ESSAY TOPIC OPPORTUNITIES AND CHALLENGES OF EVFTA FOR SEAFOOD ENTERPRISES IN VIETNAM

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION MAJOR: INTERNATIONAL BUSINESS ESSAY TOPIC: OPPORTUNITIES AND CHALLENGES OF EVFTA FOR SEAFOOD ENTERPRISES IN VIETNAM Lecturer: Le Duc Nha Group: – shift (Thursday) Ho Chi Minh City, 20th of November, 2021 LIST OF GROUP MEMBERS COMPLETION LEVEL EVALUATION TABLE Full name Assignment of Student Nguyen Mai Linh - Chapter (2.2.2 & 2.3.1) 100% Signed - Chapter (2.1 & 2.2.1) 100% Signed - Chapter (2.3.2 & 2.4) 100% Signed - Chapter (1.2) Chapter 100% Signed Chapter (1.1.2 & 1.1.3) 100% Signed Chapter (2.5) 100% Signed Introduction Chapter (1.1.1) Conclusion 100% Signed Huynh Muoi Luy Nguyen Thi Hong Ngoc Signature duties ID Huynh Thi Thanh Hoai Evaluation - Reviewing the whole content essay - Tra Kha Nhi - Le Duong Thi Thanh Thanh - Hinh Van Ty - THANK YOU The first thing we want to say on behalf of the entire group is that this subject is important; it has provided us with a general overview of the worldwide business field This is a significant subject in university programs since it not only provides broad knowledge about the industry but also provides real data on business needs We have gathered a lot of lessons, positive experiences, and skills from this subject over the last few months We'd want to thank PhD Le Duc Nha, who taught and shared vital knowledge and experiences with us over the course of the study The professors' knowledge and fact-sharing stories will undoubtedly lay the groundwork for us to be successful in our future occupations However, preparing essay, report or presentations while researching will almost always result in errors As a result, we expect that our professors and classmates would comment and assess more so that we can progress in other disciplines Thank you for everything COMMENTARY OF LECTURER - TABLE OF CONTENTS INTRODUCTION CHAPTER 1:OVERVIEW OF KNOWLEDGE RELATED TO REGIONAL ECONOMIC INTEGRATION AND A GENERAL INTRODUCTION TO EVFTA 1.1 AN OVERVIEW OF KNOWLEDGE ABOUT REGIONAL ECONOMIC INTEGRATION (FTA) 1.1.1 Definition and levels of regional economic integration 1.1.2 The benefits and limitations of regional economic integration 1.1.3 Governance implications for businesses (in general) in the framework of economic integration between regions 1.2 OVERVIEW OF THE EVFTA AGREEMENT BETWEEN VIETNAM AND THE EUROPEAN UNION (EU) 1.2.1 General introduction about EVFTA Agreement 1.2.2 Trade cooperation relationship between EU and Vietnam CHAPTER 2: THE IMPACT OF THE EVFTA ON THE VIETNAMESE SEAFOOD INDUSTRY AN EXAMINATION OF THE OPPORTUNITIES AND PROBLEMS THAT BUSINESSES IN VIETNAM CONFRONT 10 2.1 OVERVIEW OF THE SEAFOOD INDUSTRY IN VIETNAM 10 2.2 OVERVIEW OF VIETNAM'S SEAFOOD PRODUCTION, CONSUMPTION AND EXPORT SITUATION 12 2.2.1 Before EVFTA comes into effect 12 2.2.2 After the EVFTA comes into effect 16 2.3 OVERVIEW OF SEAFOOD CONSUMPTION IN THE EUROPEAN MARKET 17 2.3.1 Import demand and the primary sources of seafood supply in Europe17 2.3.2 People's tastes and consumption trends before and after the COVID-19 pandemic 18 2.4 IMPACT OF EVFTA ON FISHERIES INDUSTRY IN VIETNAM 19 2.5 OPPORTUNITIES AND CHALLENGES THAT SEAFOOD ENTERPRISES IN VIETNAM ARE FACING WHEN PARTICIPATING IN THE EVFTA AGREEMENT 20 2.5.1 Opportunities 20 2.5.2 Challenges 21 CHAPTER 3: SOLUTIONS FOR VIETNAMESE SEAFOOD BUSINESSES TO TAKE FULL ADVANTAGE OF THE EVFTA AGREEMENT 23 3.1 VIETNAMESE SEAFOOD ENTERPRISES NEED TO FOCUS ON DEVELOPING DOMESTIC RAW MATERIALS 23 3.2 VIETNAMESE NEED TO WORK CLOSELY WITH GOVERNMENT INSTITUTIONS IN EFFORTS TO IMPLEMENT EVFTA 23 SEAFOOD ENTERPRISES 3.3 ENTERPRISES NEED TO MAKE EFFORTS TO LEARN ABOUT EVFTA AND KNOW HOW TO APPLY TECHNOLOGICAL INNOVATION TO IMPROVE PRODUCT QUALITY .23 CONCLUSION 25 TABLE OF TABLE TABLE 1: SUMMARY OF LEVELS OF REGIONAL ECONOMIC INTEGRATION TABLE 2: MILESTONES IN THE RELATIONSHIP BETWEEN VIETNAM AND THE EU .8 TABLE OF FIGURES FIGURE 1: OUTPUT OF AQUACULTURE AND FISHING IN VIETNAM (THOUSAND TONS) 10 FIGURE 2: AQUACULTURE PRODUCTION OF VIETNAM FROM 1995 TO 2020 11 FIGURE 3: FISHING PRODUCTION OF VIETNAM FROM 1995 TO 2020 12 FIGURE 4: VIETNAM SEAFOOD EXPORT FROM 1997 TO 2020 .13 FIGURE 5: VIETNAM’S SEAFOOD EXPORT STRUCTURE BY REGION 2019 14 FIGURE 6: TOTAL SEAFOOD EXPORT TURNOVER OF VIETNAM AND TO THE EU 15 FIGURE 7: STRUCTURE OF VIETNAM’S SEAFOOD EXPORT INDUSTRY TO THE EU IN 2019 15 FIGURE 8: EU SEAFOOD IMPORTS FROM OUTSIDE THE BLOC IN 2020 - 2021 18 INTRODUCTION International business is a fundamental subject that provides us with knowledge about business issues such as globalization, foreign direct investment, international trade theories or entry strategies, and strategic alliances to help students