CPTPP Boosts Seafood Exports
In the first quarter of 2019, Vietnam witnessed remarkable growth in the value of seafood exports to member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Among the various commodities benefiting from the agreement, wood and seafood emerged as the frontrunners.
According to the Ministry of Agriculture and Rural Development, seafood exports in the first quarter reached $1.8 billion, marking a slight 0.5% increase compared to the same period in the previous year.
Expanding Opportunities in CPTPP Member Markets
Vietnam experienced robust growth in seafood exports to several member countries of the CPTPP. Notably, export values to Mexico surged by 35.6%, Malaysia by nearly 22%, and Canada by almost 14%. Japan retained its position as the leading importer of Vietnamese seafood.
However, it is the Canadian market that holds significant potential for Vietnam to further enhance its seafood exports. With the implementation of the CPTPP, import duties on various seafood products from Vietnam, such as frozen shrimp, processed shrimp, mollusks, tra fish, and tuna, dropped to 0%.
The Canadian Market: A Promising Destination for Vietnamese Shrimp
Canada has consistently ranked among the top 10 shrimp import markets for Vietnam, making it an attractive prospect for Vietnamese shrimp exporters. Its geographical proximity to the United States, coupled with a high standard of living, makes Canada an appealing market.
In 2018, Vietnam’s shrimp exports to Canada reached 14,000 tons, valued at nearly $156 million, an increase of 8.9% in volume and 7.3% in value compared to the previous year. Vietnamese shrimp accounted for a significant share of Canada’s total imports, representing 25.3% in 2018, up from 23% in 2017.
Capitalizing on CPTPP Advantages
As of March 15, 2019, Vietnam’s shrimp exports to Canada reached $23.8 million, showcasing a 7.5% increase compared to the same period in 2018. Canada’s declining supply of coldwater shrimp, coupled with a growing demand for warm water shrimp from Southeast Asian countries, presents a favorable opportunity for Vietnamese shrimp exporters.
Vietnam remains the largest supplier of shrimp to the Canadian market, holding a 30.3% market share, followed by India and China. Unlike Vietnam, competitors such as India, Thailand, and Indonesia do not participate in the CPTPP, giving Vietnamese enterprises a competitive advantage.
To fully capitalize on the Canadian market, experts recommend that Vietnamese enterprises thoroughly study market dynamics, with a particular focus on price, design, and product quality. By understanding and addressing these factors, Vietnamese shrimp products can enhance their competitiveness in Canada.
The implementation of the CPTPP provides Vietnamese shrimp exporters with a favorable platform to expand their presence and strengthen their position in the Canadian market, ensuring continued growth and success in the years to come.