CPTPP Agreement and benefits for export
1.3.1 General introduction of the CPTPP agreement
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a modern free trade agreement involving 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam Signed on March 8, 2018, in Santiago, Chile, the agreement officially took effect on December 30, 2018, for the first group of six countries—Mexico, Japan, Singapore, New Zealand, Canada, and Australia—that completed their ratification processes Vietnam's participation began on January 14, 2019.
1.3.2 Key features and benefits of the agreement
1.3.2.1 Main features of the CPTPP agreement
There are five key features that make the CPTPP a landmark agreement of the 21st century, setting a new standard for global trade while addressing new generational issues Those features include:
The CPTPP significantly lowers tariffs and non-tariff barriers across all trade sectors, including goods, services, and investment, fostering new opportunities and advantages for businesses, workers, and consumers in member countries.
The CPTPP agreement enhances regional cooperation by fostering the development of production and supply chains while ensuring seamless trade This approach promotes efficiency, supports job creation, improves living standards, encourages conservation efforts, and facilitates both cross-border integration and the opening of domestic markets.
The CPTPP agreement addresses emerging trade challenges by fostering innovation, productivity, and competitiveness It focuses on enhancing the digital economy and empowering local enterprises within the global economic landscape.
The CPTPP addresses various trade-related factors, incorporating new elements to ensure that economies at different development levels and businesses of all sizes can reap the benefits of trade It includes commitments aimed at assisting small and medium-sized enterprises in understanding the Agreement and leveraging the opportunities it presents while also highlighting significant challenges for member governments Additionally, the Agreement outlines specific commitments for developing and enhancing trade capacity, ensuring that all parties can fulfill their obligations and maximize the advantages offered by the Agreement.
The CPTPP Agreement serves as a crucial foundation for regional economic integration, designed to encompass additional economies throughout the Asia-Pacific region.
1.3.2.2 The benefits of the agreement
Countries like Japan and Canada are lowering import taxes to 0% for our goods, which will significantly boost export turnover As a result, Vietnamese enterprises will benefit from preferential tariff reductions when exporting to CPTPP member countries.
Vietnam's exports, particularly in agricultural and fishery products as well as electrical and electronic components, will see significant growth following the implementation of the tax agreement An official study by the Ministry of Planning and Investment indicates that with this level of commitment, Vietnam's exports are projected to rise by 4.04% by 2035.
Establishing Free Trade Agreement (FTA) relations with CPTPP countries presents Vietnam with a significant opportunity to achieve a more balanced restructuring of its import-export market A World Bank study released in March 2018 predicts that this engagement will enhance Vietnam's trade dynamics and economic growth.
2030, Vietnam's exports to CPTPP countries will increase from 54 billion USD to
80 billion USD, 25% of total exports.
Benefits of participating in regional and global supply chains
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) encompasses countries that represent 13.5% of the global GDP, with a trade turnover exceeding 10 trillion USD, including key markets like Japan, Canada, and Australia This agreement is set to create significant opportunities by fostering the formation of new supply chains By joining the CPTPP, Vietnam can strengthen its economic growth, enhance labor productivity, and gradually transition from outsourcing and assembly to engaging in higher value-added production stages This shift will enable the country to advance in sectors such as electronics, high-tech industries, and green agriculture, positioning Vietnam for substantial economic elevation over the next 5 to 10 years.
The food, beverages, tobacco, textiles, and various manufacturing sub-sectors are anticipated to experience significant growth Notably, the food, beverage, tobacco, textile, chemical, plastic, leather goods, transport equipment, and machinery industries are projected to lead this expansion A study by the Ministry of Planning and Investment indicates that the CPTPP could drive an average growth rate of 4% to 5% in light and labor-intensive industries, with export increases estimated between 8.7% and 9.6%.
Joining the World Trade Organization (WTO) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) presents a significant opportunity to enhance our economic legal institutions, particularly within our socialist-oriented market This aligns with our Party's strategic breakthroughs aimed at renewing our growth model and restructuring our economy Furthermore, these agreements will enable us to foster a more open, transparent, and predictable business environment that meets advanced international standards, ultimately promoting both domestic and foreign investment.
