With the EU-Vietnam Free Trade Agreement (EVFTA) resulting in the elimination of tariffs, the trade deal is expected to present a wealth of opportunities for Vietnamese seafood exports moving forward, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
The terms of the EVFTA will see the EU remove tariffs on 86.5% of the country’s seafood exports within the next three years, 90.3% within the next five years, and 100% in line with the seven-year roadmap.
To take full advantage of these preferential tariffs, the number of seafood export orders since the start of August has increased by approximately 10% in comparison to the previous month.
Furthermore, the country’s shrimp exports to the EU in July rose by 2% to over US$54 million from July last year, while exports to the market in August soared by roughly 20% compared to August 2019. This upward trend is expected to be maintained in the final months of the year despite the impact of the novel coronavirus.
Carsten Schittek, head of Trade and Economic Affairs for the EU Delegation to Vietnam, said the export of the initial batch of brackish shrimp to the EU market is a successful sign of the fisheries sector. Schittek said he believes that the shrimp industry will prove to be successful in holding higher market shares in the demanding market due to tariffs slashed from 12% to 0% under the EVFTA.
Local businesses are therefore advised to meet the stringent requirements that relate to environmental sustainability, labour rights, food hygiene, and safety in order to make further inroads into the EU and other markets worldwide, Schittek noted.
Luu Xuan Vinh, chairman of the Ninh Thuan People’s Committee, emphasised that frozen shrimp remains one of the province’s key export items, accounting for 43.5% of total exports. Notably, exports from Thong Thuan Company, Ninh Thuan Branch, make up more than 95% of the locality’s overall shrimp export turnover.
Truong Huu Thong, general director of Thong Thuan Co. Ltd., revealed that the EU ranks among the three leading markets for the company’s exported of seafood products due to stable consumption and prices.
The company plans to export four containers of frozen shrimp to countries such as Japan, the Netherlands, Germany, and the UK in the near future. All of its shrimp aquaculture, production, and processing procedures have followed international standards such as Best Aquaculture Practices (BAP), Aquaculture Stewardship Council (ASC) and Global GAP certification.
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