After five years of Vietnam’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnamese seafood industry has witnessed substantial growth and positive changes. The Vietnam Association of Seafood Exporters and Producers (VASEP) reports that this progress is attributed to the advantageous tariff conditions provided by the CPTPP, which came into effect on January 14, 2019.

Impressive Market Share Gains

Vietnamese seafood has experienced a notable increase in market share across CPTPP member countries. In the Canadian market, the overall market share rose from 7-8% to 10%, with shrimp taking the lead at 25%, up from 18%, securing the top position. Additionally, tuna saw an increase from 6% to 11%, ranking third in this market.

However, the most remarkable growth has been observed in the Australian market. Vietnamese shrimp exports to Australia have surged, capturing market share of 70%. This marks a doubling from the 32% held before Vietnam became a signatory to the CPTPP.

Competition Challenges in the Domestic Market

Despite the success in international markets, the fisheries industry in Vietnam faces stiff competition domestically from products originating in CPTPP member countries, including Japan, Chile, and Australia. VASEP highlights that competition within the domestic market remains a challenge for the Vietnamese fisheries sector.

Logistics Restrictions Impact Competitiveness

One key obstacle to the seafood industry’s competitiveness, as noted by VASEP, is the current logistics restrictions. The industry is heavily reliant on foreign logistics systems, and this dependency hampers its ability to compete effectively.

The challenges in the logistics sector have become more apparent since 2020, a year marked by significant global changes such as the COVID-19 pandemic, conflicts in Europe, and tensions in the Middle East, particularly in the Red Sea.