Legislation to promote vietnamese seafood export to australia under CPTPP from 2020 2030

CHAPTER 1: OVERVIEW OF SEAFOOD EXPORT 1.1 Some theoretical issues related to export 1.1.1 Definition and characteristics Export is one of the important business activities of foreign trade, reflecting trade and trade relations between countries in the region and around the world Current export activities take place on a global scale, in all sectors and sectors of the economy, from production materials to consumer goods, from the smallest parts and components to the complex machinery, high-tech types, not only tangible goods but also intangible goods with increasing density 1.1.1.1 Concept “Export of goods means the sale and supply of goods and services to other countries base on using currencies as a means of payment, including the movement of goods out of customs borders Export activities not only bring benefits to the parties involved in this activity, but they also have important implications for the development of each country Export activities bring in foreign currency revenue, promote socio-economic development, improve domestic production capacity, boost commodity production, contribute to economic restructuring, stability and step by step improve people's lives ”(Duong Huu Hanh, 2008, p 5) 1.1.1.2 Characteristics Export activities have shifted goods and services across customs borders According to the Vietnam Trade Law 2005, exports are defined as follows: "Export of goods is the removal of goods from the territory of Vietnam or into special areas located on the territory of Vietnam which is considered as an area." separate customs by the law ”(Article 28, Section 1, Chapter 2, Vietnam Commercial Law 2005) Export activities take place in all areas both in space and time It may only last for a short time and may also last for a long time The export market is very large and diverse, not only limited to one or two countries but also expanded throughout the world Due to the requirements of world economic integration, international trade activities, in which exports are further promoted through the participation of organizations and economic sectors such as ASEAN organizations and organizations WTO, EU bloc aims to expand cooperation with many countries, establish favorable agreements for all parties involved in trade activities Exporting activities take place in many industries If the beginning of exports consisted only of goods in the fields of agriculture and industry, such as footwear, agricultural products, handicrafts, garments, etc., now service exports are also viewed is one of the activities that contribute greatly to the domestic economy Currently, the export products are very diverse, from consumer exports, labor exports, knowledge exports to production materials, machinery and high-tech goods Export activities are affected by many foreign environmental factors such as politics, law, society, geography, economy, etc Each country needs to pay attention to these factors to ensure mexport achieve favorable results, overcome barriers, difficulties and earn high profits This is an important factor throughout the export activities, from research, market orientation, object, consumption to shipping, distribution and payment activities of goods and services Export activities bring many economic benefits to enterprises and the State It promotes the development of businesses in terms of production scale and operational scale, enabling the country to shorten the time of industrialization and modernization thanks to foreign currency revenues and capital sources foreign investment in domestic production activities, promoting international cooperation with other countries and the process of international economic integration 1.1.2 Classification On the world market, traders trade with each other in certain ways Each export method has its characteristics Techniques conducted separately However, in practice, export often uses one of the following main methods: Direct export The direct concept is the export of goods and services produced by the enterprise itself or purchased from domestic manufacturers to foreign customers through its organizations In cases where an enterprise participating in export is a commercial enterprise which cannot produce its products, the export consists of two stages: + Purchasing to create a source of export goods for units and localities in the country + Negotiating and signing with foreign business, delivery and payment of money with your unit This method has several advantages: through direct discussion negotiation, it is easy to come to the agreement and there are few unfortunate misunderstandings so: + Reduce intermediary costs thus increasing profits for businesses + + There are many conditions to promote the independence of the business Actively in the consumption of its products However, besides the positive aspects, this method also reveals some disadvantages such as: + + Easy to take risks If there are no qualified and experienced import-export staff when signing contracts in a new market or making mistakes that are detrimental to themselves + The volume of goods, when entering into a transaction, is usually large in order to offset the costs of the transaction As when participating in direct exporting must prepare some work well Thorough research on your portfolio, the type of goods purchased for sale, the conditions of trading on the exchange, need to clearly define the objectives and requirements of the work Choosing people with sufficient capacity to participate in the transaction, it is necessary to prompt the volume