Vietnam's seafood exports are experiencing a strategic turning point when the 20% reciprocal tax rate applied by the US to Vietnam officially took effect from August 7, 8. The high tariff rate imposed by the US market has reduced competitiveness, forcing Vietnamese businesses, including seafood businesses, to "weather the storm". This puts pressure on businesses to have a strategy to change, maintain and expand alternative markets of equivalent value such as the EU, Japan, Canada and especially China.
To successfully conquer these markets, besides traditional competitive tactics, what “weapons” can Vietnamese seafood processing and exporting enterprises use to create a distinct competitive advantage compared to competitors who are also having to adjust their trade strategies after the US tariff?
In the context of many economies tending to increase trade protectionism along with the use of technical standards and regulations related to climate/environment as “non-tariff barriers” for imported goods, traceability, food safety, ESG standards and carbon transparency are no longer options for businesses but have become mandatory strategies for continued prosperity. Let’s take a look at some potential alternative markets below to understand these new weapons.
Image source: Internet
Chinese market: Opportunity for increased exports, but increasingly demanding quality and safety responsibility
China is currently the leading import market for pangasius and shrimp from Vietnam. According to new data, shrimp exports to China and Hong Kong increased by 103% in the first 4 months of 2025, reaching nearly 389 million USD, accounting for about 30% of Vietnam's total shrimp turnover (Aqua Culture Asia Pacific). The Chinese market continues to increase its demand for tuna and basa fish and has become a major driving force for Vietnam's seafood export growth. Chinese customers are increasingly demanding in terms of quality, freshness, traceability and hygiene certification. Increasing levels of food safety and reduction of chemical residues are being tightly controlled in China. (Aqua Culture Asia PacificTo meet the requirements of this market, exporting enterprises need to increase the use of traceability systems, invest in implementing certifications (MSC/ASC) and implement clean farming processes, without using antibiotics and banned chemicals.
EU Market: Opportunities from EVFTA, ESG & Carbon Transparency Requirements
Thanks to the tariff incentives and market opportunities that EVFTA brings, the export turnover of agricultural, forestry and fishery products to the EU has grown positively, the EU is continuously one of the four largest export markets for agricultural, forestry and fishery products of Vietnam. EVFTA opens up a tax rate of nearly 4%, which can help Vietnamese shrimp, pangasius and tuna products compete with the same value as the US market if they ensure the correct origin.
The EU could become a promising alternative market for high-quality Vietnamese seafood products. However, this market is very demanding, arguably the most stringent in terms of environmental and climate standards. To achieve the goal of achieving Climate Neutrality by 2050, the EU has issued a series of policies including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the EU Forestry Prevention Directive (EUDR), the Farm-to-Fork Strategy, the Single-Use Plastics (SUP) Directive (2021), eco-design, and is preparing to expand CBAM to many sectors. Although seafood products are not subject to CBAM tax from 2026, many EU seafood importers require reporting of total greenhouse gas emissions for the entire product life cycle until reaching consumers (carbon embedded) and certification of product sustainability. To conquer this demanding but valuable market, businesses should pay attention to a series of actions including:
Measure emissions throughout your product's farming - processing - transportation chain to know your product's baseline emissions.
Life Cycle Assessment (LCA) to identify environmental priorities and reduce emissions.
MSC/ASC or Friend of the Sea certified.
Publish an annual ESG report, subject to independent third-party review.
Japanese Market: High-end Opportunity – Absolute Requirements for Cleanliness & Traceability
Japan is a market with high payment capacity for high-end shrimp, sashimi tuna, and value-added products. Once trusted by Japanese customers, they often have long-term business relationships and stable output markets. However, the Japanese market requires control of antibiotic residues (Oxytetracycline, Enrofloxacin, etc.), absolute food safety, and strict post-harvest handling procedures (wired.com, sciencedirect.com, seafoodsource.com). The following actions are necessary when a business chooses to have a lasting presence in this “rising sun” market:
Achieved VietGAP, GlobalGAP certification, complied with chemical testing.
Biofloc, MicroNano Bubble, RAS farming models help reduce antibiotics and optimize carbon.
Traceability to farm, transparent ESG audit system.
Image source: Internet
Canadian Market: Opportunities from CPTPP + CFIA Requirements, Clean Label, ESG
Canada is a CPTPP market that currently has tax incentives, especially for pangasius and tuna imported from Vietnam. Vietnam is currently the leading shrimp exporter to Canada, accounting for 34% of the total value of shrimp imports into this country ([E-Magazine] Why is seafood export to CPTPP market flourishing?). Canadian consumers tend to choose seafood at moderate prices, which is suitable for Vietnamese products. CPTPP helps Vietnamese seafood access large distribution channels, from supermarkets to restaurants. In particular, the tariff tension between the US and Canada can bring opportunities to increase market share for Vietnamese goods thanks to competitive prices and replacing supply from the US. However, Canada has high requirements for food safety, traceability and environmental standards. They require factories to be CFIA-accredited, have strict heavy metal and chemical testing processes; eco-label certifications such as SeaChoice, Ecologo (vietnamnews.vn). To transform these requirements into investment opportunities in deep processing, creating value-added products, and green economy, Vietnamese enterprises need to:
Register your export factory with CFIA.
