[NEWS] - What businesses do to take advantage of the UKVFTA agreement

Since our country signed the UKVFTA Agreement, many Vietnamese products have had a more competitive advantage than before compared to similar products of China, India, Thailand, Malaysia, the Philippines... However, to take advantage of them. Taking advantage of the agreement, businesses are required to build planting areas, improve quality, and meet the criteria required by the market.

Mastering market information

Speaking at the Workshop "Taking the UK market potential", taking advantage of UKVFTA", Mr. Dang Hoang Giang - General Secretary of the Vietnam Cashew Association (VINACAS) said, the UK market is extremely important, but the 4th country of Vietnam exporting cashew is the Netherlands. This is a country that exports highly processed cashew kernels to the UK market, while the Netherlands does not have any cashews. Vietnam is a big cashew producer and exporter, why hasn’t Vietnam done it yet? Mr. Dang Hoang Giang asked a question.

“This shows that despite the free trade agreement, businesses have not yet grasped it. Currently, businesses have information about the market, but it is mainly academic information, and information about the market, consumption habits, etc., businesses have not yet grasped, "emphasized Mr. Dang Hoang Giang.

According to Mr. Oliver Todd, British Consul General in Ho Chi Minh City. According to Ho Chi Minh, the supply chain is changing. With the UKVFTA Agreement, many products of Vietnam are having advantages. However, Vietnamese enterprises that want to compete must master market information and specialize. The UK market will select countries with products with certain advantages. Textiles, agriculture and fishery, the UK market is always in demand, and trusts products from Vietnam. Therefore, to compete, businesses should develop existing industries. At the same time, adding new categories and building product reputation.

Building material areas, ensuring product quality

Mr. Nguyen Van Hieu - Export Director of Loc Troi Group said that each year the company exports 100,000 tons of rice, of which the UK market alone reaches 20,000 tons. In order to export to the EU market in general and in particular to the UK market, enterprises must meet many different standards. Particularly for fertilizers and pesticides, Phat meets the standards of more than 800 different active ingredients. According to Mr. Hieu, a few years ago, it was very difficult for Loc Troi to export to the UK market because there was no production process and no clear standards, which made the products produced do not meet quality.

However, from 2020, the company has changed its way of doing, producing according to sustainable value chains, from seeds, fertilizers, drugs, agricultural services, linking with farmers to produce, transport... to Currently, the products exported to the UK and US markets are 100% standard.

Ms. Bui Thi Thanh An, Deputy Director of the Trade Promotion Department, Ministry of Industry and Trade assessed, although currently Vietnam’s agricultural products have many advantages over other countries. However, in the near future, the UK will implement a series of free trade agreements with other countries, which will make our tariff advantage disappear. Therefore, businesses need to change, focus on product quality. This is the most important thing to bring the product to the UK market.

To focus on product quality more in the market, Indochina Holdings brings trade promotion services to Vietnamese businesses. With many years of experience in consulting for businesses, we bring strict knowledge and procedures when exporting to the European market. Moreover, you can also connect and work with our partners to create a consistent and accurate operating environment.

Cao Duy