of goods and services needed for effective trading Entrusted export This is a form of business in which the import and export unit acts as an intermediary instead of the production unit, signing an export contract, carrying out necessary procedures for export The manufacturer and thereby enjoy a certain amount of money called a consignment fee This form includes the following steps: + Signing a contract of entrusted export with a domestic unit + Signing export contracts, delivering goods and paying for goods in foreign countries + Receiving export entrusted fee from domestic units Advantages of this method: Trustees understand the local legal market situation and practices, so they have the ability to promote their business and to avoid lessening the trustee For trustees, there is no need to put capital into the business to create jobs for employees and also earn a considerable amount of money However, the use of intermediaries in addition to the positive side mentioned above has significant limitations such as: - Import-export trading companies that lose their direct link to the market often have to meet the intermediaries' requirements - Profits are shared Counter-trade a Concept Convection trade is one of the export transaction methods in export combined closely with imports, the seller is also the buyer, the amount of exchange with each other has equivalent value In this mode of export, the objective is to obtain an equivalent amount of goods Because of this feature, this method also has other names such as associated import and export, or barter b Types of convection trading Convection trading was established long ago in the history of monetary relations, of which the earliest was easy exchanges and clearing exchanges Barter service: on the two sides exchanging directly with each other but goods with equivalent value, the delivery takes place almost simultaneously However, in modern bartering activities, one can use the money to pay part of the goods even more, which can attract 3-4 parties Compensation between two parties exchanging goods with each other base on recording the value of delivered goods, until the end of the term, the two parties will compare the books, compare with the delivered value and the received value The balance is kept for payment at the request of the creditor Counter - Purchase is a party conducting in the processing industry, semi-finished products of raw materials This operation usually lasts from to years while the value of goods delivered for payment usually does not reach 100% of the value of the purchased goods Transferring of obligations (Switch) the consignee transfers the debt of goods to a third party Offset transactions (trade-offs) where people exchange goods or services for services and favors (such as investment favors or help with the sale of products) that often occur in the military technology trade the cost of delivering parts and detailed assemblies within the framework of industrial cooperation In technology transfer, it is common to conduct a buy back operation in which one party supplies the entire equipment or invents a know-how to another, while also committing to buy back products to the device or invent that technical know-how Export of goods according to the protocol This is a form of export of goods (usually for debt assignment) signed by a protocol between two Governments This is one of the export forms that businesses save money on market research costs: finding customers, customers face no risk of payment In fact, this form of export accounts for a very small proportion Usually, in the former socialist countries and in some countries, there is a close relationship and only in some state enterprises Export at site This is a new form of business but is growing widely, due to its advantages The characteristic of this type of export is that goods not need to cross the national border and are still purchased by customers Therefore, exporters not need to penetrate foreign markets and customers find the exporters themselves On the other hand, enterprises also not need to carry out procedures such as customs procedures, goods insurance thus reducing the cost quite large In the current economic conditions, the trend of temporary migration is becoming more and more popular, typically the number of people traveling abroad increases rapidly Enterprises are aware that this is a good opportunity to cooperate with tourism organizations to conduct goods service provision activities to collect foreign currencies In addition, businesses can also take advantage of this opportunity to promote their products through visitors On the other hand, with the creation of a series of export processing zones in other countries, this is also an effective form of export that is paid more attention from countries This payment is also quick and convenient International processing This is a business method in which one party calls the processor of raw materials or semi-finished products of another party (called the processing party) to process the finished product and hand it over to the ordering party remuneration (called processing fee) This is one of the export forms that have been developing strongly and paid much attention to many countries By the benefits of it For outsourcing party: This method helps them take advantage of cheap prices, raw materials, and labor of the processing country For processors: This method helps them to create jobs for domestic workers or import new equipment or technology to their country, in order to build a national industry like Nam Trieu Tien, Thailand, Singapore Forms of international