MARKET ANALYSIS
Summary:
Vietnam's exports of pangasius is seen to continue its downward trend this year due to factors including the US' anti-dumping duties.
Pangasius exports to continue decline in 2016 -- VASEP
Last year saw the total value of Vietnam's pangasius (tra fish) exports decline by 10% to US$1.6 billion compared with 2014, according to Vietnam Association of Seafood Exporters and Producers (VASEP).
VASEP said Vietnam's pangasius (tra fish) exports is expected to still drop this year, by 5% year-on-year.
The value of exports in 2015 to six of the eight largest export markets for Vietnamese pangasius declined compared with the previous year.
These six markets were the US, which registered a drop of 5.6%; the European Union, 14.3%; Asean (Association of Southeast Asian Nations), 4.3%; Brazil, 39.8%; Colombia, 13.9%; and Mexico, 13.2%.
The export destinations that saw an increase in value were the UK, by 17%; China and Hong Kong, 42%; and Saudi Arabia, 2.4%.
The pangasius sector in Vietnam has been concerned about the anti-dumping duties imposed by US and new rules requiring both domestic and foreign suppliers to meet the same standards.
VASEP noted that the anti-dumping duties on Vietnamese pangasius fillets have had a big impact on export activities.
Ngo Van Ich, VASEP chair, said they had found out that two export companies, Hung Vuong and Thuan An, would have to pay tariff of 36 US cents and 84 cents per kilogramme, respectively, while 16 other exporters would be taxed 6 cents per kilogramme. With these tax burdens, he added, most companies would be unable to export to the US.
Ngo Van also said promoting pangasius products by the government both in the domestic and international markets would help, as he noted that the domestic market has accounted for only 5% of the total volume of consumed pangasius.