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Shrimp exports to Korea increased by 33% thanks to the push of RCEP, VKFTA

VASEP said that as of November 15, Vietnam's shrimp exports to South Korea reached nearly $422 million, up 33% over the same period in 2021 thanks to the push from RCEP and VKFTA agreements.

The Association of Seafood Exporters and Producers (VASEP) cited data from the General Department of Vietnam Customs, showing that as of November 15, Vietnam's shrimp exports to South Korea reached nearly $422 million, up 33% over the same period in 2021.

Vietnam's shrimp exports to Korea, Jan - Oct 2022

Source: VASEP

In the first 9 months of the year, Vietnam's shrimp exports to South Korea grew quite well thanks to its close distance and lower freight rates compared to the US and EU regions. Besides, Vietnamese shrimp exported to Korea enjoy preferential treatment under the Vietnam - Korea Free Trade Agreement (VKFTA) with a duty-free quota of 15,000 tons per year.

However, entering October, shrimp exports showed signs of slowing down because of high global inflation, reduced orders, and a lack of production capital...

VASEP believes that Korea's economic growth in the near future is better forecasted thanks to the easing of geopolitical tensions and China, Korea's number one trading partner, may ease the Zero COVID policy.

On the other hand, trade relations between Vietnam and Korea are on the rise along with FTAs such as the Regional Comprehensive Economic Partnership (RCEP), and VKFTA...This is also a good signal for Vietnam to increase shrimp exports to this market.

According to the World Trade Center (ITC), in the first 10 months of 2022, South Korea's shrimp imports reached more than US$819 million, up 19% over the same period in 2021.

In the Korean market, Vietnam accounted for the highest market share of 45% while rival suppliers such as China, Thailand, and Ecuador accounted for 7.9% respectively; 7.7% and 6.4% of the total shrimp import value of Korea.

As of October this year, Vietnam and China increased shrimp exports to Korea by 25% and 19% respectively while the two main competitors of Vietnamese shrimp Thailand and Ecuador reduced shrimp exports to this market by 22% and 16% respectively over the same period in 2021.

VASEP explained that Thai shrimp production this year was difficult. Moreover, the price of Thai shrimp in the Korean market is less competitive than other competitors. Ecuador only focuses heavily on exports to China, the US has not invested much in exports to Korea.

Source: Vietnambiz



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