The EU market looks a strong opportunity for Vietnamese shrimp exports in the coming years, said Nguyen Tien Thong of Danish research body Syntesa.
The Europe-Vietnam free trade agreement was recently signed, with 0% duties to come into force for shrimp next year. Currently, the average tariff on shrimp products comes under the Generalized System of Preferences, at 7%.
Various product types will enter a zero-tariff state over the next seven years, with most changing immediately when the agreement enters force. “Prepared or preserved” shrimp — HS16052110 and HS16052190 — are the two types which will only become 0% in seven years’ time.
The latter makes up some 35-40% of Vietnam’s sales to the EU, but its main EU export — HS030617, “frozen shrimp” — makes up another 55-60%.
The agreement provides some certainty for Vietnamese exporters regarding the EU, said Thong. He said the market consumes roughly 900,000 metric tons of shrimp per year, sometimes peaking towards 1 million.
The EU market is strict when it comes to quality and food safety, but Vietnam has been getting better in this regard with each passing year;
Thong noted EU consumers were willing to pay more for certified product, with such shrimp on average earning €0.94 per kilogram more than uncertified.
(undercurrentnews)