Lychee Export Adaptation for EU & US Markets | Môn Marketing quốc tế - Đại học Kinh Tế Quốc Dân

lOMoAR cPSD| 59691467
Discuss the requirements for packaging, labeling, quality, and standardization
or adaptation of lychee export from Vietnam to the EU and US markets.
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1. Cần nêu tình hình sản xuất và xuất khẩu Vải (Quỳnh Anh + Phương Anh)
- cần nêu tình hình sản xuất và xuất khẩu vải thế giới (Phương Anh)
- cần nêu cơ cấu sản xuất vải và cơ cấu xuất khẩu vải thế giới (Phương Anh)
- cần nêu tình hình sản xuất và xuất khẩu vải Việt Nam (Quỳnh Anh)
- cần nêu cơ cấu sản xuất và xuất khẩu vải Việt Nam (Quỳnh Anh)
2. Tìm hiểu the requirements for packaging, labeling, quality and
standardization or adaptation of lychee export from Vietnam to the EU
and US markets. Quỳnh Anh (EU) + Phương Anh (USA)
3. Tìm hiểu về các luật lệ xuất khẩu và các tổ chức quản lý của VN (Tuyết
Anh + Hồng Quỳnh) + Hồng Quỳnh (của Châu Âu) + Tuyết Anh (của Mỹ)
4. Tìm hiểu về các cơ hội, khó khăn thách thức về các luật lệ khi xuất khẩu
vải và tìm hướng giải pháp: Tuyết Anh + Hồng Quỳnh
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1. Introduction of Lychee Production and Export: The World and Vietnam
1.1. Introduction of Lychee Production and Export in the World lOMoAR cPSD| 59691467
Increasing Demand from International Markets
Consumers are becoming more aware of health issues and conscious about their
diet. Lychees are well known for being healthy fruits. Lychee is a specialty fruit that
is slowly gaining popularity in Europe, although average consumption per capita is
still limited. The fruit is gaining popularity in France as well. Consumption of
sustainably produced fresh fruit offers greater opportunity in Europe.
The rising demand for lychee in France and other EU countries is expected to boost
lychee imports further in the coming years. Thus, the demand for lychee in many
countries is increasing tremendously with each passing year. The exports to
international markets, along with domestic consumption, are expected to grow during the forecast period.
Lychee is becoming more popular in the perfume, skincare, and hair care industries,
as well as in the cosmetics and fragrances industries. The growing HORECA
industry in the United States, which serves continental food, is driving up demand
for the fruit. The lychee fruit is now finding its way into supermarkets across
Canada. The majority of the consumption is based on importing the fruit from
neighboring countries and Asian countries. Litchis are consumed in salads, ice
creams, custards, and other desserts by the Canadian population.
China is the leading exporter of lychee fruit. The country exported lychee fruit worth
USD 63.3 million in 2021, with the main destinations being Hong Kong, Singapore,
the United States, Indonesia, the Philippines, and Malaysia.
1.2. The landscape of lychees production and export in the world
Lychee Market Size (Source: Mordor Intelligence) - Study Period: 2018-2028
- Market Size (2023): USD 6.73 Billion
- Market Size (2028): USD 8.79 Billion - CAGR (2023 - 2028): 5.50 %
- Fastest Growing Market: Asia-Pacific
- Largest Market: Asia-Pacific
Lychee Market Analysis: (Source: Mordor Intelligence)
The Lychee Market size is expected to grow from USD 6.73 billion in 2023 to USD
8.79 billion by 2028, at a CAGR of 5.50% during the forecast period (20232028).
1.3. Introduction of Lychee Production and Export in Vietnam
China might be the world’s largest lychee exporter, but Vietnamese lychee export
reaches 30 countries. It includes the European Union, Japan, Australia, the Middle
East and the United States, among others. lOMoAR cPSD| 59691467
The country's lychee fruit production is about 200,000 - 250,000 tons / year, mainly
concentrated in Bac Giang, Hai Duong and some other neighboring areas.
