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April 14, 2014

Vietnam shrimp industry faces anti- dumping tariff from US again (Week ended Apr 4, 2014)
                                                    
An eFeedLink Exclusive
 
 
Price summary
 
The prices of all type of shrimp and prawn dropped simultaneously, ranging from VND 9,000 (US$ 0.43) to VND 15,000 (US$ 0.71) per kilogramme.
 
Price of giant tiger prawn in Ca Mau  (Expressed in VND1,000/kg*)
Category (pcs/ kg)
Mar 28
Apr 4
20
305
285
30
250
235
40
230
215
*VND1, 000 = US$0.0474 as of Apr 14, 2014
Source: Casep (Ca Mau Association of Seafood Exporter & Producer) 
 

Price of giant tiger prawn in Ca Mau  (Expressed in VND1,000/kg*)

Category (pcs/ kg)

Mar 28

Apr 4

60

128

113

70

124

109

80

118

106

90

110

101

100

104

95

*VND1, 000 = US$0.0474 as of Apr 14, 2014
Source: Casep (Ca Mau Association of Seafood Exporter & Producer) 

 
 
Market Analysis
 
As forecast since the end of 2013, prices of shrimp will not remain high due to Thailand and China's recovery from early mortality syndrome (EMS).  Besides, shrimp farming area in Vietnam is growing strongly with more shrimp ponds in the fresh water area. According to the directorate of fisheries, till the end of the first quarter of 2014, there were about 287,000 hectares of farmed shrimp, including 162,000 hectares for white leg shrimp and 125,000 hectares for black tiger prawn. Both factors led to the decrease of shrimp price in the last two weeks. From a survey in the central and southern shrimp farming areas, some farmers said that the prices of white leg shrimp and prawn are not as high as the beginning of 2014.
 
On 25 Mar, the US Department of Commerce (DOC) announced the primary result on anti-dumping tariff for Vietnam shrimp. Based on this result, Vietnam shrimp will be subject to a high tariff. However, Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) is of the opinion that there are still opportunities to adjust the rate.
 
The reason for this tariff change is due to the change in the method of calculation when DOC decided to use target anti-dumping method and base calculations on Bangladesh to arrive at the anti-dumping rate despite the big difference in shrimp production cost factors with Vietnam. With this method, DOC mainly focused on the price gap between individual consumers and group consumers per order. Those factors led to the high tariff for exporters.
 
In particular, DOC decided the temporary rate for Minh Phu Seafood Company to be 4.98% and Soc Trang Seafood Company's rate to be 9.75%, while the average rate for the rest of the exporters to be 6.37%. Those companies whichdid not participate in the investigation process will be subject to 25.76% tariff. The final announcement will be announced in September 2014.
 
The above result was disadvantageous for Vietnamese exporters compared to the previous anti- dumping administrative review (POR7) which applied 0% for Vietnam exporters. Truong said that, on 22 Apr, Vu Van Tam, vice minister of the ministry of agriculture and rural development  will lead a team to the United States in order to discuss the farm bill and the anti-dumping tariff matter with the United States.
 
In 2013, USA surpassed Japan to become the biggest importer of Vietnam's shrimp with imported value of US$ 820 million, an increase of 75% compared to 2012. After the primary result of POR8 on anti- dumping tariff, all Vietnam enterprises objected this decision as it was deemed an irrational decision.
 
 
Market Forecast
 
As the weather becomes hotter, some experts alerted farmers of shrimp diseases. In March, there was around 88 hectares of shrimp farms faced with disease in Ca Mau, an increase of 17 hectares as compared to February. The related authorities of this province already released 27 tonnes of chlorine for treatment. However, farms still need to be mindful on raising method and choosing breeds.
 

 


 
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