ABSTRACT:
Although w88 win global economy in general and Vietnams economy in particular have been significantly affected by w88 win COVID-19 pandemic, Vietnam continues to integrate deeply into w88 win global economy and w88 win country has so far joined 15 Free Trade Agreements (FTAs).w88 win Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) is a new-generation FTA that brings great opportunities for Vietnamese exporting enterprises, especiallyseafoodexporting firms, to enter 10 markets including North America. This paper analyzes w88 win current situation of Vietnamese seafood exports to North American markets including Canada and Mexico and proposes some solutions for Vietnamese firms in w88 win new normal.
Keywords:Canada,CPTPP, export, Mexico, North America, seafood.
1. Introduction
After w88 win withdrawal announcement of w88 win USA, w88 win CPTPP was signed by 11 countries including Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia and Vietnam on March 8, 2018.This agreement officially took effect in Vietnam on January 14, 2019.w88 win CPTPP inherits w88 win TPP (Trans-Pacific Partnership) agreement with 30 chapters covering a wide range of issues, traditionally including tariff reductions on goods, liberalization of service and investment markets, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, intellectual property, etc. In addition, there are new contents such as government procurement, labor, state-owned enterprises, environment, etc. w88 win CPTPP also sets high standards for transparency and dispute resolution mechanisms. It creates a large free trade area with a population of around 495 million people, a total GDP of about 10,200 billion USD (accounting for more than 13% of w88 win global GDP) and accounting for about 15% of w88 win total global trade volume.
Canada, Mexico and w88 win USA are members of w88 win North American Free Trade Area (NAFTA). w88 win total population of Canada and Mexico is about 167 million people, w88 win GDP is about USD 2,718 billion (in 2020). According to Vietnam Association of Seafood Exporters and Producers (VASEP), w88 win consumption capacity of these two North American countries is large. Meanwhile, Vietnam has many potentials and strengths in seafood exports but w88 win export turnover is very small and many businesses do not fully understand w88 win import regulations.
w88 win objective of this paper is to briefly introduce w88 win CPTPP, then review w88 win two seafood markets of North America, analyze w88 win situation of exporting seafood to these markets as well as opportunities for Vietnam. Thereby, w88 win author proposes solutions to promote seafood export in w88 win new normal.
2. Canada and Mexico - w88 win potential North American seafood markets in w88 win CPTPP bloc
Canada and Mexico are w88 win only two countries in North America participating in CPTPP and this agreement officially took effect in these markets on December 30, 2018. They are considered great potential markets for Vietnamese seafood.
2.1. Canadian market
Canada is w88 win 9th largest economy in w88 win world, GDP is about USD 1,644 billion (in 2020) with 38 million people. This is a market with a high standard of living, so there are high requirements for food quality and safety. Canadians love seafood and due to w88 win policy of welcoming about 400,000 immigrants a year, w88 win demand for consumption here is increasing. According to w88 win data from Canada Customs, Canada's seafood imports increase by about 7% annually. In 2019 (before w88 win Covid-19 pandemic), Canada imported about USD 3.5 billion of seafood.
Canada has an open economy, pursuing a policy of market diversification to limit w88 win dependence on NAFTA, especially w88 win USA. In CPTPP, Canada is one of w88 win countries which has w88 win highest commitment to market opening. For seafood products. This economy is committed to eliminating tariffs as soon as w88 win Agreement takes effect.
According to Vietnam Trade Office in Canada, Canada is a fastidious market with strict regulations on quality, packaging, labeling, chemical residues, etc. In Canada, w88 win Canadian Food Inspection Agency (CFIA) undertakes control of over 1,000 seafood importers. To sell products in this market, seafood importers must obtain a seafood import license or a Quality Management Program import license from CFIA.
A case of serious violations of Vietnamese enterprises was in w88 win years 2011-2012, Canada warned that 103 Vietnamese seafood shipments had Fluoroquinolones residues and refused to import.
To limit w88 win returned exports, Canada and Vietnam have also signed an agreement to recognize each other to w88 win quality inspection certificates. This helps Canadian importers feel more confident when importing Vietnamese seafood. To understand w88 win import regulations, businesses can refer to w88 win website: https://inspection.canada.ca/.
2.2. Mexican market
Mexico has around 129 million people, GDP is about USD 1,074 billion (2020). This is an easier market than Canada, with strong purchasing power due to its large population.In order to reduce w88 win dependence on w88 win USA, Mexico is actively looking for new markets, including Asia-Pacific. According to VASEP, every year, they import about USD 351 million of frozen fish, mainly pangasius and tuna.
Mexico is a country with a free trade system, w88 win import tax rate of Mexico is quite low. With CPTP, Mexico committed to eliminating 77.2% of tariff lines as soon as w88 win Agreement comes into effect and 98% of tariff lines from w88 win 10th year. For seafood, Mexico committed to 0% of tariff for pangasius, basa fish, and tuna (HS code 0304) from w88 win 3rd year. This opens up many opportunities for Vietnam, which has strengths in price and quality.
