Vietnam ships first batch of shrimp to EU under new trade pact

Friday, 2020-09-11 15:51:51
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Shrimp processing at Thong Thuan Company
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NDO - Vietnam has exported its first shipment of frozen shrimp to the EU since the EU-Vietnam Free Trade Agreement (EVFTA) came into effect in August.

The seafood was produced by Thong Thuan Company and the shipment left the factory in the south-central province of Ninh Thuan on September 11.

Under the trade agreement, the EU will eliminate tariffs on 86.5% of Vietnamese seafood over the next three years with a zero tax rate expected after seven years.

The EVFTA is expected to create a great opportunity for the export of Vietnamese seafood, said agriculture deputy minister Phung Duc Tien at a ceremony held to send off the shipment.

Vietnam’s shrimp exports to the EU in August rose by 20% over the same month in 2019 and are expected to continue growing towards year-end despite the impact of the coronavirus pandemic.

According to Carsten Schittek from the EU delegation to Vietnam, the reduction of tariffs from 12% to zero will help Vietnam’s shrimp industry succeed in occupying a greater share of the EU market.

He noted that European customers are demanding so Vietnamese seafood must meet environmental, labour and safety standards, which sounds difficult but will bring enormous benefits to Vietnamese exporters as with success in the EU, they can then also succeed in other markets.

The EVFTA took effect on August 1 and is expected to help Vietnam increase its exports to the EU by 42.7% in 2025 and 44.37% in 2030 compared to a scenario without the agreement.