VIETNAM GENERAL CONFEDERATION OF LABOUR TON DUC THANG UNIVERSITY DAI HOC TON BUC THANG FACULTY OF BUSINESSADMINISTRATION TON DUC THANG UNIVERSITY PRACTICE OF INTERNATIONAL TRADE ANALYSIS OF LYCHEE EXPORTING Lecturer: MBA. Nguyen Thi Tuong Vy Class: Practice of international trade Group:3 1. Hoàng Trâân Minh Tú - 719H0570 2. Hôâ Vịnh Nghỉ - 719H 0441 3.
Nguyêên Phan Bình An — 719H0321 4. Phan Minh Thư - 719H0536 5. Hôâ Thị Kim Ngân - 719H0791 6. Ngô Thụy Đình - 719H0345 HO CHI MINH, JANUARY 2021 ACKNOWLEDGEMENT In order to successfully complete the report, along with the efforts and knowledge of the whole group, we would like to express our sincere thanks to lecturer MBA.
Nguyen Thi Tuong Vy for giving direct instruction and assistance to us in implementing this report. Due to limited knowledge and time, there will be shortcomings in the report. We hope that you will share your knowledge and advice by making comment on this report so that our future report can be more complete. Thank you sincerely.
LIST OF MEMBERS No. | Fullname ID No. Assignment Completion rate 1 Hoàng Trâân | 719H0570 | Complete 2.3 100% Minh Tú Complete word 2 Hôâ Vịnh Nghiị 719H0441 Complete 2.4 100% 3 Nguyêên Phan| 719H0321 | Complete introduction, 100% Bình An conclusion and chapter 3 4 Phan Minh 719H0536 | Complete 2.1 100% Thư 5 Hôâ Thị Kim [| 719H0791 | Complete 2.2 100% Ngân 6 Ngô Thụy 719H0345 | Complete 2.6 100% Đình CONTENT CONTENT. Overview of lychee export in Vietnam.2 Export activity of lychee in Vietnam.
HH ng 221211 x4 10 IV Nho (oan san.2 Criteria of evaluating the quality of exported lychee.4 Supply and demand of Vietnam lychee. Analysis of Vietnam lychee export aCtiVỈẨV.1 Process export lychee in Viet Nam. HH HH HH ng re 15 2.1 OVerVieW DFOC©SS.- ----- SH HH HH KH th HH 16 2.2 Procedure of exporting lychee in Vietnam. --cc nh xe 19 2.3 Vietnam export lychee pFÏC.
HH TT TT KT KH HH ghe.1 Vietnam’s export lychee price and quantitV.2 Factor affecting (2s an son.3 The quality and categories of lychee export in Vietnam.4 Vietnam’s lychee export Market.5 Vietnam's export lychee compDetÏOFS.- --cc c1 H1 1 ng x2 36 F5 o9 nh.cccccecccceeseceeseseeeeeeseeeseseeesceaeeeessaeee seaeessseaeeeeeaeseseaeeseqneeeeeeeeees 38 F680 aaAa.5 Exporting lychee saleS COTIEFACE. HH TH ng nhe.6 Custom clearance in Vietriam.- «HH HH ki 44 2. Time and time limit for customs cÏearance. The individual signed his / her signature on the Customs declaration 0 1.
The solution of developing export actiVIYiS. cà se xe. 51 INTRODUCTION International trade activities have a great impact on the Vietnamese economy. Nowadays, Vietnam is integrating into the world most strongly through import and export activities.
Vietnamese agricultural products are increasing their value and position in the international market. Vietnam's lychee is currently being used by consumers and import commercial enterprises as having the best quality in the world. To achieve that, Vietnamese lychee must pass strict standards to be able to appear in supermarkets in other countries. In 2021, Vietnam exported 89,300 tons of lychee that accounted for 41.4% of total consumption despite facing the Covid-19 pandemic.
Every year, Vietnam has averaged about 50% of total lychee output exported to nearly 30 countries and territories around the world such as China, the US, EU, Canada, Australia. Total revenue from lychee is estimated at 4,274 billion VND, revenue from ancillary activities and services is about 2,547 billion VND. Despite being affected by adverse developments due to COVID-19, in 2021, lychee still retains its quality, position in the international market, and brings a huge source of revenue to our country. As mentioned, lychee brings a huge capacity both in terms of revenue and integration of Vietnam into the world.
However, some problems limit its evolution. For example, logistics and supply chain processes have not been able to bring out the full effect that they should have. During the Covid-19 pandemic, supply chain disruptions are becoming more and more frequent. Specifically, according to Tuoi Tre newspaper, by December 2021, up to 4,300 container trucks were stuck at Lang Son and Lao Cai border gates during the export of lychee to China.
Especially in the Tan Thanh border gate area, trucks have the largest backlog with nearly 2,500 trucks, mainly agricultural products. Similarly, the procedures, processes, and conditions for exporting goods are increasingly difficult and have not been technology. That has made the paperwork and censorship process take a lot of time, leading to much damage to the lychee in the waiting time. Therefore, many challenges and difficulties have been created for the supply chain to operate smoothly and smoothly.
This is the reason why our team decided to choose the topic “Analysis Of Lychee Export Activities In Vietnam” for our report. The report consists of 3 main parts: ® Chapter 1: Overview of lychee export in Vietnam ¢ Chapter 2: Analysis of Vietnam lychee export activity ¢ Chapter 3: The solution of developing export activities CHAPTER 1. OVERVIEW OF LYCHEE EXPORT IN VIETNAM 1.1 Lychee production in Vietnam Lychee is a very famous agricultural product in Vietnam. Lychee originates from South China and has appeared in Vietnam for a long time.
