IFC supports Vietnam in expanding market for agricultural products

Friday, 2020-04-17 13:13:51
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At the signing ceremony in Hanoi on April 15.
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NDO – The International Finance Corporation (IFC), a member of the World Bank Group, signed a Memorandum of Understanding (MoU) with Vietnam’s Plant Protection Department on April 15 to support Vietnam in expanding export market for high-quality fruit, including dragon fruit and passion fruit.

Under the MoU, in the next four years, IFC will work with the Plant Protection Department to improve the legal framework and public services to expand export market with a focus on raising fruit to meet international standards, such as dragon fruit and passion fruit.

These types of fruit have posted the fastest production and export growth and possess high potential in approaching high value markets.

According to IFC, although Vietnam’s vegetable and fruit export has tripled in the five years from 2013-2018, almost all products were exported through informal channels at less competitive prices due to the application of incomplete quality standards.

Therefore, improvements to quality will help Vietnamese products to approach new markets, contributing to promoting exports and increasing income for farmers.

IFC will collaborate with the Australian Government Department of Foreign Affairs and Trade, the Japanese Government and the Republic of Korea Green Growth Trust Fund to implement an online system of requirements related to the export of dragon fruit and passion fruit by 2022.

The quality infrastructure services including standards development and testing and certification of products will also be improved to ensure that exported products comply with international standards.

“The access to new and diverse markets will not only help to increase export revenue and expand production, but will also improve Vietnamese agricultural enterprises’ resilience to sudden drops in demand in several markets caused by crises, such as the current COVID-19 pandemic,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos.

“The signing of this MoU will help protect jobs and livelihoods for millions of workers and farmers in the agribusiness, contributing to building a sustainable, export-oriented and higher added value agriculture sector in Vietnam,” he added.