Xuat nhap khau thuy san viet nam sang thi truong EU

Spring 2020
IEI301 - IMPORT- EXPORT

Name of your topic
Name and address of the
chosen company

Import and export of Vietnamese seafood to
the EU market
Cơng ty Cổ phần Tập đồn thủy hải sản Minh
Phú

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Table of contents
EXECUTIVE SUMMARY
INTRODUCTION
1.

Purpose of selecting topics:

2.

Objectives of the study

3.

Research scope

CHAPTER I: THE THEORETICAL BASIS
•

Definition of export

•

Introduction to Incoterms

1.3

Organize and execute export contracts of Minh Phu Seafood Joint Stock Company

Chapter II: CURRENT SITUATION FOR SEAFOOD EXPORT ACTIVITIES IN
VIETNAM.
2.1. World Seafood market.
2.2. Position and role of the fisheries sector in Vietnam's economy
CHAPTER III: MAIN SOLUTIONS FOR “PRODUCT” EXPORT ACTIVITIES IN
VIETNAM.
3.1

Summary of EU seafood market

3.2. Overview of seafood export situation in Vietnam
3.3

Export turnover

3.4

Export items

3.5

Overview of EU seafood import market

3.6

System of consumption and consumption trends

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3.7 A few EU regulations on seafood import activities
3.8

Importance of promoting Vietnamese seafood exports to the EU

3.9 Assess the situation of exporting Vietnamese seafood to EU
Chapter IV: Orientation and solutions for Vietnam's export activities
4.1 Opportunity and Threats
4.2

Orienting seafood export targets in the coming years

4.3 Solutions to boost Vietnam's seafood export to the EU market
CONCLUSION
1.

Request

2. conclude

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EXECUTIVE SUMMARY
The definition of Export and Import, Incoterm, cites a number of organizations and foreign trade
contract implementations. Brief introduction about the concept and general characteristics of the
fisheries industry in Vietnam, about production and metal. Some export products of Vietnam
seafood. Introducing the EU market, highlighting some of the importance of promoting
Vietnam's seafood exports to the EU. Opportunities and challenges of Vietnam and the EU. Set
development goals in the coming years. Outlined solutions to boost exports. Finally make
recommendations and conclusions
INTRODUCTION
1. Purpose of selecting topics:

Import and export is an indispensable business activity in each country, its importance affects
the development of the national economy. In Vietnam, import and export of aquatic products is
an important economic sector with great potential for strong growth, with advantages of rich
resources, climate and diverse ecological environment. However, there are still many
shortcomings in the processing and exploitation stages. Compared with other countries in the

region, it is still inferior because of many domestic factors, making us lose many development
opportunities.
2. Objectives of the study

• Analyze the importance of seafood import and export
• Analysis of the export and import situation of Vietnam and the EU market
• Some orientations and solutions for our country's import and export industry
3. Research scope: EU market area.

CHAPTER I: THE THEORETICAL BASIS

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•

Definition of export

Import and export is a form of international trading, not small retail, is an organized and
regulated trading activity. encourage enterprises to expand exports to solve jobs and increase
foreign currency earnings. Import means taking goods traded from abroad to serve domestic
needs. The country that exports the goods to the outside is called export and the country that
accepts the goods is called the import. The target import and export activities are both domestic
and foreign markets, aiming to make profits, promote the development of commodity
production, transform economic structure, stabilize and improve people's living standards. Using
the international payment balance and unifying transactions in one currency (Vietnam uses USD
money).
•

Introduction to Incoterms

Incoterm full name is International Commercial Terms is a set of regulations of international
trade used worldwide. The latest is Incoterm 2010, which is granted by the Paris International
Chamber of Commerce (ICC) including 11 conditions and replaces some of the old conditions,
which were implemented on January 1, 2011. It specifies what is involved in the price, delivery
of goods, responsibilities of the buyer and seller in the conduct of international trade
transactions. Determine who will be responsible for shipping costs, who will bear the costs of
import and export procedures at the customs, ensure goods, who will suffer losses and risks
during shipping, on time delivery ... apply to buyers and sellers. Thanks to Incoterm,
international business, international trade practices, transportation, information technology,
security issues ... have changed a lot.
1.3 Organize and execute export contracts of Minh Phu Seafood Joint Stock Company
• Agreement, sign a contract

