|Illustrative photo. (Source: VOV)
In addition, the overseas demand for shrimp products is expected to soar over the rest of the year. This is partly attributed to easing competition from Indian exports as the South Asian country has concluded its main annual harvest season.
Furthermore, the EU-Vietnam Free Trade Agreement (EVFTA), signed on June 30, are expected to yield positive effects on Vietnamese shrimp exports.
Aquatic exports to the EU will be immune from tariffs within a seven-year tax elimination phase as committed in the EVFTA. Notably, shrimp exports to the trading bloc will enjoy sharp tariff cuts set by the EU during the first year after the pact takes effect. Tariffs will gradually fall to zero per cent in subsequent years.
Firms expect these factors to create “breakthroughs” for shrimp exports during the second half of this year.
The Vietnam Association of Seafood Exporters and Producers reported that shrimp exports reached US$1.4 billion during the first half of 2019, an annual drop of 12 per cent.
Domestic shrimp exports to China fell sharply in the six-month period as the neighboring country increased its imports from India and Ecuador. This was resulted by China’s tight border trade policy coupled with fierce competition from the two countries.
Following sharp drops in the previous months, shrimp exports saw positive signs in June as exports to China racked up nearly US$47 million, up 10 per cent on year.