US lifts anti-dumping tariffs from Vietnamese shrimp

The US has exempted 31 Vietnamese shrimp exporters from anti-dumping tariffs following the 13th period of review (POR 13). Vietnam Economic News’ Thuy Duong talked with Truong Dinh Hoe, Secretary-General of the Vietnam Association of Seafood Exporters and Producers (VASEP).

How do you assess the preliminary results of the POR 13?

On April 9, the US Department of Commerce (DoC) announced the preliminary results of anti-dumping tariffs on Vietnamese warm-water shrimp exported to the US in the period from February 1, 2017 to January 31, 2018. The DoC concluded that frozen shrimp products of two mandatory respondents in the review, Sao Ta Foods JSC (Fimex VN) and Nha Trang Seaproduct Company, did not violate anti-dumping regulations in this period. As a result, preliminary tariffs on those two companies and other 29 local shrimp exporters will stand at zero.

The final decision is expected in August 2019. If it remains unchanged, the zero tax rate will officially take effect, opening up prospects of boosting Vietnam’s shrimp exports to the US.

What should Vietnam’s shrimp industry do to make the most of its opportunities?

In addition to Vietnam, other countries such as India, China and Thailand are also being subjected to anti-dumping tariffs. Therefore, the preliminary results of the POR 13 will provide Vietnamese shrimp with a competitive advantage. Exporters should promote negotiations with partners in order to increase their export value.

Quality is a vital and long-term factor that we must focus on to enhance the position of Vietnamese shrimp. Exporters should continue to improve quality and ensure food safety and hygiene in order to meet market demand. Quality must be a top priority whether the tariff is imposed or not.

Will Vietnam’s shrimp industry achieve this year’s target?

Vietnam has set its 2019 shrimp export target at US$4.2 billion. However, due to various factors, some objective, shrimp exports did not create a breakthrough in the first quarter of the year.

We hope the target is achieved in the remaining months of the year due to favorable conditions such as the upcoming EU-Vietnam Free Trade Agreement (EVFTA), the final POR 13 decision, and programs to improve shrimp farming areas. We recommend that businesses implement the requirements of export markets, while promoting advertising and seeking new markets in order to avoid dependence on traditional markets.

The US is one of Vietnam’s leading shrimp markets, and has a great influence on other markets in terms of price and purchasing decisions.