(vasep.com.vn) It is forecasted that shrimp exports from Vietnam to South Korea will boast in the light of free trade agreement between the two countries.
South Korea has been a strategic partner of Vietnam, with bilateral trade valued US$ 28.9 billion in 2014, and the third biggest globally and the second biggest in Asia after China.
Bilateral trade cooperation between Vietnam and South Korea has experienced significant development over the past 2 decades. By the end of November 2014, the number of Vietnamese enterprises cooperating with South Korea reached 13,100.
Free Trade Agreement between Vietnam and Korea (VKFTA) was signed in May 2015 and will take effect in early 2016. Accordingly, 95.4% of goods from Vietnam will have tax cut when exporting to South Korea, bringing more opportunities for shrimp products.
South Korea is currently Vietnam's 5th biggest shrimp consumption market. In 5 years, Vietnam shrimp imports into Korea maintain positive growth. In 2014, Vietnam has surpassed China to become the shrimp largest supplier, accounted for 44% of the market share. Meanwhile, China occupied 22%, Thailand made up 7%.
After VKFTA takes effect, South Korea commits to annually clear tax for 10,000 MT of Vietnamese shrimp. Shrimp is now tarriff at 20%. Earlier, South Korea signed a trade deal with ASEAN allowing importing 5,000 MT of shrimp every year without tariff.