Green and clean produce is favoured in the EU and UK markets. — VNA/VNS Photo

HCM CITY — The ability to manufacture green produce is a good way for Vietnamese businesses to win over the UK market, where many consumers are willing to pay higher prices for green, clean products, experts said.

Việt Nam's agricultural exports have maintained good growth over the past three years, partly thanks to the implementation of the UKVFTA, which eliminates tariffs on numerous product groups, but there is still a lot of room for growth.

According to experts, the UK imposes strict requirements in terms of food hygiene, limiting emissions in production, and products must have no pesticide residue. British consumers also pay a lot of attention to corporate social responsibility and the environmental protection efforts of producers.

Businesses need to pay more attention to green trade and green production practices, which are inevitable global trends, in order to better utilise the UK trade deal.

Việt Nam has many advantages when it comes to producing agricultural products in a sustainable manner, thanks to its rich natural resources. Many Vietnamese firms that had successfully invested in green production have been able to work with foreign business partners in demanding yet lucrative markets.

Ömer Oktay, Director of Sustainable Development of Voicevale Import Company – a UK-based global nuts, dried fruits, seeds and coffee sourcing business, said that the co-operation potential between the EU and Việt Nam in the field of manufacturing, importing and exporting green products is high.

Adherence to environmental and social requirements will help Vietnamese firms partake deeper in EU supply chains, including the UK’s, as well as improve their competitiveness in the global playing field, he said.

Vina T&T, a company that exports fruits to countries around the world, including coconut and grapefruit to the UK, has invested heavily in renewable energy in production, as well as obtaining the Global GAP certification, which is needed for the EU market and the UK specifically.

The Việt Nam's former trade counsellor to the UK, Nguyễn Cảnh Cường, said that sustainable trade is present in many free trade agreements, and that it is both a challenge and an opportunity.

Vietnamese businesses that can improve their production towards green, clean and low-emission production will be welcomed by UK firms. 

This process will increase costs for businesses, which can be a bigger burden for small to medium-sized businesses, and in other markets, higher prices can make products less competitive.

However, in the UK market, a large portion of consumers have high income and are willing to pay more money for better green, clean products, which is a good opportunity for Vietnamese businesses who can satisfy the market’s requirements, he said.

The Ministry of Industry and Trade is also committed to helping Vietnamese firms facilitate trade and invest in green technology and sustainable production models through favourable policies.  VNS