Build a comprehensive internal testing process.
Apply ESG standards: reduce waste, save energy, ensure working conditions and transparent reporting.
Looking through the requirements from the above alternative markets, we see the central role of Carbon Management and ESG emerging as the axis of sustainable competitiveness for Vietnamese seafood enterprises in the new period.
Carbon footprint management
Carbon management is a set of activities aimed at reducing the amount of greenhouse gases (especially CO₂) emitted into the atmosphere, contributing to responding to climate change and moving towards sustainable development. Carbon management includes greenhouse gas inventories, planning for emission reductions, implementing emission reduction activities and/or offsetting emissions with carbon credits. Carbon management will help seafood businesses:
Transparency to align with policies such as EU CBAM/EUDR – prepare for future policy adjustments where fisheries may be required to declare embedded carbon (sciencedirect.com).
Cost and production optimization tools: Technologies such as Biofloc, RAS, green energy not only reduce emissions but also save energy costs, increase efficiency and reduce environmental risks (vietfishmagazine.com, idh.org).
Access to green finance: Businesses with clear carbon and ESG reports can easily access preferential capital to support sustainable development.
ESG: Environmental – Social – Governance
ESG is a reporting framework for corporate sustainability that revolves around three pillars: Environment - Society and Governance, helping stakeholders understand the contributions and impacts of businesses during their operations on the living environment and social community. When businesses apply the ESG framework, it will help demonstrate the actual efforts of the business in relation to the requirements of the markets, for example:
Environment: businesses practice waste reduction, mangrove protection, sustainable farming
Social & Labour: when businesses report on practices regarding ensuring working conditions, fair wages, and combating forced labour, these are important conditions when exporting to the EU and Canada.
Transparent governance: ESG reports are published, verified, demonstrate responsibility, and strengthen the trust of European and Japanese customers.
Not only is it a compliance obligation, ESG & Carbon can also be a valuable marketing tool for businesses. EU, Japanese, Canadian markets and high-end customers are willing to pay better prices for sustainable seafood products with clear traceability and ESG reporting. The series of films/stories “Vietnam Sustainable Seafood” combining “clean farming” + “low carbon” + “transparent origin” will certainly create a communication message that touches the hearts of consumers more strongly than the traditional competitive price story.
Whoever is faster will be the one to finish early on the Green strategy track.
To accelerate safely without causing major disruption to daily operations, below is a proposed action roadmap for Vietnamese seafood businesses:
🚀 Phase I – Rapid Response (0–6 months)
Establish traceability system applicable to farming and processing.
Measuring and assessing current greenhouse gas emissions and ESG practices
Conduct Life Cycle Assessment on shrimp, pangasius, and tuna to identify hotspots.
Prepare/update MSC/ASC certification or eco-label documents accordingly.
Optimizing green farming and processing processes: applying Biofloc, renewable energy, reducing plastic waste.
⏳ Phase II – Short term (6–18 months)
Complete independently audited ESG & carbon reporting.
Factory registration with CFIA (Canada), EU/Japan export registration.
Implement ESG carbon marketing: stories about good corporate practices, labeled products (with carbon footprint information, sustainability labels).
Continue to promote the development of deeply processed, high value-added products such as sashimi-grade tuna, organic shrimp, and pangasius fillet - to increase export prices and maintain market share.
📈 Phase III – Long term (18–36 months)
Regular ESG reporting according to international standards, ready to meet CSDDD/EUDR.
Persistently reduce product carbon footprint through innovation in green materials, energy, and logistics.
Building the international brand “Vietnam Sustainable Seafood”, participating in specialized fairs such as VIETFISH, Seafood Expo Global…
Exploiting green capital – ESG funds, cooperating with green retail chains in EU/Japan/Canada.
Act now to seize the opportunity
Consider ESG and carbon management as strategic tools – not only to overcome market barriers but also to pave the way for Vietnamese shrimp, tuna and pangasius brands to reach the global high-end segment. China is currently an important market in the immediate future, but the EU, Japan and Canada can provide equivalent or higher alternative value if businesses invest in high-quality ESG – carbon – products. ESG and carbon management are no longer optional but the central axis of international competitive strategies. Businesses should act now to establish traceability, build sustainable supply chains, conduct emissions inventories and embark on a comprehensive ESG roadmap.
Seafood processing and exporting enterprises that are members of VASEP are not alone in this journey. VASEP is always a pioneer in implementing Green wave initiatives with the support of many partners with deep expertise in Green transformation such as GREEN IN, GreenYellow, Intraco... to support enterprises in implementing green production programs to prepare for adaptation, contributing to Vietnam's goal of becoming a sustainable - green - competitive seafood exporter globally by 2030.