"Clear the way" for seafood to enter the EU

According to data from the Import-Export Department (Ministry of Industry and Trade), in the first 6 months of 2021 alone, Vietnam's seafood has been exported to 25/27 EU markets with a total export volume of 104.3 thousand tons. reached USD 485.3 million, up 16% in volume and 20% in value over the same period last year.

BARRIERS FROM ORIGIN OF GOODS

Export turnover to the EU market accounted for 11.8% of the total seafood export turnover of the country. In which, the largest export markets in the bloc are the Netherlands, Germany, Italy, Belgium and France. However, the Ministry of Industry and Trade said that seafood exports are still facing many difficulties and challenges.

The growth of seafood exports in the second half of 2021 is at risk of slowing down when the 4th Covid wave breaks out in the key areas of seafood production, processing and export, which are Ho Chi Minh City and the Mekong Delta region. Kowloon.

In addition, the evolution of the Covid-19 epidemic in overseas markets along with the effects of the IUU yellow card (illegal, undeclared and unregulated fishing) will continue to be factors affecting the biggest impact on Vietnam's seafood exports to this market.

In particular, the EU is a large export market for Vietnam's seafood industry and is expected to expand and develop further when Vietnam implements the EVFTA Agreement, but the rules of origin for seafood in this Agreement is also a challenge for Vietnamese seafood producers and exporters.

In order to enjoy tariff preferences from the EVFTA, Vietnam's seafood must meet the provisions of the rules of origin of goods under this Agreement and be granted a Certificate of Origin (C/O) in EUR form. 1 under EVFTA.

The seafood products with a turnover using the C/O form EUR.1 are all traditional and key export seafood products of Vietnam to the EU market, such as preliminarily processed shrimp, processed shrimp, and fried fish. frozen pears, processed tuna...

However, the Import-Export Department also noted that the criterion of pure origin for seafood in the EVFTA is still a big barrier for Vietnamese seafood producers and exporters. Specifically, the EVFTA requires seafood products to be of pure Vietnamese origin or to use purely originating materials imported from the EU.

This means that aquatic materials used for semi-processed or processed seafood must be raised, harvested or caught in Vietnam or imported from the EU.

Meanwhile, Vietnam's current source of raw materials for processed seafood is still heavily dependent on imports, especially shrimp, and the EU is not a market for importing seafood materials for export production in the near future. water.

Statistics of the European Fisheries Market Observer Agency (EUMOFA) also show this clearly, when seafood imports from non-EU countries reached 27.21 billion euros in 2019 with a With imports up to 6.34 million tons, Vietnam only accounts for 4% of the seafood import market share in the EU with the main import item being shrimp.

Moreover, although Vietnam's shrimp quality is appreciated in the EU market, the price is less competitive than other competitors such as Ecuador and India. Vietnam's pangasius products are facing strong competition with other EU suppliers. This is creating great challenges for Vietnam's pangasius exports to the EU.

NEED SUPPORT FOR PRODUCTION RECOVERY

There are many challenges, but optimistic experts believe that thanks to the push from the EVFTA, Vietnam's seafood exports will grow quite well in this market.

Specifically, with the EU's commitment to reduce tax to 0% for seafood products (including shrimp) for Vietnam in the EVFTA Agreement, in the near future, Vietnam's seafood exports will have an advantage in terms of export value. tariffs should be able to adjust prices more competitively.

However, in order to take advantage of this incentive, the expansion and maintenance of the domestic supply of raw materials to meet the rules of origin of goods, especially in the context that the global supply chain is being disrupted due to the impact of of Covid-19 is a key factor.

According to the Vietnam Association of Seafood Exporters and Producers, the production, farming and processing of aquatic products are facing many difficulties in the context that the disease is spreading rapidly in many localities across the country.

Therefore, it is necessary to promptly implement necessary support measures for the recovery and stability of production and export, and support enterprises to overcome difficulties to make good use of market opportunities.

In particular, the important issue is still fully vaccinated for all fisheries workers. Besides, domestic traffic must be smooth; Support policies to reduce input costs such as electricity, bank interest rates, social insurance, union fees... for businesses should also be urgently implemented.

To support seafood exports to the EU market in the last months of 2021 and the following years, the Ministry of Industry and Trade believes that the State needs to strengthen propaganda and dissemination measures about opportunities and how to take advantage of opportunities. from EVFTA to the business community.

With its roles and responsibilities, the Ministry of Industry and Trade has also actively directed units to monitor the circulation of import and export goods at seaports, taking measures to remove difficulties and bottlenecks.

At the same time, it requested the Vietnamese Trade Offices in the European region to strengthen the work of market information, to promptly provide information on changes in import policies and risks of the market.

On the side of associations and seafood exporters, the Ministry of Industry and Trade suggested that they need to be more proactive in capturing information about the EVFTA, especially commitments related to the seafood industry to make full use of it. opportunities, limit challenges, and minimize damage to the business.

In addition, actively coordinate and participate with the Vietnamese Trade Counselor in the EU market in trade promotion and promotion activities; forming representatives of businesses and associations in major EU markets; directly participate in the distribution channel of seafood products in the EU market. These are really effective export promotion channels.