Send quotes to partners with the terms and conditions of the company (the contract is written
in English). Discuss the terms of the contract by email. After the two sides completely agreed to
the terms, proceeded to sign the contract. Then will prepare export goods.
•

Circulation and distribution of commodity

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Based on the provisions of the export contract, the company will sign contracts to buy
seafood from domestic seafood suppliers. Trading contracts and foreign trade contracts will take

place simultaneously, which will help quickly, cost of capital is low, and does not cost to
preserve and store goods. With payment terms, the company will pay 80% of the contract value
in cash or deposit into the bank, the remaining 20% will be paid after the goods are packed into
containers. The company's seafood products are usually exported to EU market. So, ask for
quality, quantity, humidity. The fishery product is paid much attention by the company. The
company always strictly checks, strictly seafood before delivery. In addition, aquatic products
must also go through food quarantine.
•

Transportation

Renting vehicles, the company mainly exports under FOB conditions, so it is not responsible to
hire vehicles. However, in cases where the company gains the right to hire a vehicle (exported
under CIF, CFR) the company should try its best to ensure cost reduction and ensure goods are
safe.
•

Customs procedures

After the seafood is prepared, carefully packed, the company's professional staff will have to
complete the work: receive empty containers from transport units and open customs declarations.
Before loading and unloading goods into containers, the company must declare to customs
procedures.
•

Delivery

Most of the contracts are done under the terms of FOB Saigon port, a few are signed under the
terms FOB Hai Phong. Therefore, at least 3 days before the delivery time, the foreign party will
transfer to the delivery instruction and from there the company will contact the port dispatching

agency to master the delivery schedule. to have a plan to transport goods into the port.
•

Payment

Payment is very important because it is the final result of a series of jobs: transactions,
negotiations, signing and contract performance. Therefore, the company always conducted
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careful and thoughtful inspection of each job in the payment process. The payment method that
Minh Phu often uses is Irrevocable letter of credit. This method applies to new partners with
trading relationships, importers without representatives in Vietnam to ensure the interests of the
company.
•

Complaints and disputes

In the event of a complaint, the Company often puts the issue of mediation on top, negotiating to
come up with good results for both parties in order to build a long-term business relationship,
strengthen the reputation of the business. business with customers. When not resolved by
negotiation, conciliation, the company will ask Vietnam international arbitration center, next to
the Vietnam International Chamber of Commerce.
Chapter II: CURRENT SITUATION FOR SEAFOOD EXPORT ACTIVITIES IN
VIETNAM.
2.1. World Seafood market.
•

The concept of fisheries industry:

The fisheries sector is the research on the cultivation and transportation of exploited aquatic
products. It will then process, preserve, trade, export and import seafood.
•

Fishery industry characteristics:

The object of production in the aquaculture industry is living organisms, It is the aquatic plants
and animals that reproduce and develop according to biological laws so humans must create a
suitable living environment for Each new object promotes its ability to grow and develop.
2.2. Position and role of the fisheries sector in Vietnam's economy
•

Providing food, creating a source of nutrition for all Vietnamese people

The fisheries industry has gone through many stages of development of the country, the fisheries
industry has been constantly innovating, . market economy and has established itself as a
spearhead economic sector. Especially, it is one of the leading export industries, contributing a

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large amount of foreign currency necessary for the cause of economic development of the
country.
Data show that 50% of fishery catch in the North and South Central waters and 40% of the catch
in the Southeast and Southwest waters are used as food for the needs of Vietnamese people. .
Aquaculture is widely developed throughout Vietnam, even in remote areas, contributing to the

transformation of food structure in the diets of Vietnamese people, providing abundant nutrition.
•

Ensuring sufficient food and foodstuffs

The fisheries sector is one of the industries that create a food and food source, providing direct
consumer products to people, contributing to the improvement of malnutrition due to lack of
protein, contributing to food safety. From a macro perspective, the fisheries sector has
contributed to ensuring food security, meeting specific requirements of increasing protein and
vitamins for feed.
•

Poverty reduction

The fisheries sector has established many poverty reduction programs by developing aquaculture
models from the plains to the remote areas, not only providing nutrition, food security but also
contribute to poverty reduction.
•

Create a career

Providing jobs, contributing to improving income for rural farmers . Improve income, improve
nutrition for 20 million people. Maintaining fisheries in the Mekong River has created jobs for
48,000 workers in 249 riverside communes.
•

Important export source

For many years, the fishery industry has always held a high position in the list of industries with
the highest export turnover value of the country. According to the General Department of

