Shrimp exports: Fun but not happy

The US Department of Commerce (DOC) announced the official final results of administrative review of the 9th (POR9), under which, Vietnam shrimp to the US market, were subject only less than 1%, probably as a private fun for shrimp exporters.
However, nothing guarantees it will be "the lifeline" for the state of shrimp exports are on the decline.

Shrimp exports to the US market, were subject only less than 1% make shrimp exports to this market of more businesses prosper. Photo: PROPERTY SALES
Well, have fun ...

The export value of shrimp on track to decline in recent months. In this gloomy context, information from POR9 the average tariff applied to frozen shrimp imported from Vietnam is 1% is a good news.

Star was not happy when the US market is large import of shrimp Vietnam for many years. According to the Association of Seafood Exporters and Vietnam Seafood (VASEP), 2014, shrimp exports of Vietnam to this market is $ 1 billion, accounting for 25% of total export value of the whole industry.

At hearing this, some people believe that this could be the lifeline, is the hope of many vital shrimp exporters.

According to Truong Dinh Hoe, VASEP general secretary, looking at a particular aspect, this low tax rate makes exports of shrimp to the US market more businesses prosper, and with the rest of This year, results of operations and business of the business can be improved.

"However, this can not be alleged to have optimism due to strong market driven by supply factors - demand and exchange rates," Mr. Hoe said.

... But not happy

10 years ago, at a conference of the fisheries sector, Mr. Tran Van Linh, General Director of JSC and Thuan Phuoc trade in Danang, once shared that fisheries, particularly shrimp, has passed through a period based on natural resources and cheap products to compete with other countries. To be able to survive long, the fishery must go towards producing value added.

Thuan Phuoc Company itself was gradually changing business strategy from specialized export shrimp products to processing and preliminary processing of value added products. This has helped the company cope with difficulties. Currently 60% of Thuan Phuoc processed shrimp products towards value added.

Still, from the perspective that he Linh proved not too optimistic with results POR9. He said: "Taxation low or high dumping can not tell you anything!". He related, in time POR8 (1-2-2012 to 31-1-2013 period), the average tax rate that US shrimp dumping apply for Vietnam now is 6.37%. Immediately following the date of this information, businesses have the mentality of "not optimistic" and much speculation that shrimp exports to the US will enter these difficult days. However, reality has proven the opposite: the situation then exporting shrimp to grow.

"Even with high taxes in times POR8 but shrimp exports in 2014 still increased. And at times POR9 announced preliminary 3-2015 month, despite low tariffs, export situation next few months are not only increasing but also continuously reduced "- Mr. Linh looked back.

Statistics first eight months of 2015, US exports of Vietnam shrimp over 51% decrease over the same period. It is caused by difficulties in supply and competition from India and Indonesia shrimp. Mr. Linh said shrimp exports decreased in the market not only the US but also in other markets decreased including Europe and Japan.

"For years, Europe, Japan and the US are the three main export market of crawfish, but this year, including two market without dumping tax with Vietnam's shrimp Europe and Japan also fell . Thus, if based on low tax rate of US dumping to believe exports will increase as a mistake "- he said.

Get the Thuan Phuoc Company as an example. 2014, taxable company dumping is 6.37% POR8 but shrimp export turnover of the company reached 105 million, and the US remains one of the major export markets of the company. To 2015, from March, when preliminary results POR9 times, though taxed at 1.16%, but exports of shrimp to this market the company still is not as expected.