November 4, 2013

US overtakes Japan in imports of Vietnamese shrimp

The US has, for the first time, overtaken Japan to be the largest buyer of Vietnamese shrimp in the past five years.

In the past nine months of 2013, shrimp sales to the US have increased partly due to tremendous and continuous increase in shrimp price in the US market, reports VASEP.

According to Vietnam Customs, through September, shrimp shipment to the US reached over US$542.7 million, a 62.6% increase on-year. Shrimp sales to the market in 2012 reached US$454.6 million.

In September 2013, Vietnam's shrimp exports to the US hit a record growth of 138.7% on-year. At that time, the US Department of Commerce (DOC) determined that in the seventh administrative review (for the period of February 1, 2011 - January 31, 2012), sales by 33 Vietnamese shrimp exporters to the US market have not been made below normal value and obtained a zero average dumping margin.

In late September, the US International Trade Commission (ITC) rejected DOC's imposition of 4.52% for countervailing duty on shrimp imported from Vietnam which DOC has determined is subsidised.

Two determinations of DOC and ITC have not only reduced costs for Vietnam shrimp exporters but also reaffirmed that Vietnamese shrimp exporters have been operating under market mechanism, and have not been receiving any government subsidy. These two determinations pace the way for more Vietnam shrimp exports to the US.

Vietnamese shrimp exports to the US for the year to September were speeded up by continuous increase in shrimp price caused by shortage of raw shrimp. The price of the species in the US market remained on the upward trend from January to September of 2013.

In January-September 2013, the black tiger shrimp price in the US market rose by US$3.2/kilogramme while whiteleg shrimp price marked a higher growth of US$4/kilogramme.

Japan had a two- digit growth in shrimp imports from Vietnam, despite dropping to the second position after the US. Shrimp sales to Japan through September 2013 reached US$497.1 million, a rise of 12.8% from a compatible period of 2012. The country expects to boost shrimp exports to the market in the last months of 2013.

Shrimp exports to EU recovered after a one-year decline, with an export value of US$263.6 million, a rise of 14.8%. Exports to leading consumer markets in the region, such as Germany, the UK and France, reported sharp increase of 2.7%, 34.2% and 48.5%, respectively.