Ever since the European Union-Vietnam Free Trade Agreement (EVTFA) was approved, experts have been analysing the opportunities for Vietnam to penetrate deeper into the high-value foreign markets. However, the implementation of the deal also poses many challenges to Vietnamese agricultural products. Besides strict standards from the European Union market, competitive pressure in the domestic market is also a big issue.
Exporters said that farmers have also increased their awareness of the EU’s requirements. For example, their products must meet international standards like GlobalGap. However, some businesses still do not fully understand the importance of these standards. Besides, competitive pressure will be fiercer in domestic market when agricultural products from EU countries pour into Vietnam.
Like many other free trade agreements, the implementation of the EVFTA will lift tariff barriers but for many countries it will create more difficult technical barriers. The Ministry of Agriculture and Rural Development has said the deal will change the entire production and structural processes to create a closed chain for enterprises to participate in the global value chain.