Korea: Potential market for Vietnamese shrimp exportsUpdate: 10/24/2017
In 10 years (2007 - 2016), shrimp export of Vietnam to Korea continuously positive growth with the export turnover of the next year higher than the previous year. In 2015 alone, export shrimp to Korea decreased due to a sharp increase in 2014 due to the increase in world shrimp prices and the dollar price increases.
In the first 9 months of 2017, Vietnam shrimp export to this market has maintained a good growth rate. As of 15/9/2017, Vietnam shrimp export to Korea reached 243.2 million USD; up 29.8% over the same period in 2016.
With stable demand, high export prices, tax incentives under the Korea-Vietnam Free Trade Agreement; Korea is considered as a potential replacement market and there are many growth opportunities for shrimp exporters in Vietnam in the context of export to the main markets, traditional difficulties.
On the Korean market, Vietnam has to compete on price with Chinese and Indian shrimp. However, Vietnam has the lowest import duty (10%) compared to other competitors such as China (20%), India (12.5%), Ecuador (20%) and Thailand (10% ).
However, after more than a year of implementing the Vietnam-Korea Free Trade Agreement (VKFTA), Vietnam's shrimp export to the Korean market recorded many positive changes. Together with VKFTA, the challenge from the Korean market for Vietnamese shrimp is to squeeze more quality. Therefore, shrimp export companies in Korea should actively control the quality criteria and update the procedures and requirements of Korea to maintain this market.