Shrimp processed at Cuu Long Seafood JSC in Trà Vinh province. Vietnam ranks second globally in shrimp exports, with a market share of 14 percent, only behind India (15 percent). (Source: VNA) HCM City (VNA) - The seafood industry mustenvision a long-term strategy to make full use of new trade pactsand prepare for problems that might arise when they take effect, TruongDinh Hoe, VASEP general secretary, said.
Hoe was speaking at a conference in HCM City on July17 on the challenges and opportunities faced by the seafood sector underthe Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP), which took effect in January, and the EU-Vietnam Free TradeAgreement (EVFTA), which is expected to be approved by the EU Parliamentlate this year or early next year.
“Two major trade agreements will result in lower tariffs imposed onVietnamese goods, but domestic enterprises will also face competition withforeign rivals in addition to stringent regulations on product quality andtrace of origin,” he said.
The EVFTA, which was signed by Vietnam in June, will cut tariffs on 99 percentof goods traded between the two sides. Vietnam’s agriculture and seafoodexports, as well as other industries in which the country hasstrengths, are expected to see substantial benefits.
Nguyen Thi Thu Trang, director of the World Trade Organisation (WTO)Integration Centre at the Vietnam Chamber of Commerce and Industry (VCCI),said that EVFTA and CPTPP would offer fishery firms a chance toexpand exports, especially to new markets such as Canada, Peru and Mexico.
Vietnam ranks second globally in shrimp exports, with a market share of 14percent, only behind India (15 percent).
EVFTA is a new-generation FTA that comes with higherstandards, and as a result the industry will face strict regulations interms of the origin of goods, even in textiles and garments, atraditionally strong sector for Vietnam, experts said.
In addition, labour rules under the trade agreement will be stricter, requiringlocal businesses to adapt to its requirements.
To take full advantage of the EVFTA, local enterprises must adjust theirproduction to meet standards on quality, origin,labour, and environmental protection, among other issues.
Regulatory bodies and firms also need to be prepared to deal with foreigngoods that detour into Vietnam to take advantage of the CPTPPand other FTAs that the country has signed.
The CPTPP has provisions for investor-state disputes that allowforeign investors to sue the member state.
To prepare for this, Vietnam needs to comply with all regulations toprevent disputes with foreign investors.
To take advantage of the benefits from the CPTPP, the country will need tobuild a legal framework to effectively implement the trade pact.
Businesses must also understand the opportunities and challengesthat CPTPP offers and ramp up their activities and production, expertssaid.
The readiness of enterprises is especially critical, they said.
Exporters should also ensure that their products meet requirements ontraceability and technical standards, as well as plant and animal safetyand hygiene criteria of the EU.
This year the seafood industry has set a target of 10billion USD worth of exports, a rise of 11.1 percent over last year.
Vietnam’s seafood exports to the other 10 members of CPTPP rose by 15percent year-on-year to 502 million USD in the first four months since theagreement took effect, according to the ministry.
Overall exports were 2.5 billion USD, an increase of 2.4 percent, theMinistry of Agriculture and Rural Development said. - VNA
VNA
