Vietnam’s seafood industry has witnessed remarkable growth in its exports to the South Korean market over the past decade. From 2013 to 2023, the country’s seafood exports to South Korea surged by 51%.

A Boost from the VKFTA

One pivotal moment in this growth trajectory occurred in 2015 when the Vietnam – Korea Free Trade Agreement (VKFTA) came into effect. This trade agreement significantly contributed to the surge in Vietnamese seafood exports to South Korea. In 2015, Vietnam’s seafood exports to South Korea were valued at USD 585 million, and by 2023, this number had risen to USD 787 million, marking a substantial increase of 35%.

The growth in Vietnamese seafood exports to South Korea encompasses a variety of products. Shrimp exports to the Korean market increased by 37%, while squid and octopus exports saw a 51% increase. Additionally, other types of fish, excluding tuna and pangasius, experienced a moderate 4% increase in exports.

The Vietnam Association of Seafood Exporters and Producers (VASEP) recognizes the pivotal role played by the VKFTA Agreement, which was signed and became effective in late 2015. This agreement has been instrumental in facilitating the economic trade development strategies of both countries, particularly in the seafood sector.

Shrimp Dominates the Export Structure

In 2023, shrimp constituted the largest portion of Vietnam’s seafood exports to South Korea, accounting for 43.6%. Squid and octopus followed closely behind, making up 31.4% of the exports, while other fish varieties (excluding pangasius and tuna) represented 20.8% of the total export turnover.

Despite the overall success, shrimp exports to South Korea faced a challenge in 2023. Exports plummeted by 27% compared to the previous year due to issues related to shrimp import quotas. Vietnamese businesses have been grappling with the financial burden of securing import quotas, with costs ranging from 14% to 16% of the shipment value.

VASEP’s Proposal for Abolishing Shrimp Quotas

Recognizing the urgent need for a resolution, VASEP has submitted a proposal to the Vietnamese Government and the Ministry of Industry and Trade. They hope to garner attention and direction to abolish quotas for Vietnamese shrimp exports to South Korea within the framework of the VKFTA Trade Agreement. The proposed timeline for review is set for 2024.

In 2023, South Korea reshuffled its seafood import sources among its top 10 suppliers. Imports increased from China, Peru, and Chile, while imports from Russia, Vietnam, Norway, and Japan decreased.