EU Tightens Quality Standards, Vietnamese Agriculture Remains Confident
Starting February 2025, the European Union (EU) plans to add two new substances to its list of maximum residue controls while tightening regulations on two others. How will this impact Vietnam’s agricultural exports to the EU, and what do businesses say?
Confidence in the Rice Industry
On August 9th, the Vietnam SPS Office (Ministry of Agriculture and Rural Development) announced that the EU intends to impose stricter quality standards on agricultural imports. Specifically, the EU has recently proposed new maximum residue limits (MRLs) for several substances, inviting World Trade Organization (WTO) members to provide feedback by the end of August, with the changes expected to take effect in February 2025.
The EU will enforce MRLs for two new substances, Fenbuconazole and Penconazole, while tightening controls on Zoxamide and Acetamiprid. The products under this regulation include a variety of cereals, fruits, nuts, and animal-derived products. Notably, many of Vietnam’s high-value agricultural exports to the EU are also included in this list.
The EU has always been known as one of the most stringent markets in the world, with consumers highly conscious of health and environmental safety. Therefore, these new measures, while not entirely surprising, still pose challenges. Dr. Ngo Xuan Nam, Deputy Director of the Vietnam SPS Office, reassures: “Producers essentially have six months to make necessary adjustments. With timely information and proactive adjustments, there’s no need for excessive worry.”
In recent years, rice exports to the EU have seen significant growth, thanks to favorable free trade agreements (FTAs). In 2023 alone, Vietnam exported over 130,000 tons of rice to the EU. So how will the new regulations impact rice exports to this market? According to Mr. Pham Thai Binh, Chairman of the Board at Trung An High-Tech Agriculture Joint Stock Company (Can Tho), “These regulations will apply globally, not just to Vietnam. This means that while the challenges are widespread, they also present an opportunity for Vietnamese companies that are already focused on sustainable, clean production.”
Echoing this sentiment, Mr. Truong Sy Ba, Chairman of Tan Long Group, confidently states, “Our products have met the standards for the Japanese market, which is considered the most demanding in the world, so we have no concerns about the EU’s quality regulations. On the contrary, the EU’s tightening of standards benefits consumers, producers, and the environment alike. It pushes both businesses and farmers to shift towards more methodical and responsible production methods for greater causes—safe living and saying no to chemical residues.”
“While the EU’s enhanced quality management poses a global challenge for exporters, it also provides an opportunity for well-prepared businesses to excel. In Vietnam, we see about 15-20 businesses across various agricultural export sectors doing very well in the EU market, and they’ll likely have more opportunities in 2025,” says Henry Bui.
Coffee, Pepper, and Other Products Await Further Information
Surveys with representatives from sectors with significant exports to the EU, such as coffee, pepper, and cashews, reveal a cautious attitude. Most indicate that they need more time and information to fully understand the new regulations. “We haven’t received any updates from our EU partners yet. We need more time to gather specific details from our customers,” shared the leader of a well-known coffee and pepper export company in Ho Chi Minh City.
Despite this, businesses remain fairly confident as Vietnam has consistently improved the quality and safety of coffee and pepper products in recent years. With many regions and companies already meeting EU standards, the ongoing efforts to enhance and innovate are not seen as an overwhelming challenge. For example, in the pepper industry, Vietnam is the largest supplier with the most advanced processing capabilities, so further improving quality to meet market demands is entirely achievable.
