The impact of EVFTA on the shrimp industry

Although raw shrimp prices in July 2019 tended to drop sharply with both tiger shrimp and white leg shrimp due to the current low export orders. But in the coming time, Vietnam’s shrimp industry is expected to recover its export to the market thanks to the positive impact of the EVFTA Agreement.

Price of shrimp in July 2019

The Department of Agricultural Product Processing and Development (Ministry of Agriculture and Rural Development) said that the price of raw shrimp in July 2019 tended to fall sharply. Both black tiger shrimp and white leg shrimp fell due to the current low number of export orders.

For aquaculture market in Bac Lieu, the price of black tiger prawn was about 20 shrimp/kg decreased by 75.000 from the previous month to 165.000 VND/kg. About 30 shrimp/kg down 65.000 VND / kg to 145.000 VND/kg. About 40 shrimp/kg decreased by 25.000 VND to VND 125.000/kg. This week, price of frozen shrimp also decreased in most sizes: 60 shrimp/ kg decreased by 7.000 VND to 88.000 VND/kg. About 70 shrimp/kg decreased by 1.000 VND to 84.000 VND/kg. About 100 shrimp/kg decreased by 2.000 VND 70.000/kg.

Shrimp export in the first 6 months of 2019

In the first 6 months of 2019, Vietnam’s largest shrimp export market was Europe, reaching 300.5 million USD, down 25.9% compared to the same period in 2018. The UK, Germany and the Netherlands are the three markets for Vietnam’s main shrimp imports in the block. However, compared to 2018, it decreased by 9.5%, 12.5% and 50.2% respectively.

However, according to the Department of Processing and Market Development of Agricultural Products, in the coming time, Vietnam’s shrimp industry is expected to recover its export to this market. This is thanks to the positive impact of the Free Trade Agreement Vietnam – EU (EVFTA) signed in Hanoi on June 30, 2019. It is expected to be adopted by EU member states to officially take effect in the coming time.

Import tax on raw shrimp

Specifically, import tax on raw shrimp code HS 03061100 (frozen green lobster; frozen tiger shrimp HOSO, DP; fresh frozen PD shrimp; ice-chilled blue lobster; shell shrimp, whole, and frozen cold …) from Vietnam to the EU will be 0%, from the current level of 12.5%. HS shrimp product tax code 03061710 (frozen PD shrimp, frozen HOSO whole tiger shrimp, prawn head with shell, frozen fresh tiger prawn, frozen tiger prawn, frozen fresh tiger shrimp HLSO, tiger shrimp IQF, meatballs) about 0%, from the current 20%. Shrimp code HS 03061791, 03061792, 03061793, 03061799 will reduce tax to 0%, from the current 12%. Shrimp code HS 03061794 will be reduced to 0%, from the current 18% after 5 years since the agreement comes into effect.

For processed shrimp products, shrimp code HS 16052110 (pasteurized shrimp) from the current 20% will be adjusted to 0% after 7 years from the entry into force of the agreement. Shrimp code HS 16052190 (other shrimp) from 20% to 0% after 7 years since the agreement took effect.

Source: Thoi Bao Tai Chinh

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