Bright prospects for shrimp exports to the UK
Since the UKVFTA came into force, tariff duties on frozen shrimp products exported to the UK have been reduced to zero per cent. That has offered Vietnamese exporters a competitive advantage compared to other rivals such as Thailand, Malaysia, Indonesia, Philippines, India, and Brazil which had yet to sign an FTA with the UK.
Vietnamese shrimp exports to the UK could see an average growth of over 10 per cent per year annually from now until 2025, thanks to preferential duties provided by the United Kingdom-Việt Nam Free Trade Agreement (UKVFTA).
This forecast was delivered by the Ministry of Industry and Trade's Import-Export Department in the publication titled "Developing the UK market for the seafood industry."
Since the UKVFTA came into force, tariff duties on frozen shrimp products exported to the UK have been reduced to zero per cent. That has offered Vietnamese exporters a competitive advantage compared to other rivals such as Thailand, Malaysia, Indonesia, Philippines, India, and Brazil, which have yet to sign an FTA with the UK.
But to enjoy these preferential duties, Vietnamese shrimp products must meet the rules of origin, stipulating that raw materials for production must be cultivated and harvested within Việt Nam’s territory.
The department said that Vietnamese shrimp exporters have gradually adapted to the commitments of the UKVFTA and recorded positive export growth.
Over the past two months of 2023, exports of white leg shrimp hit US$30.4 million, accounting for 69 per cent of Việt Nam's seafood export turnover to the UK, statistics from the General Department of Customs revealed.
During the two months, black tiger shrimp shipments, though accounting for only 2.7 per cent of the total, increased six times compared to the same period last year. That has shown a very optimistic signal for this product in the UK market.
The department said the UK's seafood consumption demand, including shrimp, remained large. However, in the coming time, the market's demand might be negatively influenced by global commodity trade developments. Rising inflation would also make commodity prices a concern for consumers.
At the same time, its seafood import activities would face difficulties in costs and transportation of goods, the department said.
Despite these challenges, the UK remained a lucrative market for Vietnamese shrimp products in the long period. Việt Nam's shrimp shipments to the market would likely account for 3.6 per cent of the country's total shrimp exports (about $4 billion) in the future. — VNS
