Certificates of Origin needed for Vietnamese fruits

China’s demand, part of an agreement between Vietnam’s Ministry of Agriculture and Rural Development and China’s National Quality Inspection and Quarantine Department, will give farmers an opportunity to get used to a more professional way of doing business. This is expected to help build up a brand name for Vietnamese fruits.

China is a strategic market for Vietnamese businesses because the two countries are close to each other and there is a steadily growing demand for tropical fruits in China.

According to statistics from General Department of Customs, Vietnam exported US$1.9 billion worth of farm products to China in 2008, including between 270,000 and 300,000 tonnes of fruits, worth nearly US$100 million. The number is expected to be much higher if there is an improvement in bilateral trade regulations.

The agreement between the two countries to document fruit origins is not just a nuisance requirement. It is a necessary factor in global integration. In fact, China’s demand is equivalent to the GlobalGap and VietGap standards used by many other countries and familiar to businesses who export their products to European and American markets.

Farmers may have difficulties in getting COs due to a lack of knowledge of international business. However, specifying fruits’ origin not only demonstrates professionalism but also affirms the prestige and quality of the products.

Although Vietnam is famous for tasty tropical fruits, the country’s fruit exports have been unstable over the years. About 80 percent of the country’s fruits are consumed domestically.

This situation is attributed to “unprofessional” trading which has made farmers very passive. Many farmers and small businesses have been forced to either sell their products cheaply or leave them at border gates.

It is time to think about changing the way business is done and building up a brand name for Vietnam’s fruits and other farm products. Farmers, businesses and local authorities have to work together to build raw material areas with high commercial value and to apply the GlobalGap and VietGap standards during production.

Publication of the new standards for farm products, which may seem like a burden for farmers at first, will ultimately give them a chance to expand their markets to other countries. This is essential for Vietnam as a WTO member. It will also help raise product quality, strengthening prices, sales volume, and farmers’ profits.