South Korea boosts shrimp imports from Vietnam

News 12:22 07/07/2017
(seafood.vasep.com.vn) In 2016, South Korea stayed as the 7th in volume and 12th (accounting for 2.4%) in value out of top shrimp importers in the world. From 2013 to 2016, the import volume of shrimp into South Korea increased continuously and peaked in 2016 with more than 83,000 MT. Demand for seafood, including shrimp in Korea, has been on the rise due to declining domestic fish production and the tendency to focus on healthy diets of its people.

According to the International Trade Centre (ITC), shrimp imports into South Korea in 2016 reached US$532.3 million; up 4.5% over 2015. Vietnam was the largest shrimp supplier to the market, making up nearly 49% of total shrimp imports of this country; followed by China, Thailand and Ecuador with the shares of 14.8%; 11.8% and 9.3%, respectively.

In the first quarter of 2017, shrimp imports into South Korea hit 14,103 MT, worth by nearly US$116 million, down 12% in volume but up 4.9% in value over the same period in 2016.

South Korea mainly imports frozen shrimp (HS code 030617) and not- in- airtight shrimp (HS code 160521), accounting for 67% and 23% of total shrimp imports. Vietnam was the largest exporter of these two products to South Korea.

Out of top largest shrimp importers to South Korea, the market increased imports from Vietnam, Thailand and Ecuador while reducing imports from China in both 2016 and the first quarter of this year. In QI/2017, shrimp imports from Vietnam, Thailand, Ecuador increased by 5.3%; 24,7% and 4.1%, respectively,  while those from China decreased by 27.4% year on year.

South Korea held as the 5th largest buyer of Vietnamese shrimp, behind Japan, the EU, the U.S and China; picking up 10% of Vietnam’s total shrimp exports. During the five years (2010-2014), Vietnam’s shrimp exports to the market remained the good growth. In 2014, Vietnam overtook China as the largest shrimp supplier to this market and retained as the largest one up to now. South Korea continues to be considered as the potential importing market of Vietnam shrimp in the coming time thanks to stable demand and good prices.

After unstable growth in the first four months of 2016, from May 2016 to the end of the year, Vietnam’s shrimp exports to South Korea kept growing well over the same period of 2015. In 2016, Vietnam’s shrimp shipments to South Korea climbed up 13.6% compared to 2015. In 2017, after declining by 12.2% in January, exports to this market recorded the 2-digit growth of 72% and 52% in February and March, respectively. In QI/2017, Vietnam’s shrimp exports to the market witnessed the highest year-on-year rise of 30.8% to eye US$61.8 million.

After a year implementing the Free-Trade between Viet Nam - Korea (VKFTA), Vietnam's shrimp exports to the market reported many positive changes.

On the Korean market, Vietnam has to compete on prices with Chinese and Indian shrimp. However, Vietnam is subject to the lowest import duty (10%) compared to other competitors such as China (20%), India (12.5%), Ecuador (20%) and Thailand (10%).

Shrimp imports into South Korea (Source: ITC; Thousand US$)

Suppliers

2015

2016

Variation (%)

Jan-Mar 2016

Jan-Mar 2017

Variation (%)

World

509,584

532,282

4.5

110,388

115,807

4.9

Vietnam

248,966

281,684

13.1

54,375

57,230

5.3

Thailand

60,240

62,938

4.5

13,407

16,718

24.7

Ecuador

47,592

51,285

7.8

12,156

12,653

4.1

China

75,178

69,556

-7.5

14,561

10,573

-27.4

Malaysia

20,148

19,183

-4.8

4,240

5,572

31.4

Written by Kim Thu

Compiled by Dieu Thuy

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