1.

Overview of product and market

A. General information

Striped catfish is a type of fish belonging to the Pangasiidae family, mainly cultured in freshwater areas
such as the Mekong River and other major rivers in Vietnam. It is one of the most popular and important
farmed fish in Vietnam, providing significant income for fish farmers and being a major export
commodity.

The main export market for striped catfish in Vietnam is Japan. Vietnamese striped catfish has quickly
dominated the Japanese striped catfish market due to its good quality, competitive prices, and stable
supply. The Japanese striped catfish market particularly emphasizes high quality, food safety, and
compliance with environmental regulations. Adhering to these standards has helped Vietnamese striped
catfish build a reputation and establish itself as one of the main suppliers for the Japanese market.

In September 2023, Japan ranked fourth in the CPTPP market in terms of the highest import volume of
Vietnamese striped catfish, following Mexico, Canada, and Singapore. Vietnam's striped catfish exports
to Japan in September 2023 reached $3 million, a 10% increase compared to the same period last year,
contributing 13% to the total striped catfish exports of the CPTPP. Cumulative striped catfish exports to
this market in the first nine months of this year recorded $24 million, a 15% decrease compared to the
same period in 2022.

During the first nine months of this year, starting from March, striped catfish exports to Japan
continuously declined. It was only in September that striped catfish exports to Japan showed positive
growth again.

As of September 2023, Japan primarily consumed frozen fillet striped catfish under HS code 0304
(excluding fish sausage and surimi) worth $21 million, a 19% decrease compared to the same period last
year, accounting for 91% of the total striped catfish exports to this market. This was followed by
processed striped catfish products under HS code 16 and live/fresh/frozen/dried striped catfish (under
HS code 03) (excluding fish under HS code 0304), reaching $2 million (6% share) and $1 million (3%
share) respectively.

Vietnam is considered a country with good supply capability for the Japanese market, benefiting from
various advantages through the reduction of import tariffs in free trade agreements (FTAs). Additionally,
the increasing number of Asian immigrants living and working in Japan, reaching up to 10 million people,
further enhances Vietnam's potential as a reliable supplier.

The event of Japan discharging wastewater from the Fukushima nuclear power plant into the sea may
lead to a decrease in domestic seafood consumption in Japan and a greater focus on imported seafood
products. The fact that Japan increased its imports of striped catfish from Vietnam in September 2023 is
a positive signal in the context of unpredictable global economic fluctuations.

Striped catfish is one of the key products in Vietnam's seafood industry. The domestic tra fish market
has experienced significant development in recent years, with increasing value and potential.
The value of striped catfish in the Vietnamese market is influenced by various factors, including supply
and demand, product quality, size, processing, and food safety standards. The domestic market
primarily consumes striped catfish through retail channels such as supermarkets, wholesale markets,
and restaurants. Prices tend to fluctuate according to seasonal variations and supply-demand
conditions.

Regarding the potential of tra fish in the Vietnamese market, there are several important factors:

Large population: With a population of over 96 million people, the domestic striped catfish consumption
market is substantial. The demand for striped catfish consumption is still growing and has potential for
future development.

Economic growth: Vietnam is experiencing stable economic growth and a slight increase in people's
incomes. This can lead to an increase in the consumption of various food products, including striped
catfish.

Healthy eating trend: Due to awareness of the benefits of healthy and nutritious eating, consumers in
Vietnam are showing interest in farmed fish and striped catfish, which are considered a suitable choice
for a healthy diet.

Government support: The Vietnamese government has implemented policies and measures to support
the seafood industry, including the striped catfish sector, aiming to enhance competitiveness and
improve product quality. This can create favorable conditions for the development of the domestic
striped catfish market.

Previously, Vietnamese pangasius had become one of the country's largest export industries. In the
period from 2000 to 2020, Vietnam's pangasius exports have grown strongly. Japan has been one of the
main export markets for Vietnamese pangasius, and is also the market with the highest value for this
product.

The supply of pangasius to the Japanese market is done through export companies, pangasius
processing factories and pangasius farms. Pangasius export companies are often headquartered in big
cities such as Ho Chi Minh and Hanoi. Pangasius processing factories are often located near pangasius
farming areas, such as Can Tho and Dong Thap. Pangasius farms are concentrated mainly in provinces
along the Mekong River such as An Giang, Dong Thap and Tien Giang.

B. Product: striped catfish

Packaging: 40MT of pangasius -> 2,204.62 pounds

HS code: 0304

PE bag/carton, tied by strap.

Sea transportation – Liner booking -> check schedule -> FCL – direct vessel: 3 days

RF container 20fcl (reefer container, set temperature...)

Packing and Labeling as request of customer

Tax subject to FTAs

4.Incoterms Practice

Under the FCA (Free Carrier) Incoterm, the logistics activities involved in exporting striped catfish from
Vietnam to Japan, along with the corresponding responsibilities and obligations of the seller and logistics
provider, are as follows:

Packaging and Labeling: The seller is responsible for appropriately packaging and labeling the striped
catfish according to the agreed specifications and any relevant regulations or standards for export to
Japan. This includes ensuring that the packaging maintains the quality and freshness of the product
during transportation.

In the role of a logistics provider, I would ensure that the seller receives guidance on suitable packaging
materials and labeling practices. I would also assist in coordinating any specific requirements related to
the packaging and labeling process to meet the standards set by the buyer and the destination country,
Japan.

Export Clearance: The seller is responsible for obtaining the necessary export licenses, permits, and
completing export customs formalities in Vietnam. This includes preparing and submitting the required
export documentation to the relevant authorities, such as the export declaration and any certificates or
licenses required for exporting striped catfish.

As a logistics provider, I would provide guidance to the seller on export clearance procedures in
Vietnam. This would involve sharing knowledge about the required documentation, customs
regulations, and any specific requirements related to exporting striped catfish to Japan. I would also
assist in ensuring that the seller has the necessary paperwork in order, facilitating a smooth export
clearance process.

Delivery to the Carrier: The seller's primary obligation is to deliver the striped catfish to the carrier at the
specified location in Vietnam. The buyer typically nominates the carrier, and it is the seller's
responsibility to coordinate with the carrier to ensure a smooth transfer of the goods.

As a logistics provider, I would work closely with the seller to arrange the transportation logistics. This
would involve coordinating with the buyer's nominated carrier or engaging a freight forwarder to
facilitate the pick-up of the striped catfish from the seller's location and ensuring proper handover to the
carrier. I would ensure that all necessary arrangements are made to ensure a seamless transfer of the
goods from the seller to the carrier.

Documentation: The seller is responsible for providing the buyer with the necessary export
documentation, including the commercial invoice, packing list, and any other required documents.
These documents are crucial for customs clearance and compliance with import procedures in Japan.

In the role of a logistics provider, I would assist the seller in ensuring that all the required export
documentation is complete, accurate, and provided to the buyer in a timely manner. I would work
closely with the seller to verify the accuracy of the documentation and address any inquiries or
additional requirements related to the logistics aspects of the export process.

It's important to note that while I can provide guidance on logistics activities, the actual execution of
these activities would typically be performed by logistics professionals, freight forwarders, or shipping
agents who specialize in export-import operations.