2. The requirements for packaging, labeling, quality, and standardization
or adaptation of lychee export from Vietnam to the EU and US markets
2.1. The United States of America Market (U.S. Department of agriculture)
a. Packaging Requirements (Total: 12 requirements)
● Packaged at the factories certified by USDA APHIS,
● Well-secured bottom and top lid, no visible gaps on packaging
● Sourced into sizes and stored at desired temperature facility
● If air shipments are not palletized, cartons must be pest proof, and the
shipment can be broken down into smaller shipping units, such as LD-3 air cargo containers
● The palletized boxes or cartons must be wrapped with polyethylene shrink
wrap, net wrapping, or strapping (excluding air shipments.)
b. Labeling Requirements (Total: 22 requirements)
● Stamped “Not for importation into or distribution within Florida”
● A stamp with the words "Treated by irradiation" or "Treated with radiation"
● Boxes or cartons must be marked with: ○ Production Unit Code (PUC)
○ Treatment Facility Code (TFC) ○ Packinghouse Code (PHC) ○ Packing date ○ Lot number
○ The international radura symbol
● If the boxes or cartons are not palletized, they must also include:
○ Treatment Facility Code (TFC)
○ Treatment Identification Number (TIN) ○ Treatment date
● If the boxes or cartons are palletized, the pallets need to display only:
○ Treatment Facility Code (TFC)
○ Treatment Identification Number (TIN) ○ Treatment date
c. Quality Requirements
A bilateral agreement between APHIS and the National Plant Protection
Organization (NPPO) of Vietnam is required before irradiation in the US. Growing condition:
● Litchi fruit must be grown in orchards registered with and monitored by the
National Plant Protection Organization (NPPO) of Viet Nam to ensure the
fruit is free of disease caused by Phytophthora litchi Treatment condition: lOMoAR cPSD| 59691467
● Litchi fruit must be treated with irradiation for plant pests of the class Insecta,
except pupae and adults of the order Lepidoptera, in accordance with 7 CFR Part 305
● Not infected with Phytophthora lichi fungus
● No overuse of forbidden plant protection drugs by the FDA: Iprodione,
Cypermethrin, Difenoconazole, Carbendazin và Chlorothalonil
● Must be irradiated for pest elimination under 7 CFR requirements (according to USDA APHIS)
d. Standardization/adaptation Global GAP VietGAP
For consumers’ benefit, exporters must register production facilities and representatives in the US
2.2. EU Market (source: Exporting lychees to Europe | CBI)
a. Packaging Requirements Wholesale packaging:
Usually in boxes of about 2 to 2.5kg. Larger boxes may be used as well, especially
if produce is repacked in Europe.
The contents of each package must be uniform and contain only lychees of the same
origin, variety or varietal type, quality, size, and color. The visible part of the
contents of the package must be representative of the entire contents. The containers
shall meet the quality, hygiene, ventilation, and resistance characteristics to ensure
suitable handling, shipping, and preserving of the lychees. Packages (or lots for
produce presented in bulk) must be free of all foreign matter and odour. Consumer packaging:
Fresh lychees are sold either right out of the wholesale box or in plastic trays (punnets) of various sizes.
b. Labeling Requirements
Consumer package labeling must be in accordance with the rules and regulations
applying in the European Union.
Labels cannot contain any toxic ink or glue.
Each package (non-retail package) must bear the following particulars, in letters
grouped on the same side, legibly and indelibly marked, and visible from the outside:
● Identification: Name and address of exporter, packer and/or dispatcher.
Identification code (optional);
● The nature of the product: Name of the product if the contents are not visible
from the outside. Name of the variety or commercial type (optional); lOMoAR cPSD| 59691467
● Origin of product: Country of origin and (optional) district where grown or
national, regional or local place name;
● Commercial identification: class, and optionally size (code), and/or net weight; ● Traceability code;
● Official Inspection Mark (optional).
