Vietnam's shrimp exports to South Korea face difficulties because the quota fee is nearly equal to the tax
Frozen Common Shrimp & Prawn
Seafood
Vietnam
South Korea
Published Mar 19, 2023
Tridge summary
According to VASEP, Korea is one of the important export markets of Vietnamese shrimp, with a turnover of 400-500 million USD per year, behind the US, EU, Japan and China markets. Every year, Korea imports over 100,000 tons of shrimp with a value of $800 million to $1 billion. In particular, Vietnam's shrimp imports increased every year and accounted for the highest market share (over 50%) thanks to the FTA Agreement between Vietnam and Korea (VKFTA), although the quota mechanism is still being implemented (15,000 tons). with a tax rate of 0%). According to information from VASEP member enterprises, currently in Korea, the cost to obtain a shrimp import quota under VKFTA through the bidding mechanism has increased to about 14-16% compared to the value. import. This level is also approximately equivalent to the import tax rate of 20% for the volume of shrimp imported outside the quota. Importers said that, despite applying VKFTA, when importing Vietnamese shrimp into Korea, they still consider them to have to pay a tax of 14-20%, increasing prices and making it difficult to compete in such markets.
Original content
According to VASEP, Korea is one of the important export markets of Vietnamese shrimp, with a turnover of 400-500 million USD per year, behind the US, EU, Japan and China markets. Every year, Korea imports over 100,000 tons of shrimp with a value of $800 million to $1 billion. In particular, Vietnam's shrimp imports increased every year and accounted for the highest market share (over 50%) thanks to the FTA Agreement between Vietnam and Korea (VKFTA), although the quota mechanism is still being implemented (15,000 tons). with a tax rate of 0%). According to information from VASEP member enterprises, currently in Korea, the cost to obtain a shrimp import quota under VKFTA through the bidding mechanism has increased to about 14-16% compared to the value. import. This level is also approximately equivalent to the import tax rate of 20% for the volume of shrimp imported outside the quota. Importers said that, despite the application of VKFTA, Vietnamese shrimp when imported into Korea ...
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