Socialist Republic of Vietnam

Vietnam Economic Times
Tuesday, November 18, 2003 11:58:01

Domestic food producers are on their own when they face new US food importation regulations that come into effect on December 12, according to a Ministry of Trade official.

Under the US Food and Drug Administration (FDA) regulations, all foreign food companies need to register with the FDA and employ a US-based agent if they want to export their products.

"Foreign firms that do not retain a US Agent and register with the FDA will not be allowed to export their food products into the US after December 12, 2003," an FDA official confirmed.

The ministry’s deputy general director of European and American trade policies department, Nguyen Hong Duong, said the Government had decided to let domestic businesses find their own way in regard to the laws.

"They will have to set up a long-term trading strategy to operate in the competitive market. The Bioterrorism Act of 2002 will help Vietnamese businesses improve their ability to survive in the international trade environment."

The FDA first published its regulations last October to implement the US Bioterrorism Act 2002, which covers food security strategy, food adulteration, detention, registration, record maintenance, prior notice and marking refused products.

Foreign firms which must comply with the regulations are those that manufacture, process, pack, hold or export food or drinks that are consumed by animals or humans in the US.

But domestic firms are not completely on their own.

The American Chamber of Commerce in Viet Nam and the Viet Nam Chamber of Commerce and Industry have both held seminars for domestic businesses about the new laws.

Global Food Agent Services is a US-based agent which has set up an office in Viet Nam to register domestic businesses for US$150 and act as their agent a year for $450.

The company’s Henricus Braunius Ponne said only three businesses in the south had registered through Global Foods to date. Although, businesses can register directly themselves via the internet.

Duong said it was essential domestic businesses updated themselves on the new laws to ensure export volume to the US did not drop off.

"The group of forestry-agricultural products is truly a strength of Viet Nam exports. The US is the biggest export market for Viet Nam, following China and European Union countries.

Frozen and processed seafood is by the far the biggest earner for Vietnamese businesses, accounting for 68 per cent of export value to the US last year.

Vu Hai Binh, from Ha Noi Sea Products Import Export Corporation, also known as Seaprodex, said his company was planning to use its distributor in the US to act as its agent with the FDA.

Binh said the company had gone with its distributor as its agent because it was closely tied with Seaprodex and would be able to provide the FDA with all the necessary information.

Japan is Seaprodex’s main market but the US follows close behind.

Binh said Seaprodex and other Vietnamese food export businesses had expected the Ministry of Trade to guide and update them on the FDA regulations, but had done their own research anyway.

"We aren’t worried because we began preparing for the new procedures a year ago. I think it’s a good competitive opportunity for all Vietnamese businesses."

Last year, Viet Nam exported food and drink products to the US in 92 categories.

The spice category – coffee, tea, pepper, cinnamon – was the biggest earner after seafood, bringing in 9 per cent of income, and was followed by cashews and pineapple which accounted for 8 per cent.

But Duong said exports to the US were being hampered by inadequate marketing and processing technology, as well as small operations.

He cited the example of one fruit company in the south which recently knocked back a contract from an EU customer for canned pineapple because they were not big enough to fill the order.


Vietnam News
by Kieu Van - (18/11/2003)