Shrimp processed at Fimex Việt Nam, Sóc Trăng Province. VNA/VNS Photo

VN Association of Seafood Exporters and Processors (VASEP) has proposed that Government should lift the quota on shrimp export to the Republic of Korea in order to improve the competitiveness in this market.

The association cited statistics that Việt Nam’s shrimp exports to the Republic of Korea (RoK) reached US$343 million in 2023, dropping by 27 per cent against the previous year. High inflationary risk and rising interest rates forced consumer to tighten spending, causing high inventories and weighing on Việt Nam’s shrimp export to this market, the association said.

Another barrier which made it difficult for Việt Nam’s shrimp exports to the RoK is the export quota in accordance with the Việt Nam – Korea Free Trade Agreement (VKFTA) which was signed in 2015.

The trade deal significantly boosted exports of Việt Nam to this market with shrimp exports up by 37 per cent, squid and octopus by 51 per cent and other fishery products by 4 per cent.

However, under the VKFTA, the quota for shrimp export to the Republic of Korea is only 15,000 tonnes per year but Việt Nam’s volume was much higher. Due to the quota imposition, Korean importers must bear the cost of up to 14-16 per cent, which pushed up prices of Vietnamese shrimp in this market and made it difficult to compete with other exporters.

In that context, it was necessary to remove the quota on Việt Nam’s shrimp export to the RoK within the VKFTA in the review in 2024.

It is forecast that the RoK’s demand for fishery products kept increasing while the supply is limited. The RoK is a potential market for Vietnamese fishery products in the context that the consumption demand is dropping in the Western markets and the Red Sea tensions are pushing up transportation fees to the US and the European markets, VASEP said.

VASEP also urged enterprises to focus on improving quality of products, ensuring food hygiene and safety to expand in this market.

Việt Nam set the goal of achieving a shrimp export value of $4 billion this year, a rise of 5 per cent over 2023. — VNS