Sustainable comsumption trends in the european market and problems given to vietnam’s agricultural product exports

Nội dung text: Sustainable comsumption trends in the european market and problems given to vietnam’s agricultural product exports

1. SUSTAINABLE COMSUMPTION TRENDS IN THE EUROPEAN MARKET AND PROBLEMS GIVEN TO VIETNAM’S AGRICULTURAL PRODUCT EXPORTS Le Thi Hong Thuan Nguyen Thuy Linh National Economics University Abstracts European markets are shifting towards responsible consumption. More and more consumers are reluctant to buy products which has special conditions such as their processes are harmful to the environment, the workers have to work in bad conditions or any stages of the products is illegal. Social and environmental responsibility in the production process is becoming another criterion for Vietnam's export agricultural products. Therefore, it raises issues for policymakers, civil society organizations and individuals about the importance of paying attention to sustainable consumption in a long-term development strategy - a key point of view comes from production for sustainable development. Responsible production and consumption is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development of United Nations. Responsible and sustainable development requires an urgent reduction in the ecological footprint by changing the way goods and resources are produced and consumed. The sustainable consumption challenge emerged as a key issue in 1992 at the United Nations Conference on Environment and Development in Rio de Janeiro. Ten years later, at the World Summit on Sustainable Development in Johannesburg, the international community was called upon to improve global living conditions. What is sustainable consumption? At the Norwegian Ministry of Environment, Oslo Symposium, 1994, sustainable consumption was defined as: “The use of services and related products, which respond to basic needs and bring a better quality of life while minimizing the use of natural resources and toxic materials as well as the emissions of waste and pollutants over the life cycle of the service or product so as not to jeopardise the needs of future generations” (UNCSD, 1994). This is currently the most useful definitions in use of sustainable consumption and will be served as the basis for our discussions. 156
2. Figure 1: The Sustainable Consumption and Production Wheel Source: (Neil Carson, 2007, p.4) Regarding the concept of sustainable consumption, the following terms will be mentioned: Sustainable procurement: It is a process by which organizations respond to the demand for goods, services, facilities, and utilities in a way that achieves profits on the basis of not only benefiting the organization, but also to society and the economy, while minimizing environmental damage. Sustainable procurement aims at achieving the right balance between the three pillars of sustainable development: economic, social and environmental. x Economic factors include the costs of goods and services over the life of the goods and services such as acquisition, maintenance, operating and management costs (including waste disposal) consistent with good financial management; x Social factors including social justice; safety and security; human rights and working conditions; x Environmental factors include emissions to air, land and water, climate change, biodiversity, natural resource use, and water scarcity in the product life cycle. Consumer information: Information on product characteristics and transactions, provided to consumers/ users, allows them to make informed choices at the point of purchase and then use the goods, services related matters. Consumer information makes it easy for consumers to compare goods and services, increase transparency and reliability, and reduce search costs. Consumer information is not only for informational purposes but also affects consumer behavior. For example, campaigns encourage consumer choices and sustainable consumption patterns. Consumer information may include process details and production methods to inform consumers about the major impacts of the production of goods and services. 157
3. Information may be provided by a manufacturer or by a third party such as consumer associations, inspection bodies, certification bodies or labels, etc. Consumer protection: Legal, quasi-legal, ethical and institutional mechanisms to protect consumers or users in dealing with producers (eg, protection against unfair contract terms) and in the use of goods and services (eg, product safety standards). The United Nations Guidelines for Consumer Protection (1999) "recognize that consumers, especially in developing countries, often face economic imbalances, levels education and ability to negotiate "; and they "have access to non-harmful products, as well as the right to promote just, sustainable and environmentally sound socio-economic development." (Department of Competition Management, 2006). The guide also highlights the important role governments play in ensuring infrastructure to develop, implement and monitor consumer protection policies. Special attention should be paid by the government to ensure that consumer protection measures are implemented for the benefit of all sectors of society, especially the rural and the poor. It should be ensured that the application of any consumer protection procedure or regulation does not become a barrier to international trade and is consistent with international trade rules. Education for sustainable consumption aims to provide knowledge, values and skills that enable individuals and social groups to become the driving force behind a shift toward more sustainable consumption behavior. The goal is to meet the basic needs of the community, to improve the quality of life, to prevent the inefficient use of resources and to degrade the environment. Education for sustainable consumption is therefore providing people with the right information and knowledge about the environmental and social impacts of their daily choices, as well as providing feasible and alternatives solutions. Education for sustainable consumption also incorporates basic rights and freedoms as consumers' interests in order to protect and empower consumers, allowing them to participate in paintings, discuss the community and the economy confidently. A sustainable production and consumption program is a generic term used to describe the various integrated and strategic approaches used by countries to promote sustainable production and consumption. These programs (at the national, regional or local level) are very diverse in nature, often built through inter-ministerial cooperation, sectoral and dialogue mechanisms with stakeholders. It may include national inventories, program frameworks, action plans and strategies as well as be considered a priority issue in other policy or strategic frameworks. A sustainable production and consumption program can be developed in one cycle starting at the national assessment stage or from a common area of existing sustainable production and consumption activities to complete integration of sustainable production and consumption into a national key policy framework such as the National Sustainable Development Strategy (NSDC), the National Environmental Action Plan (NEPA), National development plan, including poverty reduction strategy (PRSP). A common framework can be built from a strategic needs overview to achieving sustainable production and consumption targets, which 158
