Shrimp exports set to capitalise on EVFTA opportunities
With the European Union – Vietnam Free Trade Agreement (EVFTA) to be officially signed on 30 June, a wealth of opportunities are expected to open up for agricultural and seafood products, with shrimp exports to the European market in particular poised to receive a boost, according to the Ministry of Industry and Trade.
Currently, Vietnamese shrimp enjoys trade preferences offered by the EU under the General Scheme of Preferences (GSP). In practicality, this means that the GSP tax rate enforced by the EU on frozen raw shrimp and frozen processed shrimp from Vietnam stands at 4.2% and 7%, respectively.
With GSP tax incentives in place, import tariffs on Vietnamese shrimp to the EU will be slashed in half. This gives domestic shrimp products a huge advantage over other major shrimp exporters such as India and Thailand that do not enjoy such tariffs.
The EVFTA taking effect will see domestic shrimp exports benefit from 0% in tariffs under the roadmap, thus creating a window of opportunity and boosting competitiveness for local enterprises.
However, experts have advised domestic businesses to make thorough preparations in order to gain entry into the EU market, which has put in place stringent requirements for exporters.
At present, a number of local businesses located in the southernmost province of Ca Mau have built shrimp farming areas, which follow Aquaculture Stewardship Council (ASC) standards and are capable of developing their own material sources.
Vietnamese shrimp exports to the EU account for up to 21.7% of the country’s total shrimp exports.. Within the EU bloc, the UK, Germany, and the Netherlands are the largest consumers of Vietnamese shrimp.