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Vietnamese shrimp exports to EU surge on back of FTA

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The export value of Vietnamese shrimp to the EU hit $65.4 million in October, up 42 per cent year-on-year. VIETNAM NEWS AGENCY

Vietnamese shrimp exports to EU surge on back of FTA

Vietnam’s shrimp exports to the EU have recovered since the beginning of the third quarter of this year thanks to the positive impact of the EU-Vietnam Free Trade Agreement (EVFTA), according to the Vietnam Association of Seafood Exporters and Producers (Vasep).

Shrimp exports to the EU in October reached the highest growth since the beginning of this year with a rate of 42 per cent to $65.4 million compared to the same period last year. Of that, the largest markets in the bloc like the Netherlands, Germany and Belgium had two-digit growth rates.

The export value of Vietnamese shrimp rose by 32 per cent to the Netherlands, 53 per cent to Germany and 48 per cent to Belgium from the same period last year.

The EU was the fourth largest export market for Vietnamese shrimp exports in October, accounting for 14 per cent of the total value, after the US, Japan and China.

In the first 10 months of this year, Vietnam’s shrimp export value to this market reached about $436.7 million, up 6.7 per cent from the same period last year.

In the EU market, restaurants and food shops are gradually reopening. Meanwhile, retail or online sales continue to increase and demand for shrimp in the retail market is expected to increase in preparation for the year-end holidays, according to Vasep.

This is a market with good profit so many local enterprises will promote exports to this market in the last months of the year, according to Vasep.

With tax incentives for frozen shrimp in the EVFTA that took effect from August, Vietnam’s shrimp exports to the EU from now until the end of this year are expected to continue growing. The total shrimp exports for this whole year are estimated to surge by 9.8 per cent year-on-year to $3.7 billion.

The US is the leading market for Vietnamese shrimp exports, accounting for 23.5 per cent of the total export value of Vietnamese shrimp, the association said. Although the US has been the global epicentre of Covid-19, Vietnam’s shrimp exports to this market still grew in the first 10 months of this year.

The export value to the US in the period increased by 39 per cent year-on-year to $733.4 million.

In the US market, Vietnamese shrimp has a competitive advantage against rivals such as India, Thailand and China. India, the largest shrimp supplier of the US, is still facing many difficulties due to the Covid-19 pandemic and unfavourable weather, according to Vasep.

The association also reported that in October, Vietnam saw an increase in shrimp exports to most of other markets, excluding Japan and South Korea. Of which, shrimp export value rose by 57 per cent to Australia, 45 per cent to the UK, 21.5 per cent to China and 14 per cent to Canada.

Total export value of Vietnamese shrimp to the global market in October reached $431.7 million, up about 25 per cent against October last year. Total export value reached $3.1 billion in October, up 12.3 per cent over the same period last year.

VIET NAM NEWS/ASIA NEWS NETWORK

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