The newly-inked Vietnam-Korea free trade agreement (VKFTA) will be asignificant boost for Vietnamese aquaculture products, especiallyshrimp, cuttlefish and octopus, favourites in the Republic of Koreamarket.

Accordingly, the RoK pledged to provide tax-exemptionsfor up to 15,000 tonnes of shrimp per year. The commitment also includesthe reduction of non-tariff barriers and technical requests which canbe more complicated and difficult than taxes for enterprises, accordingto Hai Quan (Customs) online.

The RoK also promised to cut 95.4percent of tariff lines levied on Vietnamese aquaculture and industrialproducts, amounting to 5 percent less tariff lines than those applied tocommodities from Vietnam’s competitors such as China, Indonesia,Malaysia and Thailand.

The move will help increase Vietnamese product competitiveness while greatly augmenting their penetration into the RoK.

Inthe first quarter of this year, the RoK ranked fifth in Vietnam’scrucial aquaculture export markets with a total revenue of 119.6 millionUSD. The Southeast Asian country is currently the largest shrimpsupplier of the RoK, accounting for 46 percent of the RoK’s importvalue.

Meanwhile, the RoK is a leading market for Vietnamesecuttlefish and octopus. In the first three months of this year, Vietnamraked in 35.8 million USD from cuttlefish and octopus exports. Risingdemands of frozen and dried octopus in the RoK will also createopportunities for Vietnamese enterprises in the market.

Withpreferential taxes and transparency in technical barriers, the VKFTAwill widen opportunities for Vietnamese aquaculture exports to the RoK.However, stern food safety standards will force Vietnamese businesses tocontrol antibiotic use and renew business activities for more efficientoperations.-VNA