Vietnamese businesses exporting to China face a mix of objective challenges requiring government intervention and self-inflicted risks. These issues were highlighted by Nguyen Thi Thanh Thuc, CEO of AutoAgri Software Technology Corporation, at a recent seminar on vegetable and fruit exports to China.  

In 2018, Thuc's company collaborated on cultivating 20 hectares of small Japanese pumpkin in Ha Nam Province, a variety popular in Chinese cuisine. While initially permitted for informal border trade, Chinese authorities discontinued such imports at harvest time in early 2019.  

Although many Vietnamese agricultural products have gained official export channels to China, numerous potential crops - especially winter-season vegetables - remain excluded.  

Thuc observed that while many Vietnamese traders successfully import Chinese seeds via informal channels or e-commerce, some Chinese agricultural corporations have proposed investing in pilot farming projects in Vietnam. They offer technical assistance, noting that winter vegetables grown with Chinese seeds in northern Vietnam can yield incomes at least three times higher than rice cultivation.

However, Thuc has hesitated to proceed, concerned about the inability to secure formal export channels to China - a dilemma persisting for over a decade.  

Regulations tighten on informal trade

In October, the Ministry of Industry and Trade submitted a revised decree to the government aimed at phasing out informal border trade due to risks like price manipulation and seasonal congestion. Starting January 1, 2030, import-export activities will only be allowed at international and major border gates or designated customs clearance points.  

Thuc emphasized the winter season as a prime opportunity for Vietnamese exporters, given China’s limited outdoor cultivation due to cold weather. For instance, high-value crops like goat's beard mushrooms, grown outdoors in northern Vietnam, contrast with greenhouse cultivation in China's Shandong Province. Similarly, Ninh Thuan Province can grow asparagus for export to both China and other global markets.  

"We hope relevant authorities can establish protocols to expand formal export channels for more Vietnamese crops, especially winter produce," Thuc urged.  

Challenges with growing region codes  

Nguyen Phong Phu, Technical Director at Vina T&T Group, pointed out that acquiring a planting area code (PUC) from China’s General Administration of Customs (GACC) is a prerequisite for exporting fruits and vegetables. Codes require a minimum area of 10 hectares and adherence to strict guidelines, including cultivation logs, pest management, and annual inspections.  

Phu noted that the codes enable exporters to monitor pesticide residues and compliance with importer standards. AutoAgri has developed software meeting China's traceability and PUC requirements, ensuring even illiterate farmers can use it effectively.  

However, implementation remains challenging. Local authorities often cite farmers' lack of interest as a barrier, and Vietnam’s laws do not yet recognize intercropped areas. For example, coffee plantations in the Central Highlands frequently intercrop with avocado and durian, but certification issues arise over which crop qualifies for a code.  

"The absence of regulations for intercropped areas complicates procurement and creates unnecessary challenges," Thuc lamented.  

Self-inflicted risks by businesses  

"One Vietnamese business relied on a Chinese partner to register its export code on the GACC CIFER system. The code expires in 2027, but the partner has since faced legal troubles, jeopardizing renewal. Can the Ministry of Industry and Trade assist in extending this code?" asked Doan Thanh Hang, Chairwoman of Thai Nguyen Agricultural Cooperative Union.  

China has adopted two export registration systems: CIFER for foreign manufacturers and IRE for importers and exporters. Nguyen Trung Kien, from the Asia-Africa Market Department, criticized businesses for outsourcing sensitive tasks.  

"Such reliance compromises data security. Exporters should train staff fluent in Chinese or English to manage registrations directly. If disputes arise, relying on third-party registrations leaves little recourse," Kien warned.  

Kien also recommended diversifying export destinations within China, citing potential in provinces like Tibet, Qinghai, Sichuan, and Gansu in the southwest, as well as Henan, Anhui, and Hubei in central China.  

"Vietnamese businesses often neglect trademark registration, resulting in lost brand rights to Chinese firms. Recovery is challenging, even with government support. Stronger branding efforts are essential," he advised.  

Tam An