World Tr@de Net Business Briefing

 


Vietnam’s Fisheries Exports to the EC Public - Private Collaboration to Address Non-Tariff Measures




The story of Vietnam’s fisheries exports to EC shows how a set of coordinated actions lead to the valorisation of fishery products and, consequently, positively impact on the export performance in the highly regulated markets. Vietnam’s success in exporting to the European Community (EC), was the result of a strategy planned and implemented at both government and business levels, partially funded by international aid programs. Historically Vietnam has embarked on a gradual process of transformation from a centrally-planned system into a market-oriented economy with a socialist orientation. It also shows that Vietnam’s strategy of increasing its fisheries and agricultural exports initially faced a number of constraints and deficiencies.

Market access to the EC is granted to selected private operators and is the result of the fulfilment of a number of health and supervisory requirements. The crucial issue in recognizing equivalence is the evaluation of a set of requirements related to the exporting country’s organization and capability to control safety both at the administrative and enterprise level. Vietnam’s ability to export foodstuffs to developed markets such as the EC was the result of a two-fold strategy:

  1. The creation of a legal and regulatory framework, fitting the legal standards required to access the specific market; and

  2. Private and public sector involvement in investments in processing, facilities, machineries and marketing skills, which are competiveness-drivers on global markets.

Vietnam upgraded its internal sanitary legislation and food processing in line with international standards. Compliance with World Trade Organisation’s agreements and international standards laying down requirements for agro-based products were perceived as the main tool for achieving better market access for Vietnamese commodities. Furthermore, actions were taken with the aim of setting-up a network of authorities and laboratories, which apply internationally-recognized standards in sampling and inspection tests.

The business community (i.e. farmers, producers, retailers, exporters and extensive service providers) must comply with the importing country’s mandatory product and processing requirements. In achieving this goal, an effective and well coordinated partnership between public and private sectors is a must. Vietnam’s Association of Seafood exporters and Producers exporting 80% of the total seafood exports of Vietnam is organising educational and training courses to improve the ability, professional knowledge, skills and awareness for technicians, managers and personnel who are in charge of import-export business in the seafood enterprises. They also provide consultancy services to support member enterprises to improve productivity, quality and proficiencies in production and business, build up raw material resources, expand markets and improve competitiveness.

Individual companies invested, supported by the cheap credit made available by the government agencies, in upgrading their processes, such as raw material handling, food processing, quality management, traceability systems, marketing skills etc.

Equivalence and mutual recognition agreements represent tools of trade facilitation to minimize the trade-distortive consequences of product testing and certification procedures that must be undertaken in order to enter third markets. Vietnam has entered into such agreements with the EC. Although many requirements in this field of regulation may be identical to the regulatory framework in place in the EC, it cannot be said that Vietnam’s regulation in the field of fisheries as a whole is identical to EC law. However, equivalence of SPS measures does not require duplication or sameness of measures, but merely the acceptance of alternative measures that meet an importing Member’s appropriate level of sanitary or phytosanitary protection.

The Vietnam’s case places emphases on the prioritisation of programs in order to identify those products or sectors where a set of interrelated actions should be addressed to facilitate trade.




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