CPTPP: Opportunities and Challenges for Vietnamese agricultural products

Vietnam has been deeply integrating into the economy, especially when Vietnam have signed 13 free trade agreements (FTAs), including large-scale and high-standard agreements such as CPTPP, EVFTA … However, the picture of integration is not pink due to subjective and objective reasons. In particular, agricultural products are often the most vulnerable commodity when there are disturbances and confrontations with goods of other countries.

This is a general statement given by many delegates at the seminar “CPTPP: Opportunities and Challenges for Vietnamese agricultural products” which is recently held in Hanoi.

Chairman of the Vietnam Farmers Association answers the press at the seminar

Achievements after a period of integration

At the opening ceremony, Chairman of the Vietnam Farmers Association said that agriculture, farmers and rural areas in Vietnam are strongly developing and gaining many achievements. From a country that had to import food, Vietnam has become a high-ranking exporter of food and agricultural products in the world. Moreover, many agricultural products are occupying the leading position in the world market such as rice, pepper, cashew nuts, seafood, vegetables and fruits … and are gradually shaping the brand, prestige of quality and competitive price.

Vietnam agricultural products for sale in supermarkets

CPTPP has officially come into force for Vietnam from 14 January 2019. On June 30, Vietnam and the European Union signed the Free Trade Agreement between Vietnam and EU (EVFTA). This agreement marks another milestone in the process of Vietnam international economic integration. In fact, Vietnam is the second country to sign FTA with the EU in ASEAN.

According to Minister of Industry and Trade, this is the result of a long journey demonstrating great steps to bring our country to rise up and become the group of leading countries in the region. This is an agreement that has a positive impact on the Vietnamese economy and agricultural sector.

Integration and branding matters of Vietnam

At the conference of challenges of Vietnamese agricultural products in the playground of CPTPP or EVFTA, many opinions show that the brand is a weakness that Vietnam needs to overcome to be able to easily integrate. According to General Secretary of the Korean Business Association in Vietnam, he mentioned that Vietnam has a strong development of agriculture, forestry and fishery. However, finding a suitable partner in Vietnam is extremely difficult. He also said that although Vietnam has clear advantages. In parituclar, the more important thing is to build a strong brand for its agricultural products in the international market. In fact, Vietnam bananas are much more delicious than Korean bananas. However, even if Vietnam companies use stamps proving safety for its banana, Korean consumers still don’t trust in it due to Vietnam weak brand.

Vietnam bananas in Japan supermarket chain

In general, Vietnamese agricultural products should focus on building brand from growth process to consumption. Each process must be a stage of building brand on the basis of clean products, quality varieties and a formal process. To take advantages of opportunities from CPTPP or EVFTA, Vietnam government should coordinate with enterprises to promote to build national brand synchronously and strongly.

Company: Dong Xuan Agrimex Co., Ltd

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