Export of fragrant rice to EU under EVFTA

The varieties on the list of fragrant rice exported to the EU enjoying a preferential tariff rate quota account for about 43% to 46% of the total annual rice export volume with about over 3.0 million tons.

Tomorrow (September 22) at Thoai Son Food Factory (one of 5 food companies under Loc Troi Group) in Son Lap hamlet, Vong Dong commune, Thoai Son district, the export announcement ceremony will take place. The Loc Troi Group's fragrant rice shipment to Europe under the EVFTA Agreement. This shipment is 126 tons of Jasmine 85 fragrant rice, packed according to 18 kg specifications, and will be on the way to the European market at the end of September 2020.

Every year, the EU imports 2.3 million tons of rice with a turnover of 1.4 billion euros; Therefore, when implementing EVFTA, rice is a commodity with great potential for export to the EU. Currently, the EU gives Vietnam a quota of 80,000 tons of rice / year (including 30,000 tons of milled rice, 20,000 tons of unmilled rice and 30,000 tons of fragrant rice).

In particular, the EU will fully liberalize broken rice with this commitment to help Vietnam export an estimated 100,000 tons to the EU annually. For products from rice, the EU will bring the tax rate to 0% after 3-5 years. Meanwhile, two major rice exporters to the EU, Cambodia and Myanmar, are subject to absolute tax on this item until the end of 2021, specifically 175 Euro / ton (2019); 150 Euro / ton (2020) and 125 Euro / ton (2021).

In the first eight months of 2020, rice exports to the EU reached over 15,800 tons of rice, with a value of approximately $ 8.5 million, while from September 4 to September 17, there were 6 enterprises applying for certification. with a volume of approximately 4,300 tons of fragrant rice. Rice exports including fragrant rice to the EU from now to the end of the year are expected to continue to increase despite the impact of the COVID-19 epidemic.

According to statistics, every year, Vietnam exports from 6.4-7.0 million tons of rice to more than 30 countries and territories. In 2019, Vietnam exported over 6.3 million tons with a value of over $ 2.8 billion. In the first eight months of 2020, Vietnam's rice export reached over 4.6 million tons with a value of over $ 2.25 billion, up 10.4% in value over the same period last year. In 2019, Vietnam's rice exports to the EU are 50,000 tons of rice, reaching 28.5 million euros, while the EU's total rice imports are 2.3 million tons, with a turnover of 1.4 billion euros; Compared to other ASEAN countries, Vietnam's rice exports to the EU are only 1/6 of Thailand, 1/10 Myamnar, 1/4 Cambodia.

In which, the varieties OM5451, OM4900, Huong Nhai 85, ST20, RVT, VD20, Nang Hoa 9, Cho Dao Resources in the list of fragrant rice exported to the EU enjoy preferential tariff quota, accounting for about 43% to 46 % of the total annual rice export volume with over 3.0 million tons.

With the activeness and initiative of all levels, sectors and close cooperation of international partners and EU member countries, the implementation of the EVFTA Agreement has taken place quite synchronously, creating new impetus for Vietnam's growth and international integration; especially agricultural products such as seafood, fruits, coffee and rice.

Source: http://baoapbac.vn/kinh-te/202009/xuat-khau-lo-hang-gao-thom-sang-eu-theo-evfta-909329/