The development of new trade links between the EU and Vietnam has “huge potential” for EU firms, including those in the agricultural sector, according to European Trade Commissioner, Cecilia Malmström.
Releasing the already-negotiated details of a new free trade agreement (FTA) with Vietnam, the commissioner said that “when approved”, it will unlock a market with huge potential for EU firms into a fast-growing economy of more than 90 million consumers with a growing middle class and a young and dynamic workforce.
She also said that, in addition to creating new opportunities for EU firms, the agreement aims to support Vietnam’s transition towards a more competitive and more sustainable economy.
With Vietnam already being a high-level consumer of pigmeat, currently operating at around 35kg per head, which is more than in the UK, Pig World asked AHDB Pork for a view on increased export potential, once the EU-Vietnam FTA is concluded.
The response was cautious but with the added comment that the country was certainly “interesting” from a pig industry perspective.
“Vietnam has a large pig herd and pretty high levels of consumption but isn’t currently a significant importer,” said AHDB Pork. “However, assuming the FTA is ratified, it will remove import tariffs, which should make exporting to the country more feasible.”
In that context, while it would take some time to build export volumes, given that most of the population is still relatively poor, Vietnam could become a significant export market over the next decade or so, perhaps on a par with places like Korea or the Philippines.