Vietnam Strengthens Compliance to Ensure Agricultural Export Growth Amid Trade Uncertainties

Vietnam Strengthens Compliance to Ensure Agricultural Export Growth Amid Trade Uncertainties

Hanoi, The Gulf Observer: Amid global trade uncertainties, Vietnam is enhancing compliance with international market standards, with domestic processors and exporters actively adapting their strategies to sustain and expand agricultural exports.

Phạm Quang Vinh, former Vietnamese Ambassador to the US, highlighted Vietnam’s competitive advantage in agricultural exports, noting that the country is not directly impacted by US President Donald Trump’s new tariff policies. He emphasized that the US prefers dialogue and bilateral negotiations over imposing tariffs on Vietnamese goods.

Vinh suggested that Vietnam could capitalize on this position by increasing imports of US products such as civil aircraft, liquefied natural gas, and agricultural goods while maintaining strong exports of Vietnamese farm produce to the US.

He also stressed that trade discussions should not solely focus on reducing deficits but also on ensuring transparency and fairness. To meet US market demands, the Vietnamese Government has implemented stringent origin verification and traceability measures.

Recently, President Trump signed an executive order under the International Emergency Economic Powers Act, imposing a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. Products containing components from these countries may face additional trade barriers.

Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến confirmed that agricultural trade between Vietnam and the US remains robust. He cited a January 2025 agreement resolving the longstanding anti-dumping dispute on Vietnamese catfish (pangasius) fillets, leading to the removal of Vĩnh Hoàn Corporation from the list of companies subject to anti-dumping duties.

The Vietnam Cashew Association also confirmed that Vietnam’s cashew exports to the US remain unaffected, as the country primarily sources raw cashew nuts from Africa and Cambodia, avoiding exposure to new US tariff policies.

Nguyễn Đình Tùng, CEO of Vina T&T Group, affirmed that Vietnam’s fruit and vegetable exports to the US remain stable, with no significant changes in import tariffs. However, he cautioned that businesses using Chinese-origin raw materials must adhere to strict traceability and disclosure requirements.

Despite these positive developments, market conditions remain volatile. The Ministry of Agriculture and Rural Development is actively working with businesses to prepare for potential trade disruptions while exploring new market opportunities, including halal markets. The Government is also collaborating with the Ministry of Foreign Affairs and the Ministry of Industry and Trade to strengthen trade ties with traditional partners to reduce reliance on any single market.

Beyond the US, Vietnamese agricultural exports are also facing stricter scrutiny in other major markets.

Ngô Xuân Nam, deputy director of Vietnam’s SPS Office (Sanitary and Phytosanitary Notification Authority and Enquiry Point), reported that the EU has increased border inspections on several Vietnamese agricultural products. The inspection rate for durian has doubled from 10% to 20% due to pesticide residue concerns, dragon fruit is now subject to a 30% inspection rate, and chilli peppers and okra must meet a 50% inspection threshold. These products must include laboratory test results verifying pesticide levels before they can enter the EU.

With Vietnam’s proactive measures and policy adjustments, the country aims to maintain its strong agricultural export performance while navigating an increasingly complex global trade environment.