Digital technology paves way for VN products to enter Chinese market

China's export requirements - difficult to enter, easy to be weeded out

According to CEO of SUTECH Science and Technology Consultant Phan Thi Men, there are two ways to register to export products to China. First, registering via Official Letter, i.e the Plant Protection Department, and with other state agencies giving guidance to businesses about print documents. This takes a lot of time. 

Second, making online registration on the Chinese customs system. Not only farmers and cooperatives, but even export companies still feel confused with the method. There have been many big changes in the Chinese market recently, and if Vietnam’s businesses are not updated with new regulations, they will fail to export products to China.

The enterprises which want to export products to China have to show detailed internal procedures related to production, quality control and export (it is necessary to build database, and store and manage it systematically). Chinese agencies are very strict when making online assessments. 

In 2023, SUTECH gave advice to 500 businesses on following procedures to export products to China and it always had to remind businesses that in addition to certificates on food safety, their dossiers must include a report about consultancy, practical assessment and testing results. 

Also according to Men, it takes 45-60 days to get approval from GACC. In the past, Vietnamese businesses did not have their dossiers approved by the Chinese side for three months, but sometimes the Chinese side approved up to 10 dossiers.

This is partially attributed to the fact that the Vietnamese side doe not stipulate the maximum time needed to take applications and give results in administrative procedures. MARD staff in charge of verifying documents remains modest, while structural changes have been made recently.

“I know many businesses that could not export sliced cassava to China recently, as they could not obtain approval before the crop was over. Some businesses even had to wait for two cassava crops and still could not get growing area codes granted,” Men said. “An enterprise in Phu Tho said it took them 1.5 years to obtain a ‘visa’ for its fresh bananas to enter the Chinese market."

In principle, the codes granted by GACC have a validity period of five years. However, during the five years, businesses may have codes taken back by the Chinese side if their consignments of goods violate regulations on food safety.

In 2023, the Chinese side gave warnings to 12 Vietnamese enterprises which exported frozen fruit juice, and it took back five codes. Most recently, Chinese agencies discovered that some Vietnamese goods contained E.Coli.

“The Chinese market is getting choosier,” she commented.

It is expected that there will be no cross-border unofficial-quota exports to China from 2028, and 100 percent of Vietnam’s farm produce must be exported through official channels.

Digital technology 

Utilizing digital technology is a feasible solution that helps solve problems and helps Vietnam’s businesses enter the Chinese market.

For example, high technology use in crop cultivation and harvesting will ensure quality for farm exports, satisfy the requirements on traceability, and minimize the risks of refusal.

The benefits of digital technology are clear, but applying digital technology is still difficult work for farmers. Many farmers still don’t have the habit of recording the process and feel inconvenient when using software, according to Cao Thi Hoa Binh, head of the Sub-department of Plant Cultivation and Protection.

Men of SUTECH agrees that digital technology would help farm produce export companies to ne aware of information about requirements and new regulations they need to observe.

She said SUTECH is building software which can give warnings about violating codes, and help enterprises quickly check information about the status of their exports.

Men has urged measures to speed up the granting of growing areas and packaging unit codes to cooperatives and export companies.

“If state agencies need a lot of time to build legal documents, they should set up temporary regulations to be sure that codes can be granted as quickly as possible, thus easing difficulties for export companies,” Men suggested.

Cre: Vietnamnet.vn