(vasep.com.vn) Free trade agreement between South Korea and Vietnam which final negotiation round finished in late 2014 is expected to achieve a higher level of liberalization comparing to FTA between South Korea and ASEAN (AKFTA).
Shrimp, classified as a 'sensitive good', is currently tariffed at 20% when imported to South Korea. With the coming FTA, the tax rate will be lower.
Statistics from Ministry of Industry and Trade show that from 2001 to 2006, trade turnover between Vietnam and South Korea increased by 14.9% annually. This rate grew to 29.1% during the period 2007-2012. Vietnam's seafood exports to Korea increased significantly. In 2010, Vietnam's seafood exports to South Korea valued at US$ 386.1 million. In 2014, the value doubled to US$ 662.8 million.
Among seafood items exported to Korea, shrimp is found to have the highest value, accounting for 48% of the total seafood export value. South Korea is currently the fifth largest market for shrimp from Vietnam, behind the US, Japan, EU and China.
In the last 5 years, Korean's imports of Vietnamese shrimp maintained positive growth. In 2014, Vietnam surpassed China to become the largest shrimp supplier with 44% of market share in Korea. China became the runner-up with 22%, followed by Thailand with 7%.
FTA between Vietnam and South Korea with the pledge to cut taxes for Vietnam's main agricultural products, including shrimp, when exporting to South Korea will create greater competitive advantage for Vietnam. Accordingly, Korea is expected to be a more important shrimp market for Vietnam in the coming years.
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Shrimp imports into South Korea 2010 – 2014 by weight (Unit: MT) Source: ITC
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|
Origin
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2010
|
2011
|
2012
|
2013
|
2014
|
2014/2013 (%)
|
|
World
|
66,934
|
77,450
|
72,472
|
60,833
|
62,878
|
3.4
|
|
Vietnam
|
18,041
|
19,118
|
18,795
|
20,381
|
27,791
|
36.4
|
|
China
|
25,738
|
34,093
|
31,425
|
21,208
|
13,936
|
-34.3
|
|
Thailand
|
10,381
|
10296
|
10,434
|
5,626
|
4,424
|
-21.4
|
|
Ecuador
|
15
|
1113
|
3,478
|
3,914
|
4,251
|
8.6
|
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Malaysia
|
8,361
|
8,764
|
4,998
|
4,059
|
4,026
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-0.8
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India
|
29
|
52
|
361
|
2,519
|
2,964
|
17.7
|
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Argentina
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0
|
124
|
177
|
331
|
1,041
|
214.5
|
|
Indonesia
|
305
|
557
|
406
|
384
|
869
|
126.3
|
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Philippines
|
129
|
227
|
66
|
426
|
696
|
63.4
|
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Saudi Arabia
|
2,064
|
1245
|
669
|
280
|
448
|
60.0
|
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Shrimp imports into South Korea 2010 – 2014 by value (Unit: US$ thousands) Source: ITC
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|
Origin
|
2010
|
2011
|
2012
|
2013
|
2014
|
2014/2013 (%)
|
|
World
|
323,221
|
412,694
|
428,321
|
437,618
|
566,781
|
29.5
|
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Vietnam
|
117,419
|
152,703
|
163,974
|
181,705
|
290,244
|
59.7
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China
|
74,488
|
99,409
|
110,346
|
96,824
|
69,580
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-28.1
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Thailand
|
62,908
|
77,308
|
79,272
|
51,978
|
56,165
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8.1
|
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Ecuador
|
119
|
8179
|
23,742
|
32,920
|
41,564
|
26.3
|
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Malaysia
|
40,605
|
47,225
|
28,120
|
29,439
|
36,784
|
24.9
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India
|
246
|
558
|
1,920
|
20,836
|
21,765
|
4.5
|
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Philippines
|
1,654
|
3251
|
854
|
5,692
|
10,416
|
83.0
|
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Argentina
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0
|
945
|
1,350
|
2,405
|
9,060
|
276.7
|
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Indonesia
|
2,474
|
3126
|
3,640
|
3,023
|
8,687
|
187.4
|
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Peru
|
0
|
0
|
109
|
1,613
|
3,424
|
112.3
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