The tax rate on Vietnamese prawns imported into Korea ranges from 14 to 20%.

DNHN - In addition to the benefits of trade and import tariffs, VASEP reported that Vietnamese prawn products imported into Korea still face difficulties with quota regulations.

Citing data from Vietnam Customs, as of July 15, 2023, Vietnam's exports of prawns to South Korea totaled $177 million, a 29% decrease compared to the same period in the previous year.

According to the Association of Seafood Exporters and Producers (VASEP), the decline in prawn exports to this market is a result of high inflation, currency devaluation, rising interest rates, consumers' frugality, and large inventories. In the first half of this year, the export value of prawns to Korea was relatively stable compared to other markets.

According to VASEP, exporting to Korea, like exporting to Japan, has the advantage of a close geographical location, a stable demand for consumption, and is the destination for many businesses in the context of inflation causing a sharp decline in consumption in other markets. Western education. From now until the end of the year, it is anticipated that demand will not fluctuate significantly and will slightly increase to accommodate the year-end event.

According to data from the World Trade Centre (ITC), South Korea's prawn imports reached over $313 million in the first five months of 2023, a decrease of 19% compared to the same period the previous year. Vietnam remains the leading provider, followed by China and Canada.

The proportion of white leg shrimp imported by Korea from Vietnam is 84%, while the proportion of black tiger shrimp exported to Korea is only 4%, and the remaining 12% consists of other shrimp. In the first half of 2023, white leg shrimp exports to South Korea fell more precipitously than black tiger shrimp exports, with a 30% decline in export value to 140 million USD. Notably, exports of processed black tiger prawns increased by 2% during the first six months of this year.

According to VASEP experts, the FTA between Vietnam and Korea has been in effect since 2015, creating trade facilitation and import tariffs in addition to affecting Vietnamese prawn products imported into South Korea. "encumbered" by quota regulations.

The Korean government has requested an auction to purchase import quotas for Vietnamese prawns at 14-16% of the import value.

"If outside of the quota, the rate of import tax is 20%. Thus, imports of Vietnamese prawns into South Korea are subject to a 14-20% tax. According to VASEP, this disadvantage reduces the competitiveness of Vietnamese prawns in the Korean market.

In the first half of 2023, the average price of frozen vannamei prawns exported from Vietnam to South Korea fluctuated between 7.8 and 2.2 USD per kilogram. The average export price of white leg shrimp to Korea is more consistent than that of black tiger shrimp in this market. The average export price for black tiger prawns is between 12.1 and 14.8 USD per kilogram. In the second quarter of this year, the average export price of vannamei and black tiger prawns to Korea tended to increase slightly in comparison to the first quarter.

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