accumulate foundational lessons for their own future work, such as supporting businesses and countries in the process of economic linkage, international market integration, and expanding cooperation relations Specifically, my group found the material of the chapter on regional economic integration to be particularly engaging during the research because the theories discussed were closely related to reality After studying this chapter, my team realized that the essence of regional economic integration was free trade agreements, which were created to remove barriers to most trade activities while also promoting trade exchanges between member countries, thereby creating opportunities for import and export enterprises as well as helping them improve their competitiveness and contribute to the country becoming rich Many free trade agreements have been reached between our country and other countries on a worldwide scale, including the ASEAN-Japan agreement, EVFTA, Vietnam-Korea, CPTPP, and others However, after much discussion, my team opted for the EVFTA because it not only serves the interests of the two parties (Vietnam and the EU), but it also provides significant prospects for our country to be linked into the global value chain and deepen international integration Furthermore, according to Mr Pham Binh Minh (Politburo member - Deputy Minister, Ministry of Foreign Affairs), Europe is Vietnam's second-largest export market, third-largest economic - trade partner, and fourth-largest foreign investor As a result, analyzing the EVFTA agreement for this essay allows my team to have a more thorough understanding of its laws, rules, opportunities, and problems for Vietnamese firms, resulting in some recommendations for making good use of this agreement However, we can see in the EVFTA agreement that there are numerous industries that will gain as soon as the EVFTA goes into force, such as rice, fish, vegetables, textiles, coffee, timber, etc milk, thus assessing all such content will be tough As a result, my group opted to focus on a certain area to simplify the analysis, and my group's choice was seafood because it is a vital industry in our country, with the benefits of Under natural conditions, Vietnam has the ability to grow the aquaculture and fishing industries and deliver their own products to the international market In summary, in this short essay, my group will summarize the outstanding knowledge learned in the subject of International Business, specifically the chapter on regional economic integration, from which to analyze the current situation as well as the opportunities and challenges of the EVFTA to Vietnamese seafood enterprises The essay will be classified into three major chapters, which are as follows: Chapter 1: Overview of knowledge related to regional economic integration and a general introduction to EVFTA Chapter 2: The impact of the EVFTA on the Vietnamese seafood industry An examination of the opportunities and problems that businesses in Vietnam confront Chapter 3: Solutions for Vietnamese seafood businesses to take full advantage of the EVFTA agreement Figure 3: Fishing production of Vietnam from 1995 to 2020 The data also reveals that, over the same time period, there was an increase by more than fourfold of Vietnam's fishing productivity, with an average yearly rise of 6% from 929 thousand tons to 3.85 million tons In conclusion, we can see that the growth of the fisheries industry not only helps enterprises financially but also contributes significantly to the economic sector of our nation 2.2 Overview of Vietnam's seafood production, consumption and export situation 2.2.1 Before EVFTA comes into effect First, according to data from the Vietnam Association of Seafood Exports and Producers, Vietnam's seafood export situation has essentially improved from 1997 to 2020 (before the EVFTA took effect on August 1, 2020), with an average annual growth rate of 10% from 758 million USD to 8.5 billion USD and a tendency to increase in the coming years We can see from the graphic below that fisheries are an important economic sector in our nation with a lot of promise in the future 12 ... Prime Minister of Vietnam and the President of the European Union have agreed to begin discussions on the EVFTA Agreement in October 2010 In June 2012, Vietnam'' s Minister of Industry and Trade and. .. linked to climate change and sustainable development CHAPTER 2: THE IMPACT OF THE EVFTA ON THE VIETNAMESE SEAFOOD INDUSTRY AN EXAMINATION OF THE OPPORTUNITIES AND PROBLEMS THAT BUSINESSES IN VIETNAM. .. THE OPPORTUNITIES AND PROBLEMS THAT BUSINESSES IN VIETNAM CONFRONT 10 2.1 OVERVIEW OF THE SEAFOOD INDUSTRY IN VIETNAM 10 2.2 OVERVIEW OF VIETNAM'' S SEAFOOD PRODUCTION, CONSUMPTION AND