The export of the first batch of frozen shrimp to several European countries under the EU-Vietnam Free Trade Agreement (EVFTA) was marked with a ceremony in the south central province of Ninh Thuan on September 11.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien said tariff removal under the EVFTA is expected to create big opportunities for Vietnam’s aquatic product exports.
Accordingly, the EU is set to eliminate tariffs on 86.5 percent of Vietnam’s aquatic product exports in three years, 90.3 percent in five years, and 100 percent in seven years, he said, noting that to take this advantage, orders for Vietnamese aquatic products since the beginning of August has increased by around 10 percent compared to July.
Tien added the EVFTA, taking effect on August 1, promises a bright prospect for shrimp exports to the EU in the remaining months of 2020.
In July, Vietnam earned 54.2 million USD from shrimp exports to the EU, up 2 percent from a year earlier. The year-on-year growth continued in August, at about 20 percent, and the upward trend is expected to be sustained until the year-end although the pace is unlikely to be fast due to COVID-19 impact, according to the deputy minister.
At the ceremony, Carsten Schittek, head of trade and economic affairs at the EU Delegation to Vietnam, said the shipment of this batch of brackish-water shrimp to the EU affirmed the success of shrimp farming, processing and exporting businesses of Vietnam.
Vietnam’s fishery industry, including the shrimp sector, is highly competitive, he noted, adding that with tariffs slashed from 12 percent to zero percent under the EVFTA, the country’s shrimp sector will become even more successful in gaining a bigger market share in the EU.
For his part, Truong Huu Thong, Chairman and General Director of the Thong Thuan Co. Ltd – the shrimp exporter, said among the largest markets his firm is selling products to, Europe is the most stable one in terms of demand, policies and prices.
When the EVFTA came into force, orders the company received from the EU have risen sharply, he added.
According to Chairman of the Ninh Thuan People’s Committee Luu Xuan Vinh, frozen processed shrimp is one of the key export items of the province, accounting for 43.5 percent of total shipments, and over 95 percent of the local shrimp exports is contributed by the local branch of the Thong Thuan company.
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