Opportunity for Vietnamese WhiteLeg Shrimp export to EU

The EU accounts for concerning twenty eighth of the full price of shrimp imports worldwide. EU shrimp imports vary from US$6-8 billion per annum. In ten years (2007-2017), imports of shrimp into the EU inflated from US$ five.6 billion vi|to six}.9 billion in 2017. Export of Vietnamese shrimp, particularly whiteleg shrimp to some markets within the EU, is presently witnessing numerous opportunities.

The EU is Vietnam’s largest shrimp import market, accounting for twenty-four.7% of Vietnam’s total shrimp exports. Vietnam shrimp exports to the current market by September this year reached US$648.4 million, increasing by St Martin’s Day compared to constant amount in 2017.

The UK and also the Kingdom of The Netherlands area unit the 2 largest import markets for Vietnamese shrimp within the EU. within the initial 9 months of this year, shrimp export to each markets achieved positive growth of twenty seven.6%, an increase of eleven.6% compared to constant amount last year.

The UK is that the largest bourgeois of Vietnamese shrimp within the EU, accounting for twenty seventh of Vietnam’s total shrimp exports to the EU and accounting for six.7% of total Vietnam shrimp exports in total. within the initial 9 months of this year, Vietnam shrimp exports to the united kingdom reached nearly 176 million USD, rising by twenty seven.6% over constant amount last year.

In the past three years, Vietnam shrimp exports to the united kingdom have big unceasingly from US$114.6 million in 2014 to US$ 210.6 million in 2017, a rise of nearly eighty four. Vietnamese shrimp exports to the united kingdom encompasses a tendency to extend because the United Kingdom promotes the import of heat water shrimp because of reasonable valuation to interchange cold water shrimp. The market had preference for merchandise like frozen whiteleg shrimp; processed, injured and headless Pd frozen whiteleg shrimp; steamed frozen IQF whiteleg shrimp & processed materials.

In the EU, Netherlands is Vietnam’s second largest shrimp bourgeois once the united kingdom. within the initial 9 months of this year, Vietnam shrimp exports to Netherlands reached US$158.6 million, up 11.6%. Vietnam is that the largest shrimp provider to Netherlands, accounting for thirty seven.6% of the full import price of this market in 2017.

In the structure of Vietnamese shrimp merchandise exported to Netherlands, whiteleg shrimp accounted for the best rate of eighty six, followed by tiger shrimp (10%) and remaining accounting for four-dimensional. Netherlands is more and more in high demand for processed white shrimpleg merchandise (HS code 16) from Vietnam.

Vietnam shrimp exports still maintains competitive benefits compared to alternative huge competitors within the EU market like Republic of India and Asian nation. These 2 rivals in Vietnam area unit more and more reducing exports to the EU because of issues relating to meeting quality standards.

On October seventeen, 2018, the ecu Commission approved the submission of the EU-Vietnam trade Agreement (EVFTA), making ready for sign language and finishing the method. once EVFTA comes into impact, Vietnam are ready to cut import tax on raw shrimp and processed shrimp into this market.

For the buyer phase, additional and additional Europeans obtain shrimp from supermarkets to organize reception, rather than feeding shrimp at restaurants. this is often the advantage for whiteleg shrimp because the proportion of whiteleg shrimp within the retail market is increasing.

European restaurants typically use tiger shrimps because of their delicious style and outstanding size however the slump is creating whiteleg shrimp additional standard. As tiger shrimp remains standard at high-end restaurants and in southern Europe region, this is often conjointly a chance for businesses that may provide large-size whiteleg shrimp with lower cost than tiger shrimp.

For the process phase, Europe is more and more in demand with steamed shrimp for MAP merchandise (modified region packaging products).

In order to spice up shrimp sales to the EU, businesses ought to increase the amount of farms that’s certified with smart farming practices, making certain environmental and social standards, also because the range of upgraded factories with process lines that meet European retail standards.

According to ITC, within the initial eight months of 2018, EU shrimp imports reached over US$4 billion, decreasing by a pair of.8% compared to constant amount. Espana and France area unit the two largest import markets within the cluster, accounting for eighteen and 16 PF severally of the full import price of the complete sector. Espana primarily imports raw whiteleg shrimp from Argentina and Republic of Ecuador for process and packaging for domestic consumption and re-export.

EU Shrimp Imports (Note: thousand US$, Source: ITC)

According to ITC, in the first 8 months of 2018, EU shrimp imports reached over US$4 billion, decreasing by 2.8% compared to the same period. Spain and France are the 2 largest import markets in the group, accounting for 18% and 16% respectively of the total import value of the whole sector. Spain mainly imports raw whiteleg shrimp from Argentina and Ecuador for processing and packaging for domestic consumption and re-export.