CPTPP, EVFTA to benefit Vietnamese fishery sector

Export potentials 12:12 04/05/2018
Vietnam’s fishery sector will gain advantages and export opportunities once the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA) take effect, heard a seminar in Ho Chi Minh City on April 20.

Vuong Duc Anh, from the Ministry of Industry and Trade’s Department of Export-Import, said the CPTPP and EVFTA are new-generation trade deals with trade facilitation as a core value via cutting tariffs.

Under the EVFTA, aquatic products, excluding canned tuna and fish balls, will enjoy a zero tax for a maximum of seven years. While under the CPTPP, Canada and Peru will cut taxes to zero percent once the deal takes effect. Other countries will offer tax reductions in accordance with roadmaps.

Anh said the signing of the EVFTA and CPTPP will afford Vietnamese fishery firms chances to expand export markets, especially new markets such as Canada, Peru and Mexico, given that Vietnam’s rivals Thailand and China have yet to sign the FTAs with the European Union and have yet to join the CPTPP.

Vietnam now ranks second globally in terms of shrimp exports with a market share of 14 percent, behind India (15 percent). India has yet to join the CPTPP while its FTA negotiations with the EU have been stalled.

According to experts, Vietnamese aquatic firms will also have chances to improve technology and product quality, join the regional supply chain and diversify materials supply sources. In particular, signing new-generation FTAs also requires the State to reform mechanisms, thereby creating a stable and transparent business environment.

However, domestic enterprises also face competition with foreign rivals and stringent regulations on product quality and trace of origin. Therefore, they need to build business plans for medium and long term and renew technologies to join the global value chain for sustainable growth.

VNA 

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