Exporting vietnamese sweet potatoes to china using official quota development and potentials

Exporting Vietnamese sweet potatoes to China
using official quota: Development and Potentials
Group


Contents

01

Introduction

02

Development

03

Opportunities

04

Challenges

05

Recommendations


Developm
ent

Overview of the first
official export of
Vietnamese sweet potato

Overview of Vietnamese
sweet potato industry
before the Protocol

Overview of Vietnam’s
official quota export

Overview of the Protocol on
phytosanitary requirement for
sweet potato export from
Vietnam to China


What are the keywords?
01

Official Quota

02

Unofficial Quota

●
●

Unofficial-quota goods are goods imported by

Traders sign contracts according to international

small traders. Goods are taxed for consumption

practices such as International Commercial Terms

and not protected by the State.

●

Make transactions via banks

●

Prefer cash

●

Have insurance and inspection terms/regulations

●

Clear origin and red VAT invoice

●

Through international and main border gates

●

Exclusive for border residents, no large
enterprises.


Overview of Vietnamese official quota export
Update
As of March 2023, the
Vietnamese government
and authorities have
been making efforts to
stimulate export via
official quota

Future
It is expected that
Vietnam will only export
to China via official quota
from 2028 onwards

Notable trade gate
Guangxi province (Quảng
Tây) accounted for over
95 percent of trade
turnover

Future
From 2028 onwards,
border gates will need
bilateral agreements to

stay opened and support
trades


Products approved so far

And a few more…


Overview of the Vietnamese sweet potato industry before the Protocol

List of importing markets for sweet potatoes exported by Vietnam
Unit: US Dollar Thousand

=> Vietnam relied on export via unofficial quota
=> Decline in sweet potato exports to China


Vietnam’s localities:
Vinh Long province
Where is Vinh Long?
In the Cuu Long river delta, where the
sweet potato yield is highest in Vietnam
What is so special about Vinh Long?

02

Every year:
10,000 hectares of land
(1/10 of Vietnam)

300,000 tonnes of yield
(1/4 of Vietnam)

Your Text Here
You can simply impress
your audience and add
a unique zing and
appeal to your
Presentations.

How has Vinh Long developed?
Fluctuations:
Loss of area + Price drops


Other sweet potato localities
A
B
Dong Thap province (Cuu Long river delta)

C

Dak Lak (Central Highlands)

They suffered price drops and losses and had to reduce sweet potato areas for other crops

D

The future seems not so bright => What now?

P
Pr ow
es erP
en o
ta int
t io
n

Overview of the Protocol on phytosanitary requirements for sweet potato export
from Vietnam to China

03

04

On November 22nd, 2022,P the Protocol was announced
Pr ow
er
=> Sweet potatoes as theese13th
Vietnamese fruit to be officially
P
nt oin
at t
io
n
exported to China, and the 5th
to have a Protocol

Summary of the Protocol
01

Registry
The planting regions and packaging facilities must
be registered with MARD (The Ministry of

02

Phytosanitary testing procedure
●
●

Agriculture and Rural Development) of Vietnam, for
considerations from The General Administration of
Customs of China (GACC)

●

Planting regions must apply GAP (Good
Agricultural Practices)
Sweet potato batches must be sampled
and analysed by MARD, based on GACC’s
requirements
Certificates if meeting requirements and
suspensions if failing requirements


Summary of the Protocol
03

Packaging requirements
Packaging facilities must establish a quality
management and product tracking system
●

Classification

●

Removal of spoilt products and impurities

●

Pest control

●

Clean packaging and containing

04

Border gate inspection
Chinese Customs will conduct inspections and
quarantine checks at borders, with strong
measures
●
●

Returning or destruction of unsatisfactory

products
Enforcement of laws or regulations in the
event of violations


Summary of the Protocol
05

Protocol implementation inspection process

The General Administration of Customs of China
(GACC) will carry out on-site inspections or online
inspections with the cooperation and support of the
MARD (The Ministry of Agriculture and Rural
Development) of Vietnam


Overview of the first official export of Vietnamese sweet potato to China

● In April 2023, Binh Tan district,
(Vinh Long province), had 28
tonnes of sweet potatoes exported
to China

● Vietnam and China continue to
cooperate in the future

03

04

P
Pr ow
es erP
en o
t a in t
tio
n

P
Pr ow
es erP
en o
ta int
t io
n

● 27 planting areas and 3 packing
facilities issued export codes

=> Good news?


Overview of the first official export of Vietnamese sweet potato to China

● Actively restore and expand
sweet potato production

03

04

P
Pr ow
es erP
en o
t a in t
tio
n

P
Pr ow
es erP
en o
ta int
t io
n

● More involvement from
organizations and businesses
● Growing tendency towards
organic production
● More requests from China
=> Really good news


Opportunities

Opportunities for the
Vietnamese sweet potato

industry
●

More proactive stance for Vietnamese
farmers and businesses

=>
prices
●
=>

Rise and stabilize sweet potato

More motivation to achieve higher
yields
Consistent source of revenue

Opportunities within the
Chinese market for
Vietnamese sweet potato
●

Increasing market demand

●

Free trade agreements

=>
●

=>

Favorable trade conditions
Logistics advantage
Potential for sustainable exports


Strict regulation

Challenges

Thorough inspection and testing from Chinese authorities

Packaging and labeling

Need to prevent contamination and ensure product traceability
Complex administrative procedures

Involve permits, licenses and other documents
Concerns over experience and knowledge to go through
documentation
Competition

Significant domestic food production industry within China
Strong exports to China from the United States, Netherlands or
Egypt


Recommendation

Vietnamese governments
Assess the current situation and adjust production operations
Create favorable conditions for Vietnamese exports and open more border gates for export of potatoes
Help synthesize and systematize Chinese import regulations and standards
Consolidate the various beneficial Vietnam-China trade agreement provisions for publication
Promote robust international relations in order to seek out new markets and opportunities brought about by international economic integration
Businesses
E-commerce technology should be applied in exporting potato products to China
Actively update and strengthen their knowledge and skills, taking advantage of online commerce methods
Products need to have suitable prices, good quality, proper origin and be produced sustainably
All transactions must be made in the form of a contract under the rules of international trade
Monitor and be updated on market information, trade policies, regulations on product quality, and consumer tastes in China


Thank You