For retail packaging, if the produce is not visible from the outside, each package
must be labeled with the name of the produce and may be labeled with the name of
the variety or varietal type. Any certification logo or retailer logo may be on the
labeling if requested, in the case of private label products.
c. Quality Requirements
Import of fresh lychees to the EU must conform to general marketing standards for
Fresh Fruits and Vegetables. The general marketing standards for fresh fruit and
vegetables contain minimum quality requirements. Products should be: ● intact, clean and sound;
● (practically) free from pests, damage, abnormal external moisture, internal browning;
● in a condition to withstand transport and handling.
These standards are in conformity with the CODEX Alimentarius standard for Litchi
Lychees are classified in three quality classes:
● “Extra Class” are products of superior quality. Products in this class must
have the shape, development, and colouring that are typical of the variety or
varietal type. Extra Class produce is free of defects, with the exception of
very slight superficial defects. Slight defects should not affect the general
appearance of the produce, the quality, the keeping quality, and presentation in the package.
● Class I Lychees are of good quality that can only contain slight defects (slight
misshaping, colouring or skin defects not exceeding 0.25 cm2).
● Lychees that satisfy the minimum requirements but do not qualify for Class
I or Extra Class can enter the EU market classified as “Class II”. However,
the market for Class II produce is very limited. Class II lychees can have e.g.
skin damage, provided that these do not exceed 0.5 cm2.
d. Standardization/adaptation ● GLOBALG.A.P.
● BRC (British Retail Consortium)
● IFS (International Food Standard)
● FSSC22000 (Food Safety System Certification)
● SQF (Safe Quality Food Programme) lOMoAR cPSD| 59691467
3. Regulations and organizations of lychee exporting
3.1. Vietnam regulations and organizations of lychee exporting: a. Regulations
- To engage in export and import business, a company must obtain a business license for
export and import issued by the Ministry of Commerce.
- For enterprises specialized in export and import business:
+ They must be established in accordance with the law and commit to comply with the current legal regulations.
+ The enterprise must have a minimum working capital equivalent to 200,000 USD in
Vietnamese currency at the time of applying for the export and import business
registration. For enterprises located in mountainous provinces and provinces facing
economic difficulties, particularly those dealing in export-promotion encouraged items
that do not require significant capital, the minimum working capital mentioned above
is set at an equivalent of 100,000 USD.
+ The business activities must align with the industry specified during the establishment of the enterprise.
+ They must have a competent team of business professionals and engage in signing foreign trade contracts.
- A Certificate of Free Sale (CFS), also known as a Free Sale Certificate (FSC) or
Certificate of Export, is an official document issued by a government authority or
regulatory agency in a specific country. This certificate attests that a particular product,
such as food, pharmaceuticals, cosmetics, or other consumer goods, is freely sold and
meets the safety and quality standards required in the country of origin. b. Organisation
- The Import-Export Department is an organization under the Ministry of Industry and
Trade, performing the function of advising and assisting the Minister of Industry and
Trade in state management and organizing law enforcement in the field of export,
import and export of goods. Origin of goods, international purchase and sale of goods,
agents for buying, selling, processing and transiting goods with foreign countries, fall
under the state management of the Ministry of Industry and Trade.
- Department of Agricultural Processing and Market Development (AgroTrade):
AgroTrade is an agency under the Ministry of Agriculture and Rural Development of
Vietnam. They are responsible for managing and promoting the export of agricultural products, including lychees.
- People’s Committee of Bac Giang Province: Bac Giang is one of the famous provinces
for lychee production in Vietnam. The People’s Committee of Bac Giang Province
usually has the role of managing the production, quality and export of lychees from this province.
- Cooperatives and Farmers’ Associations: Many cooperatives and farmers’ associations
are also involved in managing lychee exports. They can provide farmers with technical
support, collection and product testing to ensure quality and compliance with food safety regulations.
