Vietnamese shrimp going to Korea are imposed a duty of 14-20%. According to VASEP, such a scheme goes against the FTA between the two countries and affects the competition of Vietnamese shrimp in Korea.
Vietnam’s shrimp exports reached USD 335 million, down 40% from the same period last year, VASEP reports.
Shrimp exports to Korea, the fourth biggest importer of Vietnamese shrimp, reached USD 46 million, down 25% from the same period last year. And yet, the density of shrimp sales to Korea has been in an upward trend, from 11.1% in the first two months of 2022 to 13.7% in the first two months of 2023.
Vietnam is the biggest shrimp exporter of Korea with over 50% of all 100,000 tons of shrimp going to this country. In theory, the FTA between Vietnam and Korea which has been performed since 2015 will create favorable conditions in terms of trade and duty for Vietnamese shrimp. However, VASEP members said that Vietnam’s shrimp products going to Korea are treated unfairly.
The Korean Government requires an auction for the quota of imported Vietnamese shrimp, starting at 14-16% of the importing price. In case of exceeding the quota, the import duty will be 20%.
Meanwhile, imports of Vietnamese shrimp into Korea are charged a duty of 14-20%, which fails the FTA between these two countries. And as such, it can be clearly seen the unfair treatment between Korea-Vietnam FTA and Korea-Peru FTA because zero quota and duty 0% are imposed on Peru’s shrimp.
In the face of such a situation, VASEP sent an official document to the Minister of Industry and Trade so that they will propose to the Government, the Ministry of Industry and Trade, and the Ministry of Foreign Trade to review and ask Korea to terminate the quota on imports of Vietnamese shrimp.