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VIETNAM'S COFFEE EXPORTS AND THE EVFTA

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 V O L U M E 20, I S S U E 1 JANUARY 2025

GLOBAL
TRADE
AND
CUSTOMS
JOURNAL
GENERAL EDITOR: JEFFREY L. SNYDER
Editorial

2 Editorial
Jeff Snyder

Articles

3 Uncovering Import Document Fraud: Leveraging the Deep Learning Approach

Luan Thanh Le

11 VIETNAM’S COFFEE EXPORTS and the EVFTA

Nhan Cam Tri

19 The EVFTA and Increasing the Operational Efficiency of the Banking Industry
Tang My Sang & Nguyen Quoc Anh

25 Export Promotion: The EVFTA and Vietnamese Agricultural Products

Thi Anh Tuyet LE, Vinh Long Hoang & Thi Anh Linh Pham

31 Implementing Tariff Commitments in the EVFTA

Vuong Tuan Nam, Doan Hong Le, Nguyen Thanh Truc, Pham Thuy Hong & Doan Quynh Giang

44 Implementing Sustainability Provisions in the EU’s New Generation Free Trade Agreements:
How Much Can Weak Commitments Do?
Kim-Ngan VU & Khuong-Duy DINH

55 Vietnam and the new FTA Regulatory Environment

Hanh T. Vu & Nha P. Nguyen

68 Customs Penalties in the EU and Ukraine: Harmonizing the Unharmonized

Oleg Kyryievskyi

1569- 755X( 20250130)20: 1; 1-Y

GTCJ_20_01_COVER.indd 1 21-10-2024 16:10:02

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 CONTENTS

Editorial
2 Editorial
Jeff Snyder

Articles
3 Uncovering Import Document Fraud: Leveraging the Deep Learning Approach
Luan Thanh Le
11 VIETNAM’S COFFEE EXPORTS and the EVFTA
Nhan Cam Tri
19 The EVFTA and Increasing the Operational Efficiency of the Banking Industry
Tang My Sang & Nguyen Quoc Anh
25 Export Promotion: The EVFTA and Vietnamese Agricultural Products
Thi Anh Tuyet LE, Vinh Long Hoang & Thi Anh Linh Pham
31 Implementing Tariff Commitments in the EVFTA
Vuong Tuan Nam, Doan Hong Le, Nguyen Thanh Truc, Pham Thuy Hong & Doan Quynh Giang
44 Implementing Sustainability Provisions in the EU’s New Generation Free Trade Agreements: How
Much Can Weak Commitments Do?
Kim-Ngan VU & Khuong-Duy DINH
55 Vietnam and the new FTA Regulatory Environment
Hanh T. Vu & Nha P. Nguyen
68 Customs Penalties in the EU and Ukraine: Harmonizing the Unharmonized
Oleg Kyryievskyi

Volume 20 January 2025 Number 1

 EDITORIAL

Editorial

understanding of Free Trade Agreements (FTAs) in

The GTCJ is pleased to present a special Issue show-
Asia and globally.
casing authors from Vietnam, including a number of
articles that focus on myriad aspects of the EU- Jeff Snyder
Vietnam Free Trade Agreement (EVFTA). A hearty Washington, DC
‘thank you’ to all the authors, may this enhance the September 2024.

2 Global Trade and Customs Journal, Volume 20, Issue 1

© 2025 Kluwer Law International BV, The Netherlands
 ARTICLE

VIETNAM’S COFFEE EXPORTS and the EVFTA

Nhan Cam Tri*

The purpose of this article is to examine the effect of European Union–Vietnam Free Trade Agreement (EVFTA) on Vietnam’s coffee exports.
Utilizing secondary data, the research paper employs qualitative techniques. The study surveyed 156 businesses that buy, process, and export
Vietnamese coffee products. The results show that this agreement creates opportunities for Vietnamese companies to expand the vast market for all
coffee products in European countries. However, these businesses face great challenges from regulations on sanitary and phytosanitary (SPS)
measures, technical barriers to trade, traceability, environmental and social protection requirements, and sustainable development. Vietnamese
businesses only have an average awareness of protectionist policies in the EU market. They have not been well prepared when Vietnam joins this
trade agreement. From there, three sets of recommendations are made to enhance favourable effects and minimize unfavourable effects of the EVFTA
on coffee products sold in the EU.

