The exportation of squid and octopus of Vietnam in the first 7 months of this year has still affected by Covid-19 epidemic and limitation of the supply of raw materials. China is the market which has showed the stable demand of Vietnamese octopus and squid for the first 7 months of this year.
In July 2020, among the five major import markets, Vietnam's squid and octopus exports have recorded positive growth in the Korean and Chinese markets, while export to Japan and the EU markets has not increased yet.
In the share of Vietnam's total exported squid and octopus, the squid was accounted for 55% and 45% of octopus. In the first 7 months of this year, export value of octopus was decreased sharply than that of squid. Export of processed octopus (HS code 16) was recorded the highest drop of nearly 30%. Dried/grilled squid (HS code 03) was the only commodity with a positive growth of 18%, which was nearly USD 66 million. The exportation of other processed squid (HS 16) and live/fresh/frozen squid (HS code 03) was decreased by 13% and 14% respectively over the same period in 2019.
The Republic of Korea has been the largest import market for Vietnamese octopus and squid, which was accounted for 42.2% of Vietnam's total export value of this products to markets. Vietnam's squid and octopus exported to the Republic of Korea was increased by 20.4% in July 2020. But, in the first 7 months of this year, the exportation of squid and octopus to this market was still decreased by 10.6%, attained nearly USD 123 million.
Decrease in export prices and in demand for consumption due to the Covid-19 epidemic was the one of factors affecting export of Vietnamese squid and octopus to the Republic of Korea in the first 7 months of 2020. After the first quarter of this year, the Covid-19 disease in Korea was seen to be less serious than in the first quarter, so export of squid and octopus to this market was avoided further decline. The tariff advantage from the Free Trade Agreement between Vietnam and the Repiublic of Korea (VKFTA) still supports export of Vietnamese squid and octopus to this market.
In the share of Vietnamese products of squid and octopus exported to the Republic of Korea, octopus has still dominated with about 70%, the rest was accounted for 30%. The Republic of Korea was recognized as the major import market of squid and octopus products from Vietnam such as peeled dried squid, frozen processed squid, frozen sushi, frozen cuttlefish, frozen pine cuttlefish, frozen cleaned whole octopus, frozen cut octopus, frozen processed octopus ...
Japan was ranked secondly in importing Vietnamese octopus and squid, accounted for 23.7%. Exporting squid and octopus to Japan in the first 7 months of 2020 reached nearly USD 69 million, 21% lower than that in the same period of 2019. Vietnam has exported to Japan mainly products of octopus and shrimp such as frozen cuttlefish, squid frozen sliced squid, frozen whole squid cleaned for sushi, frozen Geso squid, Sugata frozen squid, Sushi frozen squid, Marusaki frozen squid, frozen cuttlefish, frozen powdered octopus, frozen surimi of octopus, frozen processed octopus, frozen blanched octopus, frozen boiled cut octopus ...
Export of squid and octopus to EU market has been still affected by the yellow card, plus the impact of the Covid-19 epidemic, which caused most of the restaurants to shut down, the demand for squid and octopus in the foodservice sector decreased dramatically. In the first 7 months of this year, Vietnam's squid and octopus exported to the EU was decreased by nearly 44%, which was attained over USD 22 million. In the next months of 2020, when the EVFTA had come into effect from August 1, 2020 and a tax on processed squid and octopus would be 0%, export of squid and octopus to EU market will be expected to increase, ,.
China has been currently the fifth largest import market for Vietnam’s squid and octopus, accounting for 7.6% of the total export value of squids and octopus. Export of these products to China in July 2020 was increased by 84% and reached USD 4.3 million. In the first 7 months of the year, export value of squid and octopus to China reached over USD 22 million, up to 59% more than that in the same period of 2019. China has been the market which showed the strongest growth rate in importing squid and octopus from Vietnam in the first 7 months of 2020.
Exportation of squid and octopus to China was decreased in the first 2 months of 2020 due to the spread of Covid-19 epidemic. Since the March of this year, when the Covid-19 epidemic in China has been less serious and the countries such as the US, EU and Japan have loosened quarantine measures of preventing the pandemic, China's demand for squid and octopus has been recovered significantly.
China has mainly imported Vietnam products such as frozen clean whole cuttlefish, frozen graded squid, tempura squid, dried squid, frozen cut octopus, whole octopus. clean frozen ...
In the context of the world-wide continuation of Covid-19 disease, the supply of raw materials has decreased, demand for importation of squid and octopus of the world and Vietnam's export of squid and octopus have been estimated to reduce gradually in the coming time. It was expected that export of squid and octopus of Vietnam in 2020 will be decreased by 18%, reached over USD 470 million.