n 2021, the export market share of Sao Ta Food Joint Stock Company to this market, although reduced to 27.4% (May 9, 2021), but it is only a relative decrease, the absolute number does not decrease. The company's sales are still up 12%.
The reason for the decrease in market share is that this market is very demanding in terms of food hygiene and safety and convenient access. The situation of Vietnam's shrimp farming sector has not promoted the numbering of farming facilities because there are many regulations that are not suitable for reality and epidemics in the past time.
According to Ms. Le Hang, Deputy Director of the VASEP P.RO Center, seafood exports to the EU in 2020 will decrease by 26% to about $960 million, the main reason is due to Brexit, the UK leaving the market. The UK is a large import market of this block with seafood import turnover from Vietnam from 280 to 340 million USD/year. Therefore, if only EU27 is counted (except for the UK), exports to this bloc in 2020 will not decrease. In the context of Covid and the IUU yellow card, stable exports to the EU show that the clear impact of the EVFTA agreement has boosted exports to this market.
In the first nine months of this year, seafood exports to the EU increased by nearly 4% to reach $744 million, in the context of Covid-19 strongly affecting trade logistics, especially the supply chain in the third quarter of 2021. The current positive trend is probably partly due to the boost from preferential tariffs under the EVFTA.
From August 2021 until now, seafood exports have decreased continuously due to the strong outbreak of Covid-19 in Ho Chi Minh City and 19 southern provinces, affecting domestic raw material production, reducing opportunities to take advantage of tariff incentives. .
Many seafood products, such as tuna, squid, and octopus enjoy 0% tax to the EU and CPTPP markets, but lack of domestic raw materials, enterprises have to import, so they cannot accept pure origin. , are not entitled to preferential tax as prescribed.
In addition, with domestically caught seafood materials, certification and certification procedures according to IUU regulations face many difficulties, affecting the process of making certificates of origin and hygiene certificates for export to the EU.
Besides, the shortage of containers, sea freight to Europe increased many times, making it difficult for many small-scale enterprises to maintain exports to this market.
In the context of the recovery of export production in the last 3 months of the year, there are still many difficulties because the Covid-19 epidemic is still complicated, the market demand is high, but enterprises lack raw materials, lack of labor and bear increased input costs. .. Therefore, seafood exports cannot recover 100% within the next 1-2 months.
It is forecasted that exports to the EU in the fourth quarter of 2021 will decrease slightly by 2.5% and in 2021 will reach about 1 billion USD, up 4%; Exports to the markets of CPTPP countries will reach about 600 million USD, down 5% and in the whole year 2021 will reach about 2.16 billion USD, down 3%.
According to Customs Newspaper