Image: Vasep / FIS
Shrimp exports to the UK are forecast to recover sooner than other markets
Friday, December 01, 2023, 07:10 (GMT + 9)
As of October 2023, Vietnamese shrimp exports to the UK reached 159 million USD, down 18% over the same period last year.
The UK is the 6th largest single market for shrimp imports from Vietnam, accounting for 5.6% of Vietnam's total shrimp exports to markets. Since the beginning of the year until now, Vietnamese shrimp exports to the UK have been unstable, increasing and decreasing erratically, but the UK is still considered an important market for Vietnamese shrimp with many incentives in bilateral trade relations between the two countries.
From 2020 to 2022, shrimp exports to the UK fluctuate between 222 million USD - 243 million USD. Exports in 2020 recorded a growth of 20%, then export figures in 2021 and 2022 recorded a slight decrease of 3-5%.
Located in the EU region, the UK has also faced the impact of high inflation and economic instability from the beginning of the year until now. However, the 18% decrease in Vietnamese shrimp exports to the UK in the first 10 months of this year is not as strong as exports to other major markets such as the US, EU, Japan, Korea...
Shrimp accounts for about 10% of total seafood consumption in the UK market. For the restaurant or food service sector, shrimp is also quite a popular ingredient, with about 61% of these businesses in the UK. In addition, shrimp is also popular in Indian and Chinese restaurants, with rolls, soups, dumplings, mantou...
In the UK market, Vietnam is still the largest shrimp supplier. In the UK market, Vietnamese shrimp has to compete strongly in price with Indian and Ecuadorian shrimp. According to ITC data, in the first three quarters of this year, shrimp imports into the UK from India and Ecuador decreased slightly by 12% and 3% respectively over the same period while shrimp imports from Vietnam decreased by 18%. Meanwhile, the UK increased cold water shrimp imports from Greenland by 10%. In the first 3 quarters of this year, UK shrimp imports reached 563 million USD, down 15% over the same period last year.
Source: South Stream Market -->
Vietnamese seafood exporters in general and shrimp exporters in particular have gradually adapted to the commitments of the Vietnam-UK Free Trade Agreement (UKVFTA). It is forecasted that Vietnamese shrimp exports to the UK market will recover sooner than other markets. In the period 2022-2025, shrimp exports to this market can maintain an average positive growth of over 10%/year.
With tariff advantages from the UKVFTA Agreement, Vietnamese shrimp has a competitive advantage over other trade competitors such as China, Thailand, Malaysia, Indonesia, Philippines, India, Brazil,... This supplier has not yet signed a Free Trade Agreement with the UK. Regarding preferential import tax commitments, the UKVFTA Agreement has a mechanism to continue the EVFTA Agreement, so the commitment to import tax on most types of raw shrimp into the UK will decrease from 10-20% to 0% as soon as the agreement decree takes effect. And to enjoy preferential tax rates as committed in the UKVFTA Agreement, Vietnamese seafood products must prove their origin.
British consumers always choose products with high standards issued by authorities in the UK and EU regarding product quality, origin, product sustainability, environmental friendliness and convenience. Therefore, in order to strongly increase the market share of seafood in general and shrimp in particular in the UK market, Vietnamese products need to meet the requirements of quality, design, appearance and taste.
Author: Kim Thu | Vasep (Translated from the original in Vietnamese)