ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMIC AND FINANCE GRADUATION THESIS Topic: Solutions to promote Vietnam’s seafood exports to Japan under the impact of the CPTPP. Instructor: Hoang Kim Thu Student: Le Thi Ly Student code: 508310117 Class: CLC 8.1 TABLE OF CONTENTS CHAPTER 1: LITERATURE REVIEW OF SEAFOOD EXPORT AND OVERVIEW OF THE CPTPP. Some theoretical issues to export. Some theoretical issues about seafood exports.
CPTPP Agreement and benefits for export. 29 CHAPTER 2: THE SITUATION OF VIETNAM'S SEAFOOD EXPORT TO JAPANESE MARKET UNDER THE IMPACT OF THE CPTPP AGREEMENT. Overview of the Vietnamese seafood sector. Situation of exploit seafood and aquaculture in Vietnam.
The situation of Vietnam's seafood exports to the international market. The situation of Vietnam's seafood exports to the Japanese market .76 CHAPTER 3: SOLUTIONS TO PROMOTE THE DEVELOPMENT OF SEAFOOD EXPORT TO JAPAN. 83 LIST OF TABLES NO.1 Vietnam's seafood exports Chart 2.2 World shrimp export market 2020-2021.3 Vietnam's shrimp export market in 2020-2021.4 Top 5 largest pangasius export markets of Vietnam in 2021 Chart 2.5 Exports of squid and octopus Vietnam 2020 Chart 2.1 Vietnam's shrimp exports to Japan 2021 Chart 2.2 Import of Japanese shrimp Chart 2.3 Tuna exports from Vietnam to Japan 2018-2020 Chart 2.4 Tuna exports from Vietnam to Japan 2019-2021 Chart 2.5 Vietnam's squid and octopus exports to Japan 2019-2020 Top 10 seafood exporting countries in the world Table 2.1 Export turnover by product group Table 2.2 Top 10 seafood exporting and importing countries in the Table 2.1 world in 2020 The value and volume of seafood consumption per capita in Table 2.3 The 5 largest seafood exporting countries to Japan 2017-2020 Table 2.4 Structure of Vietnam's seafood exports to Japan LIST OF ABBREVIATIONS No. Abbreviations Explanation of abbreviations 1 ASC Aquaculture Stewardship Council 2 CEPT Common Effective Preferential Tariff Comprehensive and Progressive Agreement for 3 CPTPP Trans-Pacific Partnership 4 GDP Gross Domestic Product Food and Agriculture Organization of the United 5 FAO Nations 6 FDA Food and Drug Administration 7 FTA Free trade agreement 8 EU EU European Union 9 ITC International Trade Centre 10 HACCP Hazard Analysis and Critical Control Points 11 SPS SPS Sanitation and Phytosanitary Measures 12 VASEP Association of Seafood Exporters and Producers 13 WTO World Trade Organization INTRODUCTION 1.
Reason for choosing the topic Currently, seafood export activities are an important economic sector in Vietnam due to the rapid growth and significant contribution to the national economy. Aquaculture is considered inherently traditional industries of the coastal people in Vietnam. Experiencing ups and downs, the fishery industry has grown from a small economic sector in the agricultural sector to become a spearhead economic sector. Aquaculture is not only a source of rural economy but also an international trade product and a source of foreign exchange.
An important factor in the expansion of aquaculture in Vietnam is the export of products to potential markets. Along with the inherent advantages from nature, exporters always have to face stiff competition from competitors in all aspects: price, quality, distribution channels, technology, customers, etc… Especially, exporting enterprises are also under pressure from their own countries to export goods to, such as laws, culture, protection policies, etc… Market access is also becoming more difficult because of lack of knowledge of skills and operational finance. In 2020, although affected by the pandemic Covid-19 seafood exporters are still in the top 3 largest export value of world and accounted for 8.41 billion dollars, up 20% over 2016. Products are exported seafood exported to 167 countries and territories.
The three main markets are the EU accounting for 18%, the US 17%, China 15%. in addition, Japan accounts for 16%, which is one of the potential big markets of this industry group. In recent years, Vietnam's seafood exports to Japan have been increasing, especially after the Comprehensive and Trans-Pacific Partnership Agreement came into effect - in the context of economic difficulties of all countries, so the more preferential tariff treatment is fully utilized by importers as a competitive advantage. However, Japan also imposes many strict import regulations, especially on food hygiene and safety, origin,.
the issue of how to promote Vietnam's seafood export to Japan market. Therefore, the author has chosen the topic: “Solutions to promote Vietnam's seafood exports to Japan under the impact of the – CPTPP” 2. Objectives and tasks of research 2.1 Research objectives Analysis of the situation of Vietnam's seafood exports to the Japanese market after the CPTPP took effect and solutions to promote seafood exports to the market Japan.2 Research tasks To achieve the set goals, the thesis needs to solve the following task: - Provide the theoretical background seafood, seafood export, the contents of regulations on seafood export, the Comprehensive Trans-Pacific Partnership Agreement (CPTPP). - Provide an overview of Vietnam's seafood export situation and an overview of the Japanese seafood market.
