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Vietnam to export 19.5% of its Pangasius to EU, Russia

Vietnam to export 19.5% of its Pangasius to EU, Russia

MOSCOW: Vietman will export 19.5 percent of its Pangasius to European Union (EU) and Russia in this running year.

As a result of the latest Vietnam and EU negotiation round that took place in Brussels (Belgium) in January, tax on pangasius as well as other seafood was agreed to be strongly cut, Vietnam Association of Seafood Exporters & Producers (VASEP) reported.

The agency remarked that Vietnamese enterprises expect much more benefits from this Free Trade Agreement (FTA), whose negotiations have been predicted to finish this year, since the EU was the biggest market in 2014 with the export value of USD 344 million, considering the 151 destinations of catfish.

VASEP also informed that the exported value to the EU last year represented an 11 per cent decline compared to 2013. This market accounts for 19.5 per cent of total Vietnam pangasius export turnover. Besides, despite the declines in recent years, Vietnam, holding over 95 per cent of the market share, maintained its position as the leading pangasius and catfish provider and in top 12 frozen fish fillets to the EU in 2014.

It has been stressed that at present the average tariff on frozen fish fillets is 6.88 per cent, and tariff on frozen pangasius fillets is 5.5 per cent. However, with the new trade deal, tariff and non-tariff barriers will be lifted, giving processors from Vietnam more opportunities to expand markets, import materials from the third for processing and re-exporting to the EU.

Another benefit of the new FTA is the support the EU will provide to Vietnamese businesses with investments and technical transfer to sustainably access the EU market and attract foreign more investments into Vietnam.

VASEP pointed out that the deals for FTA with the Customs Union, including 3 countries namely Russia, Belarus and Kazakhstan, is also expected to end negotiation rounds this year. At least 80 per cent of goods from Vietnam exported to Russia, including fisheries products will be tax-exempted. Currently, Russia is imposing tax of 5.63 per cent on frozen pangasius fillets from Vietnam.

VASEP statistics show that in 2014, Vietnam pangasius exports to Russia — valued USD 33.24 million – were down from 2013. Russia accounts for 1.88 per cent of the of total pangasius export turnover of Vietnam.

Meanwhile, exports to Belarus and Kazakhstan both increased from 2013, valued at USD 2.09 million and USD 3.14 million, respectively. The proportion of exports to these markets was not high. The former accounted for 0.12 per cent and the latter made up 0.18 per cent.

0.8 percent to 861 points while its ruble-based peer MICEX traded flat at 1,582 points.