Quotas and taxes are hindering Vietnam's shrimp exports to South Korea

Published 2023년 4월 7일

Tridge summary

Vietnam's shrimp exports to South Korea are facing hurdles due to quota mechanisms and high import taxes. In 2023, these barriers have led to a 25% decrease in exports to South Korea, which accounts for 14% of Vietnam's total shrimp exports. Despite these challenges, Vietnam's shrimp exports to South Korea have seen steady growth from 386 million USD in 2018 to 468 million USD in 2022, with whiteleg shrimp products experiencing a significant surge. The 2015 Free Trade Agreement between Vietnam and South Korea has aided in reducing import tariffs for Vietnamese shrimp products. However, Vietnamese shrimp products are subject to quota regulations and high taxes, whereas Peruvian shrimp products exported to South Korea enjoy no quotas and lower taxes. The Vietnamese Association of Seafood Exporters and Producers (VASEP) has appealed to the Vietnamese government to propose the elimination of these barriers to the Korean government and to adjust the tax rate to 0% under the Vietnam-South Korea Free Trade Agreement.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Quotas and taxes are hindering Vietnam’s shrimp exports to South Korea. Accounting for 14% of Vietnam’s total shrimp exports, South Korea is one of the important export markets of Vietnamese shrimp products. However, Vietnam’s shrimp exports to this market are implemented under the quota mechanism, if exports exceed the quota, the import tax rate can be up to 20%. In the first 2 months of 2023, Vietnam’s shrimp exports to South Korea reached more than 46 million USD, down 25% compared to the same period in 2022. Shrimp exports to South Korea in the first months of this year followed a general downward trend as the world economy fell into recession, inflation increased, purchasing power decreased. In 2022, South Korea is a market with stable shrimp consumption demand. Moreover, the advantage of close distance, and a quite moderate inflation rate have helped to boost Vietnam’s shrimp exports to South Korea to reach $468 million, up 26% compared to 2021. In 5 years (2018-2022), ...

Source: Fish Focus