Exporting agricultural products to Australia: conquering the strict market

VCN - Four types of fresh Vietnamese fruits, namely mango, longan, lychee, and dragon fruit, have been exported to the Australian market. However, expanding market share for these products is not easy because Australia sets strict requirements on labelling and food safety; some standards are even higher than those of the US and EU.
Only four types of Vietnamese fresh fruit, including mango, longan, lychee, and dragon fruit, are exported to Australia.
Only four types of Vietnamese fresh fruit, including mango, longan, lychee, and dragon fruit, are exported to Australia.

Difficulty identification

Assessing the Australian market, Vu Huy Phuc, Deputy Head of Market and Sector Research at the Institute of Policy and Strategy for Agriculture and Rural Development (MARD), said that in 2022, the export turnover of Vietnam's agricultural, forestry, and fishery products to Australia had reached US$845 million. The average growth rate of export turnover was 9%/year from 2009 - 2022. The strongest growth was in aquatic products, followed by vegetables and fruits thanks to the market opening. In contrast, Vietnam has imported many agricultural products from Australia. Vietnam's agricultural, forestry, and fishery imports from Australia in 2022 was US$2.7 billion. The growth rate of Vietnam's imports from Australia reached 32.6% per year (2009 - 2022).

"The number of Vietnamese communities in Australia is large, and the demand of Australians for Vietnamese products (fruits, spices...) is also increasing. Besides, agricultural products between the two countries do not have the same type of overlap as neighbouring countries (in terms of fruit, Vietnamese fruit is a tropical fruit, and Australia is temperate fruit). Additionally, Vietnam and Australia are members of many bilateral and multilateral FTAs. These are favourable conditions for Vietnam to boost agricultural exports to Australia," said Phuc.

Besides the advantages, our country's agricultural products exported to this market are subject to great competition from other countries. For example, four types of fresh Vietnamese fruits, namely mango, longan, lychee, and dragon fruit, have been exported to the Australian market. Therefore, increasing export turnover is not easy. In addition, the scale of agricultural production in Vietnam is mainly small. Therefore, traceability, quality control, and food safety are still limited.

Meanwhile, Australia is considered one of the most demanding markets in the world, with many requirements for high product quality standards and strict import processes. In this market, technical barriers, labelling requirements, food hygiene, and safety are very strict; some standards are even higher than those of the US and EU. Australia also requires many import regulations such as tax policy and tax rates; regulations on packaging and labels; regulations on food hygiene, safety, and quarantine; intellectual property rights; trademark; and business practices. This is also a market with abundant domestic agriculture. Thus, if Vietnamese exporters want to penetrate the Australian market, they must prioritise product quality instead of price. Additionally, Australian consumers focus on packaging, designs, and brands.

How to increase export turnover?

Assoc.Prof.Dr. Nguyen Anh Thu, Vice-Rector of the University of Economics (Vietnam National University, Hanoi), said that both Vietnam and Australia had advantages regarding commercial transport routes by water and air, facilitating two-way trade. Besides, Vietnam and Australia are common members of at least three free trade agreements (FTAs), including the ASEAN-Australia-New Zealand FTA (AANZFTA), the CPTPP, and the Regional Comprehensive Economic Partnership (RCEP). This significantly reduces barriers to two-way trade in agricultural products between Australia and Vietnam.

However, Thu pointed out that the Australian market's demand was low for Vietnamese agricultural products, possibly, partly due to a matter of taste. Subjectively, the quality of Vietnamese agricultural products is not high and has not met Australia's requirements and import regulations, and the brand value is not strong. In addition, businesses and farmers do not understand the commitments of the FTAs, and they have to compete fiercely with other trading partners of Australia, such as the US, China, New Zealand, and Thailand.

"To promote agricultural exports to the Australian market, authorities need to strengthen information about the FTAs and their non-tariff benefits. Simultaneously, widely disseminate information about the Australian market aimed at exporters, processors of agricultural products, and farmers. Furthermore, businesses need to pay more attention to frozen agricultural products and research to export frozen fruit products because export licenses do not bind them. In particular, although Australia has not applied Vietnamese agricultural products to trade remedies, more attention should be paid to this issue in the future. Therefore, the Government, business associations and businesses need to unite and support each other to deal with and help Vietnamese products reach the global market in general and the Australian market in particular," said Thu.

For a potential but "fastidious" market like Australia, experts said that businesses needed to strengthen control over the quality of planting and rearing areas, complete the system of registration, assessment, and granting of codes for growing areas, farming areas, packing, preliminary processing, and processing establishments. Authorities also need to develop programs to support brand development and trademark protection for agricultural products exported to Australia. Strengthen trade promotion activities connecting trade for businesses of the two countries and promote digital transformation in agricultural production and trade.

Simultaneously, Vietnamese businesses need to pay more attention to product packaging, ensuring product quality, especially chemical regulations, and focusing on customs clearance and packing to ensure the best transit time to keep the goods fresh. Moreover, there needs to be smooth coordination between stages, from the supply, exporter, and transport, to the importer and distributor, to maintain a good supply chain and avoid disruptions. Another issue that domestic enterprises also need to notice is to study more frozen and processed products instead of exporting raw, low-value products only.

