Vietnam’s aquatic product exporters are being hit hard by the impacts of COVID-19, but there are still opportunities for domestic businesses despite the gloomy outlook, experts have said.

Illustrative image (Photo: VNA)

They explained that the new coronavirus epidemic will hinder aquatic product exports from China – the world’s largest supplier with value exceeding 20 billion USD in 2017, thus leading to a global shortage.    

As a result, Vietnamese fishery businesses should take this chance to diversify their markets, they suggested.

Moreover, the EU-Vietnam Free Trade Agreement (EVFTA), which was ratified by the European Parliament on February 12, 2020, is expected to facilitate Vietnam’s export of aquatic products.

After the pact comes into force, taxes imposed on some processed seafood products like oyster, cuttlefish and octopus will drop from 20 percent to zero.

The zero percent tariff will also be applied to frozen cuttlefish, octopus, surimi, shrimp and tuna, among others.

Vietnam’s export of aquatic products to China has dropped significantly since early this year. The market’s share in Vietnam’s aquatic export value decreased from 10 percent in January 2019 to 8.9 percent in January 2020.

The value of aquatic product shipments to the neighbouring country via land is forecast to contract about 20 percent monthly as long as the epidemic continues.

However, some businesses are optimistic as China is likely to increase its import of aquatic products after it successfully controls the illness.