Vietnamese agricultural exports recently encountered a significant setback when Japanese authorities destroyed two shipments of durians and peppers. This incident highlights the growing challenges Vietnamese exporters face due to increasingly stringent international standards for environmentally friendly and safe agricultural practices.
Ta Duc Minh, Trade Counselor at the Vietnamese Embassy in Japan, stresses the urgency for Vietnamese agricultural businesses to adhere strictly to Japanese standards. He points out that ensuring product quality is crucial to avoid costly violations. The destruction of Vietnamese durians and peppers in October 2023, leading to a loss of nearly $10,000 for Japan Apple LLC, serves as a stark reminder of these risks.
Given these challenges, Vietnamese exporters must adapt quickly to changing market dynamics. The EU and China, for example, have been issuing more Sanitary and Phytosanitary Measures (SPS) notifications. The first half of 2023 saw the EU issuing 31 warnings, mostly for exceeding acceptable levels of plant protection chemicals in agricultural products.
Vietnamese agricultural processors risk losing their competitive edge and market orders if they delay adopting sustainable practices. Vietnam’s small 0.18 percent market share in the EU for fruits and vegetables can be partly attributed to not meeting European standards.
The black pepper industry exemplifies the need for compliance with global standards. The EU has established Maximum Residue Limits (MRLs) for 513 active ingredients in black pepper grains. Only about 60 percent of Vietnamese black pepper producers currently satisfy these residue requirements.
Experts recommend that Vietnam’s initiatives on pesticide residue should align with EU and US standards, focusing on traceability and sustainability for black pepper. By 2025, the goal is for 70 percent of Vietnamese black pepper exporters to comply with these requirements, thus securing a more sustainable and successful presence in the global market.
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