Vietnamese shrimp exports to the EU increased 71%, year-on-year, to $86.4 million for the month of November, after the Southeast Asian country saw a strong increase in exports to the trading bloc through 2017.
According to the Vietnam Association of Seafood Exporters and Producers (Vasep), the Netherlands, the UK and Germany were the three largest single importers of Vietnam shrimp; sales to the Netherlands and the UK were up 93% and 87% respectively, while exports to Germany recorded 3-digit growth of 114%.
The EU is Vietnam's largest export market. In the first 11 months of the year, the bloc took 22% of the total value of Vietnam shrimp exports, worth $780.2m, up 42% y-o-y.
"The [increased] value of Vietnam’s shrimp exports to the EU... [is because] EU consumers prefer value-added seafood products and increased imports to meet the demand of year-end festivals," said Vasep.
It added that Indian exports to the EU are subject to inspections on 50% of all consignments, which has benefited Vietnamese and Ecuadorian shrimp exporters.
Vasep also noted Vietnam has great potential to increase sales to the EU when the upcoming free trade agreement between the two takes effect.
In November 2015, Vietnam and the EU formally concluded the negotiation of the agreement. The text has now been published and the legal review of the deal is ongoing. It is expected to take effect early in 2018.
The EU mainly imports frozen raw shrimp and processed shrimp from Vietnam. Udner the free trade deal, tax on raw shrimp HS code 03061100 sold to the EU will fall to 0%, from the current level of 12.5%.
HS code 03061710 will see taxes fall to 0%, from the current level of 20%.
Exports of processed shrimp and shrimp products HS code 16052110 will also enjoy tax of 0%, from the level of 20%, after seven years from the date of the agreement coming into force.
Source: Under Current News
Key words: Vietnam, shrimp, sales to, EU, surge ahead, free trade implementation