Joining the CPTPP is expected to accelerate economic growth, leading to the creation of 20,000 to 26,000 jobs annually, as reported by the Ministry of Planning and Investment This agreement will also contribute to poverty reduction, with World Bank research indicating that by 2030, approximately 600,000 individuals living below the poverty line of $5.50 per day could be lifted out of poverty Ultimately, all income groups stand to benefit from these positive changes.
Economic growth enhances our ability to improve human resources and public health As the economies of CPTPP member countries are more developed and complementary to Vietnam's economy, imports from CPTPP nations without FTAs are less competitive By implementing a strategic tax reduction plan and refining the social security system, we can effectively address social challenges arising from CPTPP membership Furthermore, the CPTPP Agreement's commitments to environmental protection ensure that trade liberalization and investment attraction occur in an environmentally sustainable manner, fostering more sustainable economic growth for Vietnam.
1.3.2.3 The scope of the CPTPP agreement
The CPTPP Agreement encompasses 30 chapters that address a wide range of trade and trade-related issues, including trade in goods, customs facilitation, and sanitation regulations for animals and plants It also covers technical barriers to trade, investment, services, e-commerce, and intellectual property rights Additionally, the agreement focuses on labor, environmental standards, and cross-cutting issues to enhance development, competitiveness, and inclusivity Furthermore, it includes provisions for dispute resolution, institutional frameworks, and specific exceptions to ensure comprehensive implementation.
THE SITUATION OF VIETNAM'S SEAFOOD EXPORT TO
Overview of the Vietnamese seafood sector
Vietnam, located in the East Sea region, boasts significant advantages in fishing, shipping, and maritime trade due to its rich topographical features The country's exclusive economic zone, extending over 200 nautical miles, is home to over 2,000 marine fish species, including more than 100 shrimp species, 53 squid species, and various other marine life such as seaweed, sea snakes, and turtles Additionally, Vietnam offers unique seafood specialties like bird's nest, blood cockle, pearls, scallops, and red coral, contributing to an annual seafood supply of approximately 1.7 million tons A survey by the Hai Phong Research Institute estimates that the fishery stock in Vietnamese waters is around 1.2 to 1.5 million tons per year By effectively utilizing coastal areas and investing in technology, Vietnam aims to enhance aquaculture productivity, potentially reaching over 5 million tons of farmed seafood by 2025, with a focus on high-export value products.
Vietnam's favorable geographical location supports a rich diversity of aquatic species, thriving across its three regions: the North, Central, and South Each area boasts unique seafood resources, with the Central region known for fish and lobster, the North for shrimp and fish, and the South for squid However, these marine resources are finite, and without sustainable policies and responsible exploitation methods, they risk rapid depletion.
Vietnam, with a population exceeding 90 million, boasts a predominantly rural demographic, where 80% of its citizens reside The country’s labor force is characterized by its youth and dynamism, with over 70% engaged in agriculture This abundant labor supply leads to competitive labor costs compared to regional and global standards Additionally, the Vietnamese people are known for their industrious nature and resilience in the face of challenges Their extensive experience living in riverine environments has also fostered strong seafaring skills among the population.
There are some main types of seafood products of Viet Nam:
Vietnam boasts over 700,000 hectares of land suitable for shrimp farming, benefiting from year-round favorable weather that supports consistent operations for processing enterprises The country's shrimp farming productivity exceeds the global average, with significant potential for future growth Vietnam is home to numerous high-standard shrimp farms that comply with international certifications like ASC and BAP Additionally, large-scale processing factories, such as Minh Phu, Vinh Hoan, and Hung Vuong, cater to extensive distribution networks and produce refined goods of high quality Vietnamese shrimp farmers are dedicated and employ advanced scientific techniques in their production processes The shrimp feed factory system is continuously expanding to meet farming demands, while artificial breeding facilities have scaled up to supply up to 100 billion shrimp.
