Foreign trade operation – bus1107e report of group 12345

Vietnamese durian, with famous fruit varieties such as Ri6 and Musang King, conquers Chinese consumers thanks to its unique, attractive flavor and quality that meets international standa

HO CHI MINH CITY UNIVERSITY OF ECONOMICS

AND FINANCE FALCULTY OF ECONOMICS

No | Full name Student ID | Tasks % contribution | Evaluation

of the taskto | on of task the overall task results

Conclusion, Synthesis and editing Word Nguyễn Vân Nhi | 215085789 Part 2 (2.1; 2.2) 20%

Lê Thị Ngọc Nhi | 215085709 Part 2 (2.3; 2.3.4) 20%

OUTLINE I\Nf1909)8)9019)6 3 1.ABOUT THE MARKKET - ST SSL SH TH HH TH HH TH TH HH Hy 4

1.1 Diplomatic and political relations between China and Vietnam 4

1.2 Economic relations between †WO COUTIẨfÏ@S ninh 6 1.3 Market demand for research prodUC†S - Tnhh 8

2 ABOUT THE PRODUCT: CUTTING SYSTEM OF SHELLING MACHINE

2.1 HS code: 08106000 Án HH HH HH HH KH KH KH it 11 2.2 State management poliCy Íor QOOdS - + nh net 11 2.2.1 Legal dOcUrm@ñnf - - - - TH nn H nhi H Họ nxv kp 11

2.2.2 | Export/import standards for goodS cành 11 2.2.2.1 Export standard of Viet nam cccccccecceeeceeeecee erect eeecneeeeeeeteeeenaeaes 11 2.2.2.2 Import standard of China - HH HH nh kế 12

2.2.3 Regulations on origin Of QOOdS - - . - nh» 12

2.2.3.1 Conditions for authorized private exporf Tà SSseihe 12 2.2.3.2 Export customs documeriS .- - - - - - << SH ng kh 13

2.2.3.3 Notes before exporting durian to China .-.- cà iesesiere 13 2.3 Tybpes of documents for export/ÏTIDOFT SH teeaeaeee eaten eee 14

20c 29000) >ï9:100) 9e ốe 14 chi: 409080 01 4 15 2.3.4 Bill of LadÏf\Q/ - - 1 11123111 K HH HT HH Ho KH Hy 16 2.3.5 Certificate of OrÏQiP cán» HH ng 17

3 IMPORT/EXPORT PROCESS

3.1 Foreign trade contract illUs†fafÏOrI - - xen» re, 18

3.2 Common commercial practices applied to research products, packaging standards, inspection and sterilizatiOrn - ST ng 19

3.2.1 lrradiation Of dUfÏAT SH TH nếp 20

3.2.2 Shockproof cover for durÏa' -. - ch 20

3.2.3 Containers containing durian Íor eXpOFf -.- cà nhhe*eikreee 21 3.3 Bill of lading, mode of transport and transport route illustration 22

3.3.1 Durian export bill of lading is an important part of the international trACGE PFOCESS NT n6 66 (4 22

3.3.2 Shipping by sea is a suitable method for transporting durian abroad 23

3.3.3 Se©a †fAFISDOFT HH HH ng TK KH To KH To kh 23

3.4 Documenting process of a specific shipmen cài 24

3.4.1 Determine documeni †yDe - LH HH HH HE“ 24 3.4.2 UP VOUCH@fS - Q - SH HH» TH HH Họ TK 25

3.4.3 CHECK and SẦOF@ - - ch nàn TH Ho ĐH TT TH kế 25 0919801900 26

INTRODUCTION China is becoming a key market for Vietnamese durian Vietnamese durian, with famous fruit varieties such as Ri6 and Musang King, conquers Chinese consumers

thanks to its unique, attractive flavor and quality that meets international standards This

has built a solid reputation for Vietnamese durian in the Chinese market, significantly boosting export turnover and becoming one of the key agricultural products

Not only possessing a delicious taste, Vietnamese durian also enjoys the advantage of

seasonality, providing fresh fruit at a time when Chinese domestic durian is not yet in season In addition, Vietnam's agricultural industry is promoting production processes

according to international food safety standards, meeting the increasing demands of Chinese consumers

