Opportunities and challenges to Vietnam seafood exports in 2014

Many opportunities

According to Vietnam Association of Seafood Exporters and Producers (VASEP), in 2013, Vietnamese seafood products are available in 156 countries and territories to bring back total value of US$6.8 billion. In which, the top ten importers represented 85 percent.

Despite many difficulties in 2013, Vietnamese seafood products saw growth of 10.1 percent against the previous year. The three main markets - including the U.S., Japan and the EU - all reported an import value of over US$1 billion. In 2014, Vietnam is expected to show more signs of a future export growth.

Japan is gradually an open market for seafood products from Vietnam as Japanese authorities increased the allowable Ethoxyquin content level in imported shrimp from Vietnam to 0.2ppm, compared to the previous low level of 0.01ppm. In addition, Vietnam hopes to boost exports to new potential markets like China and Hong Kong in 2014. In 2013, shipments to these two destinations had a worth of US$650 million, up 55 percent from 2012.

Furthermore, Vietnam is setting up a distribution center for pangasius products exported to the EU in the port of Zeebrugge in Belgium. Exports of Vietnamese pangasius to this huge market will see more opportunities to reach growth in both volume and value thanks to the center.

So far, VASEP and the Management Board of Zeebrugge port signed a memorandum on the establishment of the distribution center. “This is one of the largest ports in Europe and it takes only several hours to transport imported seafood products from Zeebrugge to other European countries located about 500 km from the port. If this plan is fully realized, Vietnam seafood will have more advantages in the EU.

Currently, Vietnamese companies have been sending their seafood products to the EU through Belgium, but these were individual shipments. Therefore, the establishment of a distribution center will help concentrate supply from Vietnam as well as improve their value.

Trade barriers

However, opportunities always bring with them challenges. Vietnam fishery industry needs to acknowledge its internal challenges as well as those from the importing markets. For example, the U.S has been one of the biggest importers of Vietnam. In 2013, shipments to American market reached around US$1.75 billion and Vietnam targets to boost exports to this destination to US$2 billion in 2014.

There are two problems waiting for Vietnam seafood to overcome in coming time. The first one is the U.S catfish inspection program, which will likely be switched from U.S Food and Drug Administration (FDA) to U.S. Ministry of Agriculture (USDA). If the decision is made, pangasius products fail to entry to the U.S market. The second one is the DOC’s annual antidumping tax administrative reviews (POR) imposed to imported frozen pangasius fillets from Vietnam. If the U.S. selects Indonesia to be the surrogate country for antidumping tax calculations instead of Bangladesh like what they did in the previous years, there will be more disadvantages for Vietnamese pangasius exporters,” said Dao Tran Nhan, Counsellor of Vietnam Trade Mission in the U.S.