Exporting agricultural products to the US: A methodical investment for long-term business

The US is a potential market for wooden furniture products. Photo: N.H

Furniture and seafood have many advantages

The latest report of the Ministry of Agriculture and Rural Development shows that, in the first four months of 2022, Vietnam's agricultural, forestry and fishery export turnover to the US reached nearly US$4.9 billion (accounting for 27.3% of the market share). The US is Vietnam's largest agricultural, forestry and fishery export market. Of the total export turnover of agricultural, forestry and fishery products to the US, exports of wood and wood products accounted for 68.2%. Besides, other outstanding items can be mentioned are seafood, cashew nuts, and fruits.

According to the Vietnam Wood and Forest Products Association, in the first four months of 2022, the export turnover of wood and wood products to the US market was estimated at US$3.3 billion, up 5.4% over the same period last year. Accounting for 60.4% of Vietnam's total export turnover of wood and wood products, the US continued to be the largest export market of wood and wood products in the first four months of the year. With a population of more than 333 million people, large purchasing power, and a strong recovery after the pandemic, the US is a potential market for wooden furniture products.

"The company's orders to the US and EU have been closed until the end of the third quarter of 2022, and are receiving orders for the fourth quarter of 2022," said Ms. Duong Thi Minh Tue, Sales Director, Minh Duong Wood Joint Stock Company from a business perspective.

A representative of the Import-Export Department (Ministry of Industry and Trade) added that since 2020, Vietnam has surpassed China to become the largest wooden furniture supply market for the US. Processed furniture is a strong product of Vietnam and is very suitable for the tastes of American consumers.

Marc Evans Knapper, US Ambassador to Vietnam, said that Vietnamese wooden furniture and seafood products are very popular and trusted by US consumers, particularly for the group of fruits and other agricultural products, Vietnamese export enterprises are currently exploiting the Asian market. Meanwhile, the Native American and Latin American markets have not yet been exploited much by Vietnamese enterprises.

According to Bui Huy Son, Counselor of the Mission, Trade (Vietnam Trade Office in the US), bilateral trade between Vietnam and the US is at the most favorable stage ever, because the Governments of the two countries have created favorable conditions for trade exchange and investment.

In the group of agricultural products in general, wooden furniture and aquatic products achieved large turnover, but rice, coffee, and vegetables were still modest. Enterprises have many opportunities and should take advantage to promote the export of goods.

“Some of the products that Vietnam has strengths in and the US has import needs to meet domestic consumption are vegetables, tubers, fruits, coffee, tea, pepper, rubber, cashew nuts and seafood. If technical barriers are met, exports to the US will continue to grow strongly," said Son.

The US is about to open the door for Vietnamese pomelo

The prospect of promoting the export of agricultural, forestry and fishery products in general to the US market is still quite open. Not only with traditional commodities traded so far, the US is also preparing to open the door to Vietnam's new agricultural product – pomelos.

Within the framework of Prime Minister Pham Minh Chinh's working visit to the US and the United Nations from May 11 to 17, Minister of Agriculture and Rural Development Le Minh Hoan had a working session with the US Department of Agriculture. Le Minh Hoan said that currently, the US is the largest poultry exporter to Vietnam; the second-largest beef exporter and the sixth-largest pork exporter among poultry, beef and pork exporters to Vietnam.

In addition, Vietnam has allowed the US to export to Vietnam 171 types of plant seeds, one fresh tuber is a potato, and six types of fresh fruit. "Currently, Vietnam is coordinating with the US to carry out procedures to open the market for many types of American fruit, and at the same time, proposes the US side to speed up the progress and complete the market opening soon so that Vietnamese pomelos can arrive soon in the US,” said Le Minh Hoan.

Affirming that the US always considers Vietnam to be one of the leading partners in agriculture and the two countries’ agriculture is complementary for mutual development, Jason Hafemeiser, Deputy Secretary of the US Department of Agriculture, said the door for Vietnam's pomelo is being actively promoted. The US side has announced the collection of public comments since February 2022 and is currently synthesizing comments to announce as soon as possible.

Assessing that Vietnamese agricultural products have a lot of room to export to the US, but in order to stick firmly in this market, Mr. Bui Huy Son said that Vietnamese enterprises need to commit to quality and ensure uniformity and stability in each export shipment. This will help retailers who want to place long-term orders.

Sharing practical experience, Amy Nguyen, founder and CEO of Dragonberry Produce Company (USA), also noted that Vietnamese exporters need to determine long-term business with importers in the US to invest methodically and on target. Americans like difference, and demand high quality, uniformity, and stability. This is a competitive but fair playing field, with many niche markets for Vietnamese small businesses to have business opportunities with clear regulations.