Five markets, one strategy: [3] Preparing early for export

Editor's note: Japan has recently issued seven new regulations on importing agricultural quarantine, applicable to many product groups such as vegetables, tubers, fruits, grains, oilseeds, spices, coffee, honey, and livestock products. On this occasion, VAN News had an interview with Mr. Vu Cuong - Agricultural and Environmental Counselor to Japan - about the opportunities, challenges, as well as orientations to promote cooperation, connect businesses, and enhance the value of Vietnamese agricultural products in the coming time.

Japan updates 7 regulations on imported agricultural products

First, could you please tell us which groups of agricultural products have the most distinct competitive advantages that can be exploited in the Japanese market to contribute to the 100 billion USD export target?

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We need to focus on three main groups. First is the group of agricultural products with high turnover that are currently still sold as raw materials, such as coffee. Second is the fresh goods group, which depends heavily on logistics capacity. Finally, there is a group of products that major consumer markets like China, the United States, and Japan have very high demand for, but we have not been able to open yet, especially fresh fruits and vegetables.

Japan has recently issued numerous new regulations on plant quarantine and chemical residues. What should Vietnamese enterprises pay attention to, sir?

The first thing to note is not to be overly worried when seeing that Japan is the country issuing the most new notifications in this period, with 7 new documents published.

Accordingly, enterprises must thoroughly study each specific regulation related to their products: which product the regulation applies to, when it takes effect, and what changes the enterprise needs to make in its production process to meet the requirements.

For new active ingredients with insufficient assessment data, Japan usually sets a very low limit of 0.01 ppm as a precautionary measure in the initial phase. This regulation applies equally to both domestically produced agricultural products and imported goods, so there is no discrimination between Japanese and foreign enterprises.

After having more research data and practical evaluations regarding usage levels, residue amounts on agricultural products, and the impact on consumers' health, Japan will adjust the threshold accordingly. This adjustment can be in a stricter direction, but can also be relaxed depending on the results of the scientific assessment. Therefore, a country regularly updating its regulations does not necessarily mean it is continuously erecting more trade barriers.

For regulations that reduce the allowable residue limit, Japan usually allows about one year for enterprises to adjust their production processes and quality control. Even after the regulation takes effect, if a shipment is found to have residues exceeding the threshold, the Japanese side usually increases the inspection frequency for that item rather than immediately stopping imports.

This approach helps enterprises have more time to review production processes and overcome arising issues. In my opinion, if Vietnamese enterprises proactively monitor information and prepare early, they are fully capable of meeting the new requirements of the Japanese market.

Consumption trends in the final months of the year

In the third quarter of this year, which Vietnamese agricultural and aquatic product groups are projected to have high demand in the Japanese market, sir?

Consumer demand for agricultural and aquatic products in Japan in the third quarter of every year, including this year, is clearly affected by weather conditions and traditional Japanese holidays and vacations.

First of all is the impact of the hot summer. July and August in Japan are usually very sultry and have high humidity, causing the demand for cooling and hydrating foods to surge. This is a favorable time for many tropical fruits in Viet Nam, such as coconuts, mangoes, dragon fruits, longans, lychees, bananas, and pineapples, as well as fruit juice products.

Besides, Japanese people have a habit of consuming dishes that help recover physical strength in the hot season. A prime example is the Doyo no Ushi no Hi day, which usually falls in late July or early August. This year, this day takes place on July 26. Traditionally, people will eat eel to enhance their health and combat the hot weather. Since domestic eel supply is limited, Japan has to import large quantities of processed eel, creating significant opportunities for Vietnamese eel-exporting enterprises.

August is the time of the Obon festival, one of the most important holidays of the year for Japanese people. During this period, millions of people return to their hometowns or travel with their families, driving up the demand for food consumption at restaurants and family restaurant chains. This is an opportunity for items like processed chicken, coffee, and many processed food products of Viet Nam. In addition, the demand for gift-giving products and family meals, such as premium fruits, high-quality shrimp, and tuna, also usually increases significantly during this occasion.

The hot weather leads many Japanese families to limit cooking at home and prioritize convenient, fast-processed products. Therefore, deep-processed aquatic products, value-added frozen seafood, battered shrimp, or ready-to-eat dishes sold at supermarkets often record very good growth in the third quarter. Consumers only need to heat them up or do simple preparation to use them immediately.

From around September, many Japanese importers begin to prepare goods for the autumn, winter, and the Solar New Year occasion. This is the time when the demand for importing items serving hotpot, grilled dishes, and end-of-year consumer foods increases. Therefore, Vietnamese enterprises need to closely monitor market demand to proactively plan production and delivery early on.

Going out to elevate Vietnamese agricultural products

In your opinion, how does increasing the presence of Agricultural Counselors abroad help connect with and elevate the brand of Vietnamese agricultural products?

Apart from the information functions and being an extended arm of the Ministry of Agriculture and Environment in Japan, in the mission of connecting businesses, the specifics between a Trade Counselor and an Agricultural Counselor have relatively clear differences. If a Trade Counselor mainly grasps information about the buying-selling needs of businesses in the host country and connects them with domestic businesses that have corresponding needs for them to proactively cooperate, then in my opinion, the Agricultural Counselor, with deep expertise, has the role of going one step ahead.

First of all is in researching and evaluating potentials, thereby participating in connecting with the role of an expert in the field of agriculture, advising suitable solutions for enterprises. Therefore, Agricultural Counselors need to go to the field a lot, directly accessing agricultural production activities. We do not simply market goods, but also learn about agricultural philosophy, thereby advising and connecting businesses on both technological solutions and production know-how. The expectation is that from these insights, new cooperation opportunities can be opened, forming new business deals, new enterprises, and even new agricultural sectors.

What do you expect regarding coordination between domestic agencies and the counseling system to achieve the goal of sustainable growth?

We really hope to receive trust and specific "orders" from back home. Pioneers abroad always need a solid support team behind them, following a public-private partnership model. From local governments in planning production oriented toward market demands and building geographical indications; to ministries and branches in supporting national trade promotion programs and processing information; to institutes and universities in R&D work to realize ideas; and the active, proactive participation of the business community and startup centers is indispensable.

Agriculture has its own unique characteristics: it must both ensure food security and pursue green, sustainable goals. Therefore, we should not expect immediate growth in the early years, but should target medium- and long-term growth, while valuing the formation of value-adding elements, rather than focusing solely on growth indicators such as export turnover or GDP.

Thank you very much, and wish you a highly successful term in Japan!