EU - the billion USD market of Vietnam shrimp exports in 2019 (16-04-2019)
In the EU block, the UK is the largest shrimp importer of Vietnam, accounting for nearly 33% of Vietnam's total shrimp exports to the block and accounting for 6.7% of the total Vietnamese shrimp exports to all markets.
The Vietnam Association of Seafood Entrepreneurs (VASEP) said that in 2019, shrimp exports to the EU have not escaped the downward trend. In the first two months of 2019, Vietnam shrimp exports to EU reached US$ 76.6 million, down 27.6% compared to the same period last year. However, the EU is still the largest shrimp import market of Vietnam, accounting for 20.5% of the total value of Vietnam shrimp exports to the markets. In 2018, Vietnam shrimp exports to the EU reached US$ 838.3 million, down 2.8%.
Shrimp exports to the EU decreased partly due to an increase in the supply of shrimp in the world causing the price of shrimp exports went down, the economic and political turmoil in EU also affected shrimp import and export in this market. In particular, white leg shrimp is the main product exported to the EU, accounting for an overwhelming proportion of 82% of total shrimp products exported to the EU. The UK, the Netherlands, and Germany are the three largest import markets in the block. Shrimp exports to the UK in the first 2 months of 2019 increased by 5% while exports to Germany and the Netherlands decreased by 16.6% and 47.5% over the same period in 2018.
In the EU, the UK is the largest shrimp importer of Vietnam, accounting for nearly 33% of Vietnam's total shrimp exports to the EU and accounting for 6.7% of the total Vietnamese shrimp exports to all markets. In the first two months of 2019, shrimp exports to the UK reached US$ 25.2 million, up 5% over the same period in 2018. In the second half of 2018 and the first months of 2019, Vietnam shrimp exports to the UK were unstable due to the impact from Brexit that has not come to an end. This somewhat disturbed the situation of import and export of goods and demand for seafood consumption in the UK.
VASEP said that the UK is a remarkable market of Vietnamese shrimp exporters in the EU because enterprises exporting to this market are entitled to GSP tax incentives like the general regulations for exporting to the EU. Processed shrimp products originating from Vietnam in the UK market have a higher advantage in price and quality compared to Indian and Bangladeshi products.
Germany is Vietnam's second largest shrimp importer in the EU, accounting for 3.8% of Vietnam's total shrimp exports to markets. Vietnam shrimp exports to Germany in the first 2 months of 2019 reached US$ 14.3 million, down 16.6% compared to the same period in 2018.
VASEP said that although export value decreased in the first 2 months of the year but with the EU - Vietnam Free Trade Agreement (EVFTA) expected to take effect in this year, along with the advantages of tariffs that rivals in competition like India and Thailand do not have, the EU is still considered a key billion USD market for Vietnamese shrimp exports in 2019.
Huong Tra