4. identify priority areas for policy development and implementation. This leads to the development of sectoral or individual programs or action plans on specific topics such as sustainable public procurement, energy efficiency and education for production and sustainable consumption. These programs may involve other national strategies and plans. In addition, a single integrated program or action plan will focus more on sustainable production and consumption content with specific goals, targets and monitoring mechanisms. There is no single approach or a general formula for national programs for sustainable production and consumption. Each country should identify the best approach to develop, implement and monitor national programs for sustainable production and consumption in the basis of consideration of political, cultural, economic and social conditions existing ecology. The most important initial decision in developing a national program for sustainable production and consumption is developed a new framework or integrate policy on sustainable production and consumption within the policy framework overall economic and development of the country. Why is sustainable consumption important? As it stands, the Earth’s resources will indefinitely be unable to support the current level of human production and consumption. If current consumption patterns continued, by 2030, we would need another planet to keep up. Moreover, the human economic activity impacts our natural environment. It contributes to global warming, creates pollution and changes landscapes. We create fields, divert rivers, erect dams, build roads, construct factories, develop ports, and so on to support the production and movement of goods. The effects aren’t just felt locally. According to the European Commission, “The impacts of consumption in the EU are felt globally, as the EU is dependent on the imports of energy and natural resources. Furthermore, an increasing proportion of products consumed in Europe are produced in other parts of the world” (World Wildlife Fund, 2008) Besides, large parts of Asia and Africa are behind Europe in terms of their economic de- velopment. One of the biggest challenges for sustainability is the expected economic growth and increase in population in these regions. All of this presents challenges if future generations are to have a good standard of living. Changes are necessary to balance people, planet and profit in a way that is effective and fair for all. Consumption needs to change The way we consume today is a threat to our natural resources and broader that of both the national and global socio-economic systems. Unless it is resolved positively and in time, this risk will increase rapidly as the world's population booms to 9 billion by 2050 and one billion more in the middle class. The increased demand for physical, energy and other ecosystem services will most likely exceed the efficiency gains in the supply chain and cover the natural systems. Businesses play an important role in stopping that and in the interests of finding 159
5. more sustainable ways of consumption. Otherwise the business will face serious consequences, including: • Increased cost: Increased competition for rare materials in the supply chain will increase cost and income reduction. • Uncertainty: As global climate warms and resources are exhausted, crises become unpredictable and disorderly. The consequences will be the same, including the changing market and culture. Instability creates stagnation in markets and businesses, strangling investment and inventing. • Regulatory: A resource and environmental crisis can create pressure from voters to have more regulation and power. That has a strong impact on the business and unpredictable. It can push companies into negative reactions rather than positive ones (more effectively). • Collisions: Debate on sustainable consumption can lead to polarization and deadlock. Inventiveness, productivity, brand value and sales will be compromised by the tensions between corporate goals, consumer attitudes and sustainability. In addition, consumers themselves are increasingly aware of the environmental and social challenges and expect the company to find solutions. They will reward brands that meet their desires, including the need to be "softly supported." They will avoid these brands do not care about sustainability or irresponsibility. For a variety of reasons, including prices, practices, and misconceptions, many sustainable products and services are aimed at small-scale markets and have limited impact. For consumption to become sustainable, consumers need to adopt sustainable solutions and attitudes. To do that, companies need to develop attractive, accessible and affordable products. Challenges of the consumer side. Surveys show that over the years, people have become increasingly concerned about environmental and social issues and want better and more sustainable choices, but only few have made that wish the way it is conscious behavior. The reasons for this have been addressed in Sustainable Consumption Truth and Movement and are often cited as issues such as lack of information or confusion of information and brands, high prices. This can be frustrating for companies that have attempted to develop sustainable measures more easily and efficiently with the result that they are just attractive to small parts of the market. It also disappoints consumers who are looking for a more sustainable solution but do not find it or find it too expensive, inconvenient, unattractive, troublesome or difficult to use. These messages and concepts can be confusing and unclear to the people who are too busy with other priorities. Consumers rely on businesses to deliver goods on a sustainable basis. They also want businesses to help and guide them to choose products and services to use effectively and to be able to recycle or recycle them. Challenges of the supply side 160
