Global Agriculture

Vietnam is ready to accept red meat from the UK

02 February 2023, Vietnam: The British representative anticipated MARD’s support for the entry of poultry foods such as duck and goose into Vietnam. In addition, Vietnam is likely to implement entry procedures for British poultry, goose feathers, and beef

On February 1, MARD Deputy Minister Phung Duc Tien received and worked with Mr. Greg Hands, UK’s Minister of State for Trade.

Mr. Greg appreciated the assistance and efforts of MARD in the negotiation and execution of the UK – Vietnam Free Trade Agreement (UKFTA), particularly in the tariff quota for rice and the facilitation of the market entry of UK beef and turkey into Vietnam.

The British representative anticipated MARD’s support for the entry of poultry foods such as duck and goose into Vietnam. In addition, Vietnam is likely to implement entry procedures for British poultry, goose feathers, and beef.

Deputy Minister Phung Duc Tien emphasized that all of Vietnam’s obligations to the UK had been met with certain outcomes. In regards to beef and turkey, more progress is made.

The Deputy Minister also emphasized Vietnam’s recent export achievements. In 2022, the total export turnover of agricultural, forestry, and fisheries goods was USD 53.22 billion, an increase of 9.3 percent compared to 2021 (USD 48.6 billion); the trade surplus was anticipated to be USD 8.5 billion, a 30 percent increase compared to 2021.

Rice output reached 42,7 million tons, helping to eradicate poverty around the globe, particularly in Africa. This was particularly true in crucial domains such as agriculture. The value of rice exports reached USD 3.49 billion, exports of all types of meat got 7.06 million tons and exports of grain, meat, and eggs reached USD 2 billion.

Since the implementation of the UKVFTA in 2021, exports of Vietnamese goods to the UK market have increased by more than 20 percent. Currently, the UK is Vietnam’s third major commercial partner in Europe and the ninth largest export market in the world. Agriculture in Vietnam is fast transitioning from brown to green, especially in relation to emission reductions.

“The aforementioned achievements demonstrate that Vietnam’s agricultural output is keeping up with the global production chain, so ensuring that Vietnam’s COP 26 commitment to reduce net emissions to “zero” by 2050 will be fulfilled,” stated Mr. Phung Duc Tien

During the meeting, Deputy Minister Phung Duc Tien proposed UK support in a number of areas, including technology transfer (core technology, source technology); training and capacity enhancement, particularly in the field of high technology; forestry (origin of wood); climate change; organizing production on farms; high-yield and high-quality livestock and plant varieties; and increasing rice export and import quotas for Vietnam.

Win-win relationship

MARD Deputy Minister Phung Duc Tien considered that the Memorandum of Understanding (MOU) on livestock was the fruitful result of the two parties’ efforts; nevertheless, the implementation that delivers efficiency and high profits to the area was of greater significance.

The value of Vietnam’s exports of food and fruit products was USD 22.7 billion in the previous year. Rice, fruit, coffee, and pepper are major agro products on the worldwide market. However, Vietnam’s exports of coffee and milk to the UK are still fairly modest.

Regarding pig breeding, there are several international companies investing in Vietnam along a tight supply chain; the goods are produced in a biosafety environment; food safety; and using high-quality, standard-compliant technology. Regarding poultry production, Vietnam anticipates exporting white meat to the UK and importing the remainder.

Regarding forests and fisheries, the Deputy Minister stated that both the UK and Vietnam have significant potential and that the openness of the market will benefit both countries.

Mr. Greg Hands, on behalf of the UK delegation, applauded Vietnam’s pledge at COP26 and acknowledged the development of Vietnam’s visible actions in fulfilling this pledge.

“The UK is committed to supporting Vietnam in achieving its emission reduction targets through the use Energy Transition Partnership (JETP),” said Mr. Greg Hands.

The British side concurred with Deputy Minister Phung Duc Tien’s assessment of the potential and capability to further agricultural cooperation between the two countries and anticipated a rise in the value of agricultural commerce in the near future.

Mr. Hands stated that Vietnamese rice goods are of high quality and that Vietnam seized the chance when the British side raised rice tariff quotas under the UKFTA.

The British side urged Vietnam, one of the active participants of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to join this trading bloc as soon as possible with strong backing. Therefore, Vietnam may promote and boost exports of rice and coffee to the UK, while the UK can sell red meat products to Vietnam.

In response to the British proposal, Deputy Minister Phung Duc Tien stated that Vietnam is willing to open its market to British red meat and other agricultural products. Vietnam also encourages British businesses to make direct investments, bring technology, breed, and production processes to Vietnam, and sell their products on the Vietnamese market

Also Read: Union Budget 2023 must consider reduction in GST rates on Agrochemicals: R G Agarwal, Chairman of Dhanuka Group

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