EU market looks bright for Vietnamese shrimp producers
(10/3/2019 12:00:00 AM)
The EU market looks a strong opportunity for Vietnamese shrimp
exports in the coming years, said Nguyen Tien Thong of Danish research
body Syntesa.
The
Europe-Vietnam free trade agreement was recently signed, with 0% duties
to come into force for shrimp next year. Currently, the average tariff
on shrimp products comes under the Generalized System of Preferences, at
7%.
Various
product types will enter a zero-tariff state over the next seven years,
with most changing immediately when the agreement enters force.
“Prepared or preserved” shrimp — HS16052110 and HS16052190 — are the two
types which will only become 0% in seven years’ time.
The
latter makes up some 35-40% of Vietnam’s sales to the EU, but its main
EU export — HS030617, “frozen shrimp” — makes up another 55-60%.
The
agreement provides some certainty for Vietnamese exporters regarding
the EU, said Thong. He said the market consumes roughly 900,000 metric
tons of shrimp per year, sometimes peaking towards 1 million.
The
EU market is strict when it comes to quality and food safety, but
Vietnam has been getting better in this regard with each passing year;
Thong
noted EU consumers were willing to pay more for certified product, with
such shrimp on average earning €0.94 per kilogram more than
uncertified.
VIFEP (undercurrentnews)
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