Tuna fishing in Vietnam is predominantly centered in the coastal regions of central Vietnam and the East Sea, with an impressive annual output exceeding 600,000 tons Skipjack tuna is the primary species harvested, representing over 50% of the country's pelagic resources The total annual catch includes various types of tuna, such as yellowfin, bigeye, and skipjack.
Yellowfin and bigeye tuna stocks exceed 45,000 tons, with annual catches fluctuating between 17,000 and 21,000 tons The fishing season for these species typically spans six months, from December to June of the following year.
Currently, Vietnam has 200 pangasius seed production facilities and 3,000 hectares dedicated to rearing fish fingerlings, achieving a 100% increase since 2018 This production yields approximately 21 billion pangasius fry and over 2.1 billion pangasius fingerlings In 2019, 45,000 selected broodstock were replaced, with further improvements anticipated in the sector.
In 2020, all 60,000 broodstock will be replaced, ensuring that Pangasius products adhere to stringent international quality management and food safety standards, including Global GAP, ASC, and BAP The growing popularity of Pangasius worldwide can be attributed to its impressive nutritional value.
Krill species: Cephalopod molluscs (squid, octopus, ); univalve molluscs
Molluscs, including snails and bivalve species such as clams, oysters, and mussels, are recognized by the Ministry of Agriculture and Rural Development as the third most significant aquatic product for farming, following shrimp and pangasius Their high economic value, adaptability to various environments, ease of cultivation, and strong market demand contribute to their popularity among business organizations and households in the province, leading to robust growth in mollusc farming.
2.2 Situation of aquaculture and exploit seafood in Vietnam
In the last 15 years, Vietnam has emerged as one of the world's largest producers of seafood and aquaculture, with production skyrocketing from 1.3 million tons in 1995 to 8.4 million tons in 2020, reflecting an impressive average annual growth rate of 8% Notably, aquaculture contributes 54% of this production, while exploited seafood makes up the remaining 46%.
Graph 2.2.1: Seafood output of Viet Nam, 1995-2020
Vietnam's seafood production is significantly driven by aquaculture, which contributes over 50% to the total output, according to the General Statistics Office Between 1995 and 2020, aquaculture production surged 11-fold, achieving an average annual growth rate of 10%, rising from 415 thousand tons to nearly 4.6 million tons The Mekong Delta is the focal point for aquaculture exports, responsible for 95% of the nation's pangasius production and 80% of shrimp production.
Graph 2.2.2: Aquaculture output of Viet Nam from 1995-2020
In 2020, the total area dedicated to shrimp farming reached 721,762 hectares, with black tiger shrimp covering 613,600 hectares and Vannamei shrimp 108,111 hectares The estimated shrimp output was 752,933 tons, comprising 229,452 tons of black tiger shrimp and 515,460 tons of whiteleg shrimp For pangasius, the cumulative stocking area was 5,485 hectares, representing 73.8% of the area in the same period of 2019, while the harvested area was 2,813 hectares, equating to 52% of the previous year's figure The unharvested area was estimated at 2,672 hectares, and the total farming output for pangasius reached 900,429 tons, which is 83.7% of the output from the same timeframe in 2019.
A decade ago, the fishing industry faced significant challenges, with many fishing ports being rudimentary and unable to accommodate large vessels The outdated fleet included only about 31,000 fishing boats over 90CV, with a limited number of steel-hulled ships Aquaculture practices were characterized by scattered production, limited technical knowledge, and poor seed quality However, advancements in technology and an increase in the professional skills of fishermen have led to the adoption of advanced farming techniques and pre-selected seeds, alongside the expansion of larger fishing ports.
In recent years, Vietnam has experienced favorable conditions for aquatic exploitation, including a significant drop in petrol prices that has reduced production costs Coupled with favorable weather and rising seafood prices, these factors motivate fishermen to remain active at sea Additionally, government policies supporting aquatic exploitation, aquaculture, and offshore fisheries services have encouraged increased investment in offshore fishing activities.
Graph 2.2.3: Vietnam's aquatic exploitation output, 1995-2020
Between 1995 and 2020, Vietnam's aquatic exploitation output surged over fourfold, growing at an average annual rate of 6%, from 929,000 tons to 3.85 million tons Notably, Phu Yen contributed 55,000 tons to this total, with tuna production reaching approximately 4,500 tons, reflecting a 4% increase compared to the previous year Meanwhile, Binh Dinh also played a significant role in this expansion.
