08:20 | 08/04/2016 Trade
(VEN) - The US is seen as one of Vietnam’s key seafood importers this year. However to make most of tax incentives provided by free trade agreements, domestic seafood exporters must further improve quality and develop brands.
Vietnamese seafood will see opportunities in the US thanks to tariff incentives
In the framework of the ASEAN-US Summit, Vietnamese Prime Minister Nguyen Tan Dung witnessed the signing of a contract for the supply and development of fishery products between Vietnam’s Bien Dong Seafood Co., Ltd. and the American H2Origins Seafood, Inc. The two sides will promote cooperation to increase market share in the US market, share market development information and jointly develop new seafood products with the best quality in order to achieve growth in sales of US$300 million over the next 36 months. In particular, the H2Origins Seafood, Inc. will buy from 750-1,000 containers of tra fish fillets valued at US$60 million in the next four quarters, develop brand for tra fish fillets made by the Bien Dong Seafood Co., Ltd. and manage sale activities related to its brand in the US market.
This event was seen as a positive start after seeing a fall of 6.5 percent in tra fish exports in 2015. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the Food Safety and Inspection Service updated the list of Vietnamese, Chinese, Thai and Myanmar companies that are able to implement seafood exports to the US, with the presence of 23 Vietnamese tra fish processing plants. Economists also said that shrimp exports to this market could increase this year.
According to VASEP Deputy Secretary-General Nguyen Hoai Nam, Vietnam would have additional advantages compared to six rivals including Argentina, Ecuador, India, Thailand, Philippines and Indonesia in shrimp exports to the US thanks to the signing of the Trans-Pacific Partnership.
To achieve better growth in tra fish and shrimp exports to the US, domestic businesses proposed to the Ministry of Agriculture and Rural Development to give specific solutions in order to overcome difficulties.
To make most of opportunities provided by free trade agreements, Nguyen Hoai Nam said that the country needed to earmark material sources as these products will enjoy tariffs of zero percent after free trade agreements take effect.
Businesses must carefully calculate production costs to make most of tariff incentives. Production costs for Vietnamese seafood are currently higher than other countries, leading to higher prices and reducing competitiveness.