(seafood.vasep.com.vn) Vietnam boosts exports of fresh/live/frozen octopus (HS code 030751 and HS code 030759) to South Korea thanks to the tax rate of 0%. In the first half of 2017, Vietnam’s cephalopod exports to the market amounted to US$95 million, up 40.5% over the same period last year. South Korea kept as the biggest importer of Vietnam cephalopod, representing 35% of Vietnam cephalopod sales.
Koreans have a high demand for cephalopod, especially dried items. Imports of cephalopod into South Korea in recent years tended to increase thanks to a rise in demand for healthy food.
According to ITC, in the first six months of this year, cephalopod imports into South Korea decreased by 48% to hit US$149.8 million. China was the largest supplier to the market; followed by Peru and Vietnam with the shares of 49% and 42%, respectively.
In the period, among the main cephalopod items imported into Korea; imports of processed squid (HS code 160554), fresh/live/chilled octopus (HS code 030751), processed octopus (HS code 160555) increased by 40.6%; 30.7% and 33.75%, respectively; while those of frozen/dried/salted squid (HS code 030749) and octopus (HS code 030759) declined sharply by 65.9% and 98.5%, respectively.
Vietnam’s exports of fresh/frozen octopus picked the main proportion of total Viet Nam's cephalopod exports to South Korea, followed by dried squid and fresh/frozen squid.
Despite the proportion of 1% in total imports of fresh/live octopus into South Korea, Vietnam will have the opportunity to increase the market share thanks to the tax rate of 0% (China with 91%; Thailand with over 8%) and good supplies. For the export value, Vietnam accounted for 35%, while China picked up 45% in total imports of frozen octopus into the market.
Korea's import demand for frozen squid in 2016 had rebounded, up 8% after a 16-percent drop in 2015. In 2017, South Korea's squid imports expected to continue the rise as the squid output of the country fell sharply from 186 thousand MT in 2015 to 141 thousand MT in 2016. Vietnam made up the highest market share in South Korea with 31.5% in 2016, while Chile accounted for 228.5% and China with 12.5%. In addition, Vietnam was subject to the lower tax than China (Vietnam with the tax of 6.67% and China with the tax of 13.33%).