252 thousand tons, up 2.5% compared to 2019, Khanh Hoa , due to the impact of Covid-19, the exploit volume was only 95,600 tons of all kinds, down 1.91% compared to 2019.
The situation of Vietnam's seafood exports to the international market
2.3.1 Scale of Vietnam's seafood industry
The seafood industry in our country holds significant potential for economic development, with the capacity to achieve high growth rates in the coming years, provided that appropriate policies and sufficient investment are implemented Our rich natural resources, favorable climate, and ecological diversity offer distinct advantages for the fisheries sector, facilitating the country's industrialization and modernization Recently, seafood exports have played a crucial role in driving the seafood economy and contributing to the overall economic growth of Vietnam.
Table 2.3.1 Top 10 seafood exporting countries in the world
Vietnam is the world's third-largest seafood exporter, following China and Norway, with exports steadily increasing each year However, the COVID-19 pandemic led to a slight decline of 2% in 2020 compared to 2019 From 1997 to 2020, seafood exports surged elevenfold, growing from $758 million to $8.41 billion, averaging an annual growth rate of 10% This significant increase has played a crucial role in generating foreign currency and supporting the country's industrialization and modernization efforts The seafood sector, once limited in resources, has evolved into a competitive industry that contributes to economic growth and restructuring, improving the quality of life for the population By focusing on export development, the sector has strengthened its material and technical foundations while expanding both domestic and international markets.
In recent years, seafood exports have consistently increased in both volume and value, surpassing $8 billion since 2017 This growth has significantly boosted the development of aquaculture and raw material exploitation Effective management organizations and cooperative efforts have encouraged the use of high-capacity vessels for deep-sea fishing, ensuring economic efficiency while also enhancing national security Furthermore, the aquaculture sector has seen robust growth across the country, with various intensive farming practices, such as shrimp-rice and shrimp-fish systems, being widely adopted Additionally, a network for seed production has been established in most coastal provinces, effectively meeting the production needs of local communities.
Aquaculture has emerged as a significant production industry in Vietnam, playing a crucial role in job creation and the export of seafood products The seafood processing sector, comprising 180 establishments, leads the food processing industry and attracts raw materials for export goods The establishment of modern processing factories and the upgrading of existing ones have elevated Vietnam's seafood processing technology to a global standard Currently, the industry employs over 35,000 low-skilled workers, improving livelihoods and contributing to social stability Additionally, the growth of the seafood sector fosters development opportunities in related industries such as farming, animal husbandry, and chemicals, while also supporting economic restructuring across various regions of the country.
Vietnam's export of aquatic products has facilitated its entry into the global market, enhancing economic relations with other countries In response to international market demands and intense competition, manufacturers are continuously innovating and improving product quality to meet market needs effectively This not only satisfies domestic demand but also contributes significantly to the country's GDP growth With its alignment to the initial stages of industrialization, the seafood sector attracts a large workforce and generates substantial foreign currency earnings, solidifying its vital role in Vietnam's key export products.
2.3.2 Structure of Vietnamese seafood export
In recent years, Vietnam has seen a significant diversification of its seafood products, including shrimp, pangasius, tuna, dried goods, squid, and octopus These products have established a strong presence in the international market, contributing to a substantial share of the country's seafood export revenue.
Table 2.3.2: Export turnover by product group Product
Crabs, mussels and other crustaceans
Crabs, mussels and other crustaceans
Chart 2.3.1 Export turnover by product group 2019
In recent years, the seafood industry has prioritized diversifying its export product structure, leading to an increase in key products and the introduction of numerous new items that cater to consumer demands across various markets The main products include:
For years, shrimp has been the leading export product of Vietnam's seafood industry, contributing approximately 40% to the total seafood export value, which amounts to around 3.5-4 billion USD annually As a result, Vietnam has established itself as the world's second-largest shrimp supplier, representing 48.36% of the global shrimp export market.
