New Zealand’s Ministry for PrimaryIndustries (MPI) has given the go ahead for the importation ofVietnamese dragon fruits into the country, potentially opening a door ofopportunity for other fruits, radio The Voice of Vietnam (VOV) reportedon May 6.
On May 1, the MPI also modified regulations concerningthe importation of Vietnamese mango – another tropical fruit which hasbeen a favourite with NZ consumers since December 2011.
Expertshope the two types of fruits will help Vietnam get its foot in the door,opening opportunities for other Vietnamese fruits to be allowed intothe market.
Vietnam and New Zealand have signed a number ofagreements aimed at creating a legal framework for increased trade andcooperation. They also established a joint committee in 2005 in hopes ofspurring trade.
However, bilateral trade remains modest, butbright spots on the horizon are beginning to appear. Thanks to tradepromotions over the years, two-way trade turnover rose from 187 millionUSD in 2001 to 750 USD million in 2012 and 723 million USD in 2013.
Inthe first four months of this year, Vietnam’s exports to New Zealandhit a record high of 90 million USD, spawning optimism that bilateraltrade could reach 1 billion USD by the end of 2015.
Vietnam iscurrently the 21st largest exporter of New Zealand with its main exportproducts including footwear, wood and timber products, seafood, garmentand cashew nuts. The country primarily imports milk and dairy productsfrom New Zealand.
Since the ASEAN-Australia-New Zealand FreeTrade Agreement (AANZFTA) took effect in January 2010, Vietnameseproducts have received significant incentives in the New Zealand market.
However, many domestic businesses have not carefully studiedthe trade pact to take full advantage of the incentives it offers,including highly reduced tariffs among other things.
The NewZealand economy depends highly on processing farm products, minerals andfisheries, which are quite similar to Vietnam. Thus, it is difficultfor Vietnamese products to penetrate the market, but not impossible.
NewZealand applies open-door and flexible trade policies highly conduciveto Vietnamese exports with high diversity sufficient to bolster robusttrade and economic relations.
In the reverse, AANZFTA alsoprovides ample opportunity for New Zealand businesses to penetrate theVietnamese marketplace. For example, Vietnam pledges to eliminate 54% oftariffs on New Zealand imports in 2016, 85% in 2018 and 90% in 2020.
Specifically,pursuant to the agreement, beef, lamp, dairy products and small plankwill enjoy significant tariff cuts in 2016. It is highly likely thatimports from New Zealand into Vietnam will rise considerably in 2016 andthe years beyond.
Economists forecast Vietnam’s annual importgrowth from the New Zealand market will grow by around 5% to 12.5billion NZD over the next few years.
This underscores the needof Vietnamese businesses to study New Zealand’s market trends, and tradepacts, and seek to capitalise on the importation of Vietnamese dragonfruits and mangos, using them as a springboard to launch the importationof other high quality Made in Vietnam products to New Zealand.-VNA
On May 1, the MPI also modified regulations concerningthe importation of Vietnamese mango – another tropical fruit which hasbeen a favourite with NZ consumers since December 2011.
Expertshope the two types of fruits will help Vietnam get its foot in the door,opening opportunities for other Vietnamese fruits to be allowed intothe market.
Vietnam and New Zealand have signed a number ofagreements aimed at creating a legal framework for increased trade andcooperation. They also established a joint committee in 2005 in hopes ofspurring trade.
However, bilateral trade remains modest, butbright spots on the horizon are beginning to appear. Thanks to tradepromotions over the years, two-way trade turnover rose from 187 millionUSD in 2001 to 750 USD million in 2012 and 723 million USD in 2013.
Inthe first four months of this year, Vietnam’s exports to New Zealandhit a record high of 90 million USD, spawning optimism that bilateraltrade could reach 1 billion USD by the end of 2015.
Vietnam iscurrently the 21st largest exporter of New Zealand with its main exportproducts including footwear, wood and timber products, seafood, garmentand cashew nuts. The country primarily imports milk and dairy productsfrom New Zealand.
Since the ASEAN-Australia-New Zealand FreeTrade Agreement (AANZFTA) took effect in January 2010, Vietnameseproducts have received significant incentives in the New Zealand market.
However, many domestic businesses have not carefully studiedthe trade pact to take full advantage of the incentives it offers,including highly reduced tariffs among other things.
The NewZealand economy depends highly on processing farm products, minerals andfisheries, which are quite similar to Vietnam. Thus, it is difficultfor Vietnamese products to penetrate the market, but not impossible.
NewZealand applies open-door and flexible trade policies highly conduciveto Vietnamese exports with high diversity sufficient to bolster robusttrade and economic relations.
In the reverse, AANZFTA alsoprovides ample opportunity for New Zealand businesses to penetrate theVietnamese marketplace. For example, Vietnam pledges to eliminate 54% oftariffs on New Zealand imports in 2016, 85% in 2018 and 90% in 2020.
Specifically,pursuant to the agreement, beef, lamp, dairy products and small plankwill enjoy significant tariff cuts in 2016. It is highly likely thatimports from New Zealand into Vietnam will rise considerably in 2016 andthe years beyond.
Economists forecast Vietnam’s annual importgrowth from the New Zealand market will grow by around 5% to 12.5billion NZD over the next few years.
This underscores the needof Vietnamese businesses to study New Zealand’s market trends, and tradepacts, and seek to capitalise on the importation of Vietnamese dragonfruits and mangos, using them as a springboard to launch the importationof other high quality Made in Vietnam products to New Zealand.-VNA
