VASEP continues to propose to the Government and the Ministry of Industry and Trade to consider abolishing the quota for shrimp exports to South Korea within the framework of the VKFTA Agreement at the review session in 2024.
The Vietnam-Korea Free Trade Agreement (VKFTA) was signed and came into effect at the end of 2015. This FTA has had a positive impact on many key export industries of Vietnam, from electronics, textiles, footwear to seafood.
Thanks to the VKFTA, seafood exports to South Korea have shown positive growth in recent years. In the structure of Vietnamese seafood products exported to South Korea in 2023, shrimp accounted for the highest proportion at 43.6%, followed by squid and octopus at 31.4%. Other fish species (excluding pangasius and tuna) ranked the third by value, accounting for 20.8%. The remaining items accounted for small proportions, including tuna, catfish, crab, and other crustaceans and mollusks (ranging from 0.3% to 2.2%).
From 2015 to 2023, after the VKFTA came into effect, seafood exports to South Korea have all recorded high growth rates, with shrimp increasing by 37%, squid and octopus by 51%, and other fish species (excluding tuna and pangasius) by 4%.
Shrimp is the highest-value export item in the seafood industry, but quota is the biggest challenge when being exported to South Korea. Therefore, VASEP has repeatedly proposed to abolish the quota for shrimp exports to South Korea.
Most recently, the association has proposed to the Government and the Ministry of Industry and Trade to consider abolishing the quota for shrimp exports to South Korea within the framework of the VKFTA Agreement at the review session in 2024. According to VASEP: “The volume of Vietnamese shrimp sent to South Korea has far exceeded the allowed quota (15,000 tons/year, 0% import tax), and currently South Korean importers have to ‘bid’ for the quota to import Vietnamese shrimp at a significant cost, accounting for as much as 14-16% of the cargo value.”
According to a report by Future Market Insights, Inc., shrimp demand in South Korea is predicted to grow at an average rate of 8.9% per year from 2023 to 2033. Vietnam’s advantage in exporting to South Korea lies in its geographical proximity and stable consumption demand.
As forecasted, Vietnam’s seafood exports will gradually recover in 2024, reaching USD 9.5 – 10 billion in 2024. In particular, the shrimp industry aims to achieve USD 4 billion, pangasius around USD 1.9 billion, and the remaining marine products are expected to generate about USD 3.6 – 3.8 billion in revenue.
VFM
