a large purchasing power thanks to the fast-growing economy, the average income of the people is increasing In 2018, China's average income reached nearly 10,000 USD/ person/year Statistics from the Ministry of Agriculture and Rural Development show that in 2018, the country imported agricultural products to more than $137 billion Besides, with its proximity, the Chinese market is very convenient in transportation, delivery and information processing Chinese consumers are also very fond of Vietnamese products b Increase official trade: The trade between Vietnam and China over the past 30 years has mainly been carried out via unofficial border crossings and border crossings However, recently, China has tightened food safety policies and resolutely required businesses to carry out official imports Currently, the Chinese Government has firmly insisted that traders have to go into the official line, the Vietnamese government also wants export activities to China to follow the official route because exporting through non-quota is difficult to control This is a new environment better for businesses on both sides 26 c Benefit from trade agreements Promote exchanges at agricultural talks, fairs and exhibitions: In the morning of June 13, 2019, in Chengdu City, the capital of Sichun Province, Western China, the Vietnam-China Economic-Trade, Agriculture and Logistics Cooperation Workshop took place This is an important trade and economic cooperation promotion activity hosted by the Vietnamese Embassy in China Vietnam and China have joined the signing of the ASEAN-China Free Trade Agreement (ACFTA), which came into effect in 2010, with tariffs reduced to 0% for 8,000 product lines including watermelon It can be seen that our agricultural and fishery products still have potential and export growth potential to China, when meeting the increasingly stringent requirements for the quality of this market d Tariff: - The unstable situation in northern Myanmar has also thrown China-Myanmar watermelon trade into doubt In the second half of last year, the China-Myanmar border trade was suspended due to military conflict in northern Myanmar Following this conflict, in the Chinese market, a variety of fruit from Myanmar remained out of stock Consequently, Myanmar‘s watermelon wholesale price soared by 60% - In Malaysia, the level of technology adoption among farmers for watermelon cultivation moderate This sis due to lack of capital, lack of confidence and knowhow regarding the technology Weather condition and pest and diseases pose a major challenge to all melon farmers, sometime forcing them to bear high losses The fruit quality then becomes an issue, making it harder to market Those are among the risks faced by melon farmers Unfortunately, there are no specific 27 insurance schemes to manage the risk Enhancing postharvest losses is a high priority for the entire supply Lack of proper postharvest handling and exposure to high temperature during distribution are the most critical environmental factors limiting long shelf life of melons In terms of quality management, human capital is part of the reasons why melon farmers not properly grade or pack their harvest Thus, resulting in quality control issues which harms the value of the end product, since the appearance and external conditions are among priority characteristics in determining the quality of the final product e Benefits of tariff to Vietnam: - Removing tariffs leads to lower prices for consumers So the price of imported watermelons will be competitive with domestic’s one - Lower tariffs on Viet Nam exports will enable a higher quantity of exports boosting Viet Nam jobs and economic growth - Make use of surplus raw materials - Because all Vietnamese watermelons are harvested at the same period of time but the domestic demand is lower than domestic supply In order to make profit, we sell surplus materials f Non-tariff measures (NTMs): To export any product to China, Vietnam has to completely obey all the articles stated in the ROO and other documents, or else goods couldn’t be trade across the border, resulted in the late delivery and the product’s quality decline If businesses have enough documents to prove their product Vietnamese nationality they will receive 0% tariff rate that China apply on exporting watermelon for ASEAN countries as mentioned above This ROO requirements help businesses to save time, save money and ensure the watermelon’s quality while exporting it In reverse, Vietnamese enterprises will have to pay tariff at 25% (Follow MFN rate) if they couldn’t prove their watermelons’ origin ROO also encourages official trade, 28 limits border trade and increases overall quantity and quantity of exporting watermelons to China Border trade a Non-quota watermelon exports also have a favorable time for businesses if the other side of the border consumes the goods they are exporting There are years, traders come to the melon field to buy, they even deposit in advance Because that year the Chinese side lost melon crop Non-quota export is at an alarming level because China is changing its trade policy, gradually tightening the quality control of goods through the world Challenge Despite regular trade with the Chinese market, Vietnam knows very little about this market According to economic experts, our information capture and market demand for China is too poor The market focuses mainly on China, so it depends strongly Non-quota import is an easy-to-use activity to avoid taxes If it is not strictly controlled, quota import activities will make smuggling and transporting dirty goods into our country more b Measures to promote the export and import of agricultural products, fruit and seafood between Vietnam and China were discussed at a conference held in Lao Cai city