Businesses need to head chemicals, microorganisms in EU warnings

In order to maintain smooth exports to the EU, Vietnamese businesses should prioritize compliance with EU food safety regulations, particularly by addressing the specific chemicals and microorganisms identified in recent warnings.

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Durian is one of the items which are now facing heightened scrutiny
The statement was made by Deputy Director Ngo Xuan Nam of Vietnama Sanitary and Phytosanitary Notification Authority and Enquiry Point (Vietnam SPS) at a conference in Ho Chi Minh City today.

According to Vietnam SPS Office, the conference was implemented under the direction of Minister of Agriculture and Rural Development Le Minh Hoan, aiming to enhance the dissemination and updating of food safety and animal and plant health (SPS) regulations. Through this, businesses, cooperatives, and farmers participating in the agricultural, food, and seafood production and processing chain can raise awareness and comply with the regulations of the import market.

The EU-Vietnam Free Trade Agreement (EVFTA), effective from August 1, 2020, is poised to significantly boost Vietnam's exports to the EU, with projections of over 40 percent growth by 2025 and 45 percent by 2030.

Experts anticipate that the EVFTA will propel Vietnam's GDP growth back to 7 percent between 2029 and 2033. The EU is the world’s second-largest import market, with an annual import value of approximately $2.3 trillion. Vietnam’s export market share in this market is currently about 2 percent.

The Regional Comprehensive Economic Partnership (RCEP) Agreement, which entered into force on January 1, 2022, will eliminate tariffs on around 90 percent of goods over the next two decades.

During the conference, Deputy Director Ngo Xuan Nam disclosed that the number of warnings issued by the EU to Vietnam has surged in the first half of this year, reaching a total of 57 warnings.

As a result of this surge, the EU has significantly ramped up border inspections of agricultural exports from Vietnam. Four products in particular—dragon fruit, chili peppers, okra, and durian—are now facing heightened scrutiny, with increased inspection rates of 30 percent, 50 percent, 50 percent, and 10 percent, respectively.

The EU periodically reviews and implements measures to enhance import inspection and management every six months. However, Vietnam's limited engagement in the process has hindered its ability to influence these measures. Only a few localities, such as Hai Duong, have shown genuine interest and provided timely, comprehensive responses. Conversely, feedback on notifications and draft SPS measures from WTO members is still very limited, resulting in Vietnam’s viewpoints and requirements not being clearly expressed.

Unless immediate measures are taken, Vietnam's agricultural and seafood exports may face increased border inspections by the EU, affecting export activities and competitiveness.

Out of the 2,708 food safety alerts issued through the RASFF system in the first half of 2024, Vietnam was flagged 57 times, representing a 2.1 percent share.

Compared to the 67 warnings from the EU in 2023, the 57 warnings received by Vietnam in the first half of 2024 indicate a substantial increase, even though it may seem average when compared to other countries in the region.

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