South Korea expected to raise importing Vietnam shrimp

News 12:21 20/05/2016
(seafood.vasep.com.vn) In QI/2016, Vietnam’s shrimp exports to South Korea reached US$47.2 million; down 8% compared to the same period of 2015. In each month of QI/2016, shrimp exports to the market in January reached the highest of over US$19 million, up 17.2% compared to Jan 2015; exports in February reached the lowest of over US$11 million, down 21.3% compared to Feb 2015; exports in March 2016 increased compared to the previous month but down 18.7% from Mar 2015.

Korea was the 5th largest consumer market of Vietnam shrimp behind the US, EU, Japan and China. In 5 years (2010-2014), Vietnam shrimp exports to Korea have been maintaining the positive growth. In 2014, Vietnam overtook China to become the largest supplier of shrimp to the market and maintained the top position up to now.

According to ITC, in 2015, shrimp imports into Korea reached 77.7 thousand MT, valued at US$509.6 million, up 3% in volume but down 27% in value. The downward trend in shrimp import value into the market was owing to Korea’s weak demand for shrimp and the plunge in global shrimp price. In Jan-Feb 2016, shrimp imports into Korea reported the increase of 6.3% in value but down 4.6% in value from the same period of 2015. In the Korean market, Vietnam shrimp must compete in price with other suppliers such as China, Malaysia, India. In 2015, the average import price of shrimp from Vietnam into Korea reached US$8.3/kg while shrimp price from China, Malaysia, India was US$2.9; US$7.9 and US$6.9/kg, respectively.

In the first two months of this year, among top 10 leading shrimp suppliers to Korea, Korea raised importing from Saudi Arabia and Indonesia with respective growth of 32% and 19.6% while imports from other suppliers showed the decline in which India showed the deepest dive of 62%, followed by Philippines, China and Thailand with the drop of 26.9%, 18.8% and 6.5%, respectively.

In 2016, Vietnam shrimp exports to Korea expected to have positive outlook because the FTA between Vietnam and Korea has taken effect. Accordingly, Korea committed to clear tax for 10,000 MT of Vietnam shrimp in the first year and 15,000 MT in the next 5 years. Vietnam now enjoys yearly non-tariff quota of 2,500 MT to Korean market out of total quota of 5,000 MT shared by 10 ASEAN countries. Vietnam shrimp have an advantage over ASEAN countries (namely Thailand, Indonesia, Malaysia) which is considered as an impetus for Vietnam shrimp exports to the market in the coming time.

With the gradual recovery in Korea’s economy and stable demand for Vietnam seafood, including shrimp; Vietnam shrimp exporters have opportunities to boost sales to the market.

Korean consumers are favoring processed seafood products from Vietnam, particularly shrimp owing to convenience, suitable taste and presentations. Besides, the geographical advantages, lower transportation costs than other countries in the ASEAN facilitate Korea’s demand for seafood from Vietnam.

Shrimp consumer tastes of Koreans have many similarities with Japan while Vietnam has experiences in processing of products exported to the Japanese market. This is also an advantage for Vietnam shrimp exporters.

Top 10 largest shrimp suppliers to Korea

Origin

Volume (MT)

Value (US$thousand)

Jan-Feb 2015

Jan-Feb 2016

Variations (%)

Jan-Feb 2015

Jan-Feb 2016

Variations (%)

The world

9.840

10.460

6,3

80.302

76.631

-4,6

Vietnam

3.595

4.586

27,6

34.042

37.174

9,2

Ecuador

1.006

1.158

15,1

9.362

9.317

-0,5

Thailand

940

911

-3,1

9.832

9.189

-6,5

China

2.415

2.106

-12,8

11.577

9.405

-18,8

Malaysia

461

485

5,3

3.972

3.353

-15,6

Argentina

318

290

-8,7

2.738

2.331

-14,9

Saudi Arabia

116

195

67,2

921

1.216

32,0

India

534

329

-38,3

4.045

1.533

-62,1

Philippines

50

42

-15,2

613

448

-26,9

Indonesia

68

94

37,4

586

701

19,6

By Kim Thu

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