In 1942, a French scientist discovered a wild lychee tree at the foot of Ba Vi mountain. In 1970, Professor Vu Cong Hau and his colleagues discovered many lychee trees growing wild in Vinh Phuc and Quang Binh provinces. To date, Bac Giang and Hai Duong are the two localities that grow lychee and give the highest yield in our country. In the COVID-19 pandemic, trade activities were significantly limited.
However, exporting lychee still followed an upward trend. In 2020, the total domestic consumption of lychee will account for about 52.5% of the total consumption. Vietnamese lychee is rated as the best lychee in the world. Every year, Vietnam has more than 50% of total lychees production exported to nearly 30 countries and territories worldwide.
Lychees are grown mainly in some northern provinces, especially Bac Giang, which is considered as the “capital of lychee” of Vietnam. For the export market, 47.5% of the total output, equivalent to 78,200 tons of lychee. Lychee is mainly exported to China and some EU countries, the US, Australia, fiapan, South Korea, Singapore, Thailand, the Middle East, etc. In which: The Chinese market is estimated at 77,300 tons, accounting for 98.8%; The remaining markets are estimated at 900 tons, accounting for 1.2% of export volume.
For fiapan, Vietnamese lychee has a very high selling price, ranging from VND 350,000 to VND 500,000 for 1 kg. Despite the high price, the quantity consumed is always in a state of out-of-stock. As of fiune 4 2021, Bac Giang has exported up to 70 tons of lychee. Not only in fiapan but Vietnamese lychee also conquered an equally tifastidiousti market, Singapore.
From now until the end of the lychee season, Singapore will consume at least 1 40-foot container every week. It is expected the export volume can be up to 100 tons. For China, this is a large fabric consumption market that Vietnam always wants to target. As of fiune 2, 2021, over 9,000 tons of lychee have been exported to China.
On average, 1,000 tons of lychee are exported every day. According to Mr Tran Quang Tan (Director of the Department of Industry and Trade of Bac Giang province}, Bac Giang is expected to export about 47,000 tons of fresh fruit to the Chinese market. Besides familiar markets, Hai Duong lychee has been exported to a new market - Thailand in 2021. Recently, Ameii Vietnam fioint Stock Company exported 10 tons of fresh lychee to Thailand by sea.
Previously, this enterprise also exported 1 ton of fresh lychee to Thailand by air. This is the first time Hai Duong lychee has been exported to Thailand. This can be considered as an opportunity for our lychees to appear in other countries and expand international transactions.2 Export activity of lychee in Vietnam 1.1 Lychee export theory Selling and transporting goods out of the Vietnamese territory or into a special area located on the territory of Vietnam for production and business development is called export activities and currency is used as a payment method. This activity plays a crucial role in international business.
Exporting lychee is the activity of selling and transporting lychee out of Vietnam territory to other countries in the world based on the process and law. Use currency as a payment method. This process includes harvesting, sifting, sterilization, processing, packaging, irradiation Exporting Lychee not only brings profits to businesses/individuals but also creates close relationships between countries. Lychee is becoming a potential 10 agricultural product of Vietnam, affirming the position of Vietnamese agricultural products in the world.2 Criteria of evaluating the quality of exported lychee Lychees that are exported to China, fiapan, Australia need to meet the following quality standards: ® The ripeness: the flesh must have the characteristic aroma of lychee.
The taste is sweet, fresh and juicy. Besides that, the colour of lychee must be bright, blushing or red throughout the skin and the total soluble dry matter content of lychee juice is not less than 17% ® The weight: The diameter when cutting at the largest horizontal surface must meet the standard committed in the sales contract and must not be less than 25mm. The number of fruits in the total weight of 1kg is not more than 65 and the steamer is no longer than 5mm. These standards make sure that the quality of exported lychee is in the best condition ® The shape: In order to export, lychee must be ensured about the shape.
Lychee must be fresh, plump and grow normally. The length of the steamer must reach the allowable level as agreed in advance in the sale contract Moreover, if the company wants to export lychee to fiapan market, they need to meet the standards on pesticide residues and the lychee fruit must be fumigated before export. There are two conditions that the fresh lychee must be met: 1kg has 25-30 lychees and the sweetness is over 18 degrees. With strict requirements on plant quarantine, Lychees exported to fiapan must be grown in gardens that are inspected and supervised by the Plant Protection Department and issued with planting area codes, meeting the regulations on plant quarantine and food safety in fiapan.
Exported lychees must be packed and fumigated with Methyl Bromide at establishments recognized by the Plant Protection Department and the fiapanese Ministry of Agriculture, Forestry and Fisheries (MAFF) with a minimum dose of 32g/ m3 within 2 hours under the supervision of plant quarantine officers of Vietnam and fiapan. The lychee must be accompanied by a phytosanitary certificate issued by the Plant Protection Department. To the China market, they not only focus on the quality of the product but also the packaging design so the packaging also needs to be improved to make consumers more interested. The lychee will be packed into a plastic bag with 1kg- 2kg of fruit and these plastic bags will be placed in a perforated, partitioned carton.
Lastly, packages must be labelled with the required information. To be able to export to the US market, Vietnamese lychee has to go through many mandatory regulations according to VietGAP and GlobalGap standards. In addition, the US Department of Agriculture requires Vietnam to plan the growing area of lychee as well as the map and related code issued by the Plant Protection Department of Vietnam and monitor it to ensure that the lychee is not infected. After harvesting, lychees must be irradiated to remove parasites (16 types of bacteria, fungi to prevent pests.) and must be labelled with irradiation to kill parasites.
In addition, the US sets very strict regulations on residues of antibiotics as well as pesticides, which are calculated at the rate of parts per billion per shipment of agricultural products of countries, including Vietnam.
