Seafood exports increase after EVFTA comes into effect

Increased Orders and Positive Signals

The Việt Nam Association of Seafood Exporters and Producers (VASEP) has reported encouraging developments in seafood exports to Europe following the implementation of the EU-Việt Nam Free Trade Agreement (EVFTA) at the beginning of this month. Since then, the European market has witnessed a notable increase of approximately 10% in orders, particularly for shrimp and squid.

Exemplary Export Figures

Thuận Phước Seafoods and Trading Corporation’s Chairman, Trần Văn Lĩnh, disclosed that the company had successfully exported 3,000 tonnes of shrimp and shrimp-based products to the EU, amounting to a value of around $31 million. These figures represent a year-on-year growth of 8% in volume and 6% in value, showcasing positive outcomes compared to the same period last year.

Nguyễn Thị Ánh, Director of Ngọc Xuân Seafood Corporation, also affirmed that EU customers had recently resumed negotiations with the corporation, signifying a positive trend for businesses to recover from the effects of delays and contract cancellations.

Assessing the EVFTA’s Impact and Future Prospects

Trương Đình Hòe, Secretary-General of VASEP, evaluated the initial results of the EVFTA’s implementation, expressing the association’s expectation of a 20% growth in seafood exports to the EU. However, in the current pandemic context, achieving a 10% increase is seen as encouraging. The growth rate in the EU market, going forward, remains uncertain due to the ongoing challenges posed by the pandemic in European countries.

Addressing Illegal Fishing Concerns

Regarding the yellow card for illegal, unreported, and unregulated (IUU) fishing, measures are being implemented by localities in Việt Nam to combat such practices. These efforts include enhancing control and supervision through the installation of monitoring equipment on fishing vessels, as well as implementing strict sanctions for violations related to the use of positioning equipment. These actions aim to address concerns related to IUU fishing and work towards the removal of the yellow card.

Promising Potential and Market Access

The EVFTA, which came into effect on August 1, offers significant benefits to key Vietnamese products. Việt Nam holds advantages in producing and exporting agricultural, forestry, and aquatic products, which align with the EU’s substantial demand for these items.

Imports of such products account for 8.4% of the EU’s total annual import value, underscoring the immense potential for growth in Vietnamese exports to the region. Vietnamese businesses have the opportunity to access a significant seafood consumption market, where the average per capita consumption of 22.03 kilograms is 5.34 kilograms higher than the world average.

In conclusion, the EVFTA has brought positive signs for Vietnamese seafood exports to Europe, with increased orders and renewed negotiations from EU customers. While the growth rate remains uncertain amidst the ongoing pandemic, the initial results are encouraging.

The focus on combating illegal fishing and the removal of the yellow card further enhances Việt Nam’s standing in the European market. With its advantageous position as a producer and exporter, Việt Nam can tap into the EU’s substantial demand for agricultural, forestry, and aquatic products.

The potential for growth in exports to the EU remains significant, providing Vietnamese businesses with access to a seafood consumption market that exceeds the global average.