Vietnamese fisheries at strict EU threshold: IUU blocks Vietnamese seafood in EU

Barrier from 'yellow card'

On October 23, 2017, the European Commission (EC) issued a “yellow card” warning to Vietnam’s seafood sector for failing to comply with regulations on combating illegal, unreported, and unregulated (IUU) fishing. Since then, seafood exports to the EU have continuously faced difficulties.

A study by the Diplomatic Academy of Vietnam shows that in just the first two years under this impact, export turnover to the EU fell by 12%, equivalent to over USD 183 million. By 2020, the figure reached only USD 959 million, a decrease of 5.7% compared to 2019. Before 2017, the EU accounted for 30-35% of Vietnam’s seafood exports, but from 2020 onward, this share has dropped to around 9-10%.

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Vietnamese fisheries at strict EU threshold: Great potential but small market share

The impact of the IUU yellow card goes beyond declining revenue. All Vietnamese seafood shipments to the EU must undergo 100% document inspection, causing customs clearance times to double or triple. Each container incurs additional costs of £400–500. In many cases, shipments have been blocked, returned, or contracts canceled, resulting in significant losses for businesses.

Several companies in Ba Ria–Vung Tau admitted that losing the EU market caused them to lose up to 60% of their revenue, forcing hundreds of workers to be laid off. Many businesses have had to operate at minimal capacity or shift to other markets, but the returns have been insufficient to compensate for the gap left by Europe.

Risk of losing the market if issues aren’t resolved

The EU market, with over 450 million consumers and annual seafood imports worth tens of billions of USD, is still considered highly promising for Vietnam. However, with the IUU yellow card still in place, Vietnamese seafood struggles to compete with countries like Norway, Ecuador, and China, which have established brands linked to sustainable development.

Vietnam has undergone four inspections by the EC and has been recognized for progress in addressing IUU violations. The government has implemented a series of measures: improving the legal framework, deploying electronic traceability systems, installing vessel monitoring devices on fishing boats, and strictly penalizing violations. At the local level, authorities have promoted awareness and supported fishermen in shifting to legal and more sustainable fishing practices.

Nevertheless, according to the Ministry of Agriculture and Environment, some fishing vessels remain disconnected from monitoring systems or violate foreign waters. This remains the main reason why the EC has not yet lifted the IUU yellow card.

Assoc. Prof. Dr. Nguyen Van Lich, former Counsellor at the Embassy of Vietnam in Italy, believes that lifting the IUU warning would not only reopen the EU market but also enhance the global image of Vietnamese seafood.

“If the issue is not thoroughly resolved, there is a risk of escalation to a ‘red card,’ which would mean a complete ban on exports to the EU, which would cause severe damage to the entire sector,” Assoc. Prof. Dr. Nguyễn Văn Lịch warned.

Seafood is one of Vietnam’s key export sectors, contributing over 4% of GDP and providing livelihoods for millions of workers. Therefore, removing the IUU yellow card is not just a goal for the seafood industry but a pressing necessity for the national economy.

Experts emphasize that alongside the government’s determination, businesses and fishermen must take stronger action: complying with fishing regulations, strictly implementing vessel monitoring, increasing investment in deep processing, and obtaining international certifications. Only then can Vietnamese seafood fully capitalize on the benefits of the EVFTA, expand its market share in the EU, and strengthen its position in the global market.

In addition to regulatory compliance, experts stress the importance of building a sustainable and traceable supply chain. Vietnamese seafood businesses are encouraged to adopt advanced technologies for monitoring quality, improving storage and processing, and reducing post-harvest losses. Consumer awareness, both domestically and internationally, is increasingly focused on sustainability, ethical practices, and environmental protection. By meeting these standards, Vietnamese seafood can strengthen its brand reputation, gain consumer trust, and attract premium markets.