Vietnamese shrimp exports to the United Kingdom (UK) are poised for robust growth, with an expected annual increase of more than 10% until 2025. This optimistic outlook is attributed to the favorable trade conditions offered by the United Kingdom-Việt Nam Free Trade Agreement (UKVFTA), as per the Ministry of Industry and Trade’s Import-Export Department’s report titled “Nurturing the UK Market for the Seafood Industry.”
The UKVFTA, in effect, has eliminated tariff duties on frozen shrimp products exports to the UK, giving Vietnamese exporters a competitive edge over countries like Thailand, Malaysia, Indonesia, the Philippines, India, and Brazil that have yet to establish an FTA with the UK.
However, it’s crucial for Vietnamese shrimp products to adhere to the rules of origin, which specify that raw materials used in production must be sourced within Việt Nam’s territory.
The department noted that Vietnamese shrimp exporters have been progressively aligning with the UKVFTA’s provisions, leading to positive growth in exports. In the first two months of 2023, white leg shrimp exports reached $30.4 million, making up 69% of Việt Nam’s seafood export earnings to the UK, as reported by the General Department of Customs.
During this period, black tiger shrimp shipments, though constituting only 2.7% of the total, surged sixfold compared to the previous year, signaling a promising trend in the UK market for this product.
Despite a substantial appetite for seafood, including shrimp, in the UK, there could be potential challenges in the near future due to global commodity trade dynamics and rising inflation impacting consumer concerns about pricing.
Additionally, the costs and logistics of seafood imports are expected to pose difficulties. Nevertheless, the UK remains an attractive market for Vietnamese shrimp products in the long run. It’s anticipated that Việt Nam’s shrimp exports to the UK will constitute about 3.6% of the country’s total shrimp exports, which is estimated to reach approximately $4 billion in the future.
