FTA – A motivation for organic food and sustainable development?
The EVFTA is considered a new generation free trade agreement with comprehensive commitments and high standards. Food imported into the European Union countries, is required to meet the different standards regarding hygiene, amount of pesticide residues as well as to satisfy various regulations related to environmental protection.
For many businesses, they consider these standards to be “barriers” because the requirements are high and difficult to meet, leading to limited utilization and benefits from the Agreement’s incentives.
However, for some other businesses, these high standards have become the driving force for businesses to improve the value of their products and develop in a sustainable way. Take HANFIMEX Viet Nam Group as an example.
According to The Department of Trade Promotion (VIETRADE), Viet Nam HANFIMEX Group was established in 2013 with their mission “For A Healthy Food Chain”. They are among top manufacturers, exporters of Foods and Spices in Vietnam such as Cashew Nuts; Black, White Pepper, Cinnamon, Robusta Coffee, Desiccated Coconuts, etc. By choosing carefully fresh and fine material and employing a high-tech process, all finished products maintain the original aroma, flavor and quality. HANFIMEX Group’s success thanks to the vision of establishing the 6F concept: Fresh Farm – Fair Factory – Fine Food, additionally to commitments creating values from green agricultural products. With long term vision, they has succeeded to extent its market to the EU, Middle East and many Asian countries. The 6 factories of the group fulfill all standards for exporting to Europe, USA, Japan, Korea, etc. They have a system of more than 2,000 progressive farmers as their reliable partners that engage in non-chemical farming in many provinces of Vietnam.
Besides improving the products value to meet high quality standard, Viet Nam HANFIMEX Group also invest in environmental solutions in their business operation. For example, they replace using energy from the main grid operator by the solar electricity installtation using roof-top solar pallets with investment cost about 10 billion VND and operation cost about 100 million VND per year. The factory also built the sendimentation tank and water drainage system for treatment before pumping into the environment. The fire protection system qualifies the standard to ensure safety for all employees.
Since EVFTA came into force, the reduction of taxes related to agricultural products is a great opportunity for the company to expand its market and increase the number of new customers, especially for processed products. With an effort to produce in a sustainable way to pursue export goals, the company’s products such as cashews, cinnamon, etc. have been certified by USDA and EU NOIP for organic products, successfully exported and enjoy preferential treatment under the EVFTA to European Union countries. Currently, HANFIMEX is focusing on the Hansia nutritional nuts project with the goal of exporting $50 million to Europe in 2025.
– Multilateral Trade Policy Department –
This is a copy of an article from the Vietnam Free Trade Agreement Portal
For the original article, please see: https://fta.moit.gov.vn/index.php?r=site%2Fdetail&id=264
