VietNamNet Bridge – The signing of a free trade agreement (FTA) between Viet Nam and South Korea is expected to boost Viet Nam's shrimp exports to South Korea in the near future.

Under the FTA, South Korea will reduce taxes and offer additional opportunities for agricultural and seafood products to be exported from Viet Nam, which includes shrimp, fish, fruits, textile and garments, and mechanical products.

Among these, shrimp is listed in the group, on which taxes will be reduced faster and more drastically.

With its population of 50 million, South Korea is a potential market for Viet Nam's seafood exports.

South Korea is fifth largest shrimp importer of Viet Nam, following the United States, Japan, the European Union and China, accounting for 7.9 per cent of the country's total export turnover.

Last year, Viet Nam surpassed China to become the top shrimp supplier to South Korea after its shrimp exports to the country touched nearly US$318 million, an increase of 41.3 per cent over 2013, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

Viet Nam's shrimp export volume to South Korea jumped 36 per cent last year, compared with 2013, while its export value reached US$290.2 million, increasing by 60 per cent.

Truong Dinh Hoe, general secretary of VASEP, told Bao Cong thuong (Industry and Trade) newspaper, that the increase in Vietnamese shrimp exports could be attributed to stable raw material, good quality and reasonable prices.

Besides, Viet Nam has become the main shrimp provider for many countries as the shrimp output from some big shrimp exporters in Asia, including Thailand, India and China have not recovered from an early mortality syndrome (EMS), according to Hoe.

According to VASEP, South Korean consumers have tastes similar to the Japanese when it comes to such products. The similarity will also bring advantages for Vietnamese shrimp exporters as Japan is one of Viet Nam's biggest seafood importer in general, and for shrimp in particular.

However, South Korea is not an easy market. The market demands high quality, food hygiene and safety standards to be followed.

Tran Tuan Anh, deputy minister of Industry and Trade, emphasised the importance of ramping up the competitive capacity of Vietnamese commodities in the big market when the free trade agreements (FTAs) are signed.

He added that improving competitive capacity had become more important when low labour costs and natural resources were no longer an advantage for the country. Meanwhile, factors, such as brand and product quality still needed a long-term development strategy.

VNS