Chart 2.3.2 World shrimp export market 2020-2021.
Shrimp varieties, including lobster, black tiger shrimp, and white tiger shrimp, contribute nearly 50% of the country's seafood export revenue Amid ongoing global Covid-19 challenges, market consumption trends are leaning towards smaller white-leg shrimp for retail purposes As a result, white-leg shrimp exports are projected to represent 72% of the total shrimp export value this year, estimated at over $2.78 billion in 2020, while other prawn exports have seen a decline.
616 million, accounting for 16% and 12% of marine shrimp reaching 462 million.
In 2020, Vietnam's shrimp production and export activities thrived due to effective Covid-19 control, giving the country a competitive edge over rival markets Shrimp businesses adapted by maintaining production and shifting market strategies, leading to significant export growth in major markets: the US saw a 33% increase, the EU grew by 6.1%, Korea by 3.3%, and the UK by 20.1% compared to 2019, as reported by Tradesparq.
Lading, Vietnam has nearly 100,000 export transactions in 2020-2021 In particular, the export market is fairly evenly distributed to the US, Japan, China, Korea, etc.
Chart 2.3.3 Vietnam's shrimp import market in 2020-2021.
The average export price of shrimp has risen, driven by favorable global market conditions and a significant shift in Vietnam's product structure towards value-added processed shrimp, which have seen the highest price increases As a result, Vietnam has established itself as one of the world's two largest shrimp exporters, a point of pride that underscores its influential position in the market The United States remains the top importer of Vietnamese shrimp, accounting for nearly 23.6% of exports In August 2020, exports to the US grew by 28.6% compared to August 2019, with total exports in the first eight months of the year exceeding USD 544 million—up 32% from the previous year Despite the challenges posed by the Covid-19 pandemic, Vietnamese shrimp exports to the US demonstrated consistent positive growth throughout the first eight months, highlighting the US as a market with stable demand for Vietnamese shrimp.
The European Union is Vietnam's fourth largest shrimp import market, contributing 13.6% to the country's total shrimp export value, following the US, Japan, and China Despite a decline in shrimp exports to the EU from March to June this year, a modest recovery occurred in July, leading to a notable 15.7% increase in August, with exports reaching US$58.8 million Specifically, Vietnam's shrimp exports to the Netherlands and Belgium saw impressive growth rates of 15% and 41%, respectively, compared to the previous year.
In August 2019, shrimp exports from Vietnam to the EU totaled $313.7 million, reflecting a 2% decline compared to the previous year However, the implementation of the EVFTA Agreement in August 2020 has generated significant optimism for boosting Vietnam's shrimp exports to the EU market in the final months of the year.
Vietnam, the leading global producer and exporter of farmed pangasius, has faced significant challenges in its seafood market due to the global pandemic, which has hindered industry growth In response, the pangasius sector has prioritized damage control, resulting in a notable decline in pond prices driven by reduced demand from international markets This product represents approximately 32% of the country's export revenue.
Chart 2.3.4 Top 5 largest pangasius export markets of Vietnam in 2021
Vietnam's seafood exports primarily target the US and CPTPP member countries, which are its two largest markets In the first two months of 2021, Vietnam exported 101.5 thousand tons of pangasius, generating a revenue of 201.3 million USD This reflects a decline of 2.4% in volume and 4% in value compared to the same period in 2020.
The situation of Vietnam's seafood exports to the Japanese market
2.4.1.1 Overview of Japan's seafood trade
Japan, an island nation characterized by its mountainous landscape and limited agricultural land, relies heavily on the sea as its primary food source It ranks among the top seafood-consuming countries globally, with over 90% of its locally caught and farmed seafood consumed domestically Fishing and aquaculture play crucial roles in this sector, contributing more than 98% of total domestic catches According to the Ministry of Agriculture, Forestry and Fisheries of Japan, over 50% of the seafood consumed is processed into products such as salted, dried, smoked, canned, or fried fish The seafood processing industry is gaining importance as consumer demand for convenient, ready-to-eat products continues to rise.
