In 2015, Viet Nam foresees problems in exporting fishery products to the US and Japan, so the FTA with South Korea is especially critical. — File Photo

HA NOI (Biz Hub) — The signing of a free trade agreement (FTA) between Viet Nam and South Korea will help Vietnamese seafood companies export their products to South Korea, according to the Viet Nam Association for Seafood Export and Processing (VASEP).

Under the FTA, South Korea will reduce taxes and offer additional opportunities for industrial and agricultural products exported from Viet Nam including fruits, textile and garment products and mechanical products. South Korea will also import Viet Nam's fishery products including shrimp, fish, squid and octopus.

Vietnamese seafood producers have many advantages due to their experiences in processing and exporting fishery products to Japan as well as South Korea, according to VASEP, which also said that Vietnamese consumers had similar tastes as South Koreans when it came to these products.

In 2015, Viet Nam foresees problems in exporting fishery products to the US and Japan, so the FTA with South Korea is especially critical.

South Korea is now the fourth-largest importer of Vietnamese seafood and consumes the fifth-largest quantity of Vietnamese shrimp after the US, Japan, EU and China. Viet Nam surpassed China to become the top shrimp supplier for South Korea after its shrimp exports to South Korea reached US$317.8 million in 2014, an increase of 41.3 per cent over 2013.

South Korea was also one of the three largest markets for Vietnamese squid and octopus in 2014, with exports increasing 26.5 per cent over the previous year. Viet Nam's squid and octopus exports in 2014 decreased by only 1.3 per cent on the year in January and rose by 3 to 58 per cent in the next 11 months. Notably in the second quarter last year, squid and octopus exports increased by 45 to 58 per cent over the same period in 2013.

South Korea is now a stable market for Viet Nam's fishery sector, especially as its own fishery business is experiencing a short halt, according to the association. — VNS