In August 2024, Vietnam and China signed three new protocols to facilitate the export of Vietnamese fresh coconuts, frozen durians, and crocodile products to China. These agreements set specific requirements for plant quarantine, food safety, and health inspections for these agricultural products, marking a significant development in agricultural trade relations between the two countries.

Key Changes:

1. Frozen Durian: In 2023, Vietnam exported around 500,000 tons of durian, generating $2.3 billion, with 90% of these exports going to China. According to the new protocol, frozen durian export revenue is expected to reach $400-500 million in 2024, and it could become a billion-dollar export product by 2025. This agreement aims to diversify durian processing methods and reduce harvest season pressures.
2. Fresh Coconut: Vietnam is one of the world’s largest coconut producers, with exports totaling around $800 million in 2022-2023. With the opening of the Chinese market, fresh coconut exports are expected to increase by $200-300 million in 2024, driving sustainable growth in Vietnam’s coconut industry.
3. Crocodile Products: Vietnam’s crocodile farming industry has been developing for over 30 years, and this agreement ensures that crocodile products (including meat and leather) meet China’s quarantine and health standards.

These agreements mark a major milestone in Vietnam-China agricultural trade, and are expected to significantly boost Vietnam’s agricultural export revenues.

Changes in Related Policies and Regulations:

Plant Quarantine and Food Safety Regulations

• Protocol on Plant Quarantine Requirements for Fresh Coconut Exports from Vietnam to China

• Protocol on Plant Quarantine and Food Safety Requirements for Frozen Durian Exports from Vietnam to China

These protocols establish the plant quarantine and food safety standards that Vietnamese fresh coconuts and frozen durians must meet to enter the Chinese market. Such regulations typically cover product quality, hygiene standards, pesticide residue checks, and pest control.

Veterinary Sanitation and Quarantine Regulations

• Protocol on Quarantine and Veterinary Sanitary Requirements for Farmed Crocodile Exports from Vietnam to China

This protocol covers the quarantine and veterinary health requirements for exporting crocodile products. It specifically addresses the sanitary standards, quarantine conditions, and disease prevention measures required to ensure that crocodile products meet Chinese health and safety standards.

Bilateral Agricultural Trade Regulations

• The signing of these bilateral agricultural trade protocols represents a deepening of agricultural trade relations between Vietnam and China. These agreements not only cover plant quarantine and veterinary sanitation but may also lead to adjustments in tariffs, quotas, logistics, and customs procedures between the two countries.

This bilateral cooperation could prompt Vietnam’s government to further revise its export regulations to better meet China’s market demands, while also speeding up customs and quarantine processes for smoother trade.

Market Access Policies

• The signing of these agreements reflects the further opening of agricultural markets between Vietnam and China. Vietnam may update its export management policies based on these agreements, simplifying export approval processes and providing more support to businesses to promote agricultural exports.

Agricultural Development and Trade Promotion Policies

• Vietnam’s Ministry of Agriculture will continue working closely with China’s customs authorities to ensure the smooth implementation of these agreements. This could lead to further adjustments in Vietnam’s agricultural standards and export procedures to support the sustainable growth of agricultural exports.

These regulatory adjustments reflect Vietnam’s significant efforts to promote agricultural exports and expand market access, particularly by strengthening cooperation with China on plant quarantine, food safety, and veterinary health standards.

Impact of New Regulations:

The signing of these new regulations has profound implications for Vietnam’s agricultural export strategy, which can be summarized as follows:

Market Diversification and Added Value

• The frozen durian protocol not only opens the Chinese market but also pushes Vietnam towards developing higher value-added processed foods. By increasing frozen durian exports, Vietnam reduces its reliance on fresh durian’s seasonal harvest and expands the product’s shelf life and export window. This processing method gives Vietnam’s agricultural products greater flexibility, enhancing their competitiveness.

Key Market Expansion

• China as the Main Market: More than 90% of Vietnam’s durian and coconut exports go to China, and the new agreements will further deepen Vietnam’s reliance on the Chinese market. To fully seize this opportunity, Vietnam must improve agricultural infrastructure, warehousing, and logistics systems to ensure smooth exports and compliance with China’s increasingly stringent quarantine and food safety requirements.
• Additionally, these agreements provide a model for Vietnam to expand into other emerging markets. By improving product quality and standardizing inspection processes, Vietnam is poised to further penetrate markets in Asia, Europe, and beyond.

Agricultural Industry Upgrading

• Sustainable Agricultural Development: The new regulations not only bring significant economic benefits to Vietnam’s coconut and durian exports but also encourage domestic farmers and export businesses to raise their cultivation and processing standards to meet international market requirements. This move will propel Vietnam’s agriculture towards sustainability, scale, and modernization.
• Diversification of Animal Product Exports: The crocodile export protocol marks a breakthrough for Vietnam in exporting animal products beyond agricultural goods. The export of crocodile skin and meat will diversify Vietnam’s export portfolio, reducing reliance on single agricultural products and stimulating related industries.

Policy and Management System Improvements

• These agreements require Vietnam to strengthen cooperation with China and further refine its agricultural quarantine, food safety regulation, and export processes. This means Vietnam must enhance its management of product quality, packaging, transportation, and regularly conduct training and workshops to help businesses understand and comply with the new regulations.

Overall, the new agreements provide Vietnam with more export opportunities but also set higher standards for Vietnam’s agriculture. In future export strategies, Vietnam will place greater emphasis on product added value, market diversification, and improving the sustainability and international competitiveness of its agricultural sector.

