How to utilise EVFTA to boost cashew exports to France
VOV.VN - Vietnamese firms have been advised to maximise the benefits of the EU-Vietnam Free Trade Agreement (EVFTA) in order to enjoy tariff incentives as part of efforts to bolster cashew exports to France and the EU market, according to industry insiders.
Experts point out that the tax rate for processed cashew products imported from the nation into the EU have been slashed to 0%, as opposed to the rate of 7% to 12% immediately after the enforcement of the trade pact, thereby creating competitive advantages for local businesses.
Vu Anh Son, Vietnamese Trade Counselor in France, revealed that French consumption and import demand for cashew nuts remains stable throughout the 2016 to 2020 period, recording an increase of 8% in value and 10% in volume, with a large amount of products being imported from the Vietnamese market.
However, the country’s cashew nut market share in France endured a decline from 61% to 46% in the 2019 to 2020 period due to Vietnamese enterprises not paying due attention to developing brands and creating added value products, Son said.
Furthermore, Vietnamese cashew nuts are anticipated to face competition from potential rivals such as Cambodia and African countries moving forward.
With these factors in mind, Son also advised Vietnamese enterprises to meet the EU’s strict regulations relating to food safety and pesticide residues in order to make further inroads into the demanding market, while simultaneously seeking support from lawyers to assist them in compiling contracts, thereby avoiding potential risks in the transaction process.
