May 10, 2018

 

Vietnam shrimp exporters bullish on EU market

 

 

Prospects of Vietnamese shrimp exports this year are looking good, with the EU, the country's biggest buyer, expected to ramp up its orders amid a possible ban on Indian shrimp imports.

 

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the EU was the "most dynamic" importing market of Vietnamese shrimp in 2017 and that in 2018, exports to this market has maintained the upward trend.

 

As the largest importer of Vietnamese shrimp, the EU accounts for 18.6% of Vietnam's total shrimp exports. Shrimp exports to this market in the first two months hit US$81.9 million, up 11% over the same period last year, the VASEP said.

 

Exports to the three main markets in the block (the Netherlands, Germany and Belgium) recorded double-digit growths at 62.6%, 42.5% and 31.8%, respectively.

 

It said that Vietnam's shrimp exports to the EU are quite favorable as Indian shrimp (the main competitor of Vietnam in the EU) has difficulties in the EU market and faces the risk of being banned in the EU.

 

GSP and EVFTA advantages

 

Another advantage of Vietnamese shrimp exports to the EU is the accordance in 2017 of GSP (generalised system of preferences) rights by the EU, while Thailand and China do not have this advantage.

 

Still another is the upcoming EU-Vietnam Free Trade Agreement (EVFTA), which will give the Southeast Asian country more opportunities to boost shrimp exports to the 28-nation bloc. Under the agreement, Vietnamese goods, including shrimp products, will enjoy special preferential tariffs.

 

At present, the GSP tariff for Vietnamese frozen raw shrimp (HS code 030617) is 4.2%, while that for processed frozen shrimp (HS code 160521) is 7%.

 

Vietnam's total shrimp exports to all markets in the first two months totalled US$440.5 million, up 16.5% over the same period in 2017.

 

The top 10 main importing markets of Vietnam shrimp were the EU, the US, Japan, China, South Korea, Australia, Canada, ASEAN, Taiwan and Switzerland, all accounting for 88.6% of total shrimp export value of Vietnam.