08:01 | 08/04/2015 Trade
(VEN) - The US was Vietnam’s biggest shrimp importer in the first quarter of this year and has remained a potential market for domestic shrimp exporters with reduced shrimp taxes since its announcement of preliminary results of the 9th administrative review (POR9) of anti-dumping duty on shrimp imports from Vietnam.
Vietnam has opportunities to boost shrimp exports to the US
According to the Ministry of Agriculture and Rural Development, Vietnam’s total seafood export revenue reached nearly US$417 million in March, bringing the total accumulated revenues for the first quarter of the year to US$1.27 billion, a 20.6 percent decrease over the same period last year. The US led among Vietnam’s seafood importers, especially shrimp products, accounting for about 18.62 percent of the country’s total seafood export value.
The US has remained Vietnam’s largest shrimp consumer over the past two years. Last year, shrimp exports to the US reached more than US$1 billion, accounting for 27 percent of Vietnam’s total shrimp exports. Vietnamese shrimp products are preferred to other alternatives from Thailand and India thanks to relatively better quality and reasonable prices.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp and Tra fish are two key export items of Vietnam, accounting for more than 50 percent of the country’s annual seafood export value. However, both are subject to the administrative review of anti-dumping duty in the US. Last year, Vietnam took third place in terms of shrimp export value to the US, after India and Indonesia, and fourth place in terms of shrimp export volume to the US, after India, Indonesia and the Republic of Ecuador.
Early this year, shrimp exporters found it difficult to export shrimp to the US as they faced anti-dumping cases on shrimp imports from Vietnam. However, the local demand for shrimp imported from Vietnam still grew.
So, more opportunities for increasing Vietnamese seafood exports, especially shrimp products, in the US are available after shrimp taxes were reduced as a result of the US’ announcement of preliminary results of the 9th administrative review of anti-dumping duty on shrimp imports from Vietnam.
According to these preliminary results, the average shrimp tax rate was reduced to 0.93 percent, which is much less than the 6.36 percent average tax rate applied after the announcement of POR8 preliminary results. This has partly released the pressure on both shrimp exporters in Vietnam and shrimp importers in the US.
In addition, the US dollar is gaining strength, with a 20 percent increase in value compared with the euro and Japanese yen over the past year, which is likely to encourage US importers to boost imports for domestic use. This is considered as a good opportunity for Vietnamese shrimp exporters to expand their market in the US.
By Lan Phuong