With existing potential and advantages, Vietnam's export of durian to China promises

to have much room for development Close cooperation between Vietnamese gardeners

and exporters with Chinese partners will contribute to increasing bilateral trade turnover, while promoting the Vietnamese durian brand in the international market,

bringing This special fruit reaches the world

1 ABOUT THE MARKET

1.1 Diplomatic and political relations between China and Vietnam

The Socialist Republic of Vietnam and the People's Republic of China share a

longstanding relationship as neighbors, rooted in commercial exchange and cultural

interaction that stretches back millennia Confucianism, Buddhism, and Taoism, all

originating in China, profoundly influenced Vietnam's spiritual life and political

systems

Historically, the Vietnam-China relationship has witnessed periods of both cooperation and conflict China, as a historical regional power, held dominion over Vietnam for nearly a millennium However, the Vietnamese people also waged numerous wars to achieve independence and defend their borders against invaders, including China Following the August Revolution of 1945, the Democratic Republic of Vietnam declared its independence China was among the first countries to recognize and establish diplomatic relations with Vietnam in 1949 During the wars against French

colonialism (1946-1954) and American intervention (1955-1975), China, a fellow

socialist nation, provided crucial material and military assistance to Vietnam

However, the aftermath of the Vietnam War saw a deterioration in relations,

culminating in the Sino-Vietnamese War of 1979 It wasn't until 1991 that the two countries officially normalized diplomatic ties Although both sides have since worked

to improve their diplomatic and economic ties, the two countries remain in dispute over political and territorial issues in the South China Sea (or East Sea)

Since then, Vietnam and China have witnessed significant positive developments in their relationship across multiple domains In 2017, they elevated their partnership to the level of a Comprehensive Strategic Cooperative Partnership Bilateral trade has

steadily increased, reaching a staggering USD 235 billion in 2023, solidifying China's position as Vietnam's leading trade partner China is also the third-largest foreign direct

investor in Vietnam, contributing significantly to the nation's socio-economic development

Beyond economic cooperation, Vietnam and China collaborate in various fields such as

education, cultu re, tourism, and national defense Thousands of Vietnamese students

pursue higher education in China every year Cultural and artistic exchanges occur

regularly, and Chinese tourism to Vietnam is flourishing, with 5 million visitors recorded in 2023

Despite these positive developments, the Vietnam-China relationship still faces

challenges The South China Sea dispute remains the most complex and sensitive issue, generating tension in recent years Economic competition and cybersecurity concerns are also areas requiring careful navigation within the bilateral relationship

General Secretary Do Muoi holds talks with General Secretary and President of the People's Republic of China Jiang Zemin in Beijing on November 6th, 1991

The signing ceremony of the Vietnam - China Agreement during the visit to China by General Secretary Do Muoi and Chairman of the Standing Committee Vo Van Kiet from November 5 - 10, 1991, a milestone in the official normalization of relations

between the two water

1.2 Economic relations between two countries

The economic relationship between Vietnam and China is a cornerstone of Southeast Asian trade, characterized by a complex interplay of interdependence, mutual benefit, and strategic considerations China stands as Vietnam's most significant economic partner, fostering a dynamic exchange that has fueled significant growth for both nations However, this intricate relationship necessitates careful navigation to ensure a sustainable and mutually beneficial future, particularly when considering the recent rise

of a unique export: durian

Bilateral trade turnover in 2023 reached a staggering USD 235 billion, reflecting a continuous upward trajectory This exponential growth signifies the deep economic integration between Vietnam and China However, a new player has entered the scene

— durian Vietnam's durian exports to China have skyrocketed, becoming a significant

contributor to the overall trade value This fragrant fruit, adored by some and reviled by

others, has become a symbol of the evolving economic relationship between the two

nations

Vietnam leverages this partnership by exporting an estimated USD 49.6 billion worth

of goods to China in 2023 While machinery, vegetable products, and textiles remain key exports, durian has carved a special niche This surge in durian exports highlights

Vietnam's comparative advantage in agricultural production and its ability to cater to specific consumer preferences in China

China serves as a crucial market for Vietnam's durian, with a growing appetite for this exotic fruit This demand fuels Vietnam's agricultural sector and contributes to its economic diversification However, China's role extends beyond just consumption

Chinese investments in Vietnamese durian plantations and infrastructure development

play a vital role in supporting this burgeoning industry

The rise of durian exports presents both opportunities and challenges While it diversifies Vietnam's export portfolio, dependence on a single fruit can be risky

Fluctuations in Chinese consumer preferences or phytosanitary regulations could

disrupt the durian trade To mitigate these risks, Vietnam should continue to diversify its export basket and invest in research and development of other high-value agricultural products

