Agricultural products export bright spot

The European Union-Vietnam Free Trade Agreement (EVFTA) is providing significant opportunities for Vietnamese agricultural exports, particularly rice, vegetables, and fruits. Trung An High-Tech Agriculture has already signed contracts to export 3,000 tons of rice to the EU, taking advantage of the agreement's tariff quotas and higher prices. The Ministry of Agriculture and Rural Development is processing registration for other businesses to export fragrant rice to the EU. In 2019, Vietnam's rice exports to the EU were only a fraction of the demand, but with the EVFTA's annual quota of 80,000 tons and full liberalization of broken rice, exports are expected to reach 100,000 tons annually. The agreement also offers 0% tariffs on 94% of fresh and processed vegetables and fruits, potentially doubling Vietnam's fruit and vegetable exports to the EU. While the seafood industry faces challenges like pesticide residues, the removal of tariffs on 212 seafood products offers hope for increased exports, especially for shrimp. However, the slowdown in goods exported to the EU due to COVID-19 is causing delays and limiting initial assessments of the agreement's effectiveness.