Vietnam's seafood industry has long affirmed its position in the international market, contributing greatly to the country's economy. Among export markets, the US is always considered a potential and highly profitable destination for Vietnamese seafood exporters. Currently, the seafood export market to the US is increasing again, in the first quarter of 2024 alone, exports of this product group to the US reached nearly 324 million USD, an increase of 14.3% over the same period. This figure shows that the US continues to hold its position as Vietnam's largest seafood export market.

Vietnamese seafood exports to the US will increase again in 2024

In 2023, the US will affirm its position as Vietnam's largest export market with export turnover reaching 97 billion USD, contributing 27% to the total export turnover of the country. In the seafood sector, the US continues to play an important role, being the leading consumption destination for the industry's two key products - shrimp and tuna.

Looking back over the past decade, the US market has always been a bright spot in the picture of Vietnam's seafood exports. In the period 2013 - 2022, shrimp export turnover to this market ranges from 638 million USD to 1 billion USD per year.

Entering 2024, positive signals continue to be recorded. The first quarter of the year saw seafood exports reach nearly 1.95 billion USD, up 6.4% over the same period in 2023. In March alone, export turnover reached 357.7 million USD; increased 61.5% compared to February but decreased 3.2% compared to March 2023.

There are clear signs of recovery in major markets importing Vietnamese seafood, including the US and China. These two markets account for more than 30% of the total seafood export turnover of the entire industry. Of which, exports to the US reached nearly 324 million USD in March 2024, equivalent to 16.6% of the total export turnover of this product group, up 14.3% over the same period last year.

Preliminary statistics from the General Department of Customs show that in April 2024, Vietnam's exports to the US reached 8.98 billion USD, bringing the total turnover in the first 4 months of the year to 34.73 billion USD. Thanks to that, the US continues to maintain its position as Vietnam's largest export market for goods.

In the first 3 months of 2024, seafood export value has reached nearly 1.95 billion USD. Photo: baodautu.vn

Exports to the US are boosted again by a number of factors

Vietnam - US Trade Agreement (EVFTA)

EVFTA brings great benefits to Vietnamese seafood exports to the US through significant tax rate reductions such as:

Preferential tax rates: Thanks to EVFTA, many Vietnamese seafood products enjoy 0% tax immediately or follow a roadmap to reduce tax to 0% within 5 - 10 years. This helps improve the competitiveness of Vietnamese seafood in the US market.

Simplified procedures: Vietnamese businesses do not need to go through too many cumbersome procedures when exporting seafood to the US, helping to save time and costs. From there, creating favorable conditions for business expansion.

Reduced technical barriers: EVFTA also helps reduce technical barriers for Vietnamese seafood when exported to the US. Technical standards have been harmonized, making it easier for businesses to effectively meet the requirements of the US market.

Competitive prices - Comparative advantage for Vietnamese businesses

Low production costs: Vietnam has relatively low seafood production costs compared to other exporting countries. This helps seafood products from Vietnam have competitive prices in the US market, attracting the attention of importers and consumers.

Abundant source of raw materials: Vietnam has a long coastline and rich and diverse sources of aquatic raw materials. This creates favorable conditions for seafood production and export from Vietnam to the US.

Production capacity is increasingly improved: Vietnam's seafood industry has made strong developments, production and processing capacity is increasingly improved, meeting the needs of the international market.

Breakthrough opportunity for Vietnamese seafood exports in the US market

The door to the US market is more open than ever for Vietnamese export businesses with information that the US is considering recognizing Vietnam as a market economy. This is an important step, promising to bring many benefits and open up breakthrough potential for Vietnamese seafood exports to this market.

This has been shown through Vietnam's efforts in meeting 6 criteria to be recognized as a market economy; especially after the Comprehensive Strategic Partnership between Vietnam and the US is upgraded in 2023.

According to SSI Research's assessment, being recognized as a market economy will bring many great benefits to Vietnam, including:

Reducing anti-dumping (AD) and anti-subsidy (CVD) taxes: Vietnamese enterprises use actual production prices instead of prices from third countries when calculating dumping margins, reducing the tax burden.

Benefit from preferential import taxes: Vietnam can enjoy preferential import taxes from the US in some cases.

Enhance Vietnam's position and reputation in the international arena: Recognition is a testament to Vietnam's dynamic, open and transparent economy.

Currently, on May 8, 2024, the US Department of Commerce held a hearing between representatives of the Vietnamese Government and relevant parties to review the application for recognition of Vietnam's market economy status. It is expected that the official decision will be announced on July 26, 2024. Vietnam's recognition is an important step forward, opening the door for exporting Vietnamese goods to the US market.

Source: Tep Bac