6. Most businesses have spent years improving their business models and processes, which are operating efficiently and profitably, according to the signals they receive from the market. While production efficiency reduces the cost of some products and services, some sustainability recommendations cost more than the old ones. Moving to a sustainable product portfolio and business model may require additional investment, changes in corporate culture, business practices and other skills and better penetration into the whole value chain. For these reasons, new and more sustainable products, processes and services can strive to appear and compete with existing ones. A new challenge is to understand, manage and report on impacts throughout the value chain as supply chains can be very illusory and complex. Increasing complexity makes it difficult and costly to evaluate and manage the effects of a particular product, process, or service. Changing these supply chains can take a lot of time and need to take form and new levels in the link. For example, it may be possible to intervene in this process with current regulatory frameworks related to anti-competitive behavior. Challenges of the policy framework Laws, regulations and financial incentives are inconsistent among countries and we lack a global binding agreement on climate change. Inconsistencies in national frameworks can result in loss of capital from a regulated country to a more liberal one, with no clear financial, environmental and social benefits. Moreover, the absence of an effective international framework allows importers to avoid responsibility for the consequences of production in another country. While laws, regulations, and incentives are sometimes inconsistent in these areas, they are consistent in other ways: It gives the competitive edge of today's business models, not the sustainable business model. Although there are funds for "green" businesses, more sustainable businesses tend to have higher costs, in the long run they will have to invest more, get ahead, and pay longer. Politicians set the framework conditions for trade; Businesses play a significant role in advising politicians and encouraging consumers and employees to vote for change. This is a difficult challenge that requires the business community to work in partnership, with the consumer and with other stakeholders. Sustainable consumption trends in the European market The EU’s citizens aren’t all the same. They live in different places, have different access to resources and products, live by different cultural rules and under different economic circum- stances. Their historic and social roots vary. And each person sees sustainable consumption, or the need for it, differently. All of this impacts on what, how, how much and when they consume. Even if they all shared the same background and opinions, their reaction would be different. Decisions about personal consumption are often governed by trade-offs people feel they have to make. Some decisions are acceptable to some people, but not to others. And it’s not just today’s citizens who are affected by today’s policies. What is decided today affects future generations too. How can we best take this into consideration? For instance, environmental considerations are sometimes seen as a hindrance to economic growth, employment or improvements in our standard of living. 161
7. Not all policy decisions are contentious, of course. There are plenty of sustainable choices that have wide support and match the ambitions of policymakers, business and citizens alike. For instance, a policy that promotes a diet with more seasonal vegetables encourages sustainability and brings health benefits, which in turn reduces pressure on health services. The more policymakers are able to align their policies with the needs of people, business and the environment alike, the more likely they will be accepted readily. This raises an interesting point about at what level policies should be drawn up, implemented and enforced. Locally, nationally, internationally, Europe-wide or worldwide? How would citizens in one location who are working towards sustainable consumption respond when they see that those in another aren’t? Should countries be allowed to choose their own path or be bound by decisions made at international level? How can policy making at national or international level take account of initiatives born out of action at local level? The importance of these questions is underlined by the global nature of consumption. What people consume locally may have been produced far away – and from resources that were in turn imported from another location. That means the impact of local consumption, whether it is positive or negative, is felt not only locally but much further away as well. By providing citizens with information, policymakers try to effect change without being pre- scriptive. The presumption is that consumers would make more sustainable choices if they were better informed. Information can be delivered in number of ways: via TV and radio spots, leaflet drops, posters in public places, certification and labels for products and services. Children can be taught about sustainability in school. Consumers can be given information about sustainable products by specially trained staff in shops. Creating effective information campaigns isn’t easy, though. They need to address key ques- tions relating to what information to give, how to deliver it and where to present it. Also, comparing products and services accurately and fairly is far from easy. Done badly, information campaigns can overload citizens with too much information or, worse still, provide them with inaccurate information, which in turn can lead to suspicion. For instance, if companies make exaggerated claims about their green credentials or corpo- rate social responsibility, consumers might become wary. The same applies to product labels, some of which aren’t clear enough, or as rigorous or rep- resentative of standards as others. At the same time, a proliferation of labels and certification schemes can lead to confusion. Labelling and certification can be a challenge for businesses too. For example, the application processes can be a burden that is too heavy for many small producers to bear. That restricts the ability of smaller companies to participate. While information campaigns are often used by policymakers, they aren’t always effective. Even armed with excellent information, consumers may not change their behavior. 162