Japanese seafood market equivalent to 13.26 billion USD) In the period 2015
-2019, the average growth rate of import turnover and import volume were 3.1% and -0.2% respectively.
Table 2.4.1 Top 10 seafood exporting and importing countries in the world in 2020 Exports (Value Ratio)
China Norway Vietnam Chile Thailand India America Netherlands Canada
Sources: The Country of World Fisheries and Aquaculture, FAO, 2020
For many years, the EU, US, and Japan have dominated global seafood imports In 2018, the EU maintained a stable import share of 34%, while the US and Japan saw significant declines, contributing only 14% and 9% respectively to the total world import value.
In 2019, the demand for seafood is expected to rise significantly, particularly in emerging economies in Central and Southeast Asia While the EU, US, and Japan continue to dominate global seafood imports, developing countries are increasingly enhancing their roles in both consumption and production Urbanization, rising incomes, and a growing middle class in these regions have transformed the seafood market In 2018, developing countries represented 31% of the total value and 49% of global seafood production, a notable increase from 12% and 19% in 1976 However, the average seafood import value for developing countries stood at $1.6/kg, compared to $3.4/kg for developed nations Consequently, developed countries accounted for 69% of the total import value in 2018, a trend that persisted into 2019.
Japanese consumers have the highest standards globally for seafood quality and freshness, leading them to accept premium prices due to a complex distribution system Their health-conscious mindset drives the food and beverage market toward multifunctional, nutritious, and healthy offerings Seafood consumption varies significantly by location and age, with over a third of the population being 60 or older, making fish an integral part of their daily diet For older consumers, the safety of seafood products takes precedence over quality and price when making purchasing decisions.
In Japan, seafood consumption is notably higher among women and urban residents, as highlighted by Global Data's statistics The ongoing urbanization has led to smaller household sizes, with over a third of households consisting of a single member As more women enter the workforce, there is a growing demand for convenient seafood options, reflecting a significant shift in consumer behavior Women play a crucial role in food purchasing decisions, driving the sales of convenient seafood products, which include boneless, easy-to-cook, or pre-prepared items packaged in small to medium bags at affordable prices across major supermarket chains Additionally, the consumption of frozen seafood has doubled over the past two decades, gaining increased attention in the retail and distribution sectors.
Japanese consumers exhibit a strong sensitivity to seasonal changes, deeply rooted in their food culture, which emphasizes that food should be enjoyed at its peak quality during the appropriate season For instance, winter is the prime time for indulging in cod, salmon, and tuna, known for their high fat content, while spring is ideal for savoring puffer fish and whale meat Although modern availability of food year-round has diminished the strict adherence to seasonal eating, the influence of this tradition continues to shape the consumption habits of many Japanese people today.
Japanese seafood consumption trends are influenced not only by seasonal availability but also by social events and major holidays During significant occasions, it is customary in Japanese culture to present gifts to relatives and colleagues, with salted herring and salmon roe being popular choices during the mid-year and year-end holidays.
Japan's per capita consumption levels of fish and seafood (kgs) have declined
Historically, fish and seafood consumption has seen a decline of 0.7%, with a further forecasted decrease of 0.4% In contrast, per capita expenditure on fish and seafood has experienced a compound annual growth rate (CAGR) of 0.5% and is projected to grow by 1.2% by 2023 Retail sales in this sector, valued at $8.8 billion in 2019, are anticipated to rise by 0.5%, reaching $9.1 billion.
In 2024, retail sales are projected to decline by 0.7% following a previous decrease of 0.9% from 2019 Conversely, Japan's foodservice sales for fish and seafood are anticipated to rise from US$11.3 billion in 2019 to US$11.9 billion by 2023, reflecting a growth of 1.3%.
Seafood consumption in Japan is declining, particularly among younger people, who often lack the skills to prepare seafood dishes Additionally, the increasing influence of international culinary trends has further contributed to this decrease in seafood consumption.
