Many export opportunities for Vietnamese pangasius to 10 CPTPP countries


25/06/2019
In 2018, the value of pangasius export to the market of 10 countries CPTPP reached 328.3 million USD, up 17.3% over the previous year. In particular, the export value to most countries achieved positive growth, except for the two markets Mexico decreased by 4.65% and Peru decreased by 19.6%.

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In November 2018, the National Assembly passed a Resolution on ratification of the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP). This Agreement takes effect for Vietnam from January 14, 2019.

CPTPP members are committed to eliminating import duties on nearly all of their import tariffs. The majority of CPTPP countries apply a common import tax to all other partners, except for some countries such as Canada, Chile, Japan and Mexico that apply separate import tariffs for each CPTPP country.

Most seafood products, including tra and basa fish, will be removed when the CPTPP Agreement comes into effect. Pangasius export enterprises may also be optimistic to believe that there will be many opportunities for Vietnam in some traditional or potential markets with pangasius such as Mexico, Japan or Chile.

Currently, Mexico is the fifth largest Pangasius export market of Vietnam (after China - Hong Kong, EU, US and ASEAN. In the first 4 months of 2019, the export value of tra and basa fish to this market reached 40.8 million USD, up 31.5% over the same period in 2018. This is also the largest pangasius export market in Latin America and in 10 CPTPP countries. According to the Aggrement, pangasius products, the large export seafood product to Mexico, will enjoy 0% tax in the 3rd year since the CPTPP Agreement comes into effect. This is also an opportunity for enterprises to increase export to this market in the near future.

Although, compared to major seafood import markets in Latin America such as Mexico or Brazil, Chile is only a small consumer market of Vietnamese tra and basa fish. However, in recent years, especially after the Free Trade Agreement (FTA) Vietnam - Chile was signed at the end of 2011 and came into effect in early 2014, the export of tra and basa fish to the market This school has many new changes, in which the people of this country have gradually known about tra and basa fish of Vietnam. Currently, with the import tax advantage of 0% for frozen pangasius (HS 030462), through Chilean distribution channels, Vietnamese products will likely not only be consumed in this country, it is also introduced and present in other countries in the region. In 2018, the value of exporting pangasius to Chile also increased by 11.3% over the previous year.

In 2018 last year marked the growth of Pangasius export to Japan market. In this year, the total value of pangasius export to Japan increased by 37.6% compared to 2017. Not stopping there, in the first 4 months of this year, exporting pangasius to Japan reached 8.58 million USD, up by 38 , 6% compared to the same period in 2018.

With the two free trade agreements (FTAs), firstly, Vietnam - Japan and ASEAN - Japan, some of Vietnam's seafood products exported to Japan have been removed from the tariff barrier. With CPTPP, many seafood products that have not yet been committed to abolishing taxes in these two FTAs will also enjoy 0% tax when exporting to Japan. In particular, some seafood products will enjoy the tax rate of 0% as soon as the agreement comes into effect, including pangasius products that are immediately exempted from the current 3.5-10.5%. Thus, with advantages from 3 FTAs with Japan, Vietnam Pangasius exporting enterprises have more opportunities to further increase pangasius export activities to Japan market.

In addition to the major exporting countries, there must be some potential markets in the countries participating in the CPTPP Agreement such as Canada, Australia, Singapore, Malaysia. These markets are being evaluated with many opportunities to increase export market share in the coming time. In 2018, Pangasius export to these countries also saw positive growth such as: Canada increased by 19.5%; Australia increased by 34.4%, Singapore increased by 20.7%, Malaysia increased by 72.2% over the previous year.

Beside the challenges that CPTPP brings to Vietnamese pangasius export enterprises, there are many opportunities ahead. Therefore, businesses need to study the benefits that this agreement brings in terms of tariffs to seize opportunities and continue to boldly increase exports.

Export of pangasius fish to CPTPP countries for 3 years from 2016-2018

No

 CPTPP countries

2016

Density (%)

2017

Density (%)

2018

Density (%)

1

Mexico

84.367.205

4,92

104.252.431

5,83

99.408.497

4,4

2

Canada

39.946.211

2,33

40.209.112

2,25

48.042.423

2,12

3

Australia

38.014.572

2,22

34.836.198

1,95

46.843.970

2,07

4

Singapore

37.068.781

2,16

38.092.256

2,13

45.983.687

2,03

5

Malaysia

22.118.150

1,29

22.254.883

1,24

38.328.167

1,69

6

Nhật Bản

14.072.474

0,82

23.434.704

1,31

32.205.553

1,42

7

Chile

6.103.658

0,36

7.956.834

0,45

8.856.543

0,39

8

Peru

5.472.835

0,32

6.275.105

0,35

5.042.965

0,22

9

New Zealand

1.817.467

0,11

1.925.271

0,11

2.575.038

0,11

10

Brunei

853.659

0,05

689.883

0,04

1.061.351

0,05

Total of 10 CPTPP countries

249.835.012

14,57

279.926.677

15,66

328.348.194

14,52

Total of pangasius

1.714.891.645

100

1.788.038.898

100

2.261.487.207

100

(Source: VASEP)