Despite being a major global exporter of agricultural products, Vietnam faces the risk of being surrounded on its home turf by high-quality goods from North America and New Zealand following the TPP
Despite being a major global exporter of agricultural products, Vietnam faces the risk of being surrounded on its home turf by high-quality goods from North America and New Zealand following the TPP
Despite being a major global exporter of agricultural products, Vietnam faces the risk of being surrounded on its home turf by high-quality goods from North America and New Zealand following the TPP
To date, they are racing to build strategies for cross-border distribution, with the most intense focus on flooding into TPP member markets.
North American agricultural products ready to enter Vietnam after TPP.
North American agricultural products ready to enter Vietnam after TPP.
Mr. Cesar Urias, Director of Market Access for the Government of Canada, remarked: "In the past, many foreign businesses were concerned that customs procedures and administrative policies were major barriers to bringing goods into Vietnam. However, we now simply comply with TPP principles and take action. Consequently, I will advise Canadian businesses and agricultural associations on specific strategies to penetrate the Vietnamese market. The immediate focus is building a strategy for Canada’s strongest product: pork."
Canada is the world’s third-largest pork exporter, with an average annual turnover of approximately $2.8 billion. Vietnam will become a major strategic market for Canadian agriculture once the TPP takes effect. Currently, Canada exports $353.6 million worth of agricultural products to Vietnam, accounting for 54% of the country’s total export turnover to Vietnam. This figure is certain to increase significantly in the near future.
A major issue in Vietnam is that high-quality agricultural techniques remain relatively limited, while consumer confidence in local food products is declining. This gap provides a niche for high-quality agricultural sectors to exploit thoroughly.
Recently, a high-level trade delegation from the Western US Agricultural Trade Association (WUSATA), including representatives from the Departments of Agriculture of 13 states and various businesses, conducted a market survey in Vietnam to expand export opportunities for Western U.S. agri-food products.
Mr. Andy Anderson, Executive Director of WUSATA, stated: “Vietnam is a TPP member and a rapidly growing market for high-value American agricultural products. Given the eagerness of Western U.S. agri-food businesses to expand into Vietnam, supported by the TPP Agreement, the WUSATA Board of Directors decided to explore the Vietnamese market to fulfill this mission.”
According to WUSATA, agricultural trade between Vietnam and the United States has grown rapidly over the years. Specifically, U.S. agri-food exports to Vietnam rose from $1.5 billion in 2010 to $2.6 billion in 2015. However, U.S. agricultural products are expected to see breakthrough growth here in the coming years.
Mr. Jim Barbee, Director of the Nevada Department of Agriculture and President of WUSATA, noted that Vietnam has a huge demand for high-quality U.S. agri-food products. He believes this is an opportune time for Western U.S. businesses—especially small and medium-sized enterprises—to expand their exports to Vietnam. Notably, since U.S. agricultural products consistently meet high safety standards, winning over Vietnamese consumers is not overly difficult.
The TPP is not just about reducing tariff barriers; it also requires meeting technical and environmental standards. Regarding the environment, production under climate change conditions requires specific surveys to implement appropriate measures. This has always been an advantage for countries with advanced science and technology applied to agriculture. Conversely, these technical barriers may restrict Vietnam's exports if the country does not quickly finalize its regulatory standards.
According to a local food business leader, in today’s flat world and soft borders, developing economies like Vietnam must leverage integration to improve management skills and competitiveness. Despite facing pressure from major nations on multiple fronts, there is no better option than integration, as a country cannot stand alone on the sidelines.
“Naturally, some sectors will have strong advantages while others will be weaker. We must accept being 'overshadowed' in certain areas to exploit the sectors where we hold an advantage. It is mandatory that we correctly understand our own potential and capabilities to balance both export and import markets,” this leader shared.
North American Agricultural Products Flocking to Vietnam
Despite being a major global exporter of agricultural products, Vietnam faces the risk of being surrounded on its home turf by high-quality goods from North America and New Zealand following the TPP