outsourcing: Regarding the ownership of raw materials, international processing may be conducted in the following forms: The processor orders the raw or semi-finished products to the processor and after the time of manufacture and manufacture, the product will be recalled and the processing fee paid The outsourcing party sells off raw materials to the processor and after the time of production and manufacture will buy finished products In this case, the ownership of raw materials transfers from the processor to the processor In addition, it is possible to apply a combination in which the supplier only delivers the main materials and the processor provides the auxiliary materials In terms of processing prices, outsourcing can be divided into two forms: + Cost-plus contract, in which the processing party pays with the processing party all of his actual expenses plus processing remuneration + Contract contract in which we determine a target value (target price) for each product, including norm costs and norm remuneration No matter how much the processor costs, the two parties will pay in accordance with that norm The relationship between processes and the outsourcing party is determined by the processing contract Processing contracts are often specified the number of terms such as finished products, raw materials, prices, payment, delivery Temporary import for re-export This is a form of export abroad of goods that have previously been imported, unprocessed in re-export countries than the amount of foreign currency originally spent The contract always attracts three exporting, re-exporting, and importing countries Therefore, it is called a triangular transaction or triangular transaction Re-export can take one of the following two forms: Re-export in the true sense of the sense, in which goods travel from the exporting country to the country of reexport and then re-export from the re-export country to the importing country Contrary to the movement of goods, the movement of money currencies originated from importing countries to re-exporting countries and quickly transferred to exporting countries The advantage of this form of export is that businesses can earn high profits without having to organize production, invest in machinery and equipment factories, and the ability to recover capital is also faster The re-export business requires a keen sense of the market situation and prices, and the accuracy and rigor of trading activities Therefore, when the enterprise conducts export in this mode, it is necessary to have highly qualified staff 1.1.3 Theories related to export 1.1.3.1 Absolute advantage theory This is the first systematic theory of international trade initiated by Adam Smith in the famous work "Wealth of peoples" first published in 1776 In essence, Adam Smith's theory of an absolute advantage is very simple: if country A can produce X goods cheaper than country B, and country B can produce Y goods cheaper than country A, then countries should focus on producing their goods more effectively and exporting them to that country In this case, each country is considered to have absolute advantage in producing each specific item According to Adam Smith, “each country has different advantages, so it will specialize in the production of products that we have absolute advantage and exchange with foreign countries for products that foreign countries produce more effectively all benefit " Thus, according to A Smith's absolute advantage theory, the difference in absolute advantage between the two countries is the source of international trade Absolute advantage theory not only helps describe the direction of specialization of production and exchange between countries but also serves as a tool for countries to increase welfare This commercial model may help explain a part of In 2019, amid the disadvantages of high anti-dumping tax, IUU yellow card and falling export average price, Vietnam's seafood export finished with unexpected results with nearly 8.6 billion USD, down 2.5 % compared to 2018 The two main aquaculture products, shrimp and tra fish, both decreased by 7.1% and 8.5% over the previous year, and the seafood products also dropped sharply in exports cuttlefish, octopus, offsetting tuna, other sea fishes and other seafood still keep positive growth, thus dragging down the rate of decline in total seafood export turnover of the whole country Exports to the US, EU, Korea, Australia and Canada all decreased while exports to Japan, China and other markets in the top 10 largest markets still increased over the previous year 3.2 The situation of exporting seafood in the first months of 2020 Figure 2: Export value of 10 largest commodity groups in Quarter I / 2020 compared to Quarter I / 2019 According to preliminary statistics of the General Department of Customs in March 2020, the country's total import-export turnover of goods reached US $ 46.28 billion, an increase of 17.4% compared to February 2020 March / 2020, the export value increased over the previous month, of which exports reached 24.13 billion USD, up 15.7% over the previous month (corresponding to an increase of 3.28 billion USD Seafood products in the first months from the beginning of 2020 were mainly exported to the market: Japan: 313 million USD; increase by 2.2%; The United States: $ 286 million, up 1.2%; EU (28 countries) with US $ 242 million, down 13.2%; China: US $ 140 million, down 27.6% compared to a year earlier Fishery products: Export value in the month was US $ 629 million, up 25.5% over the previous month, bringing the export value of this commodity group in the first