- Testing and certification agencies: Independent or autonomous agencies authorized by
governments or international organizations can test and certify lychee products to
ensure that they meet quality standards. international food quality and safety.
3.2. European regulations and organizations of lychee exporting lOMoAR cPSD| 59691467 a. Regulations -
Phytosanitary Requirements: Lychee exports to the EU must adhere to strict
phytosanitary requirements to prevent the introduction and spread of pests and
diseases. These requirements are outlined in the EU Plant Health Regulation.
Exporters typically need to obtain a phytosanitary certificate from the relevant
authorities in the exporting country, confirming that the lychees are free from
quarantine pests and diseases. -
Residue Limits: Lychees exported to the EU must meet maximum residue limits
(MRLs) for pesticides and chemical residues as specified in the EU Regulation (EC)
No 396/2005. It is essential to ensure that any pesticides or chemicals used during
cultivation and post-harvest handling are within the acceptable limits. -
Food Safety and Quality Standards: Lychees must meet the EU's food safety and
quality standards. This includes compliance with regulations on microbiological
criteria, contaminants, and food additives. The EU General Food Law Regulation
(Regulation (EC) No 178/2002) sets out the principles and requirements for food safety. -
Labeling and Packaging: Lychee packaging and labeling must comply with EU
regulations. Labels should include information such as the name of the product, the
country of origin, lot identification, and any required allergen information. Packaging
materials should meet EU standards for food contact materials and articles. -
Traceability: Exporters should maintain comprehensive records of lychee shipments,
including information about the origin, production, and distribution. The EU requires
traceability to ensure that products can be tracked and recalled if necessary. -
Customs Procedures: Compliance with EU customs procedures and documentation
requirements is essential. This includes accurate customs declarations, invoices, and
other documentation related to the export process. -
Importer Registration: In some cases, EU importers may need to be registered with the
competent authorities in their respective EU member states to handle lychee imports. b. Organisations:
- European Commission: The European Commission is the executive branch of the EU
responsible for proposing legislation, implementing policies, and enforcing EU law. It
plays a significant role in trade negotiations, setting trade policy, and ensuring
compliance with EU regulations.
- Directorate-General for Trade (DG TRADE): DG TRADE is a part of the European
Commission responsible for formulating and implementing the EU's trade policy. It
negotiates trade agreements with other countries and regions, including free trade agreements.
- European Union Customs Union: The EU Customs Union ensures that customs
procedures, duties, and trade rules are uniform across EU member states. Exporters
must comply with EU customs regulations when shipping goods to the EU.
- European Food Safety Authority (EFSA): EFSA is responsible for assessing food safety
risks and providing scientific advice related to food and feed safety. Exporters of food
products must adhere to EFSA standards.
3.3. USA regulations and organizations of lychee exporting a) Regulations
- Lychee must be harvested in gardens located within the growing area code issued by
the Plant Protection Department. No Phytophthora litchi infection. Implement lOMoAR cPSD| 59691467
production according to good agricultural production processes (VietGAP, Global GAP).
- Before exporting, lychees must be treated with irradiation at APHIS-accredited
facilities under the supervision of Vietnamese plant quarantine officers and experts
from the US animal and plant quarantine agency.
- Fabric shipments exported to the US must be inspected and certified by the plant quarantine agency.
- If residues are detected in agricultural product samples that have not yet been regulated
by US MRLs, that agricultural product will not be allowed to be imported into the United States. b) Organisation
- U.S. Department of Agriculture (USDA): The United States Department of Agriculture
is the main agency in charge of inspecting and managing the import of agricultural
products. USDA ensures that imported agricultural products comply with food safety
regulations and quality standards.
- U.S. Food and Drug Administration (FDA): The United States Food and Drug
Administration is responsible for inspecting food products, including fruits and
vegetables, to ensure food safety and compliance with regulatory requirements. food regulations.
