Annually, Vietnam exports from 6.4 to 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. Particularly in the first 8 months of 2020, Vietnam’s rice exports reached over 4.6 million tons with a value of over $ 2.25 billion, up 10.4% in value over the same period in 2019.
With the activeness and initiative of all levels, sectors and close cooperation of international partners and EU member states, the implementation of the EVFTA Agreement has been quite synchronous, creating new impetus for growth. growth and international integration of Vietnam; especially agricultural products such as seafood, fruits, coffee and rice. 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.
Through the EVFTA Agreement, 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, thereby helping 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).
According to the Ministry of Agriculture and Rural Development, in the first 8 months of 2020, rice exports to the EU reached over 15,800 tons, with a value of approximately $ 8.5 million. Rice exports, including fragrant rice to the EU from now until the end of 2020 are expected to continue to increase despite the impact of the Covid-19 epidemic. Not only for rice, the Ministry of Agriculture and Rural Development always supports businesses and localities to build production chains to create quality and safe products.
In order to achieve the export target to the EU, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh suggested that localities and enterprises need to identify strong commodity groups in Vietnam such as seafood, coffee, cashew nuts, pepper, wood and wood products, both fresh and processed fruits, rice (potential) are the main export products to the EU; pay attention to the development of organic agricultural products, clean agricultural products with both high economic value and environmental friendliness.
Along with that, increase processing to create added value, jobs and make the best use of EVFTA’s tariff preferences for processed agricultural products. Enterprises also need to accompany the State and farmers closely to ensure export conditions such as origin of goods, labels, food safety, traceability … to expand the market to the EU.