months of this year to US $ 1.61 billion, down 9.7 % compared to the same time in 2019 3.3 Vietnamese seafood export to Australia from 2010 to 2019 The ASEAN-Australia and New Zealand Free Trade Agreement, which came into effect in 2010, has helped restore Vietnam's exports to Australia, resulting in a steadily increasing export value during 2010-2014 In the following years, due to many reasons such as the world economic situation continued to fluctuate, the trade diversion impact because both Australia and Vietnam continued to implement many new bilateral and multilateral FTAs made Vietnam's export South to Australia dropped sharply from 2014-2016 and then increased again from 20162018 On the Australian side, Vietnam is also the 14th largest importer of Australia in terms of turnover with the proportion of imports from Vietnam accounting for only 1.74% of Australia's total import turnover in 2017 (ITC trademap, 2019) Among 10 ASEAN countries that have FTA with Australia (AANZFTA), Vietnam ranked 4th after Singapore, Thailand and Malaysia in terms of export turnover to Australia It is worth mentioning that while the average export growth of Vietnam to the world in the 2008-2018 period was 15.1%, the average export growth of Vietnam to Australia was only 2.3% This is a remarkable figure because Australia is one of Vietnam's FTA partners (AANZFTA) and therefore Vietnam's exports to Australia enjoy much lower preferential tariffs than other markets Other schools that Vietnam does not yet have FTA 3.3.2 SWOT analysis • General introduction about SWOT model SWOT is the abbreviation of in English, respectively: Strengths (Strengths), Weaknesses (Weaknesses), Opportunities (Opportunities), and finally challenges (Threats) The SWOT model is one of the typical models in analyzing business strategy of an enterprise In addition, the SWOT model is also applied by the media when analyzing and devising marketing strategies • Strengths: The characteristics of the business or project that bring the competitive advantage over the competition • Weaknesses: Business or project characteristics that make the business or project weaker than the competition • Opportunities: Environmental factors can be exploited to gain an advantage • Challenges: Environmental factors can negatively affect businesses or projects • SWOT model for Vietnam's seafood industry The SWOT model is used in the analysis of very business environments Many industries such as textiles, seafood to build business strategies Vietnam's seafood exports to Australia have been promoted in recent years, especially since the Vietnam-Australia trade agreement took effect In addition to the achieved results, there are many issues that need to be paid attention to for Vietnam seafood products to stand firm and improve market share in this market This requires us to objectively and accurately assess internal factors and external impacts on Vietnam's seafood exports to Australia It is obvious that in the business environment analysis tools, the SWOT model is most suitable for developing export promotion strategies Because the SWOT model clearly points out the strengths of the fishery products, we need to promote the opportunities that are open in the Australian market to take advantage of, the weaknesses we need to overcome and the challenges to overcome This analysis is quite clear and central, making it easy to assess the current situation, competitiveness, market demand in order to determine the goals for Vietnam's seafood export and measures to accomplish the goal SWOT ANALYSIS OF VIETNAMESE FISHERY PRODUCTS EXPORTED TO AUSTRALIA MARKET Strengths of Vietnamese seafood 1.1 Natural conditions Geographic location of Vietnam is the dream of many countries in the world gender With 3260 km of coastline from Mong Cai to Ha Tien stretching 13 latitudes from 823 'north latitude to 2129' north latitude The area of internal waters and territorial waters of Vietnam is 226,000 km wide and the exclusive economic zone over one million km is times larger than the land area On Vietnam's waters, there are over 4,000 islands, many of which are large such as: Co To, Cat Ba, Phu Quoc are places with great potential for tourism development, and have been and will be built into a base to provide logistics services, product rotation for fishing fleets, and vessels of the stormy season In addition, our country also has 660 thousand hectares of brackish water, this is a nutrient-rich environment for aquatic plants It is the residence, breeding and rearing place for giant prawns, upland shrimp, nipper shrimp, shrimp gold, mullet, sea bass, bream, mussels, cobia, sea crab Besides marine fish, there are many natural resources such as over 1600 species of crustaceans, the annual allowable catch is 50-60 thousand tons / year, species of high economic value are marine shrimp, lobster and shrimp capri, crab, crab, about 2500 species of mollusks, of which the largest economic significance is octopus, the annual allowable catch is 60-70 thousand tons / year From 2000 until now, aquaculture has become a popular production profession throughout the country and occupying an important position leading the increase in fishery exports Fast in time pass In 2004, aquaculture production was exploited domestic market was 1,427,000 tons, increased by 165.3% compared to 1998 Which focused on developing objects of high export value and market ability such as black tiger shrimp, tra fish, basa catfish Black tiger shrimp farming has grown rapidly in size, productivity and production, bringing the shrimp farming output from 25,000 tons in 1998 to around 