Shrimp export forecast lowered by 300 million USD

Hanoi (VNA) – The Vietnam Association of Seafood Exporters and Producers (VASEP) has lowered its forecast for shrimp export turnover to 3 billion USD from 3.3 billion USD in 2016.

Secretary General Truong Dinh Hoe explained that the country will lack shrimp supplies in the remaining months of this year due to the impacts of saltwater intrusion, so the VASEP has lowered the export forecast by 300 million USD.

He added that in the first two quarters of 2016, shrimp exports to the US increased by nearly 14 percent. The exports will soon be made easier after the US Department of Commerce (DOC) made a preliminary decision to apply a zero percent anti-dumping duty for Minh Phu Seafood Corporation, he said.

Four out of the five biggest shrimp export regions for Vietnam registered positive growth, including China – Hong Kong 41.8 percent, the US 13.8 percent and the EU 6.5 percent.

Meanwhile, exports to Japan showed a year-on-year decline of 9 percent. However this market still made up 17.1 percent of Vietnam’s total shrimp export revenue.

Vietnam is the fourth biggest shrimp supplier of the US with 12.4 percent of the market share after Indonesia, India and Thailand.

That the Ministry of Industry and Trade has struck an agreement on anti-dumping duty on shrimp imports from Vietnam with the US DOC and the US Trade Representative (USTR) is good news for Vietnamese businesses, especially Minh Phu Seafood Corporation.

The full removal of anti-dumping duties will make Vietnamese shrimp products more competitive in the US market.

According to ICRA Limited, an Indian credit rating agency, the DOC increased the average duty on shrimp imports from India to 4.98 percent from the previous 2.96 percent. Meanwhile, shrimp from Thailand is losing its prestige in the global market, and Ecuador is facing a shrimp output reduction due to earthquakes and disease.

This will be an opportunity for Vietnam to increase its shrimp export value to the US market.

Vietnam is the only supplier among the top five to increase both the volume and value of its shrimp exports to the US . As of July 1, 2016, the price of Vietnamese tiger prawns was more competitive than that of rivals from Indonesia, India and Malaysia.

Vietnam is shipping shrimp to 75 markets, down from 81 against 2015. The top 10 importers include the US, the EU, Japan, China, the Republic of Korea, Canada, Australia, ASEAN, Taiwan (China), and Switzerland, making up 95 percent of the total shrimp export turnover in Vietnam.

The seafood sector raked in 3.15 billion USD from exports in the first six months of 2016, a year-on-year rise of 4 percent. Shrimp exports made up 1.4 billion USD, up nearly 5 percent against the same period last year.-VNA