Việt Nam adapts agricultural exports to market fluctuations

Amid global trade uncertainties, Việt Nam is strengthening compliance with international market standards, with domestic processors and exporters proactively adapting strategies to ensure stable and growing agricultural exports.

According to Phạm Quang Vinh, former Vietnamese Ambassador to the US, Việt Nam holds a significant competitive advantage in agricultural exports. Việt Nam is not a direct target of US President Donald Trump’s new tariff policies, as the US prefers resolving trade issues through dialogue and bilateral negotiations.

Vinh suggested that Việt Nam could leverage this position by purchasing US goods such as civil aircraft, liquefied natural gas and agricultural products, while continuing to export Vietnamese farm produce to the US.

However, Vinh stressed that trade was not just about reducing deficits but also ensuring transparency and fairness. The Vietnamese Government had implemented stringent origin verification and traceability measures, aligning with key concerns of the US market.

Recently, President Trump signed an executive order under the International Emergency Economic Powers Act, imposing a 25 per cent tariff on imports from Canada and Mexico and a 10 per cent tariff on Chinese goods. Products containing components sourced from these countries may face additional trade barriers.

Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến said that agricultural trade between Việt Nam and the US remained strong. He cited a January 2025 agreement resolving the longstanding anti-dumping dispute on Vietnamese catfish (pangasius) fillets, which removed Vĩnh Hoàn Corporation from the list of companies subject to anti-dumping duties.

The Vietnam Cashew Association also confirmed that Việt Nam’s cashew exports to the US are unaffected. The country primarily sources raw cashew nuts from Africa and Cambodia, avoiding exposure to new US tariff policies.

Nguyễn Đình Tùng, CEO of Vina T&T Group, confirmed that Việt Nam’s fruit and vegetable exports to the US remained stable, with no significant changes in import tariffs. Vietnamese agricultural products fully met US quality and preservation standards, but companies using Chinese-origin raw materials must ensure strict traceability and disclosure.

Although these developments were positive, market conditions remained volatile.

The Ministry of Agriculture and Rural Development was actively collaborating with businesses to prepare for potential trade disruptions, he said.

The Government was working with the Ministry of Foreign Affairs and the Ministry of Industry and Trade to explore new markets, particularly halal markets, while maintaining strong ties with traditional trade partners to reduce dependence on any single country.

Beyond the US, Vietnamese agricultural exports are also facing heightened scrutiny from other major markets.

According to Ngô Xuân Nam, deputy director of Việt Nam’s SPS Office (Sanitary and Phytosanitary Notification Authority and Enquiry Point), the EU has increased border inspections on several Vietnamese agricultural products.

For example, the inspection rate for durian has doubled from 10 per cent to 20 per cent due to pesticide residue concerns, while dragon fruit is now subject to a 30 per cent inspection rate and chilli peppers and okra must meet a 50 per cent inspection threshold. These products must include laboratory test results verifying pesticide levels before they can enter the EU.

Similarly, China has tightened import standards for some Vietnamese agricultural goods. Durian exports to China must now include certification for Auramine O (a prohibited dye), cadmium levels and other food safety indicators.

According to the SPS Office, in 2024 WTO members issued over 1,000 new regulations related to plant and animal quarantine measures (SPS), affecting Việt Nam’s key export markets, including the EU, South Korea, Japan, and China.

To navigate these evolving regulations, exporters must establish certified growing areas, implement rigorous quality control and adhere to market-specific requirements. Farmers should follow the 'four-right' principle in pesticide use—choosing the right product, applying it at the right time, using the correct dosage and following proper application methods—to ensure compliance with international standards.

Nguyễn Thanh Bình, chairman of the Vietnam Fruit and Vegetable Association, stressed that Việt Nam must shift toward large-scale, high-quality fruit production to meet global market demands. While traceability codes, packaging regulations and phytosanitary certifications are not new requirements, businesses must strictly comply to retain their export foothold.

Additionally, Deputy Director Nam confirmed that Việt Nam’s SPS Office would continue providing updates and support for exporters and farmers to enhance compliance with food safety, quarantine regulations and evolving international standards, ensuring Vietnamese agricultural products remain competitive in global markets.

Source: Vietnamnews