Shrimp exports to South Korea to boast after FTA

News 15:42 23/03/2015 609
(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.

Shrimp imports into South Korea 2010 – 2014  by weight (Unit: MT) Source: ITC

Origin

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

Malaysia

8,361

8,764

4,998

4,059

4,026

-0.8

India

29

52

361

2,519

2,964

17.7

Argentina

0

124

177

331

1,041

214.5

Indonesia

305

557

406

384

869

126.3

Philippines

129

227

66

426

696

63.4

Saudi Arabia

2,064

1245

669

280

448

60.0

 

 

Shrimp imports into South Korea 2010 – 2014 by value (Unit: US$ thousands) Source: ITC

Origin

2010

2011

2012

2013

2014

2014/2013 (%)

World

323,221

412,694

428,321

437,618

566,781

29.5

Vietnam

117,419

152,703

163,974

181,705

290,244

59.7

China

74,488

99,409

110,346

96,824

69,580

-28.1

Thailand

62,908

77,308

79,272

51,978

56,165

8.1

Ecuador

119

8179

23,742

32,920

41,564

26.3

Malaysia

40,605

47,225

28,120

29,439

36,784

24.9

India

246

558

1,920

20,836

21,765

4.5

Philippines

1,654

3251

854

5,692

10,416

83.0

Argentina

0

945

1,350

2,405

9,060

276.7

Indonesia

2,474

3126

3,640

3,023

8,687

187.4

Peru

0

0

109

1,613

3,424

112.3

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