(vasep.com.vn)The results are thank to FTA signed by the two countries. When the FTA takes effect, Vietnamese shrimp exporters will have more advantages against other suppliers.
A seminar discussing the impact of free trade agreements (FTA) on shrimp exports and imports was organized in Can Tho City by VASEP, Department of Processing and Trading Agricultural Forestry Aquatic Products and Salt with the support of the Agency of Foreign Trade- MOIT. According to Ms. Nguyen Hong Van, representative from Agency of Foreign Trade, never has Vietnam participated in negotiating such many FTAs. These are not involved by Thailand, Indonesia or India, therefore, as trade deals are signed, Vietnamese exporters will get benefit.
FTA between Vietnam and South Korea, signed on 5th May 2015 will create an advantage for shrimp from Vietnam from 2016 when it goes into power. Annually, 10,000 MT of Vietnamese shrimp will be tax exempt, comparing to the tariff of 20% for the same goods from other countries. Earlier, South Korea signed a trade deal with ASEAN allowing importing 5,000 MT of shrimp every year without tariff.
In the last 5 years, Vietnamese shrimp imports into South Korea has maintained positive growth. To Vietnam, South Korea is currently the 5th largest shrimp market, after the US, Japan, EU and China. In 2014, Vietnam was the largest shrimp supplier with 44% of market share in South Korea. China was the runner-up with 22%, followed by Thailand with 7%.
Five other FTAs are in the negotiation process. These include FTA between Vietnam and European Union, EFTA, FTA with Eurasian Customs Union, Trans-Pacific Partnership TPP and Regional Comprehensive Economic Partnership RCEP.
There will then be more opportunities for companies to export shrimp, pangasius and tuna more in the future, thanks to tax incentives and other advantages that FTAs bring.