The partnership extends beyond durian Foreign direct investment (FDI) from China

plays a vital role in Vietnam's economic growth, with China being the third-largest

foreign investor Additionally, tourism flourishes, with China contributing significantly

to Vietnam's service industry and job creation

While collaboration in agriculture, transportation, and infrastructure development holds immense potential for mutual benefit, areas of competition can also arise Both countries may compete in regional markets and for foreign investment Navigating this

dynamic requires a strategic approach that ensures a win-win situation for both nations Knowledge and technology transfer from China can further accelerate Vietnam's

economic development

The economic relationship between Vietnam and China is a complex powerhouse

driving regional trade To ensure a sustainable future, Vietnam must address potential overreliance on durian exports by fostering broader agricultural diversification and

domestic innovation Continued collaboration in infrastructure development, responsible investment practices, and knowledge transfer will be crucial for both nations to reap the long-term benefits of this intertwined economic partnership, even if the durian's popularity wanes

At the meeting between Party General

Party General Secretary and President

of China Xi Jinping (R) welcomes Secretary Nguyen Phu Trong and

Party General Secretary Chinese Premier Li Keqiang in Beijing

Nguyen Phu Trong on November ‘st

1.3 Market demand for research products

Vietnamese durian is experiencing a surge in exports to China, presenting a significant

growth opportunity for the nation's agricultural sector This essay will analyze the

current landscape of Vietnamese durian exports to China using statistical data, while highlighting the achievements and challenges faced by this industry

2022 marked a historical turning point when fresh Vietnamese durian received official

approval for formal export to China This nation represents the world's largest consumer market for durian, offering immense export potential According to the Ministry of

Industry and Trade, China imported a staggering 493,000 tons of durian from Vietnam

in 2023 alone, valued at a remarkable USD 2.1 billion Compared to 2022, these figures

represent phenomenal growth: 1,107% in volume and 1,035.8% in value

Vietnamese durian's market share in China has also witnessed a significant rise, reaching 34.6% This indicates that Vietnamese durian is steadily securing a prominent position within the Chinese market, directly competing with other durian-producing countries The average export price of Vietnamese durian to China stood at USD

4,332.2 per ton, reflecting a slight decrease compared to 2022

The booming export of durian to China yields numerous benefits for Vietnamese agriculture Firstly, durian has ascended to become the most valuable fruit export within the vegetable and fruit sector in 2023, with an estimated export value exceeding USD 2 billion This contributes to the overall growth of Vietnam's agricultural exports and fosters economic development in rural areas

Secondly, exporting to a large market like China facilitates the consumption of a

significant volume of domestic durian, preventing oversupply and price drops for local

fruit growers The rising export value of durian also translates to substantial profits for farmers, leading to improved livelihoods in durian-growing regions

Thirdly, the success of Vietnamese durian in China underscores the quality and reputation of Vietnamese agricultural products in the international market This serves

as a motivator for fruit growers and enterprises to continue investing in and enhancing

product quality to meet the stringent standards of the Chinese market

Despite achieving notable accomplishments, the Vietnamese durian export industry to

China still faces several challenges The primary concern lies in the over-reliance on the Chinese market Any fluctuations in import policies, tariffs, or disease outbreaks in

China could significantly impact export activities

Furthermore, the quality of Vietnamese durian remains somewhat inconsistent While some orchards Cultivate durians meeting high-quality standards, there are instances

where durians fall short in terms of appearance and taste This inconsistency can

potentially harm the reputation and competitiveness of Vietnamese durian in the international market

The Vietnamese durian industry needs to prioritize brand development and market

diversification Currently, Vietnamese durian lacks a distinct brand identity, hindering

promotional efforts and market positioning Additionally, focusing primarily on China

might lead to overlooking other promising markets like the United States, Japan, or

Southeast Asian nations

The export of Vietnamese durian to China signifies a groundbreaking development for Vietnamese agriculture However, to maintain the growth momentum and ensure long- term sustainability, market diversification, brand building, and continuous quality

improvement are crucial By effectively addressing the existing challenges, Vietnamese durian possesses the potential to further conquer the international market and contribute significantly to the nation's economic prosperity

In 2023, Vietnam's durian exports to Vietnamese durian at a promotional China will increase dramatically event in Tianjin (China) on Jan 13th

2 ABOUT THE PRODUCT: CUTTING SYSTEM OF SHELLING MACHINE

Proud to be one of Vietnam's key agricultural export products, durian has attracted

special attention from the Chinese market With its characteristic sweetness, enticing aroma, and good quality, Vietnamese durian has quickly become a preferred choice for

Chinese consumers To export durian to China, companies need to comply with the specific regulations and quality standards of this market The process of quality

inspection and food safety must be carefully conducted to ensure that durian meets

