VASEP proposes removing Vietnam shrimp tariff quota for South Korea, bidding allocation costs as high as 14%–16% of import value

The Vietnam Association of Seafood Exporters and Producers (VASEP) disclosed through Vietnam Fisheries Magazine on November 4, 2026 that it has submitted a proposal to Vietnam's Ministry of Industry and Trade, requesting that the removal of tariff quotas on Vietnamese shrimp be prioritized on the negotiation agenda in talks to upgrade the Vietnam–Korea Free Trade Agreement (VKFTA). VASEP's stated goal is to progressively apply a 0% import tariff with no quantitative limit to shrimp products within the scope of commitments.

In its proposal, VASEP cited South Korean market data: South Korea imports more than 100,000 tonnes of shrimp annually, with total import value of about USD 800 million to USD 1 billion. Leveraging the advantages brought by the VKFTA, Vietnamese shrimp holds nearly 50% of the South Korean market. However, VASEP noted that the product is still subject to a tariff quota mechanism, with a preferential quota volume of 15,000 tonnes per year and an in-quota tariff rate of 0%.

The problem lies in how the quota is allocated. VASEP, summarizing feedback from companies, said South Korea allocates tariff quotas through bidding, which creates additional market access costs for companies. The relevant feedback is found in VASEP Official Letter No. 25/CV-VASEP (March 15, 2023) and Official Letter No. 47/CV-VASEP (April 15, 2024). VASEP estimates that this cost accounts for about 14% to 16% of import value, close to the 20% import tariff rate applicable to shrimp outside the quota.

VASEP said South Korean importers therefore consider that, despite enjoying VKFTA preferences, Vietnamese shrimp effectively bears a cost equivalent to a tariff rate of 14% to 20%. The higher costs weaken price competitiveness and reduce importers' incentive to use tariff preferences to import Vietnamese shrimp. VASEP also mentioned that some importers are considering switching to other supply sources, including Peru.

To this end, VASEP recommended that Vietnam's Ministry of Industry and Trade take the lead, together with Vietnam's Ministry of Agriculture and Environment, in prioritizing the removal of tariff quotas on Vietnamese shrimp in consultations and negotiations to upgrade the VKFTA with South Korea. VASEP also recommended that ministries assess the two-way impact of the VKFTA upgrade plan on Vietnam–South Korea seafood trade, ensure a balance of interests between both sides, and avoid imposing unnecessary compliance obligations on companies.

VASEP believes that eliminating the quota barrier would help improve the efficiency of utilizing VKFTA preferences, consolidate competitiveness, and create more growth space for Vietnamese shrimp in the South Korean market.

South Korea is an important market for Vietnam's seafood. In the first 9 months of 2026, Vietnam's seafood exports to South Korea reached USD 649.1 million, up 5.6% from the same period in 2025. Among these, shrimp and cephalopod molluscs were the two main categories, with export values of USD 262.5 million and USD 234.0 million respectively in the first 9 months; shrimp rose 0.8% year on year, while cephalopod molluscs rose 19.3% year on year.