Customs, seafood export turnover in 2019 reached over 8.54 billion USD
•

-

Internal factor:
Geographical and climate factors:

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Due to the influence of climatic conditions such as wind, temperature, air, water
environment, rainfall regime, salinity impact on the growth and development of organisms
leading to the catch fish will be changed. In addition, floods and storms have a great impact
on the aquaculture system and create many disadvantages for this industry.
In addition, seafood is a product characterized by difficulty in preserving. As a result, the
bad weather leads to a rapid decrease in the life of commodities, which makes it difficult to
export.
-

System of technical infrastructure:

Science and technology in the country was put into operation, bringing high efficiency in the
work of aquaculture and seafood processing thereby helping the quality and quantity of seafood
increase, helping to export seafood production has more advantages.
-

Ability to exploit and access foreign markets of domestic enterprises:

Businesses with access to other markets around the world will thus create more opportunities,
have more choices in seafood export.
-

The system of laws and management policies of the state:

The system of laws and management policies of the state has a great influence on seafood export
activities through the government's trade barriers.

-

• External factors:
Technical barriers of importing country:

The requirements that imported goods must meet a system of standards: regulations, packaging
design, quality, environmental safety, worker safety, regulations fishing conditions, etc.
-

Consumer tastes:

Normally for these seafood products, consumers prefer fresh products, quality assurance and fast
processing time. So to meet the tastes of consumers in the country should have specific measures
such as market research and analysis, advertising, …
-

Demand for imported seafood products:

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Today's consumer market is more interested in seafood as an extremely important dietary food
source that not only provides 16% of the human protein needs, but also meets the essential
minerals and Omega 3 acids for the body to develop, prevent some diseases.
CHAPTER III: MAIN SOLUTIONS FOR “PRODUCT” EXPORT ACTIVITIES IN
VIETNAM.

3.1 Summary of EU seafood market:
The European Union (EU) currently has 28 member countries, with a population of over 376
million people, is a major economic center of the world with highly developed economies such
as France, Germany ... with revenues. Enter a high per capita and high purchasing power.
Due to the harsh geography and climate, plus EU seafood sources are at an alarming rate, the
EU is forced to take measures to limit fishing and fishing while EU demand is increasing.
EU is really a fastidious market, with very strict and stringent requirements for quality and
food safety. To protect consumers, the EU inspects products from the place of production and has
alarms between member countries. The EU has issued a number of legal documents regulating
food quality and safety, including fisheries. Aquatic products exported to the EU must go through
many stages: parasites, chemistry, microbiological.
In terms of packaging, the packaging used for packaging should be materials that meet the
requirements of storage and transportation and should pay attention to environmental protection
factors, preferably using materials that have be reborn. Packaged products must specify the
product name, ingredients, weight, duration and usage, place of manufacture, conditions for
storage and use, bar code and bar code to identify the shipment ...
The EU requires that seafood exporters to the EU apply HACCP standards in processing.
3.2. Overview of seafood export situation in Vietnam:
After Vietnam's accession to WTO, Vietnam's trade relations with other countries in the world
have been expanded, this has created favorable conditions for the import-export industry to
develop the economy.

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Vietnam is considered as one of the rich countries in the region and the world and has the
fastest growth rate of fishery products, ranked fourth in production output and export scale of
aquatic products ( after Thailand, , Indonesia, Malaysia).
However, Vietnam's seafood industry still faces many difficulties. That is, businesses still
have difficulty in accessing capital, and especially lack of raw materials and labor. Therefore,
Vietnam needs to have an appropriate development policy to cope with the market, focusing on
food safety and hygiene issues for the product in order to achieve the long-term development
goals for the whole industry and the orientation branding for Vietnamese seafood products.
3.3 Export turnover:

The three main seafood export markets of Vietnam are the EU, Japan and the US accounting
for about 60% of Vietnam's annual seafood export turnover. In addition, Vietnam's seafood
industry is beginning to penetrate into newly developed markets such as Eastern Europe, the
Middle East, etc.
Among Vietnam's seafood export markets with a market share of 25.7% of total exports
(compared to the US 16% and Japan 19%).
Since the 1980s, Vietnam's seafood export products have appeared in the EU market with a
brand name SEAPRODE.
Vietnam's seafood export turnover in general and to the EU market in particular has
continuously increased at a high level. These are statistics on export turnover to the EU market in
2000-2009.

