EVFTA: First batch of shrimp from Vietnam on its way to EU

On September 11, in Ninh Thuan, the first shrimp consignment from Vietnam to several European countries in lines with the EU-Vietnam Free Trade Agreement (EVFTA) commitments has started its long way to the EU.

Vietnam exports first batch of shrimp to EU, including the Netherlands, under EVFTA.

The ceremony attended by Deputy Minister of Agriculture and Rural Development Phung Duc Tien; Carsten Schittek, head of trade and economic affairs at the EU Delegation to Vietnam, Dutch Ambassador to Vietnam Elsbeth Akkerman, Chairman of the Ninh Thuan People’s Committee Luu Xuan Vinh, and representives from the shrimp exporter company.

At the ceremony, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said tariff removal under the EVFTA is expected to create big opportunities for Vietnam’s aquatic product exports.

Accordingly, the EU is set to eliminate tariffs on 86.5 per cent of Vietnam’s aquatic product exports in three years, 90.3 per cent in five years, and 100 per cent in seven years, he said, noting that to take this advantage, orders for Vietnamese aquatic products since the beginning of August has increased by around 10 per cent compared to July.

The trade pact, which came into force on August 1, would help Vietnam diversify its export markets as well as export products. A wide range of Vietnamese goods have benefited from tariff reductions, such as farm produce, seafood, footwear, and electronic products.

In July, Vietnam earned USD 54.2 million from shrimp exports to the EU, up 2 percent from a year earlier. In the first half of August this year, shrimp export value to the EU reached USD 29.4 million, a strong growth of 26 per cent compared to the same period in 2019.

The year-on-year growth continued in August, at about 20 per cent, and the upward trend is expected to be sustained until the year-end although the pace is unlikely to be fast due to COVID-19 impact, according to the deputy minister.

Chairman of the Ninh Thuan People’s Committee Luu Xuan Vinh shared, frozen processed shrimp is one of the key export items of the province, accounting for 43.5 per cent of total shipments, and over 95 per cent of the local shrimp exports is contributed by the local branch of the TThong Thuan Co. Ltd – the shrimp exporter.

Carsten Schittek, head of trade and economic affairs at the EU Delegation to Vietnam, said the shipment of this batch of brackish-water shrimp to the EU affirmed the success of shrimp farming, processing and exporting businesses of Vietnam.

Vietnam’s fishery industry, including the shrimp sector, is highly competitive, he noted, adding that with tariffs slashed from 12 per cent to zero percent under the EVFTA, the country’s shrimp sector will become even more successful in gaining a bigger market share in the EU.

For his part, Truong Huu Thong, Chairman and General Director of the Thong Thuan Co. Ltd – the shrimp exporter, said among the largest markets his firm is selling products to, Europe is the most stable one in terms of demand, policies and prices.

When the EVFTA came into force, orders the company received from the EU have risen sharply, he added

According to the Ministry of Industry and Trade (MoIT)'s Import-Export Department said Vietnam has advantages in production and export of agricultural, forestry and aquatic products, while the EU has a large demand for these items that have accounted for 8.4 per cent of total annual import value. This shows great potential in export growth from Vietnam to the EU.

For instance, the Trung An High-tech Agriculture Joint Stock Company exported the first batch of 3,000 tonnes of rice to Germany with zero tax rate. Of which, the price was USD 1,000 per tonne of ST20 rice and USD 600 per tonne of Jasmine rice, USD 200 higher than before.