Rice exporters are ready to

From August 1, the Free Trade Agreement between the European Union (EU) and Vietnam (EVFTA) officially took effect. Under this agreement, agricultural products, especially Vietnam's rice products, will be exempt from import duties into the EU and an annual import quota of 80,000 tons will be applied. Many businesses in Can Tho city share an excited sentiment when rice exports to the European market are officially exempt from tax after a long wait.

Trung An High-tech Agriculture Joint Stock Company boldly invested 10 silos containing dry rice by German technology to meet customers' requirements.

Inner force is ready

Although the European market has strict requirements on rice quality and has specific quota regulations for each type, many Can Tho businesses are still optimistic because they have made preparations for many years. Mr. Pham Thai Binh, General Director of Trung An High-Tech Agriculture Joint Stock Company, shared: Since 2006, the company has exported the first order to Switzerland with the product of Jasmine 85 rice, with more value. 3 million USD. Up to now, on average, each year the company exports about 10,000 tons of rice to European countries such as France, Germany, Switzerland, Spain ... with very good prices, from 500-600 USD / ton, even 800-900 USD / ton, or some orders of organic charcoal purple rice can be up to more than 1,000 USD / ton. In particular, the company has built large fields to produce clean rice, organic rice, with processes from production to consumption applied and evaluated based on standards of Europe, America ... The company has also boldly invested in 10 silos to store dry rice according to German technology with the capacity to reserve up to 30,000 tons of dry rice to ensure the supply and quality of products according to customers' requirements.

And Ngoc Quang Phat Import - Export Joint Stock Company has had 5 years of bringing products to the European market and fully certified such as: HACCP, ISO as well as export license to this market. Ms. Bui Thi Bich Huyen, Director of Ngoc Quang Phat Import Export Joint Stock Company, shared: In the past, European customers came to the company to visit the factory to learn about the quality of rice. But due to high import taxes, customers often pay low prices or sign contracts with low output. The company's export orders are mainly concentrated in Asia, America, Africa and partly to Europe, but output is negligible. Previously, Vietnamese rice in the European market was taxed very high (from 5% -45% depending on the country). Besides, businesses still have difficulty due to long distance transportation, time consuming and slow payment. If they export to countries in the region, the business can receive the money in 3 days; Also for exporting to Europe, the time to receive money can be up to 2-3 months. Orders for export to Europe are only 5-10 containers per batch, even 20 containers are many, but the company maintains connection with European partners to market.

Speed ​​up to gain market share

With a quota of 80,000 tons, rice exporters to the European market do not worry about competing with each other because they have prepared internal resources. Mr. Pham Thai Binh, General Director of Trung An High-Tech Agriculture Joint Stock Company, shared: The Government negotiates the import quota for agricultural products according to the roadmap, so the rice import quota in the following years can be change. Normally, after 3-5 years, the import quota can be adjusted gradually according to market demand. Also in July, the company successfully exported 3 containers of Trung An brand to the French market. This is also the first time, products bearing the Vietnamese rice brand name are eligible to be placed on the shelves and directly to European consumers. The company is also expecting an increase in both volume and price in the new orders.

The market officially opening when EVFTA comes into effect is also the time when enterprises balance their resources to have appropriate approaches. According to Ms. Bui Thi Bich Huyen, Director of Ngoc Quang Phat Import-Export Joint Stock Company, to bring rice to the European market, the enterprise has had 5 years of building product quality, building markets, fully meeting Necessary conditions such as having a closed production process allowing traceability of products, having clean warehouses for storing rice, having export certificates. Vietnamese rice in the European market is both exempt from import tax and at a good price. If exporting to Ghana, Ivory Coast (Africa), the company can sell 565 USD / ton, the export to Europe can be over 600 USD / ton. Internal resources are available, but due to very slow payment deadline of the partner, from 2-3 months; In order to increase the export output to the European market, enterprises need to access long-term capital from banks.

Mr. Nguyen Minh Toai, director of Can Tho City Department of Industry and Trade, shared: Can Tho city currently has 41 rice exporters. Many of them have actively produced in a closed process, from linking raw material areas to processing, packaging and exporting. With the preparation of internal resources, supply of quality products, and traceability, businesses have many opportunities to increase their export volume to the European market as soon as the EVFTA comes into effect. The Department of Industry and Trade will also strengthen the support of exporters, especially rice enterprises, to promptly update relevant information, documents and procedures to effectively utilize opportunities from EVFTA.
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According to the EVFTA agreement, the method of managing import quotas for some agricultural products and rice of Vietnam was announced by the European Commission (EC) from July 15. Accordingly, the EC announced the annual quota for rice is 80,000 tons. Including 20,000 tons of unmilled rice, 30,000 tons of milled rice and 30,000 tons of fragrant rice.

Source: https://baocantho.com.vn/doanh-nghiep-xuat-khau-gao-s-n-sang-tang-toc-voi-evfta-a124080.html