8. Economic, social, political, technical or infrastructure considerations may prevent them from doing so. The sustainable development strategy adopted by the European Council in June 2006 included the task of developing an action plan for sustainable production and consumption in Europe. This plan includes leveraging innovation through leadership and networking; using dynamic performance requirements, sustainability labels, eco-design instruments and standardization to result in the production of better products; measures to encourage leaner and cleaner production processes; fostering smarter consumption by means of retailer agreements, market-based instruments, value added tax rates, the EU Eco-Label, advertising, and green procurement; and working for global markets that reward first movers and provide a level the playing field for producers of sustainable technologies and products. A key initiative soon is Europe 2020, the EU’s growth strategy until the end of the decade. According to José Manuel Barroso, outgoing President of the European Commission, Europe 2020 aims to achieve a smart, sustainable and inclusive economy, with high levels of employment, productivity and social cohesion. Europe 2020 steers several of other initiatives. One is The Roadmap to a Resource Efficient Europe, which outlines how Europe’s economy could be transformed into a sustainable one by 2050. Some European countries use relatively efficient resources. In 2011, Switzerland, England and Luxemburg added EUR 3/kg of raw material, while Bulgaria, Romania and Latvia added EUR 0.5/kg. Resource utilization is closely linked to the economic structure of nations, where services, technology and recycling related industries help to increase resource use (PACITA, 2015) Production and consumption processes not only bring goods and services but also produce waste. These may be contaminants discharged into the environment, or part of unused material (wood or metal), or food that is not consumed. Some of the waste is recycled or reused, while the rest is transported to a landfill, burial site or burner. Thus, external resources are used to create goods and services, and the rest, if not utilized, is at high risk of causing environmental problems. Europeans generated an average of 4.5 tons of waste per person (2010). About half of the amount of this waste is recovered when utilizing them in the production process. The term "circular economy" promises to bring about a production and consumption system that produces as little waste as possible, in which waste is effectively recycled. Everything will be reused, recycled or recalled for making other products. To achieve this goal, redesigned products and processes should be redesigned to minimize waste and turn the part. The use of this process as a source of raw materials for another production process. Responsibility of the manufacturer and the consumer. Meanwhile, Europe is using a lot of products imported from other regions such as Asia, Africa and America, especially agro-forestry seafood. Therefore, the strict requirements of 163
9. European consumers are opportunities and challenges for agricultural export countries, including Vietnam. Vietnam's agricultural product export situation: opportunities and challenges Economic development associated with sustainable consumption towards sustainable development is the common vision and development target of most countries in the world, including Vietnam. Sustainable consumption change is seen as an effective and holistic approach to achieve an economic development and environmental protection. As a developing country, Vietnam is facing great challenges in terms of environmental pollution during the country's industrialization and modernization process. In the world, sustainable production and consumption is growing quite strongly, Vietnam needs more specific attention and solutions to carry out these activities, to be effective in export in general and agricultural products in particular the sustainable development of the country. To achieve this goal, countries with different socio-economic infrastructures have different orientations and solutions. The Government of Vietnam has also issued a legal document "The National Plan of Action for Sustainable Production and Consumption to 2020 with a vision to 2030" by the Prime Minister on 11 January 2016, in Sustainable production and consumption have the overall goal: "Step by step to change the production and consumption patterns in the direction of improving the efficiency of resources and energy using; to enhance materials, renewable energy, environmentally friendly products, minimize, reuse and recycle waste; sustainable ecosystems at all stages of the product’s life cycle from resourcing extraction, rawing material supply to processing, distribution, consumption and disposal of product" (Prime Minister of Vietnam Government, 2016) The European Union (EU) is a prosperous economic area with GDP accounting for about 23% of nominal world GDP, per capita income up to 32,900 USD / person / year. After the normalization of diplomatic relations between Vietnam and the European Community in October 1990, the trade relations between Vietnam and the EU have ceaselessly developed. EU has become a leading partner of Vietnam in many fields, including trade. Currently, the EU is one of the largest export markets for agricultural products in Vietnam. In 2017, Vietnam’s agricultural products were considered as "great win" when exporting to 180 countries and territories, conquering some difficult markets such as Japan, Australia and the United States. Especially, the EU market has reduced the frequency of pesticide residue inspection from 20% to 10% for Vietnam’s dragon fruits. (Lam, Phong, 2018) In the EU's 2016 rankings on the largest agricultural trade partners (Table 1), Vietnam is only a small EU export market with a 1.1% share but is one of the sources of supply. The EU ranked 12th with the potential to supply 2.2% of the EU market, with Thailand, New Zealand, Malaysia, Canada, Vietnam also became a of the ten major EU partners, supplying 4% of vegetables to the EU market (Figure 2). 164
10. Table 1: Ranking of major EU trading partners in agricultural products Source: Europa Figure 2: Extra-EU exports and imports of vegetables by ten main trading partners, EU-28, 2016 Source: ( EU_trade_in_agricultural_goods,_2016-updateMay2017.xlsx) 165