295,000 tons in 2004 Pangasius was growing more and more in 2004 about 300,000 tons brought the export turnover of this product to nearly 240 million USD Thus, the potential of Vietnam's seafood is still huge to ensure its raw resources abundant and abundant materials for Vietnam's seafood processing industry That enables businesses to focus on technological innovation, creating high quality processed seafood products to meet the requirements of demanding markets in general and the Australian market in particular 1.2 The product is achiving the standards of importing countries The Ministry of Fisheries has issued a series of industry standards on hygiene and safety conditions of fishing vessels, fishing ports, fish markets, icecollecting establishments, ice producing establishments, pre-processing aquatic products, cold storage , retail establishments Develop and issue food safety and hygiene standards equivalent to those of importing countries The inspection and control of food hygiene and safety have been transformed from final product inspection to management and implementation of food safety and hygiene measures in a systematic manner throughout the production process raw materials for purchasing and processing for export Attempts to ensure to meet the rigorous standards of hygiene and safety food, technical standards not only from the State but from businesses Vietnam's seafood and fishery products have been moving further and can penetrate and dominate the Australian seafood market Production capacity and competition - Vietnam has a large and relatively stable source of raw materials, especially with the potential to continue developing the area of marine farming and ecological breeding of aquatic species, creating a large supply - Vietnam's seafood products are diversified and have advantages in production (especially tiger shrimp and tra fish); At the same time, there is still potential for diversification of exported aquatic products, raising added value - The labor force of Vietnam's fisheries sector is large, relatively skilled and experienced in production - Technology of processing aquatic products reaches an advanced level, meeting the stringent requirements of customers; Many establishments have controlled the production chain system to ensure food hygiene and safety according to international standards - Vietnamese seafood enterprises have a lot of experience in meeting export market requirements and procedures as well as accessing distribution systems in markets (including the most demanding markets) Weaknesses of Vietnamese seafood Product cost is higher than competitors, production cost increases Inputs depend on foreign sources (breeds, feed, veterinary drugs), difficult to control prices and quality The price of Vietnamese shrimp production is much higher than that of its competitors The production cost of a shrimp seed in Vietnam is now almost two times higher than India, the cost of shrimp feed in Vietnam is also 40% higher than the average Meanwhile, due to many environmental factors and disease, the rate of successful shrimp farming in Vietnam is still low, only about 33-35% to a maximum of 40%, while Indonesia or India have successful farming rates up to 70% These factors make the price of raw shrimp in Vietnam always higher than competitors from 1-3 USD / kg Antibiotics and antibiotic control The aquaculture industries (shrimp, catfish ) will continue to face challenges related to antibiotics, especially farmed shrimp The control must be sequential and systematic Businesses are and will have to invest more in food safety control programs, but at the same time take drastic participation and effective support from the Ministry of Agriculture and Rural Development and relevant state agencies in product control import, export and distribution of drugs and input materials Inadequacies in internal capacity - The export market's ability to meet technical standards, food hygiene and safety is unstable and unsustainable - Not ensuring the seed source, seed quality, as well as the process of aquatic breed control and quarantine - The quality of aquatic raw materials (especially shrimp) is unstable, uneven, difficult to control in quality and traceability - The ability to process value-added products is limited (mainly for export of raw materials, preliminary processing, semi-finished / fresh / frozen semi-finished products) - The ability to take advantage of by-products during the processing of seafood (for example, head, bone, skin, fins, viscera, fat ) is limited (for example, only taking advantage of manufacturing products, not yet high quality products used in pharmaceuticals or cosmetics such as fish oil, gelatin, functional foods containing micronutrients, etc with high added value) - Limited investment in processing beiesn products (for example, investment in technology, equipment for tuna processing to preserve ready-to-eat and fresh products ) is limited, leading to profit obtained from aquatic products is not high Opportunities of Vietnamese seafood Opportunities from improved business environment The CPTPP, together with its commitments on rules and institutions, especially in import and export procedures and the business environment, will contribute to improving the business environment of Vietnam in general, thereby reducing costs for enterprise This is very significant for the seafood processing and export industries, the type of product that is subject to strict measures on specialized inspection and business conditions In addition, the institutional reforms under pressure and demands from the CPTPP also create conditions