New motivation for shrimp exporters

Tuesday, 2019-08-27 16:21:10
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Vietnamese shrimp exports to the US increased by 37.2% to hit US$77 million in July 2019 alone. (Illustrative image)
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NDO – The United States Department of Commerce (DOC) has announced its final decision after the 13th period of review (POR 13) of anti-dumping tariff onVietnamese warm-water shrimp exported to the US in the period from February 1, 2017 to January 31, 2018, said the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade.

Accordingly, the tariffs imposed on two mandatory respondents in the review including Sao Ta Foods JSC (Fimex VN) and Nha Trang Seaproduct Company, will be 0%. The tariffs on other 29 Vietnamese shrimp exporters will also be set at 0%.

According to the Trade Remedies Authority of Vietnam, this was the second time after the POR7 that DOC concluded that Vietnamese shrimp exporters did not dump their shrimp products on the US market.

The imposed tariffs are positive signals for Vietnamese shrimp producers and exporters. The 0% tax rate will help create favourable conditions for Vietnamese shrimp enterprises amid complicated developments of trade protectionism.

The DOC has launched the POR14 and the Ministry of Industry and Trade will continue to coordinate closely with the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnamese exporters and the US side to deal with relevant issues to ensure rights and benefits for Vietnam.

Experts said that the 0% tax rate will not only create short-term impacts but also open up more export opportunities for 31 Vietnamese shrimp exporters in the future.

The US is a large shrimp import market of Vietnam which is also a demanding market with strict rules to follow. Therefore, the popularity of Vietnamese shrimp in the US market will be a "guarantee" for the product to easily enter other markets.

A representative from Fimex Vietnam said that to promote the development of the Vietnam's shrimp industry, it is necessary to create a clean and certified source of shrimp with competitive prices while building the Vietnamese shrimp brand.

Accordingly, relevant sectors, localities, and enterprises need to strictly control shrimp feed products to prevent chemicals not on the allowed list.

It is also advisable to rearrange shrimp farming areas to create large-scale farms and cooperatives in accordance with international standards.

VASEP also mobilises its members to cooperate with each other to create a value chain of shrimp for their mutual benefits aligned with promoting their brands.

According to statistics from VASEP, Vietnam shrimp exports reached US$1.8 billion in the first seven months of this year, down by 8% over the same period last year.

In July 2019 alone, Vietnamese shrimp exports to the US increased by 37.2% to hit US$77 million, raising Vietnamese shrimp export to this market in total toUS$327.4 million in the seven-month period, up 5% year-on-year.

US demand for shrimp imported from Vietnam has gradually recovered due to declining inventories in addition to the reduction in shrimp imports from India,Thailand and particularly from China. Vietnam’s shrimp exports are expected to achieve more positive results in the remaining months of this year.

According to VASEP, the prices of raw shrimp and exported shrimp have no longer fallen sharply as in the early months of this year and tended to go up while the market demand is more vibrant which were considered factors that boosted Vietnam’s shrimp exports in July 2019.