Exports the first batch of coffee to the EU under EVFTA

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On the morning of September 16, Vietnam officially exported the first batch of coffee with a weight of 296 tons to Europe under the EVFTA Agreement.

Stringent regulations must be met to enter the European market

This morning (September 16) in Pleiku city, the Ministry of Agriculture and Rural Development (Agriculture and Rural Development) in collaboration with Gia Lai Provincial People’s Committee held a ceremony to export 296 tons of coffee of Vinh Hiep Co., Ltd to the market. European market (EU) under the Vietnam – Europe Free Trade Agreement (EVFTA).

Speaking at the ceremony, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said that coffee is one of the 13 key agricultural products of the country, with a high competitive advantage, especially in the Central Highlands, where many people are ethnic minorities and the poor. The coffee industry contributes 3% of the country’s GDP, creates jobs and stable income for over 600,000 farming households, contributes to socio-economic development, poverty reduction in the Central Highlands and other coffee growing regions of the country. Vietnam.


Coffee consignments are exported to Europe under the EVFTA Agreement. Photo T. Tuan.

For many years, Vietnam has always been the 2nd largest coffee exporter in the world and the world leader in Robusta coffee export, achieving regular export turnover of over 3 billion USD / year (accounting for 17.4 % in volume and 9.5% of world coffee export value).

Vietnamese coffee is present in more than 80 countries and regions. The EU is the market that consumes the most coffee of Vietnam, accounting for 40% of the total volume and 38% of the total export turnover of the country (average coffee export value to the EU is 1.2 -1.4 billion USD / year in the past 5 years).


Ripe coffee is of high quality for export. Photo: Vũ Long.

“The proportion of coffee certified sustainable cultivation has increased at 60% of the total cultivated area. The rate of processed coffee increased from 5% in 2015 to 15% in 2020” – Deputy Minister Doanh for know.

Mr. Thai Nhu Hiep, Chairman of the Board of Members and Director of Vinh Hiep Company Limited, said that Vinh Hiep Limited Liability Company is a Vietnamese coffee producer and exporter honored to produce a first batch of coffee products to the EU. In order to enter the European market under the EVFTA Agreement, coffee products must ensure no pesticide residue, and all the very strict regulations of this fastidious market.

EVFTA offers a great opportunity for Vietnamese agricultural products

According to Deputy Minister of Agriculture and Rural Development Le Quoc Doanh, the implementation of EVFTA, effective from 1 August, has initially shown positive results. In August, Vietnam’s coffee export value to the EU market is estimated at nearly 76 million USD, up 34.7% compared to July.


EVFTA offers a great opportunity for Vietnam’s agricultural exports. Photo: Vũ Long.

In the coming time, Vietnam’s coffee industry will ensure to meet the requirements of the EU market, especially standards for quality and sustainable development, making Vietnam a reference point for global Robusta coffee”, Deputy Minister Le Quoc Doanh said.

In the framework of the EVFTA Agreement, almost 100% of the tariff on Vietnam’s exports to the EU will be exempt from import duties after a short schedule (up to 7 years). So far, this is the highest level of commitments a partner has to Vietnam in free trade agreements has been signed.

Through trade and investment relations with the EU, Vietnam is expected to acquire modern technology and governance capacities, gradually standardize and upgrade Vietnam’s production processes to link with global value chain.

With the implementation of the EVFTA Agreement, the EU has eliminated tariffs on all unroasted or roasted coffee products (down 7-11% to 0%), processed coffee from 9-12% reduction to 0% by the time the Agreement takes effect on August 1.

At the same time, out of 39 geographical indications of Vietnam that are committed to protect by the EU when EVFTA is officially put into effect, there are geographical indications on coffee. This is a huge competitive advantage for Vietnam’s coffee industry with competitors in the EU market.

Source: ndh.vn – Translated by fintel.vn