Tra fish exports to the EU grew strongly (05-07-2019)
Tra fish export to the EU market is growing strongly, with this momentum, seafood enterprises are taking advantage of preferential treatment from the EU – Vietnam Free Trade Agreement (EVFTA) to boost export of this item.
As one of the two main export products of Vietnam seafood, Tra fish export is increasing strongly in the first months of 2019. According to Vietnam Association of Seafood Exporters and Producers (VASEP), in May 2019, tra fish export into EU market continued to increase nearly 18% compared to the same period last year. As of the end of May 2019, total export value of tra and basa fish to this market reached US$118.7 million, up 29.8%, accounting for 15% of total export of Tra fish. Particularly, exports to the UK and Germany remained positive growth rate of 2 and 3 digits compared to the same period in 2018. Along with new developments in exporting Tra and basa fish to EU market after many years of declining, on June 30, 2019, the EU - Vietnam Free Trade Agreement (EVFTA) and Investment Protection Agreement (IPA) between the European Union (EU) and Vietnam have been signed in Hanoi. Those are great advantages for Vietnamese Tra fish to boost exports to EU market in the coming time.
According to the Ministry of Industry and Trade, after the signing ceremony on June 30, the EVFTA must go through the approval process. Under the procedure, European Parliament will consider the Agreement based on the recommendation of the European Commission at the end of 2019. If in case the EVFTA is approved and implemented, it will be a huge boost for Vietnamese exports, helping diversify market and export products, especially agricultural and aquatic products as well as Vietnamese products which have many competitive advantages. The level of commitment in EVFTA can be considered the highest commitment that Vietnam has achieved in the signed FTAs so far. Enterprises exporting tra and basa fish in Vietnam also need to grasp this advantage to increase export activities in the future. On the other hand, businesses also need to pay attention to the possibility of increasing non-tariff barriers on imported products, in which quality standards and requirements will be more stringent. The current problem for Vietnamese tra fish in the EU market is how to improve both quality and price for consumers and customers. Currently, Vietnamese tra and basa fish products are mainly at the middle market segment with affordable prices, in the coming time, businesses also need to pay attention even at the packaging stage to marketing and push exports into diverse market segments. In the coming time, after EVFTA comes into effect, tra fish as well as other aquatic products will face many challenges and higher requirements from customers such as: Commitment on quality, design, price, etc. or production costs, labor and environmental regulations can be increased. These are issues that Tra fish exporting enterprises in Vietnam need to grasp to take the initiative in preparing for export activities in the coming time.