Companies exporting dragon Vietnam: SOLUTION FOR EXPORT dragon into the US market, dragon fruit don't starve dragon fruit vector, dragon fruit in binh thuan, dragon fruit export, dragon fruit energy, long khanh dragon fruit
Nowadays, dragon fruits are still large in number and value export to US
US imports 15% foodstuffs, 50% of fresh fruits and 80% of fishes. Vietnam stands among 15 countries that export most agricultural products to US, in which aquaculture products rank number 05. Dragon fruit and recently lychee, mangosteen, milk fruit and rambutan are considered the most potential export products in all markets, especially US. Nowadays, dragon fruits are still large in number and value export to US. Within the first 2 months of 2012, export of dragon fruit reached 624,800 USD, an increase by 170.9%.
Coming up next is pineapple in cans or condensed extracts such as Lac Tien extract with total export value of 107,000 USD, a jump to 193.8%.... The volume to US is up in fresh vegetable and fruit import but down in canned ones for latest obvious changes. However, these fruit export value to US is still low. Vietnamese fresh vegetable and dried fruit products have recently penetrated the US market. Vietnamese thirty six types of fruit are exported to US in total value of US 1.1 million, in which salted and canned mushroom are of highest turnover. The second highest value is canned corn and sodden corn while among vegetables; cucumber brings back most export value for Vietnam in recent years. Additionally, Vietnamese sweet potatoes, onion, garlic, turmeric, ginger …have been more popular in US
Mango, dragon fruit, banana, mangosteen, papayas… are popular fruits, strongly consumed all over the world. However, while export companies have problems looking for good source, there is no plantation large enough to meet this export need. Until now, besides Vietnamese traditional export products such as textile, shoes, catfish… US have also opened its ports for Vietnam’s dragon fruit, rambutan. US is also considering more for Vietnam’s lychee, longan. In return, Vietnam imports other US’s agricultural products. Bilateral agricultural products are compensating each other, not competing against.
However, Vietnam’s export companies have problems with US’s new Food Safety Modernization Act (FSMA) with effect from 2011, although they complied fully with the previous import regulation of US agriculture ministry. Vietnam is among the 15 largest agriculture exporting countries to US. Vietnamese export such as cashew, coffee, fish (prawn, catfish), pepper, rubber, processed wood and many other fruits after satisfying food safety regulations.
US have much potential for Vietnam’s vegetable and fresh fruit. Vietnam’s export companies need to quickly meet the stringent requirements of food safety to expand in this market. On the other hand, manager and producers also need long-term strategy, policies to assist export and import properly, thus, allowing Vietnam’s fruit to deeply penetrate US market.
US is not a high-end market, on contrary, is easy because the income range is large. But the most important thing when exporting into this market is keeping market stable: firstly quantity, secondly quality, thirdly delivery. Delivery must not be late, or not in full quantity or lack of food safety standard.
Especially do not be so happy as to see the quick rise in US import quantity, because this rise will catch attention of US regulators and tag us “price dumpers”. Therefore, we need to be wise and keep steady growth in export to last long.
In expert’s viewpoint, Vietnam’s export products must jump higher bars when US carries out quality check as per FSMA. Especially, from 2012, US shall do stringent check all import goods, including agricultural items, food, drinks. Also, US agriculture ministry can check and confiscate imported products if these are not up to standard and charge goods owners.
Food safety obstacles
Fruit, vegetable or other Vietnam’s agriculture products are stuck with food safety from importing companies. This is a problem that Vietnam and other countries in this area have, said Mr. Edward Chi, GM of Edward law firm, Wynn & Associates (US) at Fruit and Agricultural product export to US convention. Many of Vietnam’s export cargoes to US are now detained at ports and sanitizing centre in US. Vietnam’s export fruits are usually infected with pests and sometimes exceed allowed microbiology amounts and aquaculture products exceed allowed antibiotics amount.
According to Mr. Chi, this is the reason export turnover into US is just small as compared to import demand. Vietnam companies suffer when being detained by US customs, such as paying 2.500 USD for sanitizing, warehousing, garbaging… Also, US customs will make known the name of the companies that violate food safety regulations by US FDA. This also means the upcoming cargoes of such companies will go through more strict controls.
Security obstacle
After 11/09, in order to prevent food and biological terrorists, US enacted container security law bill. As to this bill, from December 12th 2003, all goods imported to US must register with FDA. FDA received registration from October 16th 2003, companies can register through FDA website: www.fda.gov/furls, email: furls@fda.gov. FDA accepts registrations 24h/day, 7 days/week. Vietnam companies should register as soon as possible because FDA can process 8.500 registration forms only.
To meet food safety requirements and verifications of correct information, registration forms are processed within 24 hours. To register export goods, companies can choose a representative that possesses a business in US; they shall then have to delegate rights to their agency in US. After being accepted, when exporting goods to US, they have to inform FDA beforehand; sea freights must submit report 8 hours before arrival port, 4 hours by air, 2 hour by land.
If export companies do not follow these regulations, they will be penalized financially or criminally or their cargoes will not be allowed to export to US again. It is also avoid California port for its highest tax rate worldwide, while these at Nevada or Florida are much lower.
