February 25, 2009
Vietnam's Minh Phu Seafood Corporation benefits from US anti-dumping verdict
The Minh Phu Seafood Corporation (MPC) has received a bond payment refund worth US$4.2 million following US Customs Service's verdict that MPC was not guilty of dumping shrimp into the US market.
According to the Vietnam Association of Seafood Exporters and Processors (VASEP), the bond was paid by Mseafood Corporation, in which MPC holds a 90 percent stake, upon entering the US market.
While some Vietnamese shrimp exporters are currently subject to a tax rate of four to 25.76 percent tax rate, MPC will have an anti-dumping tax rate of zero percent on its products.
The price of domestic shrimp is currently around 30 percent higher than in late 2008, when it hit its lowest point in ten years. The increase has given encouragement to the nations shrimp farmers but exporters have faced supply shortage.
The VASEP Shrimp Committee has predicted a continued shortage in the supply of raw materials this year.
Vietnam earned more than US$1.6 billion from shrimp exports in 2008 amid difficulties concerning the cost of raw materials, sources of capital and a rise in production costs.
