The EU updates food safety rules for exports of agri-food products from Vietnam

We note the updated EU food safety rules from June 2024, which affect Vietnamese agri-food exports, including instant noodles and agricultural products, with a list of best practices.

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From July 2, the European Union (EU) will exempt Vietnamese instant noodles from food safety controls, although a 20% frequency of inspections at border gates will remain in force.

In addition, the EU is adapting control rules on other Vietnamese agricultural products, including dragon fruit, chili peppers, okra and durian.

This article provides companies with the latest updates to EU rules on agricultural and processed food exports from Vietnam, food safety control measures, and an overview of Vietnamese agri-food exports to the EU.

Update to EU rules on agricultural imports – June 2024

On June 11, the EU issued Commission Implementing Regulation 2024/1662, which exempts Vietnamese instant noodles from stringent food safety controls. This new Regulation amends Implementing Regulation (EU) 2019/1793 which concerns the temporary increase of official controls and emergency measures on the entry of certain goods from certain third countries, in accordance with Regulations (EU) 2017/625 and (EC) No 178/2002 of the European Parliament and the Council.

The EU has previously placed Vietnamese instant noodles under food safety controls, with border checks taking place at a 20% rate due to the presence of ethylene oxide residues in the products above the threshold set by EU regulations.

In addition, the EU has adapted rules on the control of other agricultural products from Vietnam:

• Dragon Fruit: The frequency of border checks will increase from 20 to 30 percent.
• Chilli pepper: Moved from Annex I, which provides for a 50% inspection frequency, to Annex II, which maintains a 50% inspection frequency but also requires food safety certificates and test results for pesticide residues in products.
• Embellishment: Maintain a 50 percent inspection frequency and require food safety certificates and test results for pesticide residues in products.
• Durians: Keep the inspection frequency at 10 percent.

Furthermore, during a transitional period, chillies from Vietnam dispatched from a third country or country before the date of entry into force of Commission Implementing Regulation (EU) 2024/1662 may be imported into the EU until 2 September 2024, without the need for sampling and analysis, and without the need for official results certificate provided for in Article 10 and 11.

Read more: Vietnam’s Agri-Food Export Potential: Key Guidelines for Trading Enterprises

Food safety inspection regulations for Vietnamese exporters

According to Ngo Xuan Nam, deputy director of the Vietnam Sanitary and Phytosanitary Notification Authority and Information Point (SPS Office), agri-food producers must comply with EU market regulations to export to the EU. The regulations are at:

• Registration on the company list;
• Maximum residue levels (MRLs) in products of plant origin;
• Antibiotic residue levels in animal products;
• Food additives;
• Materials in contact with food;
• Mixed products;
• Disease-free zones;
• Ensuring food safety;
• Traceability of processing plants;
• Illegal, unreported and unregulated (IUU) fishing;
• EU Deforestation Regulation (EUDR); AND
• Other related provisions.

The EU divides imported agri-food products into low-risk and high-risk categories. Although there are no systematic border controls for low-risk products, high-risk products are subject to a number of control measures.

In addition, exporters should consult the new EU regulatory document on the list of agri-food products subject to control measures for high-risk products:

• Attachments concerns food and feed of non-animal origin from certain third countries subject to a temporary increase in official controls at border control posts and control posts; AND
• Annex II intended for food and feed from certain third countries subject to special conditions for entry into the EU due to the risk of contamination with mycotoxins, including aflatoxins, pesticide residues, microbial contamination, Sudan dyes, rhodamine B and plant toxins.

Assistance from the Vietnam SPS Office for exporters

According to the deputy director of the Vietnam SPS, the SPS Office receives approximately 100 notifications and drafts per month regarding changes to SPS (sanitary and phytosanitary) measures, including draft changes to pesticide and veterinary drug residue levels, quarantine items and regulations on materials in contact with products .

The Vietnam SPS Office promptly forwards these notifications to relevant agencies, localities and industry associations in the country. Tracking these updates helps companies manage production, control quality and comply with market regulations.

Exporting an agri-food product to a highly standardized market such as the EU can be a challenge for any company, especially if they are looking to expand into higher value markets outside their traditional focus. To maintain the value of a company’s brand, it is necessary for companies in the agri-food industry to constantly update the latest regulations. Successfully meeting market standards can also positively impact consumers’ perceptions of the country of origin.

More broadly, the joint effort of exporters and producers will help address the risk of increased frequency of inspections and potential temporary suspension of imports into the EU, thereby increasing the credibility of Vietnamese exports.

EU market potential for exports of agri-food products from Vietnam

The EU is a significant market for Vietnamese exports, especially in the agriculture and food sectors, and there is still room for greater distribution.

Fast facts about the EU:

• Twenty-seven Member States;
• Over 448 million people in total population as of January 1, 2023; AND
• GDP per capita averaged €35,220 ($37,813) across member states in 2022 (€1 = $1.0734).

According to VIOIT, Vietnam’s agricultural exports to the EU market are currently around $5.5 billion annually, accounting for 15 percent of the total value of Vietnamese agricultural products. After China and the US, the EU is the third largest market for Vietnamese agricultural exports.

Despite the increase in bilateral trade in recent years, products from Vietnam account for a modest 4 percent of the EU’s agricultural import market. Considering that agricultural imports to the EU are estimated at around USD 160 billion per year, this represents huge potential for Vietnamese agri-food exporters.

Following the entry into force of the European Union-Vietnam Free Trade Agreement (EVFTA) on August 1, 2020, the EU introduced 0 percent tariffs on approximately 94 percent of all 547 tariff lines for fresh and processed vegetables and fruit from Vietnam. This provides a competitive advantage to Vietnam’s exports compared to those of its Asian neighbors such as Thailand and China, as both countries do not have a free trade agreement with the EU.

Application

The EU market has huge potential for Vietnamese agricultural exports and represents a unique opportunity for Vietnamese producers and exporters to increase their expertise and competitiveness. While Vietnam’s exports to the EU enjoy benefits under the EVFTA, the agreement requires the country’s exporters to quickly update and comply with the EU’s high market standards and regulations.