Vietnamese cassava chips export to South KoreaVietnamese cassava chips export to South Korea
Vietnam mainly exports cassava to Korea, however, this is Korean goods closely protective tariff quotas of 1-2 tons / year is 20%, in addition to 887.4% quota.
Although South Korea - a country heavily protected domestic agriculture - has opened the door for some vegetable items of Vietnam, but now has no effective advantage.
At a seminar yesterday in HCM City 12/12 by the National Committee for International Economic Cooperation and Integration Support Centre in HCM City organized WTO, Mr. Chu Thang Trung, Deputy Director of the Asia - Pacific (MOIT), said South Korea is a country with protectionist tendencies agriculture in the country, so quite tight regulations on quarantine of fresh vegetables. Therefore, it only allows imports of fresh fruit in each country and in terms of each fruit, in addition to the three items for import from all over the world, as coconut, pineapple and banana.
However, with three berries above, in fact, Vietnam hardly exported to Korea due to difficulties in ensuring the uniformity of product quality. Meanwhile, some countries and regions, such as the Philippines and Taiwan, the strong export these items to market Korean market.
For other fruits, the country wants to be licensed for export to South Korea to go through 7-8 steps, such as the agency in charge of South Korea until that country had to test materials, the epidemic on fruit ...
There has added two items Vietnam fruit allowed in Korea is dragon (licensed in 2011), and mango (in May 10-2012).
For items dragon, after 4-5 years to examine the dossiers, Korea allows Vietnam export products to the Korean market, but with the right conditions during heat treatment. This requirement has lead to cost 3-4 times dragon. Therefore, now Vietnam now still trying to find appropriate ways to reach the Korean market.
With rice, Korea shall apply any hard quotas. Currently quota is 250000-300000 tonnes / year, but rather the amount of 200,000 tonnes in quotas for some countries, such as China, Thailand, the remainder being put out to tender.
Vietnam now having trouble with the provisions on procurement of Korea. This provision requires tender participants are Korean businesses or branch of Korean businesses. The procurement of other countries interested in participating through the Korean business.
In addition, the proportion of contract performance bond of 10% of the contract value, which now bear 3% Korea, Vietnam now under 7%, should pose a risk to exporters. Conditions of delivery and risk. Additionally, not yet Vietnam now also meet quality specifications tender rice requested by Korea.
From two years ago, Vietnam does not export rice to South Korea. However, in 2011, 2012 has now Vietnam exported a small amount of rice to this market.
Vietnam currently also export cassava to Korea. However, it is found that Korean tight protection (in-quota tariff 1-2 tons / year is 20%, in addition to the quota was 887.4%). South Korea has pledged import quota for cassava in the free trade agreement (FTA), ASEAN - South Korea is 25,000 tons of cassava / year.
In addition, it also has a voluntary quota provisions are adjusted every year according to local market demand. This quota volume in 2011 was 160,000 tonnes and 200,000 tonnes in 2012. Vietnam now use quotas, but must rely heavily on the supply assessment - South Korea's annual demand.
Vietnam mainly exports to South Korea cassava, while products with a higher value as tapioca, Vietnam exported only 1,000 tons / year - far below the demand of South Korea. According to the General Department of Vietnam Customs, in the first 10 months of this year, Vietnam exported cassava and cassava products to Korea with 148 538 tonnes amount worth over 39 million USD.
In the Korean market, Vietnam's fruits and vegetables are also great competition from China on price. Since almost the geographical distance, so freight costs from China to South Korea below.
According to Trung, in addition to vegetables and fruits, now Vietnam also said trouble for processed seafood exports to South Korea.
Specifically, the inspection in February and 3 of the Administration Food and Drug Korea (KFDA) shows the production of fish dried spiced beef imports from Vietnam does not guarantee quality. Therefore, from the date 9/7, 11/28 only Vietnam now continue exporting products to South Korea.
Mr. Trung says, fisheries will be one of the priority items in the bilateral FTA negotiations between Vietnam and Korea was initiated on May 9-2012 to be further deals. The relevant agencies of Vietnam are opinions of businesses to negotiate agreements.
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