EVFTA boosts seafood exports to EU

Seafood from Vietnam was exported to 25 of the 27 EU markets in the first half of 2021, with a total value of $485.3 million, up 20 per cent in value year-on-year.

The EU is Vietnam’s fourth-largest seafood export market, accounting for 11.8 per cent of total turnover, according to the Ministry of Industry and Trade (MoIT)’s Foreign Trade Agency.

According to the MoIT, preferential import taxes on Vietnamese seafood will be reduced immediately or according to a roadmap under the EU-Vietnamese Free Trade Agreement (EVFTA), thus accelerating exports to the bloc.

Pangasius exports to the EU, however, have not shown any signs of recovery, falling 12.2 per cent in volume and 16.8 per cent in value year-on-year in the first half. The EU therefore accounted for only 7.4 per cent of Vietnam’s pangasius export turnover.

According to the MoIT, demand in the EU will recover to some degree in the closing months of the year, with special tax incentives under the EVFTA creating favorable conditions for aquatic products, helping Vietnamese seafood products increase their competitiveness in the bloc. Covid-19 and the “yellow card” on illegal, unreported and unregulated (IUU) fishing, however, will continue to have an impact.

Relevant ministries and agencies therefore need to promptly implement the necessary support measures for the recovery and maintenance of production and exports, and support businesses to overcome the difficulties and make best use of market opportunities.