Keywords: Coffee, Europe, EVFTA, International business, Tariffs, Export

1 INTRODUCTION this agreement contributes to bringing Vietnam’s coffee

products deeper into global supply chains. Vietnam has
The European Union (EU) is a specific market, consid- made efforts to be able to participate in high-value-
ered a ‘super-country’ with very high requirements for added stages in the global value chain. Step by step,
technical barriers. Goods imported into the EU require Vietnam has access to the overseas retail system
strict requirements for technical barriers. The through the supply chains of foreign-invested
Agreement has special requirements on rules of origin, enterprises.3
animal and plant quarantine, quality management, food Several studies on the effects of the EVFTA on
safety, and hygiene, combating illegal, undeclared, and Vietnam’s exports and export-oriented products have
unregulated exploitation, sustainable trade, corporate been conducted thus far. However, it is not complete
social responsibility.1 The European Union–Vietnam and has not delved into coffee products. The best way
Free Trade Agreement (EVFTA) was signed as a new- to meet the requirements of sufficient conditions and
generation free trade agreement with the highest level encourage exports is through research on the export of
of commitment that partners have given Vietnam coffee products. This is because coffee products belong
among the FTAs that have been signed. The agreement to the category of important agricultural exports and
commits to eliminate import taxes up to 99% within make up a sizeable amount of Vietnam’s overall export
7–10 years.2 revenue from agricultural products. Moreover, the EU
EVFTA not only brings opportunities for export is also the largest coffee consumer market in Vietnam.
growth but also helps Vietnam’s coffee industry Before EVFTA, the tax rate applied to processed coffee
improve its competitiveness. By improving product was in the range of 7.5–11.5%. Therefore, with these
quality, traceability, packaging specifications, etc., items being reduced to 0%, it has created huge

Notes
*
Vice dean of Ho Chi Minh City University of Economics and Finance (UEF), Vietnam. Email: [email protected].
1
T. N. Quyết, G. J. Tong & N. T. T. Hiền, Lợi thế thương mại xuất khẩu Cà phê Việt Nam sang EU, tạp chí Khoa học và Công nghệ lâm nghiệp, (2) J. Forest Sci. & Tech.
137–142 (2022), doi: 10.55250/jo.vnuf.2022.2.137-142.
2
VCCI, supra n. 2.
3
S. H. Văn, Tác động của Hiệp định thương mại tự do Việt Nam–EU đến xuất khẩu Việt Nam. Tạp chí Kinh tế và Phát triển, (323) J. Eco. & Dev. 12–22 (2024),
doi: 10.33301/JED.VI.1647.

Global Trade and Customs Journal, Volume 20, Issue 1

11
© 2025 Kluwer Law International BV, The Netherlands
 Global Trade and Customs Journal

differences in advantages for Vietnam’s coffee products 3. IMPACT OF EVFTA ON VIETNAM’S