11. Since the EU-Vietnam framework agreement, agricultural exports to the EU have increased six-fold since the beginning of the EU-Vietnam trade agreement, from $ 362 million in 1999 to $ 2.59 billion in 2016 (Figure 3). Export turnover of agricultural products especially increased after Vietnam joined the WTO in 2007, from 584.47 million USD in 2005 to 1.28 billion USD in 2007. In proportion, the export of agricultural products to the EU market are always maintained a share of 13% - 19% of total agricultural exports of Vietnam. Figure 3: Ranking of major EU trading partners in agricultural products Export value of agricultural products to the EU Share of agricultural exports to EU / agricultural exports Source: (General Statistics Office, 2016) So, to penetrate the EU market, Vietnam in particular and agricultural exporters in general have to find out clearly the import market as well as actively meet the strict requirements in terms of technology, including environmental standards. The requirements of the EU market for sustainable production and consumption posed many challenges for Vietnam in export activities. Firstly, the requirements of EU consumers for the social and environmental are responsible for the imported goods. EU consumers are the ultimate users and the promotion of environmental responsibility will force manufacturers to offer the corresponding products. Along with the economic development and legal systems, regulations, EU consumers would also become more aware of environmental issues. They are willing to pay higher prices and prioritize the consumption of environmentally certified, eco-labeled products, towards the "green" consumers, responsible consumers. Therefore, exporters are required to change to meet the requirements of the end buyer. Secondly, the accessibility and preparation of brochures ensures the requirements of the EU. It can be said that the level of development in the EU is better than that of developing countries, so the application, evaluation and control of environmental standards is also higher and more rigorous. In addition, the problem of geographical distance, accessibility and 166
12. preparation of paperwork to meet the EU's environmental requirements is also not simple and create additional costs for businesses export of agricultural products. Thirdly, the impact of bilateral and multilateral economic agreements. In the trend of globalization and countries are increasingly focusing on economic cooperation comprehensively led to the lifting gradually tariff barriers, the application and control of standards on the environment of the EU for agricultural products production will increasingly tighten, causing more difficulties for exporters. However, when the tax is reduced, export enterprises will also mitigate the cost and can invest more in terms of packaging, quality, certification, ecolabel In addition, the capital flows from foreign investors also increased, accompanied by the technology transfer, production processes and advanced management also have a positive impact. That can improve domestic agricultural production towards sustainability and responsible production, more environmentally friendly and more responsive to meet the EU requirements From recognizing the great opportunities and challenges from the EU import market, the Government of Vietnam has developed many positive solutions and activities to assist exporters in boosting their agricultural product exports can be strong, aiming to meet the EU requirements for sustainable production and consumption. The first solution is improving the legal systems gradually and environmental standards for agricultural products. The environmental protection law of Vietnam was promulgated in 2014 and came into effect in 2015 to replace the environmental protection law in 2005. The new law has been added to the environmental protection principles, environmental impact assessment, environmental protection plan In particular Articles 65-67 were defined clearly function of management agencies and organizations for environmental protection in the forms of centralized production organization. (Vietnam's National Assembly, 2014) The second solution is strengthen cooperation in EU projects on environmental issues, assist exporters to access EU environmental regulations for agricultural products. In recent years, Vietnam has made efforts to understand and consult with the environmental laws of EU member states; provide information, support businesses, industry associations to understand the EU regulations; perfect the law system and standards for themselves. The information has been publicized through the website ( ) as well as through training sessions for each sector and organized forums and workshops to disseminate more information to businesses. The third solution is to develop restructuring strategies, agricultural development strategy towards environmentally friendly, sustainable development. Agreements on standardization of production areas have been agreed and included in the development strategies and sectoral restructuring. The content of sectoral restructuring in economic development in the period 2011 - 2020 has agreed that the general direction is to change the model and production methods in a more balanced way, to promote social responsibility of enterprises, environmentally friendly, saving energy use, improving food safety and hygiene. Towards 167
13. information transparency, the product must have clear origin, modern production methods, clean farming and processing. Production planning requirements are geared towards the goal of sustainable development The fourth solution is to set up a sectoral development plan, a regional plan and agreed to intensify monitoring and supervision of the implementation process in the locality. In February 2012, the Prime Minister of Vietnam approved the master plan for agricultural production development up to 2020 with a vision to 2030 (Prime Minister of Vietnam, 2012). In April 2015, the Prime Minister approved the master plan for the hi-tech agriculture area and region to 2020 and orientation to 2030. Accordingly, Vietnam has identified the viewpoint of new production planning, market access, the application of science and the efficient use of resources, towards the protection of the ecological environment. Meanwhile, it is especial to combine closely the production with preservation, processing and consumption markets, to form concentrated production areas. According to the target, by 2020 Vietnam will support the construction of 10 hi-tech agricultural zones in the provinces and put into operation officially in 2030 (Prime Minister of Vietnam, 2015). The hi-tech agricultural zone will be built synchronously near the raw materials have been planned, apply advanced science and technology and ensured the organization of production of international standards. The fifth solution is necessary to take timely measures when having EU warnings on Vietnamese agricultural exports and strengthen trade promotion to find out new agricultural products with potential for export. Products are imported into the EU after being passed through customs, the EU randomly checks about 10% of the quantity of an imported item on the quality criteria, even trace the origin of the product for really safety and meet the EU criteria. Normally, for agricultural products, there are about 5 cases of violation per year, the EU will issue a ban on the import of such goods. That was the case happened to honey and drew lessons for other products, after receiving warnings from the EU, the Vietnam communicated to enterprises and found a solution. In recent years, with the effort of both government and business, the Vietnam agricultural exports to the EU market has achieved some success. Vietnam's export of agricultural products has met the stringent requirements of the EU market. The number of enterprises in the commodities have achieved international environmental certification, which was acceptable in the EU. Measures taken by the State to deal with domestic environmental issues and disseminate information widely to businesses have been effective. Enterprises have been more active in implementing environmental obligations with a range of changes in production methods and participation in exchange workshops to exchange experiences. Besides the successes, Vietnamese agricultural products exported to the EU market still had lots of returned goods due to violations of regulations on food quality and safety, thus affecting the prestige of Vietnamese goods in European market. Agricultural product exporters have also encountered difficulties in proving and applying for licenses of products that meet EU standards. The number of enterprises granted eco-labels and international 168
14. environmental certificates has limited. Environmental management systems have not been widely applied in agro-exporting enterprises. Although Vietnam's agricultural products have been exported to the EU market, in the long time, there are many risks due to not meeting the requirements on production and EU consumers. The standard system of Vietnam is not synchronous and does not meet the EU requirements on environment as well as sustainable production and consumption. The implementation of environmental standards in Vietnam is not uniform and close. Producers still do not know about clean production processes to ensure that environmental standards and industry linkages are not finalized. The control of export agricultural products has not been good, leading to some agricultural product exporters violated the environmental standards accidentally and deliberately. The facilities for testing are not assured in terms of quantity and quality and have not yet generated trust with businesses. The problem of environmental pollution in the country and the construction of waste treatment systems and environmental management of enterprises have not been thoroughly controlled. In order to overcome the "barriers" of the EU market, towards sustainable agricultural production in Vietnam, it is necessary to continue to implement synchronous and radical solutions, especially solutions to meet the environmental requirements, corporate social responsibility. Solutions to the state The State should continue to improve the legal system and environmental standards. Vietnam has step by step amended the environmental law to suit the actual situation and there are a number of related laws for agricultural production but these have not overcome the overlap. Environmental standards need to be improved to be closer to the standard of EU, and application and control should be more stringent. The system of environmental standards should be consistent and widespread to producers. In line with the enactment of environmental laws and standards, the state inspection and supervision must be strengthened. Inspectors should be organized more often and visit more often to agricultural production areas exported to the EU to ensure compliance with the regulations issued by the state. Continuing to plan effectively the production of safe agricultural products. In addition to plans for production planning, the state should also take the initiative in developing infrastructure such as transportation, water and electricity systems to facilitate production, with the raw materials in the planning. Encouraging and facilitating the scaling up of models of agricultural production planning in a safe, effective and environmentally friendly manner, applying criteria for each province on product planning as well as having the plan signed. Covering the output of the output with businesses, ensuring the interests of farmers. The State continues to support enterprises in accessing high technologies and applying technologies in the production of agricultural products for export. The State should encourage and facilitate the development and development of vertical chain linkages and link industry to industry associations. Development of supporting industries to improve the safe production chain for export agricultural products. Ensure that each stage 169
15. meets the requirements of the EU for the respective environment. The majority of Vietnamese exporters are small and medium-sized enterprises, so they are under a lot of pressure on costs and psychological impact on their own. Therefore, they are restricted in joining the chain. In addition, the lack of transparency in the information and activities of businesses also makes linkages weak, including products that meet EU environmental standards at all stages, full documentation well in trouble. Therefore, the government should take the initiative and adopt policies to support businesses in terms of finance and information to achieve this goal. In addition, the State and related agencies should organize trade fairs, transaction centers, markets to facilitate producers and processors in horizontal and vertical chains. Vertical lines easily find each other and cooperate with each other. The state should also develop and implement enterprise profile management projects based on information technology systems, connected and consulting portals, public forums and enterprises. Vietnam should tighten controls on the quality of goods in the country and especially the export of agricultural products to the EU. Regular inspections are necessary because businesses still tend to cut costs, increase profits. Strengthening of quality control should be made from the increase of quarantine inspection facilities for agricultural products; Set up quarantine inspection rooms more suitable, near the agricultural production areas to facilitate the inspection. In addition to quality enhancement, the number of inspections, sampling, and random inspections of manufactured goods is increased. The control at the border checkpoints should be strict and strictly based not only on contracts, but also randomly checking the quality of exports to ensure that they meet the environmental criteria. For wrongful business. In order to do this well, the State needs to invest in physical facilities for the random inspection of samples of export goods right at the border gates and at the same time increase the number of officials in charge of professional training practical understanding of the general environmental criteria and regulations of the EU import market for agricultural products in particular Assist exporters of agricultural products in the inspection and certification of environment. At present, most of Vietnam's standards and environmental certifications are voluntary, so businesses are often overlooked and often ignored. The state needs to put environmental responsibility and social responsibility into the law, and some environmental certifications need to be mandatory so that businesses can be more responsible. The state also needs to invest in infrastructure for environmental verification and certification. The procedures of the national agencies for the accreditation and certification of environmental standards are also affected by the application mechanism and many inadequacies, services of foreign organizations are too costly. Therefore, the state needs to improve the process, simplify procedures and build up a timely and cost-effective portal and information system to support businesses in the application for a license. Raising awareness of enterprises in the implementation of social responsibility and environmental responsibility. Corporate social responsibility is expressed in a number of 170
16. aspects, such as: 1. Environmental protection; 2. Contribute to the social community; 3. Carrying out the responsibility of the supplier; 4. To ensure the interests and safety of consumers; 5. Good relations with employees; and 6. Ensure benefits to shareholders and employees in the business. In it, the first four elements represent the external responsibility of the business, the last two elements show the internal and internal responsibility of the business. The reality in the world has shown that companies that perform well social responsibility are not only losing their benefits but also increasing. The benefits that businesses gain when carrying out social responsibilities include cost reduction, increased sales, increased brand value, reduced staff turnover, increased productivity, and increased access to new markets. The State should take the initiative in disseminating sustainable production, standards for EU agricultural exports to enterprises. At present, Vietnamese people do not put much emphasis on environmental responsibility, corporate social responsibility or the origin of their products. Therefore, in parallel with equipping enterprises with environmental standards of the EU, it is necessary to educate the general environmental responsibility of the Vietnamese people. The issue of the environment is now a global issue and a problem for every country, so it is also the responsibility of each person. In addition to protecting their own homes, people also need to raise awareness, prioritize the use of clean, environmentally friendly products, firmly oppose and boycott the products, businesses. Production is substandard and does not guarantee environmental and social responsibility. Consumers in the hands to protect the environment will have the greatest impact on businesses to change. The state should also propagandize that businesses are aware of their role in ensuring environmental standards when exporting agricultural products to the EU. International trade is complex and changing frequently. The policies of import markets, competitor markets can either negatively affect or bring opportunities for Vietnam's agricultural exports to the EU. As a rule, the EU is only testing the probability of around 10% of the goods entering the market, but in the case of a violation, it will increase to 20% and the EU may issue a full ban on imports that product. Therefore, every business must be responsible for ensuring that EU environmental standards are met when exporting agricultural products so as not to affect themselves and their peers. Continue to strengthen relations with EU Member States. EU factors such as laws, import policies, prices, competition and other factors such as inflation, supply and demand factors, tastes, distribution channels, etc. can all influence to adjust the environmental barriers to imported agricultural products. However, Vietnam's exporters have to face many difficulties in research and market access due to geographic distance as well as limited by relationships. Therefore, the Ministry of Industry and Trade should request the EU business deal to strengthen its activities to update information regularly for enterprises about the changes, forecasts and promptly notify changes and additions in the EU's environmental regulations. Along with the strengthening of trade between Vietnam and the EU in terms of politics and economics, Vietnam should actively seek to attract foreign direct investment and agriculture, 171
17. forestry and fishery products in Vietnam. In addition, the state should actively negotiate on environmental policy to help Vietnamese enterprises to access EU member markets more favorable and active, taking advantage of the support from the project. EU's environment at the export of agricultural products so that Vietnam can better meet the EU's environmental barriers in the future. As the EU market is essentially a coalition and every country have the right to decide on its own, Vietnam must not only reach an agreement with the whole bloc but also create bilateral relations with each member in the block to get more market-specific preferences as well as learn more about the level of demand of environmental barriers of each market. For large and important markets such as Germany, Spain, etc., there is a need for an office of agricultural consultants to promote diplomatic relations and market-related activities in relation to the environment. Solutions for agricultural product associations and exporters: The association plays a very important role in representing the business before the government and in the importing markets. However, most of Vietnam's agricultural associations have not yet shown their role in providing information on laws, markets, business services, trade promotion supports, dispute resolutions The issue of human resources and expertise is also the weak point of Vietnamese associations, especially with respect to legal issues in major import markets such as the EU. The majority of people in the association are retired state employees, so they are influenced by the bureaucracy and lack of necessary motivation. Therefore, exporters must take the initiative in contributing and building the organizational structure and staff structure in agricultural associations to ensure their own interests. Associations of commodities related to agricultural products should also have short and long- term strategies in general, active in orienting sectoral development in each market in the EU, organizing more workshops for businesses Agricultural exports to the EU have opportunities to share and exchange learning. For agri-exporters who must overcome the environmental barriers of the EU: businesses need to develop a long-term development strategy with a clear and consistent vision and direction. export market. In fact, when a business does not have a long-term vision, the business will not be able to fully measure the circumstances that will affect the export of its business. Businesses should also regularly update information on EU policies and environmental standards for agricultural products. To do this, businesses need to have their own department and staff in charge, ensuring that the department is well equipped with knowledge, language, and ability to capture, process information and be nimble. In the judgment to have timely suggestions for business. Businesses need to actively seek business partners willing to help businesses overcome environmental barriers and build long-term business relationships. At present, Vietnamese enterprises are mainly exported indirectly, through intermediaries in import markets and due to many subjective and objective reasons, they are quite limited in selecting partners. Being forced to price and not be able to work for a long time, Vietnamese businesses can ask their 172
18. counterparts in the EU to support themselves in new production and paperwork to better and more fully meet their needs. standards, requirements of the environment. Finding such a partner is not simple and therefore the business should actively contact and coordinate with the relevant government agencies, namely European business to receive support. Agro-exporters need to raise awareness about environmental protection, change the trend toward short-term profitability, and move towards long-term vision. Businesses must thoroughly understand the ideology and equipping all members of the enterprise with respect to environmental issues as well as social responsibility, especially those who work directly in the production process. This must be looked the undefined element to the development of the business, thus making proper investment decisions on facilities for environmental management systems as well applying of international standards, producing oriented industrialization and specialization. In addition, enterprises should be proactive in supply and development of an input supply chain that meets environmental regulations and standards for export agricultural produce: Investing in production technology innovation and actively apply the set of environmental standards required by the EU and accepted; Participating in fairs actively on agricultural products in general and agricultural products imported in the EU in particular; Selecting and training staffs to improve the capacity of export staff to understand the market of agricultural products EU. References: Department of Competition Management, (2006). Handbook of consumer protection. National Political Publisher, Hanoi, p. 33. Hong, Lam (2018). Consumption trends in Europe. Retrieved from: General Statistics Office (2016). Import and export value by country and territory predominantly preliminary months in 2016. Retrieved from: General Statistics Office (2017). Import and export value by country and territory predominantly preliminary months in 2017. Retrieved from: General Statistics Office (2018). Import and export value by country and territory predominantly preliminary months in 2018. Retrieved from: Lam, Phong (2018). Agricultural products of Vietnam "great victory", conquered a series of fastidious market. Retrieved from: PACITA (a EU funded project), (2015). Europe Wide Views on Sustainable Consumption, p.4. (web book–pdf). Retrieved from: PACITA (a EU funded project), (2015). Europe Wide Views on Sustainable Consumption, p.28. (web book–pdf). Retrieved from: 173
19. Prime Minister of Vietnam, (2012). The master plan for agricultural production development up to 2020 and vision to 2030. Retrieved from: Prime Minister of Vietnam, (2015). The master plan for hi-tech agricultural zones and regions up to 2020 with orientations to 2030. Retrieved from: Prime Minister of Vietnam, (2016). Decision approving the national action program on sustainable production and sustainable conservation till 2020, vision to 2030. Government of Vietnam. Retrieved from: UN Commission on Sustainable Development (UNCSD), (1994). Symposium on Sustainable Consumption, Oslo. World Wildlife Fund, (2008). Living Planet’ Report. Retrieved from: 174
20. SUMMARY SUSTAINABLE COMSUMPTION TRENDS IN THE EUROPEAN MARKET AND PROBLEMS REQUIRED FOR VIETNAM’S AGRICULTURAL PRODUCT EXPORTS The European Union (EU) is one of the major export markets for Vietnamese agricultural products and is shifting towards responsible consumption. More and more European consumers are reluctant to buy products whose production processes are harmful to the environment, labors must work in bad conditions, or some stage is illegal. As such, social and environmental responsibility in the production process is becoming a further criterion for Vietnam's export agricultural products. From that point of view, it poses a problem for policy makers, civil society organizations and individuals to understand the need for sustainable consumption in long-term development strategies and solutions that can appropriate to both improve the quality of agricultural products and meet the requirements of European consumers - a key point of departure from the requirements of responsible production for sustainable development. Key words: EU markets, sustainable consumption, agricultural product exports XU HƯỚNG TIÊU DÙNG BỀN VỮNG CỦA THỊ TRƯỜNG EU VÀ VẤN ĐỀ ĐẶT RA VỚI XUẤT KHẨU NÔNG SẢN VIỆT NAM Các nước Liên minh châu Âu (EU) là một trong những thị trường xuất khẩu chủ yếu của nông sản Việt Nam và đang chuyển dịch theo hướng tiêu dùng có trách nhiệm. Ngày càng nhiều người tiêu dùng châu Âu không muốn mua những sản phẩm mà quy trình sản xuất có hại cho môi trường, nhân công phải làm việc trong điều kiện tồi tệ, hoặc có công đoạn nào đó không hợp pháp. Như vậy, trách nhiệm xã hội và môi trường trong quy trình sản xuất đang trở thành một tiêu chí nữa đối với nông sản xuất khẩu của Việt Nam. Từ đó, đặt ra vấn đề cho các nhà hoạch định chính sách, các tổ chức xã hội dân sự và cá nhân hiểu được sự cần thiết quan tâm đến tiêu dùng bền vững trong chiến lược phát triển dài hạnvà đưa ra các giải pháp phù hợp để vừa nâng cao chất lượng nông sản vừa đáp ứng được yêu cầu của người tiêu dùng châu Âu – một quan điểm chủ yếu xuất phát từ yêu cầu của sản xuất có trách nhiệm đối với sự phát triển bền vững. Từ khóa: thị trường Châu Âu, tiêu dùng bền vững, xuấtkhẩu nông sản 175