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3.4 Export items:
-

Group of fish products: this is a key product in exporting Vietnamese seafood to the EU
and is also the product with the highest growth rate on the EU market. This group
includes the main commodities of tuna, basa, tra and frozen fish. In particular, fillet fish

-

accounted for the highest proportion of about 11.1% of fish imports of the EU market.
The shrimp product group: is the second important product group after the fillet fish in
the structure of Vietnam's seafood exports to the EU. However, the import output is lower
than with countries like Ecurado, India, and Thailand. Because, the quality of shrimp

-

farming in Vietnam is still low, making shrimp export cost higher than other countries.
Squid and octopus products: is also a popular product. Loligo squid is rated well on the
EU market. However, this group of products only accounts for about 5.24% of EU
imports.
3.5 Overview of EU seafood import market:

Due to its geographical location and harsh climate, fisheries are below the biosecurity limits, the
EU is forced to apply measures to restrict fishing and fishing. Meanwhile, EU seafood
consumption demand is still rising rapidly. To meet consumer demand, the EU is forced to
import seafood from other countries - including Vietnam.

3.6 System of consumption and consumption trends:
1.

System of consumption and consumption trends:

There are 3 main areas:

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-

Northern Europe market: import is not large due to low consumption, mainly adding to
regional countries. Consumers prefer cold-water fish such as herring, mackerel, etc.

-

Central Europe market: there is little tradition of eating fish as these countries are
surrounded by land and the coast is short.

-

The Mediterranean region: consumes many seafood species such as squid and molluscs.

Fish fillet (mainly salmon, tuna) is the most popular seafood in EU.
The global financial crisis caused the total import turnover of EU countries to decrease by 5.58%
in 2009 to 12.2 billion Euro. However, EU seafood imports from Vietnam were restored in 2010
and increased by nearly 6.5%. The Netherlands is the largest importer, accounting for 14.81% of

the import value.
3.7 A number of EU regulations on seafood import activities:
The EU is considered as the market with the most stringent technical standards and food
safety standards in the world.
Countries must adhere to the following:
 Sanitation regulations: exporting countries must be on the list of permitted exports to the EU

and must be accompanied by a certificate issued by a competent authority of the exporting
country.
 Regulations on food quality and safety: products must meet specific standards of hygiene,

freshness, maximum microbiological contamination, residues of chemicals, toxins and
parasites.
 Supervision regulations: supervise their production and processing activities in accordance

with EU standards.
 Regulations on permissible packaging materials, packaging and labeling: materials in direct

contact with food must be packed in plastic (instructions 2002/72 / EEC).

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From 1 January 2010, seafood imported into the EU must conform to IUU (Illegal unreported
and unregulated fishing) regulations.
3.8 Importance of promoting Vietnamese seafood exports to the EU:

Import and export has become an indispensable element of each country. For Vietnam, export

is of strategic importance in the cause of construction and economic development. A solid
premise for industrializing the country and a key spearhead in the national economy.
Seafood is one of the key export items of Vietnam. The export value of this industry
contributes significantly to a few total export turnover of the whole country in particular and the
economic growth of the whole country in general.
With the motto of product diversification and market diversification, promoting seafood
exports to the EU market is a very weak issue. EU is considered as a strategic market in
Vietnam's export activities in general and seafood products in particular
3.9 Assess the situation of exporting Vietnamese seafood to EU
•

Achieved results

Although the strict inspection of the EU food management agency specifically by the
IUU Law, Vietnam's seafood export turnover is constantly increasing, putting seafood to the
leading position among real fish products exported products to the EU, giving the country a great
source of foreign currency. The quality of Vietnam's seafood products has been constantly
improved, investment activities in upgrading infrastructure for aquaculture and fishing have
always been renewed and technology of aquatic product processing (according to HACCP
standards - is a certificate that is permitted to export seafood to the EU).
In recent years, the proportion of Vietnam's seafood exports to the EU has continuously
increased in both value and volume. The value of Vietnam's seafood export to the EU has also
continuously increased over US $ 100 million in 2003 to US $ 723.5 million in 2006 and 515
million in the first half of 2010, the EU became the largest seafood import market. of Vietnam
-

In terms of tariffs:

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Because Vietnam also enjoys the GSP regime, Vietnam's seafood exports to the EU also have
more advantages than other countries. Especially since the EU allows to enjoy this tariff regime.
-

