Seafood exporters swim against trade tide

Major opportunities

The EVFTA was signed following decade-long negotiations and took effect on August 1, 2020. In the first year of implementation, Vietnamese seafood exports to the EU decreased by six percent compared with 2019. However, despite the severe impact of COVID-19, seafood exports to the EU in 2021 exceeded US$1 billion, up 12 percent compared with 2020 and accounting for 12 percent of Vietnamese seafood export value.

Seafood companies should pay greater attention to ensuring product quality and origin traceability

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first 11 months of 2022, Vietnam exported US$1.22 billion worth of seafood to the EU, up 26.3 percent year-on-year. Nearly 1,000 Vietnamese seafood companies have been granted EU export codes, paving the way for their access to other markets.

Economists believe the EVFTA tariff preferences will enhance the competitiveness of Vietnamese seafood. Specifically, the tax rates applied to Vietnamese frozen black tiger shrimp and white-leg shrimp exports to the EU will be zeroed out within five years, while similar products from Thailand and Ecuador are subject to a tax rate of 12 percent, and those from India and Indonesia are taxed at 4.2 percent.

The current tax rate of 5.5 percent applied to frozen tra fish will be gradually reduced to zero within three years, while Indonesia continues to be taxed at 5.5 percent and China nine percent. For tuna, the tax rate will be reduced to zero within 3-7 years, while Thailand is subject to taxes ranging from 18-24 percent.

As soon as the EVFTA took effect, it immediately zeroed out taxes on some processed seafood products, including oyster, scallop, cuttlefish, octopus and abalone.

Processing seafood for export

Business action

However, Vietnamese seafood businesses have been slow to benefit from these tariff preferences as they mostly export raw or preliminarily processed materials of low value.

VASEP Secretary General Truong Dinh Hoe said that in 2023, domestic seafood companies should seriously abide by regulations on origin, production and processing in order to remove the EU yellow card imposed on illegal, unreported and unregulated (IUU) fishing as soon as possible.

Another factor preventing seafood companies from taking full advantage of the EVFTA is their non-compliance with food safety standards. A national fisheries management system should be established to force abidance by rules of origin from importing markets.

For their part, seafood companies should enhance their competitiveness and social responsibility. Applying sustainability standards in production and processing is crucial for their access to foreign markets.