Vietnamese seafood at the EU gateway – Vast potential, tough challenges, and the path to green transition

The European Union (EU) is one of the world’s largest seafood markets, with diverse demand and strong purchasing power. In the context of next-generation free trade agreements (FTAs), particularly the EU–Vietnam Free Trade Agreement (EVFTA), many opportunities are opening up for Vietnam’s seafood industry to make a breakthrough. However, the journey is far from easy, as increasingly stringent barriers on quality standards, food safety, traceability, and sustainability must be overcome.

Great potential from the EU market

Vietnamese seafood is now present in more than 170 countries and territories. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), exports to the EU currently account for only about 12–15% of Vietnam’s total seafood export value, much lower than the U.S. or China. However, the EU market offers high added value thanks to advantages in pricing, branding, and stable demand.

Products such as pangasius, shrimp, and value-added items like canned tuna and deeply processed seafood are increasingly favored by European consumers. Since the EU–Vietnam Free Trade Agreement (EVFTA) came into effect, many tariffs have been sharply reduced to 0%, creating a significant boost for Vietnamese businesses. Several major companies have quickly leveraged these incentives to expand exports.

Beyond economic gains, successfully conquering the EU market also elevates the global brand of Vietnamese seafood. As one of the most demanding markets, the EU serves as a credibility test - once passed, it significantly boosts the reputation of Vietnamese products and paves the way for entry into other high-end markets.

The EU remains a vital and promising destination. If leveraged effectively, it can serve as a powerful driver for the long-term sustainable growth of Vietnam’s seafood industry.

In particular, the EU–Vietnam Free Trade Agreement (EVFTA) has opened wide-ranging opportunities, with most seafood exports to the EU enjoying tariff reductions or complete elimination. This provides a strong competitive edge over regional rivals.

Major barriers from the IUU “Yellow card” and strict standards

Despite its vast potential, accessing the EU market remains far from easy. For many years, the “yellow card” imposed by the European Commission (EC) on Vietnam’s wild-caught seafood has been a major challenge, directly affecting exports. Strict requirements for traceability records, proof of legal catch, and food safety certifications have caused businesses to spend more time and money, sometimes even losing orders.

A representative of  VASEP noted that the IUU yellow card has increased costs for enterprises and reduced competitiveness. More importantly, it has damaged the international reputation and credibility of Vietnamese seafood.

Beyond IUU issues, the EU enforces stringent standards on product quality, food safety, antibiotic residues, and increasingly strict regulations on sustainability and environmental protection. This requires businesses to continuously invest in technological innovation, supply chain management, and compliance with international standards.

EU Ambassador to Vietnam Julien Guerrier emphasized: “European consumers care deeply about the origin, sustainability, and transparency of seafood products. The EU is ready to support Vietnam in improving its management system, but Vietnam must demonstrate strong determination in combating IUU fishing.” 

Green transition – The key to unlocking the EU market

Faced with stringent barriers, Vietnam’s seafood sector is being compelled to adapt. A green and sustainable development trajectory has become the only viable path forward.

Key priorities include strengthening fisheries management, completing vessel monitoring systems, assigning farming area codes, and building transparent value chains from harvesting and aquaculture to processing and export. The Ministry of Agriculture and Environment is working closely with coastal localities to accelerate the removal of the EU’s IUU “yellow card” and meet European expectations.

From the business side, many green production models are being implemented, such as circular shrimp farming, wastewater treatment technologies, and utilizing seafood by-products to create value-added products. These initiatives not only help overcome trade barriers but also pave the way for long-term growth and elevate the reputation of Vietnam’s seafood brand.

Vietnamese enterprises must invest in modern technology, expand value-added processing, and align with the rising demands of the EU market. Registering trademarks, geographical indications, and sustainability certifications (such as ASC and MSC) will be vital for enhancing credibility.

Vietnam should also leverage the EVFTA and international cooperation programs. Beyond tariff reductions, the EVFTA offers opportunities to learn from advanced supply chain management practices and strengthen labor and environmental standards.

With its immense potential and strong support from the Government, ministries, and the business community, Vietnam’s seafood sector holds great prospects for securing a sustainable foothold in the EU. Yet, significant challenges remain: lifting the IUU “yellow card,” meeting increasingly rigorous standards, and accelerating the transition toward greener and more transparent production models.

If these barriers are overcome, not only will the EU market expand, but other high-demand global markets will also become more accessible to Vietnamese seafood.

Le Binh