Vietnamese shrimp exports to EU expected to surge in remaining months of 2020 thanks to EVF
Vietnamese shrimp exports to the EU market is forecasted to surge during the remaining months of the year following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in early August.
In order to enjoy tax incentives, Vietnamese shrimp exporters must improve product quality.
Experts anticipate that Vietnamese shrimp exports to the EU until the end of the year will continue to increase, although the growth rate is limited due to the negative impact of the novel coronavirus pandemic, VOV reported.
After suffering a series of drops from March to June, local shrimp exports to the EU in July reached US$54.2 million, an annual rise of 2%. Indeed, the first half of August saw the export of this item to the highly-lucrative EU market hit US$29.4 million, marking a rise of 26% on-year.
Vietnamese shrimp exports to the EU market are anticipated to surge during the remaining months of the year
As a result of the tax advantage that Vietnamese shrimp enjoys in comparison to its competitors, EU importers are keenly seeking additional supply sources from the nation, with deeply processed, packaged, and ready-to-eat items for home consumption being the most sought after.
In terms of the trends of the European shrimp market moving towards the end of the year, experts state that despite the gradual reopening of food establishments, coupled with the tourism industry restarting, shrimp importers and their suppliers remain under long-term pressure due to the uncertainty of the pandemic. With retail and online sales continuing to increase, demand for shrimp from the retail segment will be even higher once the end-of-year holiday approach.
Accordingly, shrimp farmers must redouble efforts to improve their knowledge and experience in farming due to diseases relating to farmed shrimp being quite serious. In addition, many farms that run clean and intensive farming models tend to yield positive results, although it is difficult to replicate these models due to high requirements in terms of investment capital and knowledge.
Moreover, enterprises must also focus on building their own brands by improving their operational efficiency and competitiveness, along with joining the global value chain in a more extensive manner. The efforts made by each business will therefore contribute to making the domestic shrimp industry develop into a strong economic sector for the nation moving forward.
First batch of shrimp from Vietnam on its way to EU
On September 11, in Ninh Thuan, the first shrimp consignment from Vietnam to several European countries in lines with the EU-Vietnam Free Trade Agreement (EVFTA) commitments has started its long way to the EU.
The seafood was produced by Thong Thuan Company and the shipment left the factory in the south-central province of Ninh Thuan on September 11, Nhan Dan Newspaper reported.
Under the trade agreement, the EU will eliminate tariffs on 86.5% of Vietnamese seafood over the next three years with a zero tax rate expected after seven years.
The EVFTA is expected to create a great opportunity for the export of Vietnamese seafood, said agriculture deputy minister Phung Duc Tien at a ceremony held to send off the shipment.
Shrimp processing at Thong Thuan Company
Vietnam’s shrimp exports to the EU in August rose by 20% over the same month in 2019 and are expected to continue growing towards year-end despite the impact of the coronavirus pandemic.
According to Carsten Schittek from the EU delegation to Vietnam, the reduction of tariffs from 12% to zero will help Vietnam’s shrimp industry succeed in occupying a greater share of the EU market.
He noted that European customers are demanding so Vietnamese seafood must meet environmental, labor, and safety standards, which sounds difficult but will bring enormous benefits to Vietnamese exporters as with success in the EU, they can then also succeed in other markets.
The EVFTA took effect on August 1 and is expected to help Vietnam increase its exports to the EU by 42.7% in 2025 and 44.37% in 2030 compared to a scenario without the agreement.
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