Vietnam frozen octopus has a price advantage in Korea

South Korea was also the largest buyer of Vietnam octopus, picking up 59.2% of Vietnam’s octopus exports and was the second largest buyer of Vietnam squid, making up 16.5% of Vietnam’s squid exports.

In 2017, Vietnam’s cephalopod exports to South Korea witnessed the rises from QI to QIV and reached the highest export value in QIV.

In the months of 2017, despite a decrease in January, exports to the market reported the double digit growth from February to October, then slowed down in November and December.

Koreans have high demand for cephalopod, especially dried items. South Korea's cephalopod imports has been on the increase in demand for healthy foods.

According to the ITC data, in the first 11 months of 2017, cephalopod imports into Korea fell by 51.4% to nearly US$274 million. China was the largest suppliers to South Korea; Peru and Vietnam ranked the second and third respectively.

In Jan-Nov 2017, among the main cephalopod products imported into South Korea; imports of fresh/live/chilled octopus (HS code 030751), processed squid (HS code 160554), processed octopus (HS code 160555) increased by 32.6%; 9.5% and 26.8%, respectively; while those of squid (HS code 030749) and frozen/dried/salted and octopus (HS code 030759) decreased by 72.8% and 98.8%, respectively.

South Korea consumes more octopus than squid, of which fresh/live/chilled octopus accounts for the highest proportion of total cephalopod into South Korea.

Exports of fresh/frozen octopus took the largest share in Vietnam's cephalopod shipments to South Korea; followed by dried squid and fresh/frozen squid.

For fresh/frozen octopus, compared to China, Vietnam has the advantage of more competitive prices (this item from Vietnam quoted at US$8/kg while that from China was US$14/kg). In addition, frozen octopus from Vietnam, Thailand, was subject to the tax of 0%, while that from China was 20% and from Mauritania was 5.71%.