This is a great chance for Vietnamese products, including seafood, to compete in price. However, Vietnamese exports will face a number of non-tariff barriers.
Since Vietnam started exporting tra fish to the U.S. 13 years ago, the country has had to expend great effort and money on administrative review for anti-dumping suits. This is an example of a non-tariff barrier.
While free trade agreements may reduce tariffs, technical barriers will become more challenging.
Seafood quality is now monitored by the Ministry of Health, Ministry of Agriculture and Rural Development, and Ministry of Industry and Trade. According to Eurocham’s “Food Agri & Aqua Business Sector Committee,” such monitoring is fragmented and redundant. Moreover, despite 34 testing labs, Vietnamese seafood quality still fails to meet high technical standards set by stringent importers.
According to the Vietnam Association of Seafood Exporters and Producers, a limited understanding of FTAs is taking away opportunities from Vietnamese enterprises.
However, once an FTA takes effect, business subsidies are not permitted. Vietnam is now participating in 15 free trade agreements, 5 of which have been signed while the others are under negotiation.
