Seafood is positively exported to the CPTPP market

Seafood exports have many positive signs in the second half of 2023.

Positive results

According to Ms. Le Hang, communications director of the Vietnam Association of Seafood Exporters and Producers (VASEP), in the second quarter of 2023, Vietnam's seafood exports achieved a turnover of 30% higher than the previous quarter with over 2.3 billion USD. However, compared to the same period in 2022, a negative growth of 27.5% remained the same from the first quarter.

Therefore, by the end of the first half of this year, seafood exports were 27.5% lower than the same period in 2022, reaching USD 4.15 billion. Exports to most markets decreased significantly, however, compared to other major markets such as the US and EU (down 46% and 33% respectively), exports to the CPTPP bloc still have better results.

According to statistics, in the first half of this year, Vietnam's seafood exports to CPTPP countries reached 1.12 billion USD, down 22%. In the general trend of the world, the export decline is unavoidable for all markets, including CPTPP countries. However, compared to other major markets such as the US and EU (down 46% and 33% respectively), the CPTPP bloc still has better results.

In particular, exports to Japan had a modest decrease of 11%, because Vietnam's value-added products are still having an advantage and especially the increasing trend of importing seafood materials from Japan into Vietnam for processing, processing for export into this market. Notably, Chile is the only country in the bloc with a positive growth rate of 15% in the first 6 months of this year.

The shortage of raw materials, input costs increase, so choosing to produce value-added goods and taking advantage of import tax incentives under the CPTPP are solutions for many medium-sized enterprises to stabilize jobs for workers, both to take advantage of processing capacity and generate additional income by exporting to Japan as well as other countries in the CPTPP.

The context of many unfavorable factors in recent years is causing Vietnam to gradually lose its position in major markets such as the US and China, and face other countries with advantages in supply, low production costs, and more competitive prices such as Ecuador, India, and Indonesia. etc. Typically, shrimp products - a strategic product of Vietnam's seafood industry, are increasingly losing market share in the US and China when these markets are flooded with cheap shrimp from Ecuador and India.

Advantage from 0% tax rate

According to Ms. Le Hang, thanks to the advantage of import tax, the strength of deep processing, processing of value-added goods, and geographical position, Vietnamese seafood products still hold the leading position in many markets in the CPTPP bloc.

For example, with shrimp, Vietnam has the No. 1 position in Japan, accounting for 25-26% of the market share. Most impressively, the Australian market had a breakthrough in importing Vietnamese shrimp after 5 years, causing Vietnam's market share to increase from 32% to 69%.

After 5 years, the import tax on most Vietnamese seafood products to CPTPP countries has been reduced to 0% or enjoy the basic tax rate of 0%. With this competitive advantage, Vietnamese enterprises have been effectively taking advantage to keep the No. 1 position in some markets and increase market share in other markets.

The CPTPP bloc accounts for 15.5% of the world's seafood import value with an import turnover of 21-27 billion USD/year. In 2022, excluding Vietnam, the total seafood import turnover of 10 countries in the bloc was 25 billion USD. Vietnam is the third largest seafood supplier to CPTPP countries, after China and the US.

There is still a lot of room in the CPTPP market for Vietnamese seafood. However, it is important for businesses to have a stable source of raw materials in the country, as well as diversify import sources from intra-regional countries. The seafood business community is looking forward to the effective companionship and support of ministries and sectors in the current period and in the future, specifically in need of capital solutions for the seafood production and export industry, so as to have good conditions to take advantage of the CPTPP and other FTAs to maintain the position of Vietnamese seafood in the world.