on May 31 To facilitate the import and export of agro-forestry and aquatic products, Lao Cai committed to requesting its functional forces to issue certificates of origin of goods at the border gates and declare e-customs and pre-registration of quarantine records in order to shorten clearance time for goods and reduce costs for enterprises on both sides China’s Yunnan provincial government also pledged to create optimal conditions for the import of agricultural products, fruit and seafood into China through border gates in Lao Cai, while annually organising the Hekou - Lao Cai Border Trade Fair, speeding up the construction of a cross-border cooperation area 29 to facilitate the trade of goods with Vietnam, and building the maximum incentive mechanism for customs clearance and transportation of import and export of agricultural products, fruit and aquatic products between localities of Vietnam and Yunnan II Challenges Official trade a Price Squeezing: In recent years, from the beginning of 2017, in Son Tinh, Binh Son (Quang Ngai), all farmers have planted watermelons concurrently with the hope of a "good season, good price" Despite the "good season", the price of watermelon in Quang Ngai was squeezed to only 500-1000/kg, while it took a minimum of 2,500 VND/kg for farmers to reach the breakeven point Thus, watermelons were brought to different places in order to be “rescued” In May 4, 2017, many associations, volunteers and university students had cooperated to bring Quang Ngai watermelons to Hanoi for sale at a price of 7,000 VND/kg A large number of people bought watermelons to support Quang Ngai farmer Once again, in May 5, 2018, watermelons from Quang Ngai, Quang Nam were brought to Hanoi for "rescueing" at a price of 8,000 VND/kg Nearly 5,000 tons of watermelon from Quang Nam and Quang Ngai province was "rescued" successfully b Tariff: 30 Source: MFVP; China Customs - There are considerable discrepancies between the figures of Myanmar’s exports and corresponding China’s imports China’s recorded imports dropped to nearly zero in 2014 Chinese authorities permit imports of fresh fruits from Myanmar China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), the governmental agency in charge of import-export food safety and plant quarantine, posts the positive list of fruits to be imported to China, and there are eight items that can be imported from Myanmar including watermelons, melons and mangoes However, the bulk of watermelon imports have not appeared in China’s import statistics since 2014 It will cause the uncertain predict for other countries, including Viet Nam, in finding out their ranking and ways to compete with Myanmar - China’s domestic watermelon season ends in October Watermelons from Myanmar, however, are just coming into season Myanmar’s watermelon is an offseason fruit that usually lists from November to May of next year At present, Myanmar's watermelon has taken over 80% of China's off-season watermelon market In the first 10 months of 2017, exports of Myanmar’s watermelon to China reached 440 thousand tons, up 26 percent year-on-year Meanwhile, watermelon season of Viet Nam and China is nearly at the same time There is a tremendous demand of watermelon in China in Lunar New Year which is usually in late January or February During winter, because of high temperatures and long hours of 31 daylight, Myanmar is suitable for growing watermelons Compared to China, growing watermelons in Myanmar not only has low labor costs and low costs associated with land contracting, but also does not require greenhouse facilities— which further reduces the cost of planting As a result, a large number of Chinese farmers have moved watermelon planting operations to Myanmar during the offseason for later export to China Malaysia belongs to ASEAN6 Therefore, tariff reduction or remove is applied sooner than new members of ASEAN, including Viet Nam and Myanmar c Detrimental impact of tariff on Vietnam: All countries in ASEAN can be applied the same tariff like Vietnam which is 0% in average for exporting watermelons Two main competitors enjoy 0% tariff in average in exporting watermelons It is even harder for Vietnam to compete with them It seems to be a challenge to find out how to make our products outstanding d Non-tariff measures (NTMs): It is known that there are about 6,000 codes of plantation areas granted China's import agency will base on the area codes of cultivation for goods customs However, Chinese customs figures show that new, 0.6% of the fruit plantation area of Vietnam has been granted area codes This would result in the late delivery and the product’s quality decline Vietnam should seriously take this number under consideration Estimated, this year the export volume decreased by 40% compared with the requirement for traceability For the business that import their product for the first time, the cost of getting an C/O maybe higher than paying the tariff directly It could take to months to prepare the dossier, up to two weeks only for issuance, weeks to prepare the documents to be submitted, days to receive the certificate It’s a waste of time There is always arising problem occur, which could probably affect the product’s quality and delivery time 32 Another example is the case that China's sudden application of the new C/O form E has left lots of goods imported from China stuck at Lạng Sơn Province's border gates since August 20, according to Lạng Sơn Customs Department The new form is compatible with a MOIT circular dated July 30 of this year on rules of goods origin in the ASEAN-China Framework Agreement on Comprehensive Economic Cooperation, but it doesn't take effect from September 12 The Chinese side provides the new C/O form E and has required Việt Nam’s side to accept this form from