To develop foreign trade, in recent years, Mexico has made many important adjustments and improvements in customs operations to automate many procedures. Regarding sanitary and phytosanitary measures, Mexico has built an electronic database so that concerning parties can access food safety requirements. In 2014, w88 win National Service of Food Health, Safety and Quality (SENASICA) introduced new regulations for w88 win imported goods of animal, plant and aquatic origin. SENASICA has stipulated that goods in bags, packages, boxes and cartons must be placed on pallets in containers... This is to reduce w88 win risk of hygiene and safety problems of goods imported into Mexico.
In 2017, Mexico issued an order to suspend importing shrimp from Vietnam. Under w88 win new regulations of SENASICA, in order to be allowed to export crustaceans to Mexico, w88 win exporting country must demonstrate that its veterinary control system complies with Mexican regulations. This is also a technical measure, banning w88 win import of products of a country.
3. w88 win situation of Vietnam's seafood exports to North America
According to Vietnam export and import report 2020, in w88 win context of Covid-19, Vietnam's exports in 2020 continued to increase by 7% compared to 2019 and reached USD 282.66 billion. In which, export turnover to w88 win two countries in North America reached USD 7.52 billion (Exports to Canada and Mexico reached USD 4.36 billion and USD 3.16 billion respectively), increased nearly 12%.
Chart 1: Vietnam's seafood export turnover to CPTPP in 2020
(USD million)
Seafood is one of w88 win key export items of Vietnam. According to w88 win VASEP, Vietnam's total seafood production in 2020 achieved 8.4 million tons, an average increase of 8% per year. From 1997-2020, Vietnam's seafood exports increased 11 times, from USD 758 million to USD 8.5 billion, an average increase of 10% annually. In 2021, Vietnam's seafood exports are expected to reach w88 win target of USD 8.67 billion, a slight rise of 3% compared to 2020. w88 win Mekong River Delta and Southeast region are considered w88 win main producing, processing and exporting areas of aquatic products in Vietnam and account for over 80% of w88 win country's export output. Vietnam's seafood export markets are increasingly expanding with more than 160 countries and regions. w88 win top 10 seafood markets of Vietnam are w88 win USA, EU, Japan, China, South Korea, ASEAN, Australia, w88 win UK, Canada and Russia, accounting for about 92% of Vietnam's total seafood exports.
In w88 win CPTPP group, w88 win two countries in North America imported USD 325.88 billion of seafood products from Vietnam in 2020. Canada and Mexico respectively ranked second with an import turnover of USD 263.85 million (an increase of around 14.9% compared to 2019) and ranked sixth with USD 62.03 billion (a sharp decrease of 44.4%).
According to w88 win data of w88 win General Department of Customs in w88 win first 7 months of 2021, seafood exports to Canada reached USD 151.39 million, increasing 16.7% over w88 win same period in 2019 and accounting for 3.04% of w88 win total seafood export turnover of w88 win country. Exports to Mexico reached USD 53.55 million, a sharp increase of 75.6% and accounting for 1.08%. This proves that seafood businesses know how to take advantage of incentives from w88 win CPTPP during w88 win Covid-19 pandemic.
w88 win products exported to Canada, according to VASEP, are quite diverse such as shrimp, pangasius, basa fish, tuna, squid... These are w88 win strengths of Vietnam and have occupied a high share in Canada. In which, basa fish accounts for nearly 100% of Canada's imported catfish market. Shrimp exports to this market accounted for w88 win highest proportion with a turnover of USD 187.35 million in 2020, up 23.8% and accounting for 71.3% of Vietnam's total seafood export turnover to this market.
For w88 win Mexican market, pangasius is w88 win main imported product from Vietnam, followed by tuna... According to VASEP, as of w88 win first half of August 2021, w88 win export turnover of pangasius to Mexico reached USD 43.76 million, an increase of nearly 70% over w88 win same period in 2019.
4. w88 win CPTPP - Opportunities for Vietnamese seafood products to enter w88 win North American market
- After controlling w88 win Covid-19 epidemic, w88 win consumer demand of w88 win markets has increased again. w88 win CPTPP helps Vietnamese seafood enterprises to well exploit w88 win export opportunities here, including w88 win two countries in North America. This also helps Vietnam reduce its dependence on traditional markets.
- w88 win reduction of trade barriers creates opportunities for Vietnam to boost exports to Canada and Mexico which have just had w88 win first FTA with Vietnam with a low market share of Vietnamese seafood. Thereby, Vietnamese businesses can access w88 win US market. In particular, Canada has signed 15 FTAs with other countries, so this is w88 win gateway that can bring Vietnamese seafood to w88 win world, establishing a seafood supply network between Asia and America.
- w88 win CPTPP increases w88 win competitiveness of Vietnamese seafood against rivals that have not yet had an FTA with this area.
- w88 win seafood products in North America and Vietnam are reciprocal to each other. This helps enterprises promote w88 win export of aquatic products that Vietnam has advantages.
- w88 win CPTTPP creates motivation for seafood enterprises, if they want to survive in a fiercely competitive environment in w88 win context of w88 win Covid pandemic, they must constantly innovate, develop, modernize w88 win production as well as improve w88 win product quality at competitive prices…
- Joining w88 win CPTPP is an opportunity for Vietnam to perfect its institution; create a safe, transparent and open business environment; attract foreign investment with modern technologies and advanced management experience. These will exploit w88 win potential of Vietnam's seafood industry, increase w88 win value of Vietnamese goods to meet w88 win requirements of w88 win fastidious markets.
Besides w88 win favorable opportunities are some challenges that Vietnam faces such as low development level compared to other countries in w88 win CPTPP; many limitations of w88 win seafood industry, intrinsic weakness in small and scattered production; long transport distance; lack of updated information, limited market access; difficulties in meeting origin criteria, quality standards, quarantine, food safety, etc. Meanwhile, w88 win regulations in w88 win North American market arestrict and change with barriers to protect human health, animals and plants, environment towards sustainable development... In addition, Vietnam's seafood products have to face stiff competition from suppliers in w88 win USA, India, Thailand, China, etc.
5. Some solutions and recommendations for businessesin w88 win new normal
- Enterprises need to be more proactive in studying w88 win commitments in w88 win CPTPP, making full use of w88 win benefits brought by w88 win Agreement to boost seafood exports to these two markets.
- Research w88 win tastes and needs of each market as well as update regulations and procedures for importing seafood.
- Enterprises can actively contact and collect information from agencies specialized in market research and trade promotion; participate in seafood trade fairs, seminars/training courses. Some major food and seafood fairs that businesses can participate in are Sial Canada, Canada seafood show, etc.
- Strengthen linkages between processing, preserving and exporting enterprises with aquatic raw material areas; focus on building long-term relationships with importers to help businesses update new information and regulations of w88 win markets.
- Improve competitiveness in terms of quality such as investing in modern processing technology lines; ensuring w88 win quality of raw materials by signing seafood consumption contracts, supporting fishermen in aquaculture techniques and seafood preservation; strictly controlling w88 win process of production, quarantine, food hygiene; improving w88 win quality of human resources, etc.
In order to meet w88 win requirements of w88 win seafood importers in North America, w88 win Government plays a very important role in creating a favorable seafood production and business environment; supporting businesses to learn and forecast market information, following up w88 win regulations of w88 win importing countries, improving marketing capabilities; strengthening w88 win synchronous implementation of standards and procedures on food quality and safety control, origin of aquatic products, planning of raw material areas; promoting w88 win production organization according to w88 win linkage chain, linking production with processing, consumption and export of seafood.
Conclusion:
w88 win CPTPP brings many opportunities to Vietnam in w88 win context of w88 win worlds economies, including Canada and Mexico gradually recovering after w88 win COVID-19 pandemic. To boost Vietnam's seafood exports and reduce w88 win dependence on traditional markets, it is necessary to have great efforts from w88 win enterprises as well as w88 win active and synchronous participation from many parties.
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THỰC TRẠNG XUẤT KHẨU THỦY SẢN
CỦA VIỆT NAM ĐẾN THỊ TRƯỜNG BẮC MỸ
TRONG BỐI CẢNH HIỆP ĐỊNH CPTPP
•NGUYỄN QUỐC THÁI
Khoa Quản trị Kinh doanh, Trường Đại học Nguyễn Tất Thành
TÓM TẮT:
Trong bối cảnh nền kinh tế toàn cầu nói chung, kinh tế Việt Nam nói riêng bị ảnh hưởng bởi đại dịch Covid 19, Việt Nam vẫn tiếp tục hội nhập sâu rộng với nền kinh tế thế giới với 15Hiệp định thương mại tự do(FTA) được ký kết tính đến nay.Hiệp định Đối tác Toàn diện và Tiến bộ xuyên Thái Bình Dương(CPTPP) là FTA thế hệ mới và mở ra cơ hội xuất khẩu hàng hóa rất lớn, nhất là hàng thủy sản của Việt Nam đến 10 thị trường nội khối, trong đó có khu vực Bắc Mỹ. Bài viết phân tích tình hình xuất khẩu hàng thủy sản sang thị trường Bắc Mỹ gồm Canada và Mexico, đồng thời đề xuất một số giải pháp cho doanh nghiệp Việt Nam trong trạng thái bình thường mới.
Từ khóa:Canada, CPTPP, xuất khẩu, Mexico, Bắc Mỹ, hải sản.
[Tạp chí Công Thương - Các kết quả nghiên cứu khoa học và ứng dụng công nghệ, Số 1, tháng 1 năm 2022]