However, due to a number of difficulties faced during the issuance of fragrant rice certificates, several enterprises have not been able to seize upon the opportunity to bolster exports to the EU.
According to information given by the Ministry of Industry and Trade, there are currently nine fragrant rice varieties.
As a means of enjoying the preferential tariff export quota, businesses must present the authentic certification of fragrant rice varieties issued by local competent authorities.
Immediately after the EVFTA took effect last year the Government moved to issue a decree on the certification of fragrant rice varieties exported to this market.
Furthermore, the Ministry of Agriculture and Rural Development (MARD) also issued a decision on September 7, 2020, relating to guiding enterprises on procedures necessary to certify fragrant rice varieties for exports to the EU.
Despite this, since the beginning of this year no enterprise has been granted a certificate of fragrant rice to enjoy tax incentives stated under the commitments set out in the EVFTA, according to the Vietnam Food Association.
Phan Van Co, marketing director of Vrice Co., Ltd., said his company has recently lost a contract to export over 1,500 tonnes of Jasmine 85 fragrant rice to the EU due to the firm not yet obtaining the certification under the trade pact.
He therefore emphasised the need to reduce the incurring costs and cumbersome formalities when applying for a certification in order to allow local enterprises to enjoy preferential tax from the terms of the EVFTA.