August 20 However, it is not accepted at Việt Nam’s customs offices at those border gates The customs agency has explained that the new form has an appendix of the Circular 12/2019/TT-BCT that is effective on September 12, 2019 Therefore, if enterprises want to receive customs clearance for their goods imports, they should pay taxes and submit C/O form E when Circular 12 comes into effect to get a tax refund for those goods Trần Bằng Toàn, Director of the Lạng Sơn Customs Department’s Customs Sub-department at the Hữu Nghị border gate, said China’s sudden change damages local import-export businesses because if enterprises not complete customs procedures on schedule for imports, they will incur a storage charge and late delivery fines Đỗ Thanh Tuyền, a representative of HAB Company, said his enterprise specialises in importing aluminum products with value at VNĐ4-5 billion per import If they pay full taxes for the imports under the new form, they must pay VNĐ400-500 million, so they and other firms must wait for guidance from Việt Nam’s management agencies to solve this problem, he said 33 Hoàng Duy Hiệp, a representative of Bách Việt Lạng Sơn Co Ltd, said his company also has this problem for two shipments of artificial grass and fruits (pears) If the fruit imports don't get customs clearance soon, the goods will be damaged and incur daily storage charges of VNĐ5-10 million in China Therefore, businesses want the State management agency to come up with a resolution for enterprises SPS and TBT can be costly for business expenses For example, a company attempted to meet SPS or TBT regulations of a country but when exporting, products can be denied with the reason of new regulations replacement This is the cost of the regulations transparency These measures are especially difficult for small and medium-sized enterprises because they often not have enough resources to deal with This problem is presented more understandable in the case below Specific case: Vietnamese watermelons exported to China will be required to arrive with cartons lined using new materials from May this year According to information from the Vietnam Trade Office branch in Guangxi, China, the customs department has asked fruit importers to change lining materials used during transit China Recently officially asked the company to import fruits in the place of changing the buffer material, watermelon liner (Vietnam currently mainly use straw) during transport by non-harmful materials, no infectious organisms (such as foam mesh) from May 2019 This new small change makes businesses put up with cost raising problem, and they won’t be willing to obey It takes time for them to get used to this new requirement and comply with it correctly The business that isn’t updated with new requirement at first will have to face a stagnant goods issue at the gate, causing several unexpected cost and may lower the quality of watermelons 34 Vu Thi Nguyet, who owns an export company, said her firm has over 100 trucks lined up at the border, and it costs her VND30-50 million ($1,290-2,150) a day to rent a truck With the current situation, it is likely congestion will happen again in the upcoming watermelon harvest "China now requires watermelons to be wrapped in foam, not straw They must be packaged, and show stamps of origin and production information clearly on packaging," she said But without straw, Vietnamese enterprises cannot transport watermelon from the south to the northern border without crushing or damaging them Once they reach the border gate, exporters will have to unpack and repackage the fruit in foam, costing much time and money, and they cannot find adequate warehousing facilities in the area, she added Her company had tried to export watermelon to China after the previous harvest, but the fruits were returned because they did not meet standards, Nguyet said The requirement of packing watermelons in a box weighing below 10 kilograms results in the limit of each watermelon’ size It probably weighs around kilograms To achieve this, the technology must be applied to harvest equal size watermelons The budget invested for technology in this case is really a large number Because most of Vietnamese watermelon planted by shifting cultivation For instance, farmers from Binh Dinh move to Gia Lai or Phu Yen, rent land and cultivating After a season, they move to another places because of epidemic will widespread in area planted many crops of watermelon Therefore, traceable labels are hard to apply in Vietnamese watermelon 35 Border trade a Border trade to China will face technical barriers since the two nations have agreed to limit them and increase official exports The two nations had agreed Vietnam would export eight kinds of fruits to China - dragon fruit, watermelon, lychee, longan, mango, banana, rambutan, and jackfruit Vietnam is negotiating to export custard apple, pomelo, mangosteen, and rose apple to China Besides, coffee should be brought into their supermarket system instead of exporting to Chinese provinces close to Vietnam by road Chinese importers are tightening quality norms and demanding origin traceability, applying stricter standards for imported fruits, extending the time it takes for each truck to pass through the border gate by 5-7 minutes For example, bananas need to be boxed with Chinese labels, or watermelons need to have codes to trace origins and some fruits are only allowed to be imported through specific border gates China had announced these regulations in mid-2018 but many businesses did not pay attention However, Vietnamese businesses still operate in small scale and are unable to meet higher quality standards Many of them are small businesses who are not up to date with the latest information and not have a stable source of