By Xuan Thao/ Ha Thanh

Related News

Chinese goods flock to Vietnam in the first half of 2024

Chinese goods flock to Vietnam in the first half of 2024

VCN - In the first 6 months of 2024, the import turnover of goods from China to Vietnam will grow strongly by tens of percent compared to the same period in 2023.
Agricultural, forestry and fishery product exports reached US $ 29.2 billion in the first half of the year

Agricultural, forestry and fishery product exports reached US $ 29.2 billion in the first half of the year

VCN - In the first six months of the year, total export turnover of agricultural, forestry and fishery products reached US $29.2 billion, up 19% over the same period in 2023.
Enterprises self- renovate to promote exports to the Central region

Enterprises self- renovate to promote exports to the Central region

VCN - Opportunities to cooperate and promote the export of products of Central region enterprises directly into foreign distribution networks and effectively participate in the global production value chain... are assessed to have a lot of potential.
Shifting production to expand exports to the Northern European market

Shifting production to expand exports to the Northern European market

VCN - Nordic countries often map out policies to achieve EU goals sooner than others. Among them, general principles and standards regulating manufacturers' responsibilities for textiles and garments from Nordic countries need to be paid attention by businesses.

Latest News

Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - In the context that the logistics industry in Vietnam is forecast to continue to grow strongly, many businesses are actively applying technology and expanding service chains to take advantage of opportunities and keep pace with the general trend.
MoIT proposes key solutions to cope with rising sea freight prices

MoIT proposes key solutions to cope with rising sea freight prices

The Ministry of Industry and Trade (MoIT) has requested local associations and businesses to coordinate implementing key solutions to promote imports and exports as sea freight rates rise.
Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnam's seaport cargo throughput is set to reach 1.2-1.4 billion tonnes by 2030, with container cargo expected to range from 46.3 to 54.34 million TEUs, according to a detailed plan for the development of seaport groups, wharfs, jetties, buoy berths, and water areas in 2021-2030, with a vision to 2050.
Binh Dinh seeks investment opportunities from Germany, France

Binh Dinh seeks investment opportunities from Germany, France

A delegation from the south central province of Binh Dinh led by Permanent Vice Secretary of the provincial Party Committee Le Kim Toan paid a working trip to Germany and France to explore investment opportunities from July 17-22, reported the provincial Department of Planning and Investment.

More News

Warnings as HRC steel imports continue to increase rapidly

Warnings as HRC steel imports continue to increase rapidly

The amount of imported hot-rolled coil steel in the first six months of this year increased sharply to an alarming level, 1.7 times higher than domestic production.
MoIT warns about international trade fraud

MoIT warns about international trade fraud

Trade experts said that the number of cases was increasing and taking place in all markets from Africa, the Middle East, India to developed countries such as the US, the Netherlands, and Italy.
Corporate culture "lighting the way" for sustainable development

Corporate culture "lighting the way" for sustainable development

VCN - The government aims to cultivate and develop numerous business leaders capable of heading strong economic conglomerates by 2030, leveraging their roles to lead and pave the way. To achieve this goal, financial strength alone is not enough; a robust foundation in business culture is essential.
The fast-moving consumer goods industry aims for green and sustainable development

The fast-moving consumer goods industry aims for green and sustainable development

VCN - Vietnam's consumer goods industry currently has the fastest growth rate in the ASEAN region. However, for sustainable development in the future, businesses in the fast-moving consumer goods industry need to aim for green consumption.
Stronger “medicine” needed to help businesses overcome difficulties

Stronger “medicine” needed to help businesses overcome difficulties

Businesses have suggested the Government maintain its support to help them overcome difficulties, recover production and business activities, and promote growth, given the fact that many of them still face difficulties despite the country’s GDP growth rate of 6.42% in the first half of this year.
Insiders optimistic about durian export to China

Insiders optimistic about durian export to China

Insiders believe in a bright prospect for durian export to China though the world’s largest durian consumer is expanding the cultivation of this fruit.
Vietnam

Vietnam's cashew industry facing fluctuations in raw material prices

VCN - Although exports recorded double-digit growth in the first half of 2024, Vietnam's cashew industry is facing fluctuations in raw material prices.
Many seafood enterprises focus on developing the domestic market

Many seafood enterprises focus on developing the domestic market

VCN - In addition to promoting exports, many seafood businesses are expanding their market share in the domestic market to complete their plans.
Vietnamese companies seek to bring goods to modern distribution systems

Vietnamese companies seek to bring goods to modern distribution systems

Boosting consumption and export of goods through modern distribution systems is an effective way helping producers increase sale and broaden market share, heard an event in Ho Chi Minh City on July 19.
Read More

Your care

Latest Most read
Technology increases competitiveness in the logistics race

Technology increases competitiveness in the logistics race

VCN - Logistics plays an important role in the entire process from social production, import and export, circulation and distribution to consumption, creating added value, making an increasingly greater contribution to promoting the growth of the country'
MoIT proposes key solutions to cope with rising sea freight prices

MoIT proposes key solutions to cope with rising sea freight prices

The Ministry of Industry and Trade (MoIT) has requested local associations and businesses to coordinate implementing key solutions to promote imports and exports as sea freight rates rise.
Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnamese seaports to handle 1.2-1.4 billion tonnes of cargo by 2030

Vietnam's seaport cargo throughput is set to reach 1.2-1.4 billion tonnes by 2030, with container cargo expected to range from 46.3 to 54.34 million TEUs, according to a detailed plan for the development of seaport groups, wharfs, jetties, buoy berths, and water areas in 2021-2030, with a vision to 2050.
Binh Dinh seeks investment opportunities from Germany, France

Binh Dinh seeks investment opportunities from Germany, France

A delegation from the south central province of Binh Dinh led by Permanent Vice Secretary of the provincial Party Committee Le Kim Toan paid a working trip to Germany and France to explore investment opportunities from July 17-22, reported the provincial Department of Planning and Investment.
Warnings as HRC steel imports continue to increase rapidly

Warnings as HRC steel imports continue to increase rapidly

The amount of imported hot-rolled coil steel in the first six months of this year increased sharply to an alarming level, 1.7 times higher than domestic production.
Mobile Version