In case of being fined by the European Commission (EC) with a red card, Vietnam’s seafood industry will immediately lose the European Union (EU) market with an export value of nearly 480 million USD.
Risk of losing the European market
At the conference to announce the Report “Assessment of economic impact from commercial analysis of non-compliance with anti-IUU regulations: The case of Vietnam” by the Vietnam Association of Seafood Exporters and Producers (VASEP) in collaboration with the World Bank held on the morning of August 10, the representative of VASEP assessed that as the third largest seafood exporter in the world, in recent years, Vietnam has focused on sustainable development fisheries.
However, with the characteristics of small and small fisheries, Vietnam is facing a big challenge related to the EC’s yellow card warning from October 2017, due to insufficient efforts to combat illegal fishing. legal, unreported and unregulated (IUU).
In addition, Vietnamese seafood is at risk of losing the EU market in case the fishing industry is issued a red card by the EC, if there are no solutions and drastic actions to comply with anti-exploitation regulations IUU.
Mr. Nguyen Tien Thong, University of Business in Copenhagen, Denmark, Consultant of VASEP recommends: Captured fishery products are directly affected by IUU Regulations and IUU yellow card warning, while fishery products are directly affected by IUU Regulations and IUU yellow card warnings. aquaculture products are indirectly affected. In the event of a red card by the EC, the most immediate and immediate impact on Vietnamese seafood will be the EC’s trade ban if Vietnam fails to meet the regulations on anti-IUU fishing.
It is estimated that Vietnam’s fishing industry including tuna, swordfish, molluscs and other species will lose about 387 million USD per year from the EU market.
And yet, indirect impacts on aquaculture include declining reputation, more pressure from customs checks, and failure to take advantage of the EVFTA’s preferential tariffs. Aquaculture will lose about $93 million due to indirect impacts.
“Thus, if the IUU red card is issued, Vietnam’s seafood industry will immediately lose the EU market with an export value of nearly 480 million USD,” Thong said.
Even more exhausted if the red card is prolonged
According to Mr. Nguyen Tien Thong, if the red card lasts from 2 to 3 years, the entire fisheries industry will be severely affected.
A series of effects are that the mining and processing industry is estimated to decrease by about 30%; loss of motivation to upgrade the value chain because the EU market is leading and oriented; strongly affect the reputation of Vietnamese seafood products in general. In addition, other markets such as the US or Japan can follow the EU IUU Regulation; Exporting to other markets will be forced on prices and have to compete with other countries’ products.
In addition, if the red card lasts, 4.7 million workers in the industry will be affected and have a strong impact on other industries due to changes in the labor structure.
“I also want to say that it will be difficult for Vietnam to maintain growth to reach the target of 16-18 billion USD in exports by 2030 if the red card is prolonged,” Mr. Thong said.
However, Mr. Thong said that if Vietnam soon removes the IUU yellow card, takes advantage of the tariff incentives and changes the institution from the EVFTA, the opportunity to recover and aim to increase seafood exports to the market. EU to $ 1.2-1.4 billion in the coming years is completely feasible.
This shows that it is necessary to have reasonable and effective solutions to soon overcome the yellow card, move the seafood industry towards the target of annual export growth of 7-9% and reach US$16-18 billion in export turnover. imports by 2030, as well as supporting sustainable fisheries.
(Source: VN Business / Cre: http://vasep.com.vn/)