exported to the EU when EVFTA is implemented. COFFEE EXPORTS TO THE EU
This study aims to assess the impact of EVFTA on
Vietnam’s coffee exports. From there, propose solu-
tions to promote positive impacts and limit negative 3.1 The Production and Export of Vietnam’s
impacts from EVFTA to coffee products in the EU Coffee Products to European Countries
market.
Vietnam has 276 coffee processing enterprises. Which,
there are ninety-seven coffee establishments with a total
design capacity of 1503 million tons. The actual capacity
2 COMMITMENTS OF THE EVFTA reached 83.6%, 160 roasted coffee processing facil-
AGREEMENT FOR VIETNAM’S COFFEE ities – equivalent to 51.7 thousand tons per year. There
are eight instant coffee processing facilities, respectively
EXPORTS
36.5 thousand tons per year. Eleven blended coffee pro-
EVFTA has commitments related to coffee products. cessing facilities with a capacity of about 139.9 thousand
In addition to complying with the obligations on tons per year.8 According to a report by the Ministry of
Sanitary and Phyto-Sanitary Measures (SPS) under the Agriculture and Rural Development, the total coffee area
of the country in 2023 has a harvest yield of 653,000
WTO, the SPS obligations of the EVFTA also add new
hectares. Output reached 1.845 million tons with a yield
commitments. In which it is decided to designate the
of 2.82 tons per hectare. Many coffee areas have been
EU’s and Vietnam’s appropriate management agencies converted to grow durians and fruits. The intercropping
and to apply SPS measures to imported goods from the area is estimated at 187,000 hectares (accounting for
other party with domestic goods.4 In the commitments 26.4% of the total area). The intercropping crops are
on technical barriers to trade, the regulations on mark- durian, avocado, pepper, and passion fruit. The amount
ing and labelling of goods in the EVFTA are likely to of output decreased, and at the end of the 2021–2022
affect coffee goods.5 Under the EVFTA, Vietnam and crop year, the inventory of the old crop transferred to the
the EU must have a system in place to stop the new crop was only about 58,000 tons, significantly less
manufacture, packing, selling, deceptive advertising, than before.
fraud, and misrepresenting the place of origin of Vietnam’s coffee exports will not rise in volume in
goods bearing protected geographical indications. 2023, but they will nevertheless increase in value over
Products bearing protected geographical indications the prior year because of Robusta coffee’s selling price.
Vietnam maintains its ranking as the second-largest
must comply with relevant quality requirements
exporter of coffee in the world, behind Brazil. Vietnam’s
under the laws of the host country.6 Vietnam has
coffee exports in 2023 will reach 1.62 million tons, worth
designated Buon Me Thuot coffee as a protected geo-
USD 4.24 billion, down 8.7% in volume and up 4.6% in
graphical indication. value compared to 2022. The average export price reached
EU commits to immediately eliminate tariffs on 2,614 USD per ton, up 14.5% compared to 2022. In
Vietnamese coffee products. In which, tariffs on unroasted 2023, Robusta will continue to account for the highest
or roasted coffee products will be immediately abolished, proportion of the industry’s export value with 78.5%,
reduced from 7%–11% to 0%. Processed coffee, reduced reaching USD 3.2 billion, up 2.8% compared to 2022.
from 9%–12% to 0%.7 Coffee must be of pure origin, it Although the export volume decreased, export turnover
must be grown in Vietnam to enjoy tariff incentives under increased because the average export price in 2023 reached
EVFTA. For coffee-based preparations, the weight of USD 2,253 per ton, up 14% compared to 2022. On the
sugar added to the product cannot be more than 40% of contrary, both the volume and export price of Arabica
the total weight of the product; additionally, do not coffee decreased by 32.8% and 9.3%, respectively.
replicate from non-originating products in the same According to data from the General Department of
group. Customs, in 2023, coffee exports to the EU market

Notes
4
VCCI, supra n. 1.
5
Ibid.
6
Ibid.
7
Ibid.
8
Bộ Công Thương, Báo cáo xuất nhập khẩu Việt Nam 2023 (2024), https://trungtamwto.vn/file/22934/bao-cao-xuat-nhap-khau-viet-nam-nam-2023.pdf (accessed 28 May
2024).

12
 Vietnam’s Coffee Exports

accounted for the largest proportion with 35% of total geographical indications of Vietnam committed to being
coffee exports, reaching USD 1.48 billion, down 0.7% protected by the EU when the EVFTA is officially imple-
compared to 2022. Many markets achieved high growth mented, which is a great advantage for the industry.12
compared to 2022 such as Denmark reached USD 4.1 EVFTA is an opportunity to access and expand a large
million, up 96.7%; the Netherlands reached USD 121.7 market for Vietnamese coffee products into the EU.
million, up 76.5%; Portugal reached USD 35.6 million, Products benefiting from the EVFTA are processed coffee
up 51.3%.9 products. Before EVFTA, the tax rate applied to processed
coffee was in the range of 7.5–11.5%, so with these items
being immediately reduced to 0%, it will be a great price
Table 1 Value of Coffee Exported to Europe competitive advantage for businesses. To increase coffee
exports to this market shortly, companies must push the
Increase/
Decrease ready-to-drink and packaged coffee product category for
Export Turnover Export Turnover Compared to single-serve consumption.
Country in 2022 (USD) in 2023 (USD) 2022 (%) Brazil is a significant rival of Vietnam. However,
Germany 473,638,525 458,036,903 -3.3 each country has a certain segment of the EU coffee
Netherlands 68,954,593 121,731,378 76.5
industry. Brazil is a major supplier of both Robusta
and Arabica, accounting for 71% of the Arabica.13
Italy 295,660,133 325,266,159 10.0 Meanwhile, Vietnam focuses on producing and export-
France 52,005,326 47,377,069 -8.9 ing Robusta coffee. Currently, the demand of the EU
market for processed coffee and high-quality coffee is
Spain 251,094,608 253,637,497 1.0
increasing. Therefore, the potential for coffee export to
Belgium 257,843,408 144,406,711 -44.0 the EU is still very large, if the market demand is
Poland 37,663,556 52,278,516 38.8 well exploited and product quality requirements are
met.
Portugal 23,527,107 35,607,099 51.3

Greece 16,931,344 20,806,627 22.9

3.3 Challenges of EVFTA for Vietnam’s Coffee
Source: Ministry of Industry and Trade10 Exports to the EU
Vietnam mainly exports raw coffee, the proportion of
3.2 Opportunities of EVFTA for Vietnam’s roasted coffee products currently accounts for less
Coffee Exports to the EU than 10% of Vietnam’s total coffee exports.14 This
reality requires coffee production and processing
Coffee exports to the EU have a 93% tariff line to 0% as enterprises to invest in deep processing and increase
soon as the agreement takes effect, thanks to the commit- the proportion of processed coffee exports to be able
ment under the EVFTA to remove tariffs. Accordingly, to benefit from tariff cuts under the EVFTA.
the EU will immediately eliminate the tariff of 7.5%– Meanwhile, many Vietnamese enterprises that are
9.0% on coffee beans. Some products from coffee beans exporting to the EU are small and medium-sized
including instant coffee, and coffee essences containing enterprises with limited resources, production pro-
coffee tariffs of 9.0%–11.5% will be eliminated within cesses that do not meet EU standards, and there is
three years.11 This is a good opportunity for Vietnamese no proper investment in R&D. Farmer households
coffee to expand the market in the EU when the EU is the produce mainly on a small scale and have not been
largest coffee consumption market in the world. Import closely linked with processing and export enterprises.
turnover from non-bloc countries is about USD ten billion The domestic distribution system lacks linkages,
USD per year, accounting for 66% of imports and about logistics services and services for domestic agricul-
30% of global consumption. Coffee is also 1 of 39 tural development are still limited. 15

Notes
9
T. D Quynh & V. T. M Hang, , Báo cáo thị trường cà phê năm 2023 (2024), https://mediacdn.vietnambiz.vn/1881912202208555/files/2024/01/26/bao-cao-thi-truong-ca-
phe-nam-2023-20240126121521818.pdf (accessed 28 May 2024).
10
Thương, supra n. 8.
11
VCCI, supra n. 1.
12
Quyết, Tong & Hiền, supra n. 1.
13
Quynh & Hang, supra n. 9.
14
M. T. T. Mai, Xuất khẩu nông sản Việt Nam sang Liên minh châu Âu: thực trạng, Cơ hội và thách thức, tạp chí Kinh Tế Châu Á – Thái Bình Dương, 5 J. Asia-Pacific Eco. 7–9
(2022).
15
Ibid.

13
 Global Trade and Customs Journal

Like many other agricultural products of Vietnam, enterprises exporting agricultural products to the EU
coffee also faces difficulties in accessing the EU market. market. The convenient method is used to select survey
This is because businesses have not fully met the high participants. The survey is made with Google Forms and
requirements of the EU from SPS regulations, technical distributed to respondents who are middle-to senior-level
barriers to trade, technical standards, and traceability, to company executives via e-mail and Zalo. There were 170
environmental, social, and sustainable development questionnaires distributed, 162 questionnaires were col-
issues … EU regulations are frequently reviewed and lected, and 156 of those were deemed valid.
changed, which makes it difficult for businesses to under-
stand and adjust. At the same time, the EU is tending to
increase the application of non-tariff measures, trade 4.1 Coffee Purchasing and Processing
remedies, and new protective barriers. Significant compe- Enterprises
titive pressure is also placed on trade and investment for
Vietnamese businesses by the EU’s trend of supply chain Due to the requirements of the import market and the
consolidation. The big challenge of the coffee industry is exporter, businesses need to pay attention to many issues
to ensure the certificate of sustainable development. including quality standards; traceability of origin,
In general, Vietnam’s coffee industry still has a limited requirements on designs, packaging, and preservation
capacity to adjust to the EVFTA, particularly in terms of conditions, and environmental requirements.
localization, quality, and environmental standards require- According to the survey’s findings, purchasing and pro-
ments. On the business side, the competitiveness and cessing companies are best equipped to meet the criter-
ability of Vietnamese SMEs to participate in international ion of preservation conditions (with an average of 3.87/5
trade are still limited. Businesses have not focused on points). 35% of the businesses that took part in the
building business strategies methodically and sustainably, survey indicated that they had ‘very well responded’.
thereby taking advantage of the opportunities of the However, the percentage of purchasing and processing
Agreement. Another limitation is that many businesses enterprises ‘unable to meet’ export requirements still
have not actively learned about the market and FTA appears in the criteria ‘to ensure environmental require-
incentives.16 ments in the processing process’ (accounting for 6.2%);
Vietnam will still need to compete with other nations ‘conditions for export preservation’ (accounting for
that export, particularly Brazil. The sharp increase in the 7.5%) and ‘quality standards’ (accounting for 3.2%).
area and coffee output of Brazil will also make it difficult Among the requirements set for export coffee, the
for Vietnamese coffee exports. Vietnam and Brazil both requirements for design and packaging are at the lowest
have Free Trade Agreements with the EU. Therefore, both level (3.0/5 points). Figure 1 show additional criteria,
countries benefit from coffee export tax rates to the EU. including storage conditions, traceability, and quality
Furthermore, challenges with logistics, like the inability standards, scored 3.1, 3.5, and 3.8 points, respectively.
to rent containers and record-high freight rates, have an The survey results show that Vietnam’s coffee purchas-
impact on the export of goods generally and Vietnamese ing and processing enterprises have only stopped at the
coffee exports specifically to the EU market. ‘responsive’ level. This indicates that if the EU market
tightens these regulations and if raw material input,
production, and processing do not pay attention to
4 PRODUCT COMPETITIVENESS AND SUPPLY meet them, protective barriers will have a significant
CAPACITY OF VIETNAM’S COFFEE impact on Vietnam’s coffee exports.
Due to inadequate preparation upon Vietnam’s entry
PRODUCTS
into this trade agreement, Vietnamese coffee procurement
To assess Vietnam’s product competitiveness and coffee and processing enterprises are unable to fully satisfy the
supply capacity, the article used a questionnaire socio- demands of the EU market. Just 8% of the businesses that
logical survey method. The survey content revolves were surveyed said they had done some serious research;
around assessing the impact of EVFTA on exported coffee 37% of companies have done some information research;
products, thereby identifying positive impacts, negative In response, 43% of businesses said they had heard but
impacts, opportunities, and challenges. This is an impor- had not gained any new knowledge; Specifically, 12% of
tant basis for proposing solutions to take advantage of the participants indicated that this was the first time they had
opportunities and limit the challenges of the EVFTA. The heard of the agreement.
survey was sent to two groups of businesses, the first The non-tariff barriers created by the EU market are increas-
group includes enterprises purchasing and processing ingly having a great impact on the operation of Vietnam’s coffee
agricultural products, and the second group includes purchasing and processing enterprises. 60.4% of businesses

Notes
16
T. T. B. Trương, Cam kết về nông nghiệp trong EVFTA và những vấn đề đặt ra cho ngành nông nghiệp Việt Nam, 258 Eur. Stud. Rev. 73–86 (2022).

14
 Vietnam’s Coffee Exports

Figure 1 Ability to Meet the Processing Requirements of Enterprises

3.9 3.8
3.5
3.1 3

Ensure Storage Requirements for Traceability Quality standards

environmental conditions designs and
requirements packaging

Source: Authors’ calculation based on survey results

surveyed know they need to meet these standards. To comply and processes of procurement and processing (4.0 points).
with this standard, businesses supervise the procurement, initial The impact is quite obvious in the fact that businesses
processing, processing, and packaging of goods using quality must focus on investing in science and technology (3.8
management systems like ISO and HACCP 90012015. points), followed by product quality (3.7 points), purchase
For purchasing and processing enterprises, the biggest output (3.7 points), and commercial costs (3.9 points).
protection barrier comes from non-tariff barriers. The This result implies that businesses need to drastically
survey’s findings in Figure 2 indicate that non-tariff bar- change the method of procurement and processing pro-
riers have an above-average effect on businesses’ procure- cesses. Moreover, these businesses need to pay special
ment activities. The most affected factor is the method attention to investing in science and technology.

Figure 2 The Level of Impact of Technical Barriers on the Operation of Purchasing and Processing Enterprises
4.5
Methods and processes of
4 purchasing and processing
4 3.9
3.8 3.8
3.7 3.7 Investment in science and
3.5 technology
3.5 3.4
3.3
3.1 Commercial costs
3
Product quality
2.5
Business awareness
2
Conformity assessment costs

1.5
General commercial activities of
enterprises
1
Purchased output

0.5
Price of materials

Source: Authors’ calculation based on survey results

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 Global Trade and Customs Journal

4.2 Coffee Exporters corporate social responsibility. On the other hand, market
access is still limited in terms of language, information,
Regarding the level of awareness of protectionist measures in and travel conditions, so the research and forecast of the
the EU market, Figure 3 show that the average level of export market of enterprises is still not good despite the
awareness ranged from 3.0 to 4.2. In particular, awareness of support of the Vietnam Trade Office abroad. EVFTA is a
technical barriers, epidemiological hygiene, tariffs, and restric- bilateral agreement, so the specific contents of the agree-
tions on the number of exporters is at the level of awareness ment are the basis for businesses to focus on improving
but the response is still limited. Awareness of anti-dumping, their capacity to research and forecast the market.
anti-subsidy, and safeguards is known but not yet met. Just Secondly, marketing capacity, finding customers and
37% of businesses responded at the level of knowing and partners in the EU: EVFTA creates many opportunities
being able to proactively respond when faced with technical and markets in the export of Vietnamese coffee products.
barriers, and 26% when faced with tariffs. Notably, only 18% State management agencies, industry associations, and
of businesses were aware of anti-dumping at the level of Vietnamese trade agencies abroad have taken many mea-
knowing and being able to proactively respond. sures to support Vietnamese businesses to market and find
The largest barrier to the impact of protective barriers customers in the EU market. Information technology
on businesses exporting coffee is the technical barrier (4.2 advancements and digital transformation have made it
points). The significant impact is accompanied by other possible for companies to advertise customer-finding mar-
factors such as limited quantity, tariffs, epidemiology, and keting campaigns on websites and other social media
hygiene. To meet the high requirements of the EU, and platforms. Overall, the company’s marketing ability has
take advantage of the EVFTA, Vietnamese businesses are increased, and an increasing number of clients are aware of
forced to improve their export capacity. In other words, and confident in Vietnamese coffee exports.
the regulations of the EVFTA have promoted the Thirdly, the ability to build product and pricing stra-
improvement of the export capacity of Vietnamese coffee tegies: Based on import market research data on commod-
exporters. Five factors affect export capacity, including:
ity demand, market capacity, and technical standards,
Firstly, the capacity to research and forecast the export
exporters must develop product and price strategies sui-
market: exporters have always found it difficult to conduct
table for each market. Unfortunately, many businesses
market research and forecasting, particularly for specific
markets like the EU. EU consumers have high require- struggle to develop product strategies and prices for each
ments for quality, food safety and hygiene, origin, envir- market because coffee products have specific requirements
onmental standards, sustainable development, and regarding soil conditions and cultivation practices.

Figure 3 Exporters’ Perception of Protectionist Measures in the EU Market

4.5
4.2

4 3.9 3.9
3.8
3.7

3.5
3.1
3
3

2.5

1.5

0.5

0
Tariffs Technical Hygiene and Anti-dumping Anti-subsidy Self defence Limited
Barrier Epidemiology quantity

Source: Authors’ calculation based on survey results

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 Vietnam’s Coffee Exports

Fourthly, the capacity to organize the implementa- looking into expanding to other possible markets in EU
tion of export contracts: Once the contract has been member countries in addition to the large markets they
signed with the partner, the organization of the imple- have already penetrated.
mentation of the export contract should be the top Businesses should be interested in opening a represen-
priority. Preparing the source of goods, processing, tative office or having a representative in the EU to be
packaging, preservation, arranging freight forwarding more convenient in introducing goods and signing con-
and receiving to ensure on-time delivery, creating a set tracts. Businesses can also find companies in the EU for
of documents and payment, after-sales customer care, joint ventures and associations instead of directly conduct-
and maintaining a long-term relationship with the ing transactions. This is also a way to increase the relia-
importer are the steps in the process of organizing the bility of customers in the EU, convenient for exchanging
implementation of export contracts. All these activities information, drafting and signing export contracts.
require close coordination of individuals and depart- Vietnam must prioritize quality standards, true hygiene,
ments according to a detailed plan, with strict inspec- and safety by stringent EU regulations if it hopes to see
tion and control to ensure full and proper significant market penetration for Vietnamese coffee.
implementation of the provisions in the contract. Farmers and businesses must include traceability technol-
Coffee products are a sensitive product group, with ogy at every stage in the production process of export
high requirements for transportation and preservation. goods. On the other hand, it is necessary to improve and
Vietnam’s exporters must progressively enhance their strengthen the administrative and supervisory capacity of
skills and credentials to ensure that they can plan the SPS to limit violations of regulations on food safety and
execution of export contracts, as the physical distance animal and plant quarantine in importing countries.
between Vietnam and the EU presents a challenge.
Fifthly, the capacity to develop export sources:
Vietnam’s supply of coffee products essentially falls short 5.2 Solutions for Businesses Purchasing
of the EU’s current demands in terms of both quantity and Processing Coffee Products
and quality. Thus, the EVFTA presents a chance for
The EU is a fastidious market with many technical bar-
Vietnamese enterprises to grow, fortify regional ties, and
riers. Besides the price factor, the quality of the product is
form coalitions based on export product categories.
the top concern for the majority of consumers in this
Vietnamese coffee exporters have thereby steadily
market, especially for food-related items. Therefore, busi-
strengthened their position in the EU coffee market,
nesses need to apply quality standard systems such as ISO
emerging as a significant supplier in terms of volume,
9000, HACCP, and ISO 14000. At the same time, pro-
calibre, and commercial reach.
cessing enterprises need to choose technology with a long
and modern lifespan, avoiding outdated and outdated
5 SOLUTIONS TO INCREASE VIETNAM’S technologies. Production, processing, and exporting estab-
lishments must strictly comply with the norms on pesti-
COFFEE EXPORTS TO THE EU MARKET
cide residues, veterinary drugs pollutants, and chemicals
Based on the above analysis, the article proposes three as prescribed by the EU. To reduce the amount of agro-
groups of solutions to take advantage of the positive chemicals used, trees and seedlings must guarantee high
impacts and limit the negative impacts of EVFTA to quality and economical efficiency, as well as possess strong
increase Vietnam’s coffee exports to the EU market. pest and disease resistance. Focusing on research and
These three groups of solutions are applied to export variety breeding, producing high-yield and quality vari-
enterprises; enterprises purchasing and processing agricul- eties, guaranteeing food safety and quality, and promoting
tural products; and Vietnam’s coffee industry. organic and EU-standard products are all important for
boosting investment and applying scientific and techno-
logical advancements.
5.1 Solutions for Coffee Exporters
In general, coffee exporters need to implement solutions 5.3 Solutions for Vietnam’s Coffee Industry
to stabilize the supply of goods. It is recommended to
focus on investing and selecting large-scale procurement The coffee industry must significantly alter its production
and processing enterprises, applying high technology in techniques to enhance its capacity to export coffee to the
preserving agricultural products, and changing labels to EU market and expand its presence there. Expanding the
be more attractive and in line with the tastes of customers. acreage dedicated to sustainable coffee farming and get-
Companies should work together to create alliances and ting rid of antiquated, conventional methods that result in
associations, improve coordination, and jointly market the low harvest yields and harm the ecosystem. Increasing the
nation’s brand. To optimize the advantages provided by content of deep processing of coffee products instead of
the agreement, they must pay close attention to the raw export as it is now. At the same time, it is necessary
commitments made in the agreement. Exporters are to diversify coffee products to suit the tastes of consumers

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 Global Trade and Customs Journal

in each country in the EU market. Coffee products should preliminary processing, and preservation of coffee pro-
be branded by the value chain rather than currently ducts; modify coffee varieties to improve quality; and
collected through the dealer system. Promoting and call- make sure rules of origin are followed when exporting
ing for investment in the processing industry, connecting coffee to the EU market. Promoting cooperation programs
processing with consumption through joint ventures, and to promote Vietnamese coffee brands and culture in the
ensuring the connection of consumption channels through EU market. Building an information system on products,
deeper participation in the coffee supply chain in the EU and technical standards, connecting information from the
market. Encourage the use of scientific and technological production area to the market of the final consuming
advancements in the planting, maintenance, harvesting, countries.

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