Vietnam's Agricultural Products Have Huge Export Potential To The Hungarian Market

Vietnam's export turnover to Hungary has been growing well in recent years, according to statistics from the Hungarian side cited by Vietnam News Agency's correspondent in Eastern Europe.

According to the Hungarian side, Vietnam's exports to Hungary reached US$124.2 million in 2016, with the figure rising to US$1 billion in 2020 and US$842.7 million in the first 10 months of 2021, an increase of 5 per cent. In recent years, Vietnam's exports of electronic components to Hungary have maintained strong growth momentum, contributing significantly to these results.

Although still low, Vietnam's agricultural and food exports to Hungary have recently shown growth momentum. Specifically, Vietnamese processed coffee exports to Hungary amounted to just US$115,000 in 2016 and have risen to around US$4.4 million by 2020, 38 times more than in 2016. Coffee exports in the first 10 months of this year amounted to USD 7.133 million, an increase of 85.6% year-on-year. Coffee products now account for 12.6% of Hungary's total coffee imports.

Vietnam's cashew nut exports to Hungary have increased from US$1.88 million in 2016 to around US$2.4 million in 2020. reaching US$2.207 million in the first 10 months of 2021; rice exports have increased from US$43,000 in 2016 to US$198,000 in 2020, 4.6 times more than in 2016. Vietnam's rice market share accounts for approximately 0.5% of Hungary's total rice imports.

In 2020, Vietnamese pepper exports to Hungary amounted to USD 335,000, an increase of 85% compared to the same period in 2019. in the first 10 months of 2021, pepper exports to Hungary amounted to USD 1,075,000. Vietnam's market share of pepper accounts for 18.7% of the country's total pepper imports.

Vietnamese processed vegetable and fruit exports to Hungary have increased from USD 30,000 in 2016 to USD 245,000 in 2020, eight times more than in 2016. The market share of Vietnamese pepper in Hungary is low.

The Hungarian import market structure has been mainly the EU market, so Vietnam's competitors in the Hungarian market are mainly EU countries such as Germany, the Netherlands, Italy, Poland, Slovakia, Spain and France. Despite fierce competition from these countries, Vietnam still has a good advantage in cashew nuts, pepper and coffee, and exports of these products to Hungary are currently still growing well.

Although Hungary is not a large market in the EU, the country's annual import needs amount to USD 100 billion. Of this, imports from Vietnam have increased significantly in recent years. The entry into force of the Vietnam-EU Free Trade Agreement will continue to be a great opportunity for Vietnamese companies to develop trade and investment in goods in the Hungarian and EU markets.