Food and Drink Export to US: Many Barriers in the Way

4:22:03 PM | 5/11/2016

Since the two countries normalised bilateral relations, especially after the signing of the bilateral trade agreement, Vietnam - US trade relations have developed both in scale and pace. The United States has become a top export market of Vietnam. Key export sectors have expanded impressively. However, to enter and secure a strong foothold in this difficult market, Vietnamese companies must pay attention to import requirements imposed by management bodies.
Speaking at a seminar on opportunities of food and drink exports to the US and FDA import requirements held recently in Hanoi, Mr Do Kim Lang, Deputy Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, affirmed that Vietnam is also now a big exporter to the US. Vietnam’s exports to the US are garments and textiles, electronic machines and equipment footwear and wooden furniture.
He said despite being considered key exports to the US, agricultural, seafood and foodstuff products suffered a decline in 2015 on many barriers to trade.
Vietnamese companies lack full understanding of food and drug safety regulations, among other rules, when they export their products to this market, he added. Therefore, to enhance stateside shipments, Vietnamese companies should quickly address those shortcomings.
Apart from strict regulations, Vietnamese exporters are also struggling with mounting competition from rivals in Argentina, Brazil, India and Thailand.
FDA technical expert David Lennarz, who is also Vice President of Registrar Corp, said that the FDA is applying stricter regulations to food safety.
Inaccurate labelling of goods and materials in contravention of the regulatory requirements of the FDA are common mistakes which Vietnamese firms make when exporting to the US. Labelling regulations are specified and detailed by the FDA and exporters will have their products seized for any slight mistake.
He warned that, to strengthen stateside exports, Vietnamese companies must notify the FDA before their shipments reach the US and concurrently declare their shipments transported by sea, air, road or an express carrier.
Vietnamese firms should clearly inscribe information on ingredients, fat ingredients and allergens, the manufacturer and the origin of the product.
In addition, they should develop a food safety system and this system ensures that products are made with safety and quality. Specially, they need to have trade representatives to consult and assist them in completing relevant procedures.
Experts also recommended that Vietnamese companies should have specific plans and strategies to enter the US market where product requirements are strict. Fully meeting these standards will not only help businesses cut costs and mitigate risks, but also preserve brand names for enterprises.
Ha Vu