WTO and International Trade Center (WITC)

Handbook: Summary of FTA’s commitments for Fruit and Vegetable Sector

10/02/2020

Date: 2019 

By: WTO and International Trade Center – VCCI 

Fruits and Vegetables are one of the strategic products of Vietnam's agricultural industry with rapid growth. In 2018, the export of fruits and vegetables has increased by 10.8% compared to 2017, equivalent to US$3.52 billion. 

The main export markets for Vietnam fruits and vegetables are China and the United States. At the same time, new markets such as Japan and South Korea are experiencing remarkable growth. Excepting the United States, Vietnam is now having or about to have free trade agreements (FTA) with almost all potential export markets of Vietnam fruits and vegetables.

By the end of 2019, Vietnam has had 12 FTAs in force (the latest the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – CPTPP, and ASEAN - Hong Kong, China Free Trade Agreement - AHKFTA), 01 signed FTA (Vietnam - EU Free Trade Agreement), and 03 FTAs under negotiation FTAs with a total of 57 trading partners in the world.

The key commitments of these FTAs are to eliminate tariffs for most goods, including fruits and vegetables, which offer Vietnamese fruit and vegetable businesses the opportunities to enjoy preferential tax rates and fewer barriers when exporting to FTA partner markets. Thereby, Vietnamese products and enterprises could improve their competitiveness in the international market. Also, these FTAs creat opportunities for attracting investment, dominating domestic market share, reforming the industry conforming with international standards, and ensuring sustainable development.

As a part of WTO and International Trade Center – VCCI's Program of Consulting and Providing Information of Trade Integration for Vietnamese enterprises, Handbook: Summary of FTA’s commitments for Fruit and Vegetable Sector was compiled aiming to provide Vietnamese fruit and vegetable enterprises with the basic commitments of FTAs that Vietnam is or will implement. Thereby, Vietnamese enterprises can reap the most benefits from them.

The Handbook summarizes commitments on tariffs and rules of origin, and C/O forms relating to fruits and vegetables (HS codes Sector 7,8 and 20) in 13 FTAs that Vietnam has signed or completed negotiations and according to relevant information in FTAs under negotiation. Also, the Handbook proposes some notes and recommendations to Vietnamese fruit and vegetable enterprises to take the most advantages of the mentioned FTAs.

The Handbook (in Vietnamese) is attached below: