EC's yellow card could see local seafood exports to EU taking a hit

Vietnam’s seafood shipments to the European Union (EU) may encounter losses of up to 10,000 euros (US$11,125) per container due to the impact of the European Commission’s (EC) yellow card on local seafood products, 

revealed information recently released by the Vietnam Association of Seafood Exporters and Producers (VASEP) on the country’s efforts to deal with illegal, unreported and unregulated fishing.

Seafood products on sale at a local supermarket. The EC’s yellow card could see a reduction in local seafood exports to the EU – PHOTO: TRUNG CHANH

EC had previously issued the yellow card warning based on Vietnam’s inadequate action to combat illegal, unreported and unregulated fishing.

This restrictive yellow card will not only reduce local seafood exports to the EU but may affect the country’s outbound sales of the products to the United States and other potential markets, according to VASEP.

Moreover, after the warning was issued, all containers of local seafood shipped to the EU were taken for checking to determine the origin of the products. As a result, the time needed to transport the containers was prolonged, with each container taking up to four weeks to arrive in Europe.

In addition, the expenses for checking of origin may amount to some 500 British pounds (US$624) a container, which excludes fees for storing the products at the port and other costs resulting from the prolonged shipping time.

The major risk is that a large volume of containers would be rejected, causing heavy economic losses, according to the association.

Nguyen Hoai Nam, deputy general secretary of VASEP, told the Saigon Times that VASEP referred to a similar case experienced by Filipino seafood exporters, which pegged losses at 10,000 euros per container.

VASEP will review and work out the financial losses likely to be caused by the impact of the EC's yellow card, Nam noted.

Vietnam recorded a decline in the turnover of seafood exports to the EU over the past two years as a result of the yellow card.

In 2018, the export revenue of local seafood products to the EU dipped 6.5% year-on-year to some US$390 million. The revenue in 2019 continued to drop by 5% against the previous year to some US$370 million.SGT

Vietnam needs to remove fishing yellow card

Vietnam needs to remove fishing yellow card

Pham Anh Tuan, vice chairman of the Việt Nam Fishing Association, talks on the need to follow all recommendations from the European Commission (EC) to get the yellow card on fishing removed.

 
How will seafood companies fare this year?

How will seafood companies fare this year?

Analysts believe that Vietnam’s seafood industry will face difficulties until the end of June.

 
 

Other News

.
Nation’s economic forecast leads way
Nation’s economic forecast leads way
BUSINESSicon  01/07/2020 

With its success in fighting COVID-19, Vietnam has continued to be the best performer in Southeast Asia, laying a firm foundation for the country to attract more investment and spur on production.

HCM City seeks faster switch to cashless payment
HCM City seeks faster switch to cashless payment
BUSINESSicon  01/07/2020 

Nguyen Anh Duc, general director of Saigon Co.op, said the rate of cashless payment at its system, including Co.opmart, Co.opXtra, Co.op Food, and Co.op Smile, has increased sharply since last year from 3-5 percent to nearly 21 percent now.

A promising future for Vietnam after COVID-19
A promising future for Vietnam after COVID-19
BUSINESSicon  01/07/2020 

With an increasingly open business environment, and continuing international integration, Vietnam has long been regarded as a promising destination for foreign investment.

Mid-term rural, agricultural survey to begin on July 1
Mid-term rural, agricultural survey to begin on July 1
BUSINESSicon  01/07/2020 

A mid-term survey on rural areas and agriculture will be carried out in Vietnam’s 63 cities and provinces from July 1, the General Statistics Office (GSO) has announced.

Da Nang sees minus economic growth for first time in over 20 years
Da Nang sees minus economic growth for first time in over 20 years
BUSINESSicon  01/07/2020 

The central city of Da Nang saw its GRDP for the first half of the year contract by 3.61 percent from the same period in 2019, the first time since the city became a centrally-run locality in 1997.

Old barriers prevent Covid-19-hit businesses from accessing preferential loans
Old barriers prevent Covid-19-hit businesses from accessing preferential loans
BUSINESSicon  01/07/2020 

Small enterprises complain they cannot access the preferential lending program, while banks say hundreds of trillions of dong are ready for disbursement.

Vietnam Railways estimates a $60 million loss due to pandemic
Vietnam Railways estimates a $60 million loss due to pandemic
BUSINESSicon  30/06/2020 

Vietnam Railway Corporation (VNR) estimates a loss of nearly VND1.4 trillion (US$60 million) after tax in 2020, a massive blow to the company due to impacts of the COVID-19 pandemic.

Construction materials industry faces challenges
Construction materials industry faces challenges
BUSINESSicon  01/07/2020 

Thai Duy Sam, vice chairman of Vietnam Building Material Association, speaks  about challenges and shortcomings in production technology and environmental protection for the construction materials industry.

VN records positive growth amid gloomy global forecasts
VN records positive growth amid gloomy global forecasts
BUSINESSicon  30/06/2020 

Vietnam’s gross domestic product (GDP) expanded 1.81 per cent year-on-year during the first half of this year, the lowest six-month growth pace since 2011, according to the General Statistics Office (GSO).

Patents in Vietnam increase 56 percent
Patents in Vietnam increase 56 percent
BUSINESSicon  30/06/2020 

The number of patents has increased by 56.7 per cent in the first five months of this year compared to the same period last year.

EVFTA a big opportunity for firms after COVID-19 shock: ministry
EVFTA a big opportunity for firms after COVID-19 shock: ministry
BUSINESSicon  30/06/2020 

The European Union Free Trade Agreement (EVFTA) will create significant opportunities for Vietnamese firms to recover and develop after the COVID-19 pandemic, 

Kweichow Moutai: 'Elite' alcohol brand is China's most valuable firm
Kweichow Moutai: 'Elite' alcohol brand is China's most valuable firm
BUSINESSicon  30/06/2020 

Kweichow Moutai's share price rockets thanks to its popular and sought-after baijiu drink.

Exporters advised to shift focus to ASEAN markets in face of COVID-19
Exporters advised to shift focus to ASEAN markets in face of COVID-19
BUSINESSicon  30/06/2020 

Experts have urged Vietnamese exporters to shift their attention to neighbouring ASEAN markets given that COVID-19 continues to wreak havoc on major markets such as the EU and the US, a recent conference heard.

Cambodia yet to issue documents banning import of Vietnamese fruits, vegetables: ministry
Cambodia yet to issue documents banning import of Vietnamese fruits, vegetables: ministry
BUSINESSicon  30/06/2020 

The Cambodian government and management agencies have yet to issue any official documents banning the import of Vietnamese vegetables and fruits, according to the Asia-Africa Market Department under the Ministry of Industry and Trade.

Vietnam Airlines postpones shareholders’ meeting until July 16
Vietnam Airlines postpones shareholders’ meeting until July 16
BUSINESSicon  30/06/2020 

Vietnam Airlines Group will postpone its shareholders’ meeting until July 16, according to a decision signed by Chairman of Vietnam Airlines Executive Board Pham Ngoc Minh.

Selling online: new opportunity for VN micro businesses
Selling online: new opportunity for VN micro businesses
BUSINESSicon  01/07/2020 

The ‘e-commerce wave’ has opened a new consumption trend in which anyone can create a platform of their own to start a business.

Aviation sector restores nearly all domestic flights
Aviation sector restores nearly all domestic flights
BUSINESSicon  30/06/2020 

Airlines restored most of the domestic flight network after the social distancing campaign ended, and is considering resuming international flights with countries that have controlled COVID-19 well.

Cheap cars from Thailand, Indonesia expected to flow into Vietnam
Cheap cars from Thailand, Indonesia expected to flow into Vietnam
BUSINESSicon  30/06/2020 

More and more cheap cars will flood the Vietnamese market in upcoming months as automobile manufacturers in Thailand and Indonesia have urged their governments to apply measures to boost car exports.

Phu Quoc tightens land laws again
Phu Quoc tightens land laws again
BUSINESSicon  30/06/2020 

The People’s Committee of Kien Giang Province has issued a document to temporarily halt the splitting of land plots and transferal of land use purposes in the island district of Phu Quoc.

Vietnam records lowest GDP growth rate in 30 years
Vietnam records lowest GDP growth rate in 30 years
BUSINESSicon  29/06/2020 

Vietnam’s gross domestic product (GDP) increased 1.81 percent during the first six months of 2020, the lowest first-half growth pace since 2011, according to the General Statistics Office (GSO).

 
 
 
Leave your comment on an article

OR QUICK LOGIN