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Seafood firms Tap EEU FTA

by PV22 March 2017 Last updated at 16:04 PM

VTV.vn - The Eurasia Economic Union - Vietnam Free Trade Agreement, which took effect 5 months ago, is thought to most benefit Vietnam's seafood exporters because of zero percent tariffs.

Minh Phu Seafood Corporation expanded sales to Russia last year, earning over $12 million from processed shrimp. The free trade agreement is a good opportunity to boost the company’s sale in this market.

Le Van Hung, Sales Manager, Minh Phu Seafood Corporation said that the implementation of the agreement is an advantage so he plans to increase seafood exports to Russia by about 25% year on year.

The firm is also eyeing Belarus and Kazakhstan. The firm's representative said that to enter such markets, quality is the top priority.

“Quality is a priority to enter Russia. Some Russian standards for antibiotic residues are even higher than the average of Europe”, Hung added.

Similarly, Hung Vuong Seafood Company has set up a joint venture in Russia worth 30 million USD. In July 2016, the firm spent 15 million USD to acquire 51% of the Russian Fish Joint Stock Company, the country's leading fish distributor with over 5% market share. With this move, Hung Vuong could better manage the wholesale market and production in Russia.

In December 2016, a shared Law on Customs was signed at the high-level meeting of the Eurasian Committee in Saint-Petersburg. This is expected to come into effect from July 1st 2017.

Beketzhan Zhumakhanov, Kazakhstan Ambassador to Vietnam pointed out that at present, exports from Vietnam to Kazakhstan go through the new transport line Lianyungang port in China, which Kazakhstan holds 49% stake before being transferred to Khorgos, Kazakhstan. Vietnamese goods only have to be cleared once in Kazakhstan, before being transferred to other countries in the EEU.

With the one-stop customs mechanism, Vietnamese seafood products could enter EEU countries easier. According to experts, long-term plans are also needed to help these enterprises create a foothold in these markets.

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