to attract more domestic and foreign investment in production and business activities, including the agriculture sector in general and fisheries production in particular Opportunities to reduce non-tariff barriers in CPTPP markets Although the commitments on non-tariff barriers (especially TBT and SPS measures) in the CPTPP not help to reduce these barriers in CPTPP markets with seafood imported from Vietnam, The agreement also helps facilitate the compliance of Vietnamese seafood exporters through: - Improve transparency and predictability of control measures for imported seafood - Enhancing cooperation processes to solve problems related to imported seafood, - Facilitate customs procedures and other import and export processes Opportunities cut production costs, improve competitiveness In the CPTPP, Vietnam has made many commitments in the fields of gastric juice, institutions that can help manufacturing businesses, including seafood export processing industry, save production costs, thereby improve competitiveness, for example: Commitments to promote competitive environment, modern trade methods, support businesses are conditions for manufacturing enterprises, especially small and micro enterprises, to improve competitiveness, continue better access to customers Challenges of Vietnamese seafood Although there are many opportunities to continue to develop stable and sustainable exports, Vietnam's seafood processing and export industry needs to address the constraints that are hindering export performance of the industry, especially the following problem Risks in export markets - More and more stringent requirements on standards, quality, hygiene and safety of aquatic products as well as aquaculture and processing processes - High requirements on environmental protection standards, especially for marine fisheries (for example, EU yellow card issue for Vietnamese seafood) - The risk of anti-dumping, anti-subsidy and safeguard investigations for Vietnamese seafood in markets (especially when Vietnam's seafood has relatively strong competitiveness, threatens the fisheries industry domestic markets of export markets) In addition to the opportunities and positives in tax or cumulative matters, the SPS - TBT measures in TPP / FTAs pose significant challenges to the fisheries industry Barriers in the form of technical regulations, epidemiological hygiene or labor are likely to nullify the benefits of tariff reduction on Vietnamese goods; For example, TPP's rules of origin will make it difficult for some key export products of Vietnam such as seafood - seafood; As for the environment, there are requirements to commit to banning subsidies for fishing that may be detrimental to the development policy of this fishing industry CHAPTER : LEGISLATION TO PROMOTE VIETNAMESE SEAFOOD EXPORT TO AUSTRALIA UNDER CPTPP FROM 2020-2030 4.1 Potential demand for Vietnam's seafood export GDP in Australia is expected to reach 1480.00 USD Billion by the end of 2020, according to Trading Economics global macro models and analysts expectations In the long-term, the Australia GDP is projected to trend around 1520.00 USD Billion in 2021 and 1550.00 USD Billion in 2022, according to our econometric models The global food market for the "Keto Global" menu (low in carbohydrates, high in fat) is forecast to reach an annual double growth rate of more than 5% by 2022, according to a Reportlinker report Consumption of seafood is a trend, because protein needs are always needed Seafood is a protein with many benefits and not many negative factors In addition, as consumers become more and more knowledgeable about aquaculture, they recognize sustainability in it  Along with the trend of eating high protein, the trend of eating seafood in the form of snacks (snacks) continues to be "hot" Over the past few years, there have been a number of seafood evacuation snacks on the market, such as smoked kelp and crispy salmon skin Snacks derived from seaweed as well as ready-to-eat tuna bags will continue to sell well, thanks to their convenience and nutritional benefits Seaweed is a snack that is high in protein and low in carbohydrates, low in calories and rich in minerals, just like an edible vitamin Naturally salted Alaskan salmon is one of the latest in the seafood snack segment The demand for high-quality canned fish caught manually is "hot", in both restaurants and grocery stores In fact, it's hard to get both convenient and high quality products Therefore, the form of canned products is a unique test, for consumers to try rare species and delicious flavors from around the world, regardless of the season Groceries will begin to offer a variety of canned fish according to their origin, type and flavor  Restaurants will tend to serve appetizers with new or brand new seafood products Salmon eggs, lobsters, crabs, olives, and smoked salmon are some of the items that can be on the menu of a dish of charcuterie salt seafood, popular dishes with "pescatarians - dieters." (eat fish, not meat) ”and other diners ... first months of this year to US $ 1.61 billion, down 9.7 % compared to the same time in 2019 3.3 Vietnamese seafood export to Australia from 2010 to 2019 The ASEAN -Australia and New Zealand Free... product groups to be exported From the above formula, we can see: there are two ways to increase export turnover, one is to increase export output, or increase export prices The export turnover... sense, in which goods travel from the exporting country to the country of reexport and then re -export from the re -export country to the importing country Contrary to the movement of goods, the