The impact of the EU's IUU yellow card on Vietnam's fisheries sector: Evidence from production, fishing capacity, and export structure

Abstract

As one of the world's leading seafood exporters, accounting for more than 7% of the global market share, Vietnam's fisheries sector plays a vital role in the country's economic development, providing employment for millions of people in coastal communities. This paper analyses the impact of the European Union's (EU) Illegal, Unrepoted and Unregulated Fishing (IUU) Yellow Card on Vietnam's fisheries sector by comparing production, fishing capacity, and export structure before and after 2017. The results show that the fishing sector experienced a decline in growth rate after Vietnam was granted the IUU Yellow Card. Meanwhile, aquaculture maintained more stable growth. The export market structure shifted significantly, with a decrease in the proportion of exports to the EU, but the EU still maintained its role as a benchmark market with widespread influence. The results indicate that the IUU Yellow Card is not only a short-term trade barrier but also a driving force for adjusting the growth structure and reforming the governance of Vietnam's fisheries sector. This highlights the need to link combating IUU with sustainable development and ensuring fishermen's livelihoods.