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Update news chinese market
The General Administration of Customs of China (GACC) on February 11 morning issued 1,601 codes for Vietnamese agricultural and food products serving their exports to the Chinese market.
The export value of vegetables and fruits reached at US$3.2 billion in 2020 and fruits account for 80 percent of export turnover.
Cambodia has obtained the go-ahead to export mangoes to China, becoming a new rival for Vietnam in the 1.4 billion consumer market.
Vietnam has joined many multilateral and bilateral trade agreements in recent years. The question is what the country receives from these trade relations.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong has offered a variety of high-quality farm produce to China. He hopes Vietnam can boost exports through official ways to China in the time to come.
Northern farmers have been advised to increase the winter crop growing area and increase exports to China, in anticipation of a farm produce shortage there caused by severe floods.
The loyal Chinese market has restricted the import of Vietnam’s fruits, while exports to the US are stuck because of Covid-19.
Vietnamese fruit exporters have been trying to stop their reliance on China, but no progress has been made in finding new markets.
Previously, China imported rice in small quantities from Vietnam, but the country has recently increased imports from Vietnam and accepted higher prices.
Foreign investors are considering relocating their production bases out of China, and many of them are heading for Vietnam.
The Ministry of Industry and Trade (MOIT), in an effort to rescue Vietnam’s farm produce, has decided to organize online trade between Vietnamese sellers and Chinese businesses.
International manufacturers are seeking component suppliers in Vietnam, considering Vietnam as an alternative market in the context of Covid-19 escalation.
In order to export $42 billion worth of products as planned, exports to China need to grow by 10 percent and to ASEAN by 9 percent to offset the decline in exports to the US and EU.
Some countries have temporarily closed shopping centers and asked people to stay at home to prevent the spread of coronavirus, which has affected exports of Vietnamese enterprises.
Catfish exports to China dropped by half in the first two months of the year in comparison with the same period last year, resulting in a 32 percent decrease in total export turnover for the entire seafood industry.
Signs of Vietnamese farm export recovery have appeared as the Chinese market has begun importing products again.
The Covid-19 crisis, which has paralyzed many factories in China, offers an opportunity for Vietnam’s processed food to penetrate the 1.4 billion consumer market.
In mid-March, when Chinese factories began resuming operation, material supplies to Vietnamese textile and garment enterprises were restored.
Some retailers have reportedto the Ministry of Industry and Trade (MOIT) that there is no more farm produce to rescue. But farmers still complain that their farm produce remains unsalable.
Vietnam's reliance on Chinese materials has been clearly exposed during the Covid-2019 crisis, as imports from China have declined.