China's high standard requirements In addition, it is important to understand customs regulations, taxes, and import procedures To ensure a smooth and efficient export process, it is possible to collaborate with experienced local partners in the field of

exporting to China Vietnamese durian has built a strong reputation in the Chinese

market and continues to be an attractive business opportunity for export companies With a focus on quality and compliance with regulations, exporting durian to China can

bring high profits and expand the customer network Below are some necessary

information in the process of exporting durian to China

2.1 HS code: 08106000

0810: is the code for other fresh fruits, and 08106000 is the code specifically for durian

2.2 State management policy for goods

2.2.1 Legal document

Vietnam: On March 1, 2018, the Plant Protection Department submitted the market

access dossier for durian fruit to the Chinese market After four years of effort and

persistent negotiations, on July 11, 2022, the Ministry of Agriculture and Rural

Development and the General Administration of Customs of China (GACC) signed a Memorandum of Understanding on "Phytosanitary Requirements for the Export of

Durian Fruit from Vietnam to China." This is an important legal basis that allows Vietnamese durian fruit to be officially exported to the Chinese market

China: Quality standards and food safety regulations: China has strict standards and regulations regarding the quality and food safety of imported goods For durian exported

to China, companies need to comply with the following requirements: Product quality, food safety, quality control procedures

To ensure compliance with these regulations, export companies may need to collaborate

with specialized agencies for quality inspection and food safety, such as the food and drug administration in China

2.2.2 Export/import standards for goods

2.2.2.1 Export standard of Vietnam

In the first two years, officials from the Ministry of Agriculture and Rural Development

(MARD) must conduct plant quarantine inspections and take samples of 2% of the

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consignment If no violations are found in the plant quarantine inspections during the two-year period, the sampling rate will be reduced to 1% In the case of discovering

living plant quarantine objects, leaves, or soil, the entire batch will not be allowed to be

exported to China After completing the quarantine inspection procedures, MARD will issue a Phytosanitary Certificate for the inspected consignment

2.2.2.2 Import standard of China

When durian arrives at the Chinese port of entry, Chinese Customs will examine the

documents, relevant records, and complete the quarantine inspection process

Consignments from unregistered cultivation areas or packaging facilities will not be allowed for import into China

In case living plant quarantine objects are found as regulated, or newly recognized plant

quarantine objects in Vietnam, or if soil and leaves are detected, the consignment will

be rejected for import, destroyed, or subject to plant quarantine treatment measures When the consignment is found to be non-compliant with China's food safety standards,

it will be refused for import or destroyed

2.2.3 Regulations on origin of goods

2.2.3.1 Conditions for authorized private export

In order for Vietnamese durian to fully meet the conditions for official export to China,

the following standards must be met

For growing areas and gardeners:

- There are appropriate management measures to eliminate diseases, ensure food hygiene and safety, and do not have plant protection residues exceeding the allowable level compared to regulations

- Follow proper packaging specifications and information printed on the packaging

- All durians growing areas registered to export to China must build quality management

and traceability systems and apply good agricultural practices (GAP)

- Durian growing areas must maintain pest monitoring and control records, which are provided to the importing country's customs authorities (such as the General

Administration of Customs of China - GACC) upon their request

For processing facilities:

- Must have hard, clean, hygienic ground, must have raw material storage area and finished product warehouse

- Processing, handling, storage areas and funct ional areas must be completely separate, reasonably arranged and separate from living areas

For packaging facility: Packaging units need to brush or clean the fruit surface with a high-pressure gun or can use other effective methods to remove eggs and fungal spores 2.2.3.2 Export customs documents

When exporting durian, gardeners and units need to prepare customs documents including documents such as:

- Commercial Contract (Sales Contract)

- Commercial Invoice (Commercial Invoice)

- Packing list

- Customs Declaration (Customs Declaration)

- Transport documents: drying the goods to the port

In addition, depending on actual requirements, Vietnamese exporters also need to provide buyers with documents such as:

- Bill of Lading

- Certificate of origin of goods (C/O Form E)

- Phytosanitary Certificate

- Insurance Certificate (Insurance Certificate)

2.2.3.3 Notes before exporting durian to China

- Durian must be processed, washed with water, and fumigated

- Before exporting, durian must undergo plant quarantine

- Durian fruit for export must be harvested from qualified growing areas

- Must check product quality and pesticide content before exporting abroad

- Must properly pack the goods into boxes/packaging to ensure compliance with

standards and no damage to the goods

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