If the opening of the agricultural market for Brunei, Singapore, Malaysia, Chile and Peru does not pose serious problems for Vietnam’s agriculture, it does for Canada and the United States because they are the countries with high-quality agricultural products and a complete value chain.
These countries are rushing to develop strategies to bring agricultural products to TPP members. In the recent survey of the market of food and agricultural products in Vietnam, a Canadian agricultural enterprise said they were preparing to penetrate the Vietnamese market with high-quality products. The tariff is not too important now but rather the product strategy and the understanding of customers. This is a prerequisite to enter and compete in the Vietnamese market.
Mr. Cesar Urias, Director of Market Access of the Government of Canada, said: “Previously, many foreign companies were concerned about customs procedures, administrative policy as major barriers to export goods to Vietnam. But now we only adhere to the principle of the TPP and take action. So I would advise enterprises, and agricultural associations in Canada specific strategies to penetrate the Vietnamese market. The first is to build strategies for the world’s most powerful product of Canada – pork.”
Canada ranks 3rd in the world for pork exports, with the average turnover of about $2.8 billion annually. Vietnam will be a major strategic market of Canadian agricultural products after the TPP takes effect.
Currently Canadian agricultural exports to Vietnam is worth $353.6 million, accounting for 54% of Canada’s total export turnover to Vietnam. This figure will undoubtedly rise much in the near future.
A major problem in Vietnam is that high quality agricultural technique is still relatively limited, while the trust of consumer in local food products is falling. This will be a niche for the country with high-quality agriculture to fully exploit.
Recently, a high-level trade delegation of the Western U.S. Agricultural Trade Association (WUSATA), composed of representatives from the Department of Agriculture of the 13 states and businesses had a survey trip to Vietnam.
Mr. Andy Anderson, WUSATA CEO, said: “Vietnam is a member of the TPP and is a rapidly growing market for US agricultural products of high quality. Before the eagerness to open the export market to Vietnam of WUSATA members and the support of the TPP, the Managing Board of WUSATA decided to learn about the Vietnamese market to accomplish this mission.”
According WUSATA, trade in agriculture between Vietnam and the United States has grown rapidly over the years. Particularly, export turnover of agro-food products of the United States to Vietnam grew from $1.5 billion in 2010 to $2.6 billion in 2015.
Mr. Jim Barbee, Director of Nevada Department of Agriculture and WUSATA Chair, said Vietnam has a huge demand for agri-food products of high quality of the USA and this is a favorable time for businesses of the Western United States – especially the small and medium enterprises to expand export to Vietnam.
American agricultural products always achieve high level of safety so it is not too difficult to conquer Vietnamese consumers.