Vietnam views China as its most promising alternative market for cephalopod exports, as it seeks alternatives to the European Union, the Vietnam Association of Seafood Exporters and Producers (VASEP) said in a statement on 28 March.
In October 2017, the E.U. imposed “yellow card” status on Vietnam after it determined Southeast Asian nation was not doing enough to tackle illegal fishing. Recent trade data shows the determination, which acts as a public warning but contains no trade sanctions, has resulted in a tumble in Vietnam’s cephalopod shipments to the E.U. Vietnam’s export value to E.U. fell nearly 30 percent year-on-year to USD 6.1 million (EUR 4.9 million) in January. The reduction saw the E.U. drop from the third- to the fourth-largest buyer of Vietnam’s cephalopods in value terms.
Between January and September of 2017 – before the “yellow card” was implemented – Vietnam exported cephalopod products valued at USD 83 million (EUR 67 million), an 80 percent jump from the same period in 2016.
Vietnam’s Ministry of Agriculture and Rural Development has admitted the country’s shortcomings in catch certification process are among the main reasons that led to the imposition of the yellow card. It said in January authorities from many E.U. member nations have complained to the ministry about Vietnam’s catch certification process, saying many certificates were found containing errors and wrong information. The number of complaints increased after the “yellow card” was imposed, the ministry added. In February, for example, authorities from the Netherlands warned that if Vietnamese side failed to correct the catch certificates, it would consider returning Vietnamese seafood cargoes.
In response, in recent months the ministry has asked relevant local authorities to “adjust” their catch certification process to make sure they are in full compliance with E.U. requirements.
Meanwhile, as the E.U. lessens its buying of Vietnamese squid and octopus, China is stepping in to fill the void. Chinese consumers are increasingly fond of Vietnamese cephalopod, with demand rising in their restaurants and households, according to VASEP. The growing popularity of online shopping in China has helped boost cephalopod sales in the world second-largest economy VASEP added.
“China will continue to be a potential market for Vietnam’s cephalopod exporters in the time ahead, particularly in the wake of hurdles in other key destinations,” said VASEP.
Vietnam’s cephalopod exports to China rose sharply, by 146.5 percent year-on-year in value, to USD 3.6 million (EUR 2.9 million) in January 2018. Although still a modest figure, it is the biggest increase in the month in comparison with other key markets.
In total, Vietnam exported cephalopod products worth USD 51.3 million (EUR 41.4 million), up 28 percent from the same month last year, with shipments to all remaining key markets besides the E.U. surging in the first month of this year.
South Korea remained the top destination for Vietnam’s cephalopods in January 2018, taking in USD 19 million (EUR 15.3 million) worth of cephalopods, a 27.3 percent year-on-year increase. Japan was second, taking USD 12.8 million (EUR 10.3 million), up 23 percent from a year earlier. The Association of Southeast Asian Nations (ASEAN) ranked third with more than USD 7 million (EUR 5.6 million) of Vietnamese cephalopod imports, up 105.8 percent from January 2017, VASEP’s data showed.
