According to the Vietnam Association of Seafood Exporters and Producers (VASEP), South Korea is the 12th largest shrimp import market in the world. Shrimp imports into South Korea have grown steadily over the years, accounting for about 2% of total global shrimp imports. For the past 10 years (except 2015), shrimp exports from Viet Nam to South Korea continued to grow positively. The export turnover of every year was higher than the previous year.
South Korea currently ranks 5th in terms of shrimp imports from Viet Nam, accounting for 11.6% of Viet Nam's total shrimp exports. In the first six months of this year, shrimp exports to South Korea reached US $ 190.4 million, increased by 24% over the same period in 2017. In South Korea market, Viet Nam has to compete against China, India, and Ecuador on shrimp prices. However, Viet Nam enjoys preferential tariffs compared to other rival suppliers such as China, India, Ecuador and Thailand.
With stable demand, high import prices, preferential tariffs underthe ASEAN-Korea Free Trade Agreement and the Viet Nam – South Korea Free Trade Agreement, South Korea is considered as a potential alternative market with many development opportunities for shrimp exporting enterprises in the situation in which export to major markets are facing many difficulties
As stated by Vietnam Association of Seafood Exporters and Producers, Vietnam shrimp exports to South Korea market recorded a lot of positive transformations since the Vietnam - Korea Free Trade Agreement (VKFTA) came into effect on 20 December 2015. However, Viet Nam shrimp products are faced a huge challenge regarding tightening quality control by South Korea market. Specifically, since March 2017, South Korea has issued new fishery quarantine regulations. In particular, it regulates themandatory heat treatment of steamed shrimp products to be issued Aquatic Animal Health and Sanitary Certificate for the export to South Korea market. With the above regulation, many seafood companies in Viet Nam have failed to meet the conditions of steam conveyor. If the conveyor belt can be operated, products after heat treatment is affected too much in the sense of sight that customers do not accept. In addition, this will increase the cost of production for enterprises, leading to increasein sales prices and affecting sales. To deal with the situation, The National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD), VASEP and seafood enterprises have discussed and planned to jointly test the heat treatment on shrimp products in order to prove to Korea that shorter heat treatment process still can guarantee the health and safety from diseases.
In fact, Free Trade Agreements are bringing in more export opportunities for all parties, especially regarding import tariffs. Nonetheless, in order to protect domestic goods, all countries have to strengthen their technical barriers in order to protect consumers' health, and develop sustainably.
Furthermore, the EU- Viet Nam Free Trade Agreement (EVFTA) is about come into effect. According to the Agreement, Vietnamese goods, including shrimp products, will enjoy special preferential tariffs after the agreement take effect. This is one of free trade agreement which is forecasted to bring many opportunities and challenges to the shrimp export sector in the coming time.
To take advantage of opportunities regarding tariff provided by Free Trade Agreements, experts advised that shrimp processing enterprises should be more proactive in stringently controlling quality criteria and updating all market procedures, and requirements. At the same time, enterprises also need the companionship of government agents in orderto meet demanded requirements and preserve all mentioned markets.
Thien Binh