𝐖𝐡𝐚𝐭 𝐅𝐨𝐨𝐝 𝐃𝐨𝐞𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐄𝐱𝐩𝐨𝐫𝐭?
𝐕𝐢𝐞𝐭𝐧𝐚𝐦’𝐬 agricultural sector is integral to the nation’s economy and workforce. As the world's second-largest exporter of rice and coffee, Vietnam produces a variety of foodstuffs and aquacultural products then exports to other countries.
𝐓𝐨𝐩 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐟𝐨𝐨𝐝 𝐞𝐱𝐩𝐨𝐫𝐭 𝐢𝐭𝐞𝐦𝐬:
• Rice
• Coffee
• Seafood
• Fruits & Vegetables
• Spices
𝐕𝐢𝐞𝐭𝐧𝐚𝐦 also exports processed foods, for example, canned seafood, canned fruits, instant noodles, and confectionery.
𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐭𝐡𝐞 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬 𝐨𝐟 𝐒𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐅𝐨𝐨𝐝 𝐚𝐧𝐝 𝐀𝐠𝐫𝐢𝐜𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬 𝐅𝐫𝐨𝐦 𝐕𝐢𝐞𝐭𝐧𝐚𝐦?
𝐕𝐢𝐞𝐭𝐧𝐚𝐦 is a top choice for importing food and agricultural products, offering diverse crops and high-quality products. In this section, we will take a look at the benefits of sourcing from Vietnam.
𝐕𝐢𝐞𝐭𝐧𝐚𝐦 has established several free-trade agreements with various countries worldwide. For importers from nations with these agreements, sourcing from Vietnam may present a strategic opportunity. Some notable agreements include:
• 𝐀𝐅𝐓𝐀: As a member of ASEAN, Vietnam is a part of The ASEAN Free Trade Area (AFTA). This agreement supports trade and manufacturing amongst the member countries, including Vietnam, Singapore, Indonesia, Malaysia, Thailand, Cambodia, Laos, Myanmar, and Brunei.
• 𝐄𝐕𝐅𝐓𝐀: EU-Vietnam Free Trade Agreement that became effective in 2020 is another great support as the EU and Vietnam plan to remove 99% of all customs duties.
• 𝐂𝐏𝐓𝐏𝐏: The Comprehensive & Progressive Agreement for Trans-Pacific to support Vietnam, Singapore, Malaysia, Brunei, Australia, New Zealand, Canada, Chile, Japan, Mexico, and Peru, effective from 2019.
• 𝐈𝐏𝐄𝐅: The agreement Indo-Pacific Economic Framework for Prosperity among America, Australia, New Zealand, Brunei, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, and Vietnam.
𝐓𝐡𝐞 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐁𝐫𝐢𝐧𝐠𝐬 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬
𝐕𝐢𝐞𝐭𝐧𝐚𝐦’𝐬 location is highly advantageous for the logistics and supply chain industry, providing multiple options for shipping to other countries by air, road, sea, and rail. There are multiple famous suppliers like Maersk, Gemadept, DHL, UPS, Kuehne + Nagel, Schenker, Expeditors, and many other local companies.
𝐎𝐧 top of that, Vietnam has 1,900 miles of coastline and 44 international seaports, amongst 320 ports in total, with a total capacity of 470-500 million tons per year, positioning Vietnam as a significant player in global trade. Hence, importing products from Vietnam can be more beneficial in terms of time, means of transport, and cost-effectiveness.
𝐎𝐭𝐡𝐞𝐫 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬
• 𝐋𝐚𝐛𝐨𝐫 𝐜𝐨𝐬𝐭𝐬 in Vietnam are relatively lower than those of its neighbors (e.g., around one-third of China’s on average), and wages are increasing slowly. Additionally, the labor pool is large, as 56% of the population (98 million) belongs to this group.
• 𝐕𝐢𝐞𝐭𝐧𝐚𝐦’𝐬 𝐦𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 capabilities in food and agriculture have been proven by some global recognitions, such as being the second-biggest exporter of rice and coffee in the world, seventh and fifth in worldwide tea production and exports, respectively, third-largest seafood export, etc...Vietnam’s rice is mainly exported to Asian and African countries, with the Philippines and China as the top two. Vietnam’s main coffee export markets include Europe, the USA, Russia, Japan, and the UK. Vietnam’s major seafood export markets are Japan, the USA, and Europe.
𝐁𝐞𝐬𝐭 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬: 𝐅𝐨𝐨𝐝 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐢𝐧 𝐕𝐢𝐞𝐭𝐧𝐚𝐦
𝐎𝐧𝐜𝐞 you have a list of potential suppliers, checking their credibility through a supplier audit is always a good practice. In the wake of Covid-19, food hygiene has become a top product priority. Each country has different regulations depending on the type of imported product. To import from Vietnam, you should check your country’s food safety requirements. It’s also a good idea to regularly inspect the food products at your suppliers site, to ensure that they’re delivering the right quantity and quality to you. These Vietnam food quality inspection services include: pre production inspection, survey/damage survey, loading supervision/discharging supervision and others.