Processing cashew nuts for export (Photo: VNA) The tax rate for Vietnamese cashew products imported into the EU was cut down to0% after the EVFTA took effect on August 1, 2020, creating a significantcompetitive advantage for this commodity.
This reduction is very important because before having the EVFTA, the tarifffor Vietnamese cashew nuts ranged from 7% to 12%.
Vietnamese Trade Counselor in France Vu Anh Son said the agreement is a good tool helping Vietnam expand its cashew export to the EU in general and France in particular.
According to Vietnamese Trade Office in France, in2019-2020, Vietnam's cashew market share in France decreased from 61% to 46%.At supermarkets and hypermarkets, there were almost no Vietnamese-branded cashewproducts because the domestic enterprises mainly focused on wholesale, notretail.
Experts have warned that Vietnamese cashew nuts have faced competition in theEU market.
Export firms are advised to ensure regulations on origin and food safety, consultlawyers about relevant to laws, and update latest information related to ordersand transactions to avoid risks.
DangHoang Giang, Secretary General of the Vietnam Cashew Association (Vinacas) has recommended theMinistry of Industry and Trade take measures to conretise cooperationagreements through FTAs, especially EVFTA, thus maximizing profits for local exporters.
Trade promotion agencies should provide more information and forecasts of consumptiontrends in EU markets, including France; and support Vinacas to expand trade partnerships with EU importers,Giang said.
Vietnam aims to earn 3.8 billion USD fromexporting cashew nuts this year, an increase of 200 million USD year-on-year.
The EU is now Vietnam’s second-largestcashew export market, accounting for 23% of the volume and 22% of the value.
Last year, Vietnam shipped 135,000 tonnes of cashew nuts worth 816 million USD tothe EU, up 16.5% in volume and 7.9% in value compared to 2020./.
VNA
