Hanoi (VNA) – Vietnamese shrimp exporters are hoping for a betteryear after their shipments fell 5.4 percent year on year to 3.36 billion USD in2019, according to insiders.

They found themselves surrounded in difficulties last year as world supply sawstrong increase that brought down both prices and demand in major markets.Besides, the US-China trade conflict also wreaked havoc on the shrimp sector.However, a brighter future is coming from the horizon to them this year thanksto a multitude of robust market signs.

The EU will remain a potential market for Vietnamese shrimp in the year as itis the largest shrimp consumer in the whole, while production of the bloc hasnot met its demand.

If Vietnamese exporters are able to take advantage of preferential tariff underthe EU-Vietnam Free Trade Agreement (EVFTA), shrimp shipments to the bloc willpossibly surge in 2020, experts have said.

Under the trade pact, signed on June 30, the tariffs of most raw shrimps (fresh,frozen and chilled) imported from Vietnam into the EU will be cut from thebasic 12-20 percent to zero right after the deal comes into force. Besides,import taxes on processed shrimp will be brought to zero after seven years.

Vietnam has distinct advantage over its competitors, with import tariff ofgiant tiger prawns cut from 4.2 percent to zero under the Generalised System ofPreferences Treatment (GSP), while that of frozen white-leg shrimp falling tozero after five years. Meanwhile, Thailand is not entitled to the GSP and hasits shrimps levied with a basic tax rate of 12 percent.

Vietnamese shrimp exporters will have more opportunities in the US market, aleading destination, after the US Department of Commerce released the finalresults of the 13th period of review (POR 13) in August 2019, officiallyimposing zero percent tariff on 31 Vietnamese shrimp exporters.

Experts also foresee a surge in shipment to Japan – the host of the 2020Olympic Games, hoping the event will promote shrimp consumption in thiscountry.

As for the Chinese market, around 75-80 percent of Vietnamese seafood has beensold in the market via official channels, which serves as an important factor toenable market revival there.

In addition, another positive sign for the Vietnamese shrimp sector comes fromseveral emerging markets like Australia, which are expected to maintain theirimport growth in 2020.

Last year, while shrimp shipments to major markets like the EU and Japanexperienced a fall of 16.9 percent and 3.3 percent to 696.2 million USD and618.6 million USD, respectively, the US and Australia increased their shrimpimports from Vietnam by 2.5 percent and 12.6 percent to 653.9 million USD and121 million USD./.