Hanoi (VNS/VNA) - Ireland sees great potential to providehigh-quality dairy products to the Vietnamese market, especially as tariffswill be reduced to zero percent on the first day of next year.

Thanks to the European Union (EU) and Vietnamese Free Trade Agreement (FTA)European dairy tariffs will be removed on January 1, 2023, after which Europe’smarket share is expected to rise.

“As the country at the heart of Europe, we see the huge potential in the tradedeal in exporting high quality of Ireland agro products to Vietnam,” saidIreland’s Minister for State at the Department of Agriculture, Food and theMarine, Martin Heydon T.D, affirming that Vietnam was an important strategicpartner of Ireland.

Thanks to the EVFTA, Ireland will also enjoy the zero percent of tariff, whichis currently 15%.

“The recognition of Vietnam as an important trade partner of the EU, along withthe European Union's EVFTA taking effect from August 1, 2020, Bord Bia, theIrish Food Board, aims to introduce premium dairy products to Vietnamesecustomers,” said Minister Heydon.

Heydon said Europe is the largest dairy-producing region in the world,producing about 145 million tonnes of dairy products in 2021. Ireland, atraditional dairy farming powerhouse, has about 17,000 farms.

According to the Bord Bia, the Irish government agency that manages thepromotion, trade development and marketing of the Irish food, drink andhorticulture industry, Ireland has a herd of 1.6 million dairy cows producing8.8 billion litres of milk, an average of 5,648 litres/head.

Bord Bia said Ireland exported more than 30 million euros of food and beveragesto the Vietnamese market in 2021, an increase of 55% compared to 2020.

The minister said Ireland's dairy products like cheese, milk and powder exportsto Vietnam increased by 159% in value in the first six months of 2022.

Nguyen Do Anh Tuan, Director of the Ministry of Agriculture and RuralDevelopment's International Cooperation Department, said Vietnam has exportstrengths in rice, coffee, rubber, pepper, cashew, tea, wood, etc. though alsoimports many shortage products like meat products, fertilisers and pesticides.

Michael Murphy, CEO of Bord Bia, who visited Vietnam with the minister,announced Bord Bia’s new three-year strategy outlines a target of 800 millioneuro in Irish food and drink exports to South East Asia by 2025, led by theIrish dairy and meat sectors.

In its Prioritising Markets - Opportunities for Growth study (2017), Bord Biaidentified Vietnam and the wider South East Asia region as a priority destinationfor Irish food and drink exports, with high potential for dairy exports inparticular.

As part of the trade mission, Minister Heydon will be meeting withrepresentatives from Vietnam's Ministry of Agriculture and Rural Development todiscuss market access issues and will also attend Bord Bia trade receptionswith customers of Irish dairy, pork and seafood in Hanoi.

Ciaran Gallagher, Regional Director, South East Asia, Bord Bia, said: “With thepopulation of South East Asia predicted to expand by a further 100 millionpeople by 2050, there will be a growing import demand, and one that 'Ireland isideally positioned to meet'."

He added: “Ireland and Vietnam share an understanding that security of supplyis key to allowing both countries to plan ahead for growth and success and, assuch, we are committed to developing durable business relationships with ourcustomers here.”

He added that the ambition is to build further on the strong partnershipsIreland has with customers in Vietnam and that trade missions like this are avaluable means of raising the profile of Ireland as a food producing nation andunlocking commercial opportunities for Irish food and drink companies.

The degegation announced Bord Bia would be hosting an Ireland stand at Food& Hotel Asia (FHA) trade show in Singapore as part of the trade mission./.