In March 2019, Vietnam shrimp
exports to Japan reached over US$54 million, an increase of 4.3%
compared to March 2018. In the first quarter of 2019, shrimp exports to
the market reached US$121.7 million, up 1.4% year on year. Japan was the
only market in Vietnam’s top eight shrimp importers to increase shrimp
imports from Vietnam in the first quarter of this year. In the second
quarter of 2019, it is expected that Vietnam shrimp exports to Japan
will go up by about 5% to about US$297.9 million.
Some
Vietnamese shrimp products exported to Japan included: white-leg
shrimp (peeled, headless, tail off, frozen boiled – HS code 16052990),
White leg shrimp (peeled, frozen breaded size TR-20 , TR-30, TR-40,
KF-41, 10 Y-20B - HS code 16052930), frozen Nobashi white-leg shrimp (HS
code 03061721), frozen PD white-leg shrimp (21/25, 31/40, 51/60, 61/70
-HS 03061722). In March/2019, the price of shrimp products (HS code
16052990) exported from Vietnam to Japan ranged from US$8.2-11.9/kg, the
price of shrimp (HS code16052930) ranged from US$5.9-7 /kg.
Vietnam was the largest shrimp
supplier to Japan, accounting for 25.6% of the total value of shrimp
imports into this country. For years, Vietnam has maintained its No. 1
position in supplying shrimp to Japan thanks to its advantages over
other suppliers in the Japanese market. ASEAN–Japan Comprehensive
Economic Partnership (AJCEP) took effect from December 1, 2008 and the
Economic Partnership Agreement between Vietnam and Japan (VJEPA) come
into effect from October 1, 2009. Those FTA agreements created favorable
condition for export of Vietnamese seafood to Japan thanks to
preferential tariffs.
Under Japan’s commitment to
Vietnam in VJEPA. Since 1/4/2019, shrimp products (HS code 030617)
imported into Japan from Vietnam are exempt from tax. Besides, the
exempted processed shrimp products when imported into Japan from Vietnam
from Apr 1st, 2019 included (HS code 160521011- boiled
shrimp, chilled, frozen, no airtight bag), HS code 160521019, 160521029
160529010 and 160529029.
In addition to the Vietnam - Japan
and ASEAN - Japan FTAs, the CPTPP Agreement, that took effect from
January 2019, will also help Vietnamese shrimp to increase its advantage
in this market. According to Japan's commitments at CPTPP, most of
Vietnam's key seafood products including frozen shrimp (HS code 030617)
and processed shrimp (HS code 160521) are entitled to 0% tax rate right
after the agreement comes into effect.
As
Japan's ready-to-eat food industry grows, processed shrimp products
with high usability will grow well in the Japanese market. It is
expected that in 2019, processed shrimp products circulated into Japan
will grow more than 10% compared to 2018.
VIFEP (Vasep)