Illustrative image (Source: VNA) HCM City (VNA) – Vietnam’s total shipment to the US in the first fourmonths of the year rose 8.7 percent year-on-year to 12.4 billion USD, accordingto the General Department of Vietnam Customs.
Vietnam’s key exports to the American nation included aquatic products, garments,footwear, wood and wooden products, computers, electronics, spare parts andfarm produce.
However, shipments of such products will taper off as Vietnam is facing myriadsof free trade barriers, experts said at a conference held in Ho Chi Minh Cityon June 7.
They stressed that Vietnamese enterprises also face difficulties in enhancing domesticproduction capacity and have no comprehensive access to food safety and hygieneregulations as well as current procedures to enter US market.
Vietnam’s key exports to the American nation included aquatic products, garments,footwear, wood and wooden products, computers, electronics, spare parts andfarm produce.
However, shipments of such products will taper off as Vietnam is facing myriadsof free trade barriers, experts said at a conference held in Ho Chi Minh Cityon June 7.
They stressed that Vietnamese enterprises also face difficulties in enhancing domesticproduction capacity and have no comprehensive access to food safety and hygieneregulations as well as current procedures to enter US market.
Analysingnew daunting challenges for Vietnamese exporters, Vice President of RegistrarCorp David Lennarz said that Vietnamese enterprises need to haverepresentatives in the US or the designated party.
According to the US law, all of the foreign firms exporting food and beveragesfor people and animals into the US market must re-register every two years.This included registering their manufacturing facilities and representatives inthe US so that they could be issued with a new valid business code. This taskneeded to be completed before the shipment arrives in the US.
However, since 2017 the US Food and Drug Administration (FDA) has changed themethod of verification for issuing new business codes and established furtherregulations. After being designated by the manufacturing facilities andregistered with the FDA, the firms’ representatives in the US must send aletter or document to the FDA confirming their authorisation to represent aVietnamese manufacturing facility in the US.
If the FDA does not receive the letter or document, the re-registration isconsidered incomplete and the business code will be cancelled.
From the end of 2016 to the beginning of 2017, number of Vietnamese businesseshaving registration with the FDA for exports to the US fell 45 percent. Thiswas due to the fact that Vietnamese businesses have no representatives in theUS or the representatives do not send verification to the FDA.
Shipments by Vietnamese firms that are unaware that their FDA business codeshave been revoked will be refused entry to the port.
Vietnam currently ranks 16th among the US’ leading trade partners.Bilateral trade grows 20 percent annually and Vietnam has enjoyed a trade surpluswith the US in the past 10 years. -VNA
According to the US law, all of the foreign firms exporting food and beveragesfor people and animals into the US market must re-register every two years.This included registering their manufacturing facilities and representatives inthe US so that they could be issued with a new valid business code. This taskneeded to be completed before the shipment arrives in the US.
However, since 2017 the US Food and Drug Administration (FDA) has changed themethod of verification for issuing new business codes and established furtherregulations. After being designated by the manufacturing facilities andregistered with the FDA, the firms’ representatives in the US must send aletter or document to the FDA confirming their authorisation to represent aVietnamese manufacturing facility in the US.
If the FDA does not receive the letter or document, the re-registration isconsidered incomplete and the business code will be cancelled.
From the end of 2016 to the beginning of 2017, number of Vietnamese businesseshaving registration with the FDA for exports to the US fell 45 percent. Thiswas due to the fact that Vietnamese businesses have no representatives in theUS or the representatives do not send verification to the FDA.
Shipments by Vietnamese firms that are unaware that their FDA business codeshave been revoked will be refused entry to the port.
Vietnam currently ranks 16th among the US’ leading trade partners.Bilateral trade grows 20 percent annually and Vietnam has enjoyed a trade surpluswith the US in the past 10 years. -VNA
VNA
