Exports of squid to China nearly double

Exports of squids and octopus from Vietnam to China in July nearly doubled. This is still the import market for squid and octopus from Vietnam with the most stable demand in the first seven months of this year.

Exporting squid to China increased by 86% in July 2020

China is the fifth largest importer of Vietnam's squid and octopus, accounting for 7.6% of the proportion. Exports of squid and octopus to China in July increased 84%, hitting $4.3 million. In the first seven months of the year, exports of squid and octopus to China topped $22 million, up 59% over the same period in 2019. China is the market with the strongest growth rate in imports of squid and octopus from Vietnam in the first seven months of this year.

In July, among the five main import markets, the exports of Vietnam's squid and octopus recorded positive growth in the South Korean and Chinese markets. Exports to Japan and the EU have not increased.

South Korea is still Vietnam's largest import market for squid and octopus, accounting for 42.2% of total export value of this item. Vietnam's squid and octopus exports to South Korea increased by 20.4% in July. However, due to the decrease in previous months, exports of squid and octopus to this market still fell by 10.6% in the first seven months of this year, reaching nearly $123 million.

The decrease in export price and demand due to the Covid-19 pandemic is one of the factors affecting the export of Vietnam’s octopus and squid to South Korea in the first seven months of this year. After the first quarter of this year, the Covid-19 pandemic in South Korea was less stressful compared to the first quarter, so exports of squid and octopus to this market could avoid further decline. The advantage of tariffs from the Free Trade Agreement between Vietnam and Korea (VKFTA) still partly supports exports of Vietnam’s squid and octopus to this market.

Japan ranked second in importing Vietnam’s octopus and squid, accounting for 23.7%. Exports of squid and octopus from Vietnam to Japan in the first seven months of 2020 reached nearly $69 million, down 21% over the same period in 2019.

Exports of squid and octopus to the EU are still affected by the IUU yellow card, plus the impact of the Covid-19 pandemic has caused restaurants to close, so the demand for squid and octopus in the food service sector decreased. In the first seven months of this year, Vietnam's squid and octopus exports to the EU fell by nearly 44%, hitting about $22 million. Exports of squid and octopus to the EU in the last months of the year are expected to improve when the EVFTA comes into effect from August 1 and processed squid and octopus will enjoy 0% of tax.

In the context of the Covid-19 pandemic which has not been controlled worldwide, the supply of raw materials has decreased, the demand for importing squid and octopus of the world and exports of squid and octopus of Vietnam is anticipated to remain in a reduction. It is forecast that the exports of squid and octopus in Vietnam in 2020 will fall by 18%, reaching nearly $473 million.