Lack of prestige
According to industry exports, Vietnamese export companies think in short-term profit and lack of market prestige. Mr. Edward Chi said he used to work on a case where a Vietnam’s cargo was detained at US port. The loading bills saw that the type of goods is pineapple but, probably because of lack of pineapple, the export company put some rambutan inside the container. This did not get away with US custom and whole container was returned; such that this company name had since been tagged with trade fraud to all federal ports.
Ms. Vo Mai, chairperson of Vinafruit association, admits that export companies just want to work alone, instead of cooperating and supporting each other to increase overall competitiveness of Vietnamese fruit in the world. Two companies export the same kind of fruit to a foreign company successfully at least at the first time. At the second time, this company tries to take over the other, Ms. Mai cited.
New technology obstacle
As to dragon fruit case, Vietnam need 4 years to meet US requirement on process procedure and irradiation; not until 2008 did the first shipment of dragon fruit go through to US. As to Mr. Matthew Lantz, an expert of USAID STAR plus project, not being listed in US’s MRL database is not only a problem of Vietnam’s dragon fruit but also other tropical longan, lychee,… exported by other countries.
Until now, beside dragon fruit and rambutan and some other Vietnamese fruits such as lychee, longan, milk fruit and mango are under process to approach US market in near future.
Suggestion to Vietnam’s Ministry of Agriculture and Rural Development (MARD) and Ministry of Trade and Industry.
Important changes of new FSMA as compared to its previous versions:
- Applying new check methods at arrival port and facing overloading situation when import volume increases.
- Importing companies are responsible for the fulfillment of their foreign business partner’s prevention methods, especially the requirement that the imported food is safe as local one.
- The main problem is that FSMA increases the check frequency, consolidates file keeping system and origination check, especially vegetable and fruit. It also implements the food factory registration and will expand to re-register more frequently, as well as compliment information. FSMA content clearly identifies food process firm registration extension; and requires countries to provide full information about producing place. US also bring into effect new regulations on supervision and prevention of disease for imported agricultural products; new regulations on assessment of US and outside US, irregularities in food safety are also clearly identified.
Another issue is the origination confirmation of foreign items is getting stricter. US just enacted new law bill for Vietnamese dragon fruit when importing into this market. New bills will cause difficulty, badly affecting Vietnamese agro-forestry export of Vietnam as well as other countries. Nevertheless, Vietnam still have problems finding ways around, demonstrating delay and weakness of government officers in dealing with changing situation and new obstacles in exporting agriculture goods.
Recently, business development for agriculture goods still have much difficulty due to limits in information exchange at certain markets, being slow in updating news, receiving and processing information about new regulations in foreign market trades are still weak. Ministry of Agriculture and Rural Development and ministry of trade and industry need to study, train officers, send specialists overseas to learn more experience.
One long-lasting issue has not been solved for the last few years is that US want to classify Vietnam’s shark catfish and basa fish as catfish. If we do not act in time and have proper strategy, we will spend another 2-3 years and 2-3 billion USD to take these regulations out. Therefore, we suggest Ministry of Agriculture and Rural Development to lobby with US departments from this action. Ministry of Agriculture and Rural Development has to work hand in hand with ministry of trade and industry, VASEP, to have meetings with DOC and US lawyers to study and keep fighting against price dumping tax for Vietnam’s shark catfish and basa fish.
Ministry of Agriculture and Rural Development need to delegate groups to study new law and policies of US agriculture, for example new FSMA, issues relating to Lacey law bill (in importing wood); issues regarding administrative check with Vietnamese prawn and fish exported to US.
Solutions to approach US market
We have already notified herein that Vietnam’s agriculture processing industry has to abide by strictly with food safety regulations, limit antibiotics in permitted range in exported goods, and not use forbidden preservatives.Nowadays, some fish processing companies used chemicals to keep water inside fish and thus keep the fish weigh. For example, a file piece looks very big when immerging in water, but after defrosting, it is much smaller. This is a bad point for our prestige.
Vietnam’s companies need to increase competitiveness. There should be more understanding of each other, of law, people, culture, and activities. Companies should learn and change technologies to meet US quality requirement and continue to increase effectiveness in developing business.
Vietnam’s business development centre GTSP in New York has discussed with US departments to bring more US specialists in Vietnam’s conventions in 3 times: from 8-12/3/2012; from 16-20/4/2012; from 18-22/5/2012. US specialists shall introduce Vietnam’s companies about new US policies on import regulations, food and drink trade; FDA regulations on consumer protection and food safety; about US government to support companies to follow law. All conventions are free of charge.
Vietnam also need to send delegates to US to learn and help Vietnam companies keep updated and act wisely to stay away from law court as well as not having problem exporting to US. Business development centers will work very effectively if put in important areas. In US, there are business centers in San Francisco and New York, but it still needs to open more centers in Chicago, Los Angeles which are big markets especially where Vietnamese community is big like west bank states. Nowadays, Vietnam fish is exported to US through California – a big Vietnamese community, if we can take advantage of this community, it will be good.
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