Vietnam cephalopod exports rose slightly

News 08:46 07/08/2019
(seafood.vasep.com.vn) Vietnam's cephalopod exports in the first 5 months of 2019 reached US$243.3 million, a slight increase of 1.7% compared to the same period in 2018. Exports to major markets such as Korea, Japan, and the US maintained double-digit growth, however, exports to other main markets such as EU, ASEAN, and China fell sharply.

In the first 5 months of this year, Vietnam's cephalopod exports only climbed in January and March, while decreasing in the other months. In May, Vietnam's export of cephalopod fall with the same rate in February of 13%. In June, 2019, Vietnam's cephalopod exports to the US and Japan went up by 48% and 16.5% respectively. Exports to Korea and EU went down slightly by 3% and 9% respectively. Exports to ASEAN, China sharply decreased 43% and 65% respectively compared to the same period in 2018.

In the total structure of cephalopod exports, octopus accounted for a higher proportion with 52.8%, squid accounted for 47.2%. Vietnam still mainly exports live/fresh/frozen squid and octopus products (accounting for 72%), and processed products are not much (accounting for 28%).

In the total structure of cephalopod export products, dried/salt/live/fresh/frozen octopus (HS03) had the strongest growth of 28%, while dried/baked squid (HS03) dropped the most by 28% compared to the same period in 2018.

South Korea is still the largest importer of Vietnam's cephalopod, accounting for 43% of Vietnam's total cephalopod exports to markets. In the first 5 months of this year, cephalopod exports to Korea reached US$104 million, up 19% compared to the same period in 2018. After having continuous growth in the first 4 months of this year, exports this item to South Korea in May declined slightly by 3.4%. Stable consumption demand and tariff advantages from the Free Trade Agreement between Vietnam and Korea (VKFTA) were the factors that supported the export of Vietnam's cephalopod to this market.

Japan, the second largest importer of Vietnam's cephalopod, imported more than US$ 61 million of squid and octopus from Vietnam in the first 5 months of this year, up 11.3% compared to the same period in 2018. After decreasing in April 2019, Vietnam's cephalopod exports to Japan rose again by 16.5% in May.

In terms of tax rate, currently processed octopus products imported from Thailand and the Philippines to Japan are advantageous with 0% tax rate, while that of from Vietnam and Indonesia is 1.8%, and from China is 6.9%. The CPTPP Agreement, officially in effect from the beginning of this year, will facilitate export of cephalopod to Japan in the near future.

Export of this product to EU market in the first 5 months of this year reached US$27.7 million, down 12.3% compared to the same period in 2018. Italy, Spain and the Netherlands are the three largest markets for Vietnam's cephalopod in the EU. Exports to Spain and the Netherlands lifted by 15% and 57% respectively, while exports to Italy fell by 21% compared to the same period in 2018.

In squid and octopus products, Vietnam mainly exports squid products to the EU market, accounting for 75% - 86% of Vietnam's total squid and octopus export value to the EU.

Vietnam's cephalopod exports to EU market have not yet increased due to the impact of yellow card.

Vietnam is the 4th largest processed squid exporter into Europe, accounting for over 6% of total EU import value of this product.

In the context of the Free Trade Agreement between Vietnam and EU (EVFTA) come into effect, Vietnam's cephalopod exports to the EU will be enjoyed the tax incentives. According to the commitment in EVFTA, some processed squid and octopus products have a relatively high basic tax rate (20%), which will be reduced immediately to 0%. Most of frozen cephalopod products that have a basic tax of 6-8% will be reduced immediately to 0%.

Export of cephalopod to China declined by 50% to nearly US$10 million as of May, 2019 as Vietnam must compete with many cheap suppliers in this market.

It is forecasted that, Vietnam's cephalopod exports in the coming months will continue to maintain positive growth momentum.

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