April 27, 2022
Shrimp aquaculture sector growing in Ca Mau province, Vietnam
The Vietnam Association of Seafood Exporters and Producers (VASEP) said Ca Mau province, south of Vietnam, is encouraging the growth of its shrimp aquaculture sector for export through free trade agreements (FTA) and utilising the province's huge potential and advantages, Fish Information & Services reported.
Ca Mau is known as Vietnam's shrimp capital, with an aquaculture area of around 280,000 hectares out of a total possible farming area of more than 300,000 hectares.
Shrimp processing businesses in Ca Mau continued to increase the value of their exports in 2021 and early 2022 by taking use of the possibilities and benefits provided by FTAs.
Duong Vu Nam, Deputy Director of the Ca Mau Department of Industry and Trade Vietnam, said the country has signed several FTAs, including the CPTPP, EVFTA, UKVFTA, and RCEP. The province's exporters, particularly seafood exporters, will benefit from favourable tariff treatment thanks to these FTAs.
Nam said seafood export is the province's most significant industry, accounting for 92% of total export revenue. Vietnam's black tiger shrimp benefited from a 0% GPS tax rate immediately after the EU-Vietnam free trade agreement (EVFTA) took effect, while the tax rate on whiteleg shrimp will fall to 0% after 5 years. Meanwhile, certain other nations, like Thailand, India, Indonesia, and Ecuador, are subject to the EVFTA's basic tax rate.
Ca Mau exporters have also benefited through boosted exports after the Regional Comprehensive Economic Partnership (RCEP) took effect on January 1, 2022. This is the world's largest free trade agreement, spanning 15 major markets including 10 ASEAN nations, China, Japan, Korea, Australia, and New Zealand.
Ca Mau's export turnover to EVFTA member nations (EU) climbed by 45.73% in 2021, to the UK (UKVFTA Agreement) increased by 53.31% and to CPTPP countries increased by 3% over the same period last year. Furthermore, export turnover to some of the province's primary markets increased considerably, with a 40.42% increase to the US market, a 30.1% increase to China, and a 70.8%increase to Cambodia.
Ca Mau exporters have improved their competitiveness in commodities export markets thanks to a rise in the export price of Ca Mau shrimp.
Despite being impacted by the COVID-19 pandemic, Ca Mau's seafood processing industry gained well in the first quarter of 2022 compared to the same period in 2021.
The province's export turnover was estimated at US$373 million, or 32.4% of the year plan, an increase of 104.6%. Seafood processing for export (mainly shrimp industry) is estimated at over US$276 million, up 68.3%, and fertiliser processing for export is estimated at US$96.7 million, up 433.4% compared to the same period last year.
Ca Mau province's shrimp export industry is now stable, and Ca Mau shrimp can be found in more than 90 nations and territories worldwide.
- Fish Information & Services