Vietnam gains benefits from EVFTA and CPTPP in the context of covid-19 pandemic
MEKSEA.COM – Since 2018, Vietnam’s seafood industry has faced many difficulties such as prices and demands in some key markets, technical barriers and tariffs, especially the Covid-19 epidemic, which has broken the chain supply. However, currently, Vietnam’s exports are still growing steadily in many markets thanks to CPTPP and EVFTA agreement.
CPTPP accounts for 28% of seafood exports
With a turnover of $2.2-2.3 billion per year, the position of the CPTPP bloc is more evident when its share in Vietnam’s total seafood export turnover increased from 25% in 2018 to nearly 28 % in 2021.
After the CPTPP came into effect, Vietnam’s seafood exports to this market group grew by nearly 3% in 2019, of which exports to Japan and Australia all increased by 6%, to Brunei by 10%, and to Malaysia and Peru increased slightly by 1%.
In 2020 and 2021, seafood exports to the CPTPP bloc decreased by 2%, mainly due to the impact of Covid affecting trade and reducing import demand.
Vietnam’s seafood exports still increased in key markets despite covid-19 thanks to CPTPP. (photo: Internet)
However, exports to Canada, Australia, Malaysia, Mexico and New Zealand have been quite positive. In which, seafood exports to Australia maintained positive growth, for 3 consecutive years: increasing by 6%, 10% and 22% respectively. In which, exports to New Zealand increased by 20% and 18% in 2 years 2020 – 2021. Especially, exports to Mexico increased sharply by 65%, to Brunei increased 34% in 2021.
Thanks to the EVFTA, exports to the EU are stable in the context of covid-19
Vietnam’s seafood exports to the EU in 2020 decreased by 26% to about 960 million USD, due to the UK leaving the EU. But if only counting EU27 (except for the UK), exports to this bloc in 2020 will not decrease.
In the first 9 months of this year, seafood exports to the EU market increased by nearly 4% to reach 744 million USD. Shrimp exports to the EU in the first 7 months of the year increased by 26%. Total seafood products exported to the EU increased by 23%.
Currently, preferential tariffs from EVFTA is a positive trend for Vietnam’s seafood exports. (photo: Internet)
In the first 7 months of the year, shrimp exports to the EU and CPTPP bloc increase sharply thanks to covid-19 being effectively controlled, maintaining a stable source of raw materials for export and application. Preferential tax on goods with domestic raw materials.
Covid strongly affects the logistics of trade, especially the supply chain in the third quarter. The current positive trend is probably partly due to the boost from preferential tariffs under the EVFTA.
It is forecast that in 2021 seafood exports will reach about 1 billion USD, up 4% and CPTPP in the fourth quarter will reach about 600 million USD. CPTPP and EVFTA created a positive signal for Vietnam’s seafood exports agreement are despite the covid-19 pandemic.
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By Hayati (MekseaTeam)
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