November 12, 2004

 

 

Vietnam's Seafood Exports Goal Hindered by US Anti-dumping Tariffs

 

Vietnam's goal of US$2.6 billion seafood exports for 2004 may not be achieved, as shrimp exports have been severely affected by the anti-dumping tariffs imposed by the US in July. Shrimp is the major earner in the industry.

 

Industry analysts cautioned that shrimp exports to the US, representing nearly half of Vietnam's shrimp exports, have already fallen 15 per cent and may spiral further by the end of this year.

 

The US is also investigating different shrimp products from other countries.

 

According to the Ministry of Fisheries, seafood export turnover for the first 10 months totaled $1.89 billion, or 73 per cent of the yearly target. It would be difficult to reach the remaining $700 million projected turnover in less than two months.

 

However, the country's seafood export turnover has recorded steady increases. The figure was $225 million last month, a $10 million increase from September, and $25 million more than August.

 

In response, Minister of Fisheries, Ta Quang Ngoc, said they would work to create favorable conditions for businesses to increase their export revenue by end of the year.

 

Administrative procedures will be further streamlined for businesses that hold large export quotas. The ministry will assist with more promotion campaigns as well as quality control for products with high export potential.

 

The ministry has asked its departments in cities and provinces nationwide and the Vietnam Association for Seafood Export and Processing (VASEP) to continue encouraging seafood production. It also urged them to take a more active role in helping breeders market their products, particularly tra and basa fish.

 

Tra and basa fish export volumes to Australia and other Asian countries have risen between 2.5 and 3.5 times compared with last year.

 

Prices of tra and basa fish per kilogram have increased from $2.60 to $3.60, ever since the US applied a separate anti-dumping tariff on this seafood last year.

 

Fishery's ministry figures estimate Vietnam should export 80,000 tons of tra and basa fish by the year-end with projected turnover of $240 million, which is double 2003's turnover.

 

Local exporters are advised to focus on the EU as a huge potential market for both shrimp and tra and basa fish, although it is extremely competitive.