supply, leading to produce being stuck in the country 36 III Solutions Official trade a Farmers: - The biggest weakness is that farmers' minds are still conservative and slow to change, so they are often in a passive position when approaching new regulations In order to minimize risks and ensure stability in exporting watermelon and other agricultural products to China, firstly, farmers need to change their farming thinking to avoid the situation of "self-harming" - The most important thing in the production process for farmer is to avoid the use of chemical fertilizers, pesticides, especially stimulants The special thing to follow is to stop using pesticides for melon fields at least 10 days before harvest, so that the melons are guaranteed food hygiene and safety criteria b Governments: - Production planning must be linked to the consumer market demand, avoiding risks for farmers; linking businesses and farmers in the provision of agricultural supplies and product consumption - Creating favorable conditions for businesses to perform well the investment contract, to cover crop products with cooperatives and farmers - The Ministry of Industry and Trade recommends traders to actively coordinate with Chinese importers as well as research and closely follow Chinese quality standards, quarantine testing, packaging and traceability regulations Watermelon imported into China must meet the following testing and quarantine requirements: 37 + Do not mix or contain other fruits not listed on the phytosanitary certificate + The full name of the fruit, origin, packing plant, or business identification number, in Chinese or English, must be shown on the packaging + There are no plant residues such as quarantine pests, soil, branches and leaves that China prohibits entry + The amount of hazardous substances found must not exceed China's relevant health and safety standards c Enterprises: - If the planting and packaging facilities are not officially listed by the General Department of Customs of China, Vietnamese enterprises should actively contact the Ministry of Agriculture and Rural Development for specific guidance - Enterprises should gradually switch to business in the form of official trade in order to minimize the phenomenon of price squeezing and other risks The process of building brand for watermelon in China market also plays an important role Once the brand has been built, it is necessary to focus on export in the form of official trade with official distributors - Enterprises should focus on trade promotion activities such as actively participating in specialized fairs in the field of agricultural products in China to promote the introduction of special products of branded fruit products - Watermelon exporters need to clearly classify grades and specifications of each specific commodity before export This requires thorough researching and learning market information and related regulations of the Chinese market in order to become more proactive and adaptable 38 - The specific packaging design for the Chinese market should prioritize the information on the presented in Chinese and minimize unnecessary errors, such as the information on the quarantine certificate, on the Certificate of origin of goods, which should match the actual export shipments to avoid unwanted clearance delays by the Chinese Customs authorities - In the long run, Vietnamese exporting enterprises should continue investing in technologies and plant varieties to improve the quality of exported fruits, limiting the reliance on natural conditions to give a competitive advantage Also, it is of paramount importance to consider and put into practice the possibility of cooperating with some enterprises in the field of Chinese e-commerce to import and consume watermelon through e-commerce in the Chinese market Border trade - To facilitate import-export activities, functional agencies (customs, border guard, and quarantine units) should connect closely to guide enterprises and handle administrative procedures quickly, ensuring the legal status and avoiding unnecessary risks - In addition, businesses need to resolve their problem proactively in trade, as well as updating market information and new regulations on product quality and consumer tastes for each locality in China It is also necessary to improve product competitiveness, focusing on price, quality and type, while deploying broader trade promotion activities in China They should also pay particular attention to copyright and trademarks, especially with the traditional famous products On the other hand, there should be measures to restrict the differential prices in border trading by Chinese traders 39 F References [Online] shorturl.at/auCD5 [Online] shorturl.at/ghILN [Online] shorturl.at/bGLXZ [Online] shorturl.at/dgpQV [Online] wtocenter.com [Online] ITC (Market Access Map) [Online] WTOcenter.com [Online] Trademap.org [Online] trungtamwto.vn 10 [Online] shorturl.at/cghoY 11 [Online] shorturl.at/lFH35 12 [Online] shorturl.at/glouI 13 MFVP [Online] 14 China Customs [Online] 15 [Online] shorturl.at/hjEM3 16 [Online] shorturl.at/fmoxL 40 ... Watermelon from Vietnam to China B Overview of watermelon export situation from Vietnam to China I Situation of watermelon production in Vietnam Provinces planting watermelon in Viet Nam a) Total area... Chinese side provides the new C/O form E and has required Việt Nam? ??s side to accept this form from August 20 However, it is not accepted at Việt Nam? ??s customs offices at those border gates The customs... new members of ASEAN, including Viet Nam and Myanmar c Detrimental impact of tariff on Vietnam: All countries in ASEAN can be applied the same tariff like Vietnam which is 0% in average for exporting

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