Fruit, vegetables, and spices make up the second largest share of Vietnamese agri-food exports to the EU, only after coffee and tea. The export turnover in 2020 was EUR 855 million, up 8% against 2019. This accounts for less than 1% of the EU market for these agricultural products, indicating significant potential for growth. These exports are predicted to continue to grow due to the reduction and/or removal of tariffs under the EU-Vietnam Free Trade Agreement (EVFTA). However, Vietnam's growth model has been heavily reliant on low-cost labor, resulting in low productivity in local firms compared to foreign-owned enterprises. Various challenges prevent Vietnamese spice, fruit, and vegetable small and medium enterprises (SMEs) from accessing the EU market. Specifically, SMEs lack the knowledge and resources to achieve standard compliance and establish a corporate quality management system; they lack knowledge about and access to the EU market and have limited opportunities to liaise with European buyers; and the spice, fruit, and vegetable subsectors lack effective mechanisms to raise their industry-wide capacities and collectively promote their products to European buyers.

The European Union (EU) and Vietnam share a long history of cooperation on trade. The negotiations for the EU-Vietnam Free Trade Agreement (EVFTA) were concluded in December 2015. According to the EVFTA, fruits, vegetables, and spices are among Vietnam's key agricultural products entering the EU and are enjoying preferential tax rates since the EVFTA came into effect. However, the biggest challenge for the industry is meeting the strict quality market requirements.

The Socio-Economic Development Strategy (SEDS) 2011–2020 laid the foundation for Vietnam to become a "modern oriented industrial economy by 2020". Global economic integration remains a guiding principle under the SEDS. The SEDS 2020-2025 continues this work, stating objectives to make effective use of free trade agreements, expand and diversify import and export markets, boost trade remedy capacity in line with international commitments, set up domestic and international supply and value chains meeting product quality requirements and regulations on tracking product origins, and promote agricultural restructuring. The strategy aims to develop a highly efficient rural and agricultural economy associated with new rural construction, focusing on modern, high-tech, sustainable development. The implementation of the EVFTA remains a high priority for the Vietnamese Government.

The Intervention “Enhancing the Export Competitiveness of Vietnamese Small and Medium Enterprises in Spice, Fruit and Vegetable Sub-Sectors” (SFV-Export) is a two-year intervention (01/01/2021 – 31/12/2023) funded by the European Union, under the ASEAN Regional Integration Support – Vietnam Trade-Related Assistance (ARISE Plus Vietnam), financed under the Development Cooperation Instrument, amounting to EUR 800,000, and implemented through a grant contract.

The Lead Partner for the implementation of the Intervention is Dutch Civil Society Organisation (CSO) STICHTING OXFAM NOVIB (Oxfam), who are also co-funding the action with EUR 200,000, in a consortium with the Vietnam Chamber of Commerce and Industry (VCCI).