Meeting EU standards on technical standards:

Despite the strict inspection of the EU food management agency, which is specified by the IUU
law, Vietnam's seafood export turnover is constantly increasing, putting seafood at the leading
position among the products.
-

Regarding dumping of aquatic products:
Unlike the US market, Vietnamese seafood products on the EU market meet very little
and almost no anti-dumping lawsuit.
• Limitations

Besides the achievements, there are still many limitations that hinder the promotion of Vietnam's
seafood exports to the EU market:
Firstly, In addition, the EU is a large market with a large number of orders while
Vietnamese enterprises are small in scale, limited in finance, low labor productivity, and unstable
source of raw materials for production.
Secondly, our seafood processing technology is still outdated, so Vietnamese seafood
exports to the EU are still mainly raw and semi-processed products.
Thirdly, the competitiveness of exported seafood products is still low. Although Vietnam's
seafood products are competitive in the EU market but still low compared to competitors such as
the Netherlands, Norway, Morocco, China, India, ...
Next, the market entry activities of Vietnamese enterprises are still very dependent on EU

partners. Although Vietnam's seafood processing technology has been paying attention to
investment and upgrading, it is still backward.
Chapter IV: Orientation and solutions for Vietnam's export activities
4.1 Opportunity and Threats

Opportunity
- Vietnam normalized diplomatic relations

Threats
- The seafood export market is increasingly
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with Europe in 1990, creating an opportunity
to promote the strong development of
cooperative relations with other countries.
Vietnam has become an official member of
the World Trade Organization WTO
- Vietnam meets well EU food safety
requirements
- In the EU, the natural fishery exploitation is
decreasing so the seafood in the EU is mostly
imported from other countries
- In addition, the EU market is increasingly
consuming seafood because they think
seafood is a clean and nutritious food.
- Expectation of shrimp export to EU
accelerates thanks to lower import tax

popular in the world, leading to more
Vietnamese competitors.

- Backward facilities and machines have not
yet met the needs.
- Efficiency of fishing, aquaculture still
depends much on natural conditions
- Vietnam is in a shortage of market
information, poor management capacity, how
to approach the market as well as the
development of business systems and
responses to policy changes are often slow.
- The competitiveness and dynamism of the
economy is still weak. Technology level is
still low

4.2 Orienting seafood export targets in the coming years

- Continuing to promote the potential advantages.
- Diversify the structure of processed aquatic products, and simultaneously develop the
production of a number of typical products of Vietnamese seafood.
- Maintain a high export turnover industry
- Develop rational offshore fishing, stabilize coastal exploitation, strongly develop aquaculture.
- Solving coastal labor employment issues, giving people stable incomes, making important
contributions to protecting aquatic resources, protecting the coastal coast ecological environment
and at the same time supplying Supply key raw materials for export
- Develop a fast and sustainable fisheries sector using all available potentials. Applying scientific
and technological advances in production.
- There is a reasonable structure between exploitation and farming

- Manufacturing with processing close to protecting the ecological environment
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- Investment in advanced, modern and efficient technology equipment and machinery
4.3 Solutions to boost Vietnam's seafood export to the EU market
•

-

Macro method
Promote reform of administrative procedures except central to local levels to eliminate
difficult procedures that take time.
Introduce a legal system appropriate to the needs and to facilitate the export of seafood.
EU requires strict quality of products.
Ensure food safety
• Micro method
- Penetrating EU distribution channels
- Increasing investment to expand production to ensure timely meet the needs of customers
- Increase investment and improve management in businesses
- Need to conduct building, improving and developing brands
- Ensure enough raw materials for export
- Improve the qualifications of processing workers

CONCLUSION
1. Request:
- The seafood export industry in Vietnam is growing and gaining some achievements,
contributing greatly to the country's GDP.

- In addition, the seafood export to the EU faces many limitations mainly due to the failure to
meet technical standards and information for businesses. Businesses need to ensure product
quality, diversify products to meet the needs of EU consumers
- Make appropriate marketing plans
2. conclude:
EU is considered as a potential export market for Vietnamese seafood, the demand for seafood
import in EU is increasing. In order to maintain and strengthen its position in this market,
Vietnamese seafood processing and exporting enterprises must constantly improve the quality of
their products. Good implementation of EU requirements, pay attention to the packaging of the
product.
REFERENCES
•
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Books

Import and Export books
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