Vietnam's export sector is grappling with significant challenges as it faces tougher regulations from key international markets, primarily China and the European Union (EU). These challenges could have far-reaching impacts on the country's economy, where exports are central to its growth.
Recent data shows alarming declines across various agricultural exports, raising concerns among farmers and exporters. For example, exports of durian, once the king of fruits, dropped dramatically. According to the Vietnam Fruit and Vegetable Association, exports of durian have fallen by 80% this year alone due to the imposition of stricter phytosanitary standards by China.
China, Vietnam's largest trading partner, has announced rigorous checks on all durian imports. Since January 2025, it implemented mandatory testing for harmful substances such as Auramine O, leading to lengthy processing times and increased risks of spoiled goods. With nearly all of the country's durian exports being affected, many businesses were left with no choice but to reduce their supply and sell domestically instead.
Notably, the EU has also increased its scrutiny, raising the likelihood of non-compliance penalties due to excessive pesticide residues found on durians. This situation reflects broader issues within the Vietnamese agricultural export market; many products are falling victim to the tightened inspections aimed at improving food safety standards.
A recent report noted the overall value of agricultural exports decreased by 40% when measured against the prior year's figures. Since China began its new inspections, exports of various high-value agricultural products have been dramatically throttled.
Besides the durability of exports like durian, other products such as seafood are facing similar destinies. The director of Quang Ngai’s Department of Agriculture and Rural Development, Hồ Trọng Phương, noted, "Stricter standards for imports, particularly for products like seafood, have resulted in compliance issues, hampering exports." This statement encapsulates the struggles faced by many enterprises relying on highly regulated markets.
Vietnamese exporters are under pressure to adapt and meet these rigorous regulations. Many claim limited resources when it came to upgrading their technology and processing standards to match international expectations. To remain competitive, companies are being urged to invest heavily in modernizing their practices. Leading businesses have started investing significantly to innovate their processing methods, focusing on sustainable and environmentally-friendly practices to pass stringent inspections.
Experts highlight the importance of forming strong production linkages between exporters and local farmers. Key among these strategies is the desire to establish closed-loop systems for quality control. For example, the Phung Hung Seafood Company has emphasized its commitment to sourcing fish from vessels fully complying with international guidelines and certifications.
While decrease is seen in certain exports, it is not all doom and gloom. The Vietnamese government is making concerted efforts to facilitate market access, particularly through trade agreements like the EU-Vietnam Free Trade Agreement (EVFTA). These agreements promise to reduce tariffs and improve trade flow.
Despite the immediate focus on existing challenges, opportunities remain; the demand for rice globally has surged, leading to Vietnam becoming the top rice supplier to the Philippines. Various niches within agricultural products outside the heavily regulated sectors are also seeing favorable growth rates.
Vũ Vinh Phú, industry expert, asserts, "The need for immediate action and regulatory updates is clear if we aim to remain competitive. Our farmers and processors must keep quality front and center to thrive as market demands evolve." This reflects the realization among stakeholders of the need for adaptation and strategic pivoting to navigate tomorrow's market.
Looking forward, the message is clear: Vietnamese exporters need to prioritize compliance and adaptability. The combination of pulling away from reliance on non-compliant practices and embracing sustainability may just yield the competitive edge needed to thrive alongside their peers internationally.