- Customs and Border Protection (CBP): U.S. Customs and Border Protection inspects
goods as they enter the country at ports and border crossings. CBP ensures that
agricultural products meet import and tariff regulations.
- United States Department of Agriculture - Animal and Plant Health Inspection Service
(USDA-APHIS): USDA-APHIS regulates the importation of crops, aquatic plants, and
other agricultural products, to ensure that they are not diseases or harmful insects.
- United States Department of Commerce: The United States Department of Commerce
may be involved in inspecting imports of products and promoting international trade.
4. Opportunities and threats of lychee exporting, recommend solutions: 4.1. Opportunities:
- Tariff Reduction and Elimination: The European Union-Vietnam Free Trade
Agreement (EVFTA) has substantially reduced or eliminated tariffs on many
Vietnamese products, including lychee. This makes Vietnamese lychee more competitive in the EU market.
- Diverse Consumer Base: The EU is a diverse market with various consumer
preferences. Vietnamese lychee can appeal to a wide range of consumers looking for
unique and exotic fruits to diversify their diets.
- Health-Conscious Consumers: European consumers are increasingly health-conscious
and seek natural and nutritious foods. Vietnamese lychee, known for its vitamins and
antioxidants, can align with these preferences.
- Gourmet and Specialty Markets: Vietnamese lychee can find a niche in gourmet and
specialty markets, where consumers are willing to pay a premium for high-quality, unique products.
- Processed Products: Beyond fresh lychee, there is an opportunity to export processed
lychee products, such as lychee juice, canned lychee, and lychee-flavored products, to
cater to different tastes and preferences. lOMoAR cPSD| 59691467 4.2. Threats:
- Phytosanitary and Quality Standards: The EU has strict phytosanitary and quality
standards for imported agricultural products. The presence of pests, chemical residues,
or other contaminants in lychee shipments can result in rejection at the EU border.
- Competition: Vietnamese lychee faces competition from other lychee-producing
countries, such as China, Thailand, and India, which also export to the EU.
Competition can affect pricing and market share.
- Tariff Rate Quotas: While the EVFTA reduces tariffs on lychee, there are still tariff rate
quotas (TRQs) in place. Once the TRQ is exceeded, higher tariffs may apply, making exports more expensive.
- Market Access Restrictions: Non-tariff barriers, such as labeling requirements,
packaging standards, and safety regulations, can be complex and costly to navigate.
Failure to comply with these regulations can result in market access issues.
- Seasonality: The lychee season in Vietnam is relatively short, and the fruit is highly
perishable. Exporters must manage logistics efficiently to ensure freshness upon arrival in the EU. 4.3. Solutions
- Regarding the group of policies to promote high-quality lychee production:
Encourage investment in agriculture, with priority given to investing in innovation
and improving the quality of machinery, equipment, and production technology
towards clean agricultural products that meet international standards. Promote the
development of links between producers - transporters - processors - consumers;
between enterprises supplying raw materials and enterprises producing final
products; between farmers - the state - scientists agricultural enterprises. Continue
to develop comprehensive safety policies in accordance with international
standards. Enhance the capacity of training facilities, testing centers and standard
certification organizations; There are regulations on environmentally friendly
trademarks; Develop and apply policies on environmental standards and food
hygiene and safety in accordance with domestic conditions and international standards.
- Regarding traceability: To expand the Vietnamese agricultural product market to
other countries in the world, especially the EU market, clear origin, production and
processing processes are required. Vietnamese goods must incorporate origin
traceability technology into each stage of product creation.
- Regarding trade promotion and market information: there are policies to further
support businesses in trade information through developing market information
systems, organizing trade promotion programs, and enhancing technology.
Collaborate on market analysis and forecasting, research and promulgate policies
to facilitate businesses, thereby supporting Vietnamese businesses to directly and
effectively participate in the supply chain and value chain of agricultural products.
Strengthen warnings about regulations on barriers and problems arising for
exported agricultural products.