How to Ensure Compliance with China’s Quarantine Standards?

To ensure that Vietnamese agricultural products comply with Chinese quarantine and food safety standards, enterprises must adopt a series of strict and executable measures. China imposes high requirements for the quality of imported agricultural products, and the new agreements signed between Vietnam and China clarify quarantine, food safety, and health standards. Vietnamese enterprises must strictly follow these requirements to ensure smooth exports to the Chinese market.

1. Thoroughly Understand and Strictly Follow Quarantine Standards and Protocol Requirements

The agreements between Vietnam and China set detailed quarantine and health standards for the export of durian, coconuts, and crocodile products. For instance, durian and coconuts must undergo rigorous plant quarantine, while crocodile products must meet health standards​. Adherence to these standards is essential for successful entry into the Chinese market.

Specific Actions:

• Establish a Compliance Management Process: Based on protocol details, companies should develop a comprehensive quarantine process. Create internal operational manuals covering every step from production to transportation. For example, frozen durians should undergo pest control and stringent quality checks before export to ensure there are no plant diseases or pesticide residues.
• Maintain Regular Communication with Government Agencies: Companies should build long-term relationships with the Vietnamese Ministry of Agriculture and Rural Development’s plant protection department to stay informed about the latest quarantine requirements and export permits. Hold regular internal compliance meetings to ensure synchronized information with relevant quarantine agencies.
• Standardize Quarantine Documentation: Prepare and submit required plant quarantine certificates ahead of time, ensuring that the certificate contents align with the protocol standards to avoid delays during the export process.

2. Enhance Production and Processing Standards to Meet International Norms

China has strict food safety standards for agricultural imports. By implementing globally recognized food safety management systems like GMP and HACCP, companies can significantly improve product safety and compliance. This ensures smooth market entry into China and boosts the competitiveness of Vietnamese agricultural products on the global market.

Specific Actions:

• Introduce GMP and HACCP Systems: Implement GMP and HACCP systems in production and processing. Companies can hire third-party experts to help establish these systems and certification. For example, in the frozen durian processing line, automated temperature control systems should be used to ensure that the product remains within the required temperature range throughout the processing phase.
• Strengthen Internal Food Safety Training: Provide systematic HACCP training for all employees involved in production to ensure they can identify and manage potential food safety risks. The training can be conducted through courses offered by the government or certification bodies, and the content should be updated annually.

3. Obtain International Certifications to Ensure Market Access

To enter the Chinese market, companies must obtain relevant plant quarantine and food safety certifications. Without these certifications, products may be rejected at customs. Therefore, obtaining international certifications is a key step in ensuring market access.

Specific Actions:

• Collaborate with Certification Bodies and Establish Long-Term Partnerships: Companies should form long-term partnerships with third-party certification bodies recognized by both the Chinese and Vietnamese governments, such as SGS or Bureau Veritas, to ensure that exported products meet China’s quarantine and food safety standards. Schedule certification and quarantine inspections in advance to avoid export delays.
• Streamline Certification Processes: Depending on the product type, prepare documentation that meets international standards, including HACCP and ISO 22000 certifications, and ensure that certification details are consistent with the actual operational procedures. For example, before exporting frozen durian, complete the HACCP certification to ensure full control over the production process and product safety.

4. Improve Packaging and Labeling to Meet Import Requirements

China has clear legal requirements for the packaging and labeling of imported food products. Any non-compliant labeling or unclear packaging information may result in the product being returned or destroyed​. Ensuring compliance with packaging and labeling regulations is a crucial step in exporting to China.

Specific Actions:

• Develop a Compliant Packaging Plan: According to Chinese import regulations, companies must ensure that all exported products’ packaging meets food safety standards. Packaging must clearly indicate the product’s origin, production date, ingredients, and expiration date. Collaborate with packaging design firms to create packaging that complies with Chinese market standards.
• Add Anti-Counterfeiting Labels: To ensure the product’s uniqueness in the market, companies can add anti-counterfeiting labels or QR codes on the packaging, allowing consumers to verify the product’s authenticity and preventing the circulation of counterfeit products.

5. Maintain Close Cooperation with Government and Customs, Participate in Policy Training

The Vietnamese Ministry of Agriculture and China Customs will continuously update policies, and companies need to stay in close contact with relevant government departments to ensure they are aware of policy changes. Participating in training can help companies stay compliant​. This not only facilitates smooth exports but also helps avoid delays caused by policy changes.

Specific Actions:

• Regularly Participate in Official Policy Training: Companies should regularly attend training courses organized by the Vietnamese Ministry of Agriculture and China Customs to stay up-to-date on new policy requirements. Assign a dedicated compliance manager to attend training and disseminate knowledge within the company.
• Establish a Compliance Team: Companies should set up a compliance department or team responsible for monitoring and implementing new quarantine and export requirements. The compliance team should maintain regular communication with customs and agricultural departments and promptly update internal export procedures and policy documents.

By strictly adhering to quarantine standards, enhancing production and processing quality, obtaining international certifications, optimizing packaging management, and collaborating with governments, Vietnamese enterprises can ensure that their products comply with Chinese import requirements. These measures not only improve competitiveness in the Chinese market but also lay the foundation for expanding into other international markets, promoting the sustainable growth of Vietnam’s agricultural exports.