Vietnam’s shrimp exports to the U.S growth

In the first five month of this year, Vietnam surpassed Ecuador to become the 4th largest shirmp exporter into the U.S market. Vietnam’s shirmp products account for 12.4 percent of the country’s shrimp imports. Indonesia is the biggest shirmp supplier for the U.S with a market share of 22.3 percent, beating India into second place with 20.9 percent and Thailand into third place with 13 percent.

Of the total Vietnamese shirmp shipments in the reviewed period, white-leg shrimps accounted for 70 percent while giant tiger prawns made up of 27 percent. According to the VASEP Vietnamese frozen sugpo prawn gain a competitive price over the product from India, Thailand, Indonesia, and Malaysia in the U.S marrket.

In 2015, Vietnamese shrimp exports to the U.S market stood at 657 million USD, dropping 38.3 percent from 2014 due to decreasing export prices, weak demand and fierce competition from foreign rivals.

So far, the U.S has been the biggest importer of Vietnamese shrimps by occupying 24% of the market share. The VASEP forecasts that Vietnamese shrimp exports to the U.S will continue to surge in the remaining months of this year thanks to positive results from the the U.S. Department of Commerce (DOC)’s ninth administrative review (POR9) for anti-dumping duties on Vietnamese frