June 10, 2013

Vietnam-EU trade agreement may boost Vietnam's seafood sector

The signing of a Vietnam-EU free trade agreement (FTA) may see Vietnam become a growing market for seafood products as foreign seafood importers are shifting their orders from China to other countries.

This is according to Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP).

Speaking at the Vietnam-EU Business Forum 2013 in Ho Chi Minh City, Hoe said the free trade agreement (FTA) will create a great chance for the Vietnamese seafood industry to expand markets. For instance, he said, local companies can import seafood from a third nation for processing and export to the EU.

China is now the biggest seafood processing country but certain foreign orders have been shifted away from China, Hoe noted, adding Vietnam might be the next choice of EU importers through the FTA.

The FTA will help lessen non-tariff barriers like trade protectionist measures, plant and animal quarantine and future technical barriers, VASEP noted.

A road map of tax cuts for seafood companies is needed in the FTA as the industry will not be entitled to preferential tariffs in line with the Generalised System of Preferences (GSP) of the EU in near future.

Seafood exports brought home over US$6.1 billion in 2012, growing more than 16 times in the last two decades, with exports to the EU making up 18.5%.