- Analysis of the situation of seafood exports from Vietnam to Japan since CPTPP effective agreements. - Propose solutions to promote seafood export to the Japanese market. Object and scope of research - Research object: Vietnam's seafood export to Japan - Research scope: + Scope of time: data for the analysis of the topic from 2018 to 2020. + Research space: Vietnam and Japan 4.
Research Methodology This thesis applies the following research methods: - Statistical methods of data from studies, reports, journals - Methods for synthesis and analysis - Comparative method 5.Structure of the topic This thesis consists of 3 chapters: - Chapter 1: Literature review of seafood export and overview of the CPTPP - Chapter 2: The situation of Viet Nam’s seafood export to Japan market under the impact of the CPTPP Agreement - Chapter 3: Solutions to promote the development of seafood export to Japan CHAPTER 1: LITERATURE REVIEW OF SEAFOOD EXPORT AND OVERVIEW OF THE CPTPP 1. Theoretical background of export Exporting goods is one of the key business activities that affect the development of a country's economy. In addition, it is also understood as the lack of sales of goods and services from one country that can produce those goods or services to another, in order to link the production activities of one country with another, for goods to be distributed and circulated worldwide. Export concept According to Clause 1, Article 28, Law of Commerce 2005: "Exports of goods as the goods are taken out of Vietnam's territory or into special area located on the territory of Vietnam is considered the customs area separate according to regulations of the Law".
Export characteristics There are five main characteristics of export activities: Firstly, export and import are the two main activities constituting foreign trade, which is trade between two countries. Export activities are often more complicated than domestic business activities due to the large, difficult-to-control market, and are also affected by factors such as the economic, political, cultural, religious, and legal environment of the country. It is also affected by changes in exchange rates, commodity due to be paid in foreign currency. Secondly, the buyer and seller are two parties with two different nationalities, so it will lead to disagreements in language, culture, customs, as satisfaction level.
Therefore, exporters need to learn and study carefully about the needs and satisfaction of the importing country's market in order to export products that are suitable for their purposes and needs. Thirdly, exports always require good design and high quality, must meet standards on the requirements of each country. Fourth, many major problems in negotiating transactions, signing purchase and sale contracts, transporting and exporting goods are still risky. Fifth, geographical conditions, means of transport and payment methods greatly affect the process of transporting goods, the progress of goods delivery.
For example, when goods at the port of departure encounter bad weather, ships cannot depart, leading to delays, and congestion delaying delivery time. Export forms Recently, goods trading activities between countries are conducted in many different export forms, depending on the exporting enterprise. There are typically three main types of export: direct export, entrusted export, international processing. Direct export The form of exporting products and goods of enterprises to foreign countries is called direct export.
Enterprises must directly participate in export activities, including signing export contracts, taking the initiative in transporting, packaging, labeling and paying for goods. The exporter can directly produce goods or could be trade company. This is the main type of export used, the outstanding advantage of direct export helps businesses to be more active in exchange, purchase and sale, in addition to better understand the market as well as demand and psychology tastes of the importing country to promptly improve products and services to satisfy customer satisfaction. On the other hand, the exporter side does not have to bear the intermediate export costs such as the cost of buying export licenses.
In addition, this form also facilitates the development and position of exporters in the international market, enterprises can also easily control the prices of their goods and products in foreign markets. On the disadvantage, the company needs to allocate its resources over a broader and more complex market, has to accept a fiercer international competitive environment, has to accept all the risks of foreign markets. If there is no import and export staff have qualifications and experience when participating in contracting in a new market or mistake detrimental. Entrusted export Entrusted exports are also known as indirect exports.
The form of consignment export is often used by small businesses that do not have the ability to export, or do not have enough export experience and are limited in export procedures. The seller will entrust an intermediary with export experience to carry out the export procedures by signing an export entrustment contract for a fee usually based on a percentage of the value of the goods. For this form, there are still some disadvantages in terms of business efficiency, which being reduced due to profit sharing, not being proactive in finding markets as well as finding customers. On the other hand, export entrustment still has the advantages of low risk, including less responsibility and less procedures.
International processing International processing is an activity where one party will deliver input materials, machinery and equipment (the party ordering the processing) to another party (the party receiving the processing) to produce finished products as required by the seller, then transferred to the ordering party and paid the processing fee. In fact, international processing is an exchange of money and services, one party will receive the other party's processing because the cost of outsourcing is cheap, and the other party will sell labor to generate income. The essence of international processing is to export local labor. Processed goods are usually goods that require a large amount of labor value and do not require high qualifications and capacity of workers.
The less developed countries usually recognize the country and the developed countries is the go-ordering. The advantages of using this method are:(i) International processing plays a huge role in the movement of intangible goods; (ii) Promote the specialization of labor on a global scale, helping the international division of labor to flourish; (iii) It has a great effect in helping outsourcing businesses absorb more international experience and workers have access to more advanced equipment and technology; (iv) This is a form that is inevitably applied in the first stage of international economic integration and development of the local labor force into a powerful international labor force. However, besides the advantages, there are also the following disadvantages: The outsourcing party is usually a weak party in many aspects such as capital, technology, skills,. so it receives a cheap remuneration.
Therefore, it is difficult to have a permanent type of outsourcing for the parties involved. Cultural conflicts in the use of international labor.