Vietnam prepared to be a stable rice supplier for Egypt

On the morning of September 23, Deputy Minister Nam hosted Egyptian Chargé d'Affaires Adham Omar at the Ministry of Agriculture and Environment to discuss agricultural cooperation and the possibility of drafting a letter of intent to boost agricultural trade between the two nations.

Deputy Minister Nam highlighted the recent state visit by Vietnamese President Luong Cuong to Egypt, which yielded significant outcomes, with agriculture being one of key areas of cooperation. Following the visit, the Ministry of Agriculture and Environment was tasked with researching and proposing a framework for a trade agreement with Egypt's Ministry of Agriculture and Land Reclamation.

"We fully support this initiative," Deputy Minister Nam stated. "The potential for agricultural trade between our two countries is immense, but our current agricultural trade turnover is less than USD 50 million, a very small fraction of our total trade turnover of over USD 500 million".

The deputy minister noted that Vietnam holds a strong position in seafood, coffee, and rice, while Egypt is a vital supplier of cotton and fertilizer. Due to the long distance and similar climates, Egypt also produces some of Vietnam's staple crops like mango and dragon fruit, fresh fruit is not a primary export from Vietnam to Egypt. However, Vietnam is actively working to open its market to rice in Egypt.

At the second meeting of the Vietnam-Egypt Subcommittee on Trade and Industry Cooperation in August 2021, Egypt sought assistance in opening the market for fertilizers. Vietnam responded by promoting the use of organic fertilizers.

The Deputy Minister also recalled that the two countries' agriculture ministries had previously signed a technical cooperation memorandum of understanding in fisheries and agriculture, but it did not extensively cover trade. "We hope to work with Egypt to focus on agricultural trade, especially in key products where both sides have strengths and demand", he said.

Chargé d'Affaires Adham Omar shared his vision for cooperation with Vietnam. He explained that Egypt is implementing a green agricultural development strategy and values long-term relationships with international partners, especially whom can provide a stable supply.

"We highly commend Vietnam's socioeconomic development achievements and its capacity to export agricultural products, particularly rice and seafood", Mr. Omar said. He recalled the Egyptian President's visit to Vietnam in 2018, which catalyzed the two countries's signing of an agricultural cooperation agreement, and now there is an opportunity to sign a new memorandum of understanding focused on rice trade.

According to Mr. Omar, over the past decade, Egypt has reclaimed land and expanded its cultivated area by a quarter, steadily increasing production. While some products, like oranges, are now ready for export, the country still needs to import rice due to high consumption. He emphasized that for agricultural trade to grow, both sides must carefully consider pricing, competitiveness, and tariff and non-tariff conditions.

The Egyptian Chargé d'Affaires proposed that both sides form a joint working group to connect regularly online, involving relevant authorities to facilitate deeper discussions, resolve issues quickly, and promote effective cooperation.

In response, Deputy Minister Nam agreed to the mechanism, assigning the International Cooperation Department as the focal point to coordinate with Egyptian side. He also stressed the importance of agreeing on a timeline for signing the letter of intent and suggested a separate agreement for rice trade.

"The quality of Vietnamese rice is well-established, as it is now present in over 150 countries and territories", the deputy minister noted. He urged Egypt to study its annual rice import needs, and in turn, if a trade agreement is reached, Vietnam is committed to ensuring a sufficient supply. As a first step, the Egyptian Embassy could introduce interested rice importers to their Vietnamese counterparts to help draft a feasible agreement.

In addition to rice, Egypt is interested in Vietnam opening its market to several of its fruits. Deputy Minister Nam announced that Egyptian fresh grapes have now been cleared for phytosanitary purposes and can be exported to Vietnam. He also noted that beyond grapes, Egypt has requested Vietnam to prioritize market access for fresh potatoes, dates, and pomegranates. He asked the Egyptian side to provide a written document specifying the order of priority so that both sides can expedite the procedures.

Deputy Minister Nam concluded by emphasizing that direct business connections are the most effective way to foster substantial agricultural trade. "We propose organizing an agricultural promotion forum to provide an opportunity for businesses from both countries to meet and discuss their needs and cooperation possibilities", he suggested.