December 15, 2022


Vietnamese shrimp dominate South Korean market


Vietnamese shrimp exports to South Korea have grown positively from January to September this year, only decreasing slightly by 1% in October, thanks to the close proximity and duty-free quota between both nations, Fish Information & Services reported.


In light of high freight costs, record inflation, and declining demand in the US and EU markets, South Korea is the preferred export destination for Vietnamese exports, much like the Japanese market.


The Vietnam-Korea Free Trade Agreement (VKFTA) grants Vietnamese shrimp exports to Korea preferential treatment and a duty-free quota of 15,000 tonnes annually.


South Korea imported shrimp worth more than US$819 million in the first 10 months of 2022, up 19% from the same period in 2021, according to data from the World Trade Center (ITC). Vietnam had the largest market share on the South Korean market. Competing suppliers like China, Thailand, and Ecuador only held a market share of 7.9%, 7.7%, and 6.4% of South Korea's total shrimp import value respectively.


The two main competitors of Vietnamese shrimp, Thailand and Ecuador, decreased shrimp exports to South Korea by 22% and 16% over the same period in 2021, whereas Vietnam and China increased shrimp exports to South Korea by 25% and 19%, respectively.


Thailand's shrimp production this year has been challenging. Additionally, Thai shrimp is less expensive than other competitors on the South Korean market. The US has not made significant investments in exporting to South Korea while Ecuador is focused on exporting heavily to China.


-      Fish Information & Services

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