Table 2.4.2 The value and volume of seafood consumption per capita in Japan
Processed fresh, chilled packaged seafood
Fresh packaged seafood, chilled whole cut
Consumption weight per capita (kg)
In Japan, approximately half of the seafood consumed is in processed forms such as salted, dried, smoked, fish cakes, or canned products, highlighting a consumer preference for convenient options This trend underscores the growing significance of the seafood processing industry However, recent statistics from the Japan Fisheries Association indicate a decline in the number of seafood processing establishments within Japan, with many processing activities shifting to countries like China, primarily due to lower production costs.
Japan's declining domestic seafood production has led to challenges in sourcing raw materials locally, prompting an expansion of commercial fisheries collaboration with Vietnam Labor shortages in Japan further drive this partnership, as Japanese companies express skepticism about the quality of overseas products Consequently, they impose stringent requirements on Vietnamese processing facilities to ensure compliance with Japanese standards Additionally, Japan's emphasis on food hygiene and safety has resulted in Japanese firms sending employees globally to train staff, inspect food safety practices, and, in some instances, personally select seafood products that meet the specific preferences of Japanese consumers.
In response to the rising volume of seafood processed overseas and the growing demand for traceability and safety, the amended Law on Food Safety of 2007 mandates that all fishery product packaging must prominently display both the country of origin and the processing country.
2.4.1.5 Distribution system of seafood products in Japan
Japan's traditional seafood distribution channels involve a complex network with multiple levels, including port traders, wholesalers in concentrated seafood markets, and retailers, all working to connect fishermen's large supply of catch with consumers' demand for fresh seafood Despite their historical significance, these traditional distribution models have been deemed economically ineffective in today's market.
At the local fishing port, wholesale seafood markets receive both caught and farmed seafood products, which are then sorted for processing, animal feed, or direct sale The seafood is sold fresh, with pricing negotiated on-site between sellers and traders These markets are typically established and managed by local Fisheries Cooperatives.
General valuation
The CPTPP Agreement, implemented for just one year, has significantly boosted Vietnam's export turnover, with seafood exports reaching 1.4 billion USD in 2019—a 16.67% increase from 2018 This underscores the agreement's role in diversifying export markets for Vietnamese goods and services Notably, Japan's commitment to eliminate taxes on 86% of tariff lines, covering 93.6% of Vietnam's exports to Japan, will enhance trade opportunities Furthermore, the CPTPP enables Vietnam to restructure its import-export market, reducing reliance on traditional markets like China and Korea, thereby fostering greater economic independence and autonomy.
Growth rate of export turnover: g (%) = ∆M/M(2018) x 100% 7 %
In 2020, Japan's seafood imports totaled 1.9 million tons, valued at approximately 13.26 billion USD, with Vietnam contributing 133.49 thousand tons worth 1.06 billion USD This positions Vietnam as the third largest seafood supplier to Japan, following China and Chile, and accounting for 7.025% of Japan's total seafood import volume.
The restructuring of seafood export:
In 2020, Vietnam emerged as Japan's leading shrimp supplier, exporting 55.05 thousand tons valued at 64.4 billion yen (approximately USD 608 million) However, this marked a decline of 5.3% in volume and 7.6% in value compared to the previous year, highlighting the need for a restructuring of shrimp exports.
In addition, tuna exports to Japan also continued to record good growth in
2020 The export value to this market in 2020 reached nearly USD 35.7million The restructuring of tuna export:
Total squid and octopus exports of Vietnam to Japan in 2020 reached 121 million USD, down 14% compared to 2019 The restructuring of squid and octopus export:
In 2023, shrimp exports to Japan represented a significant 57.4% of Vietnam's total seafood export revenue to the country, while tunas contributed 3.4% and squid and octopus made up 11.4% of the total value.
Despite the growth in seafood exports to Japan, recent violations of the country's food safety laws have raised concerns Three frozen shrimp shipments from different Vietnamese exporters were found to exceed Japan's permissible limits for Trifluralin, with levels of 0.006ppm and 0.009ppm, while one shipment contained an illegal amount of Chloramphenicol at 0.0006ppm In response to these violations, Japan has tightened its food safety inspections for seafood imports from Vietnam To address this issue, the Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) has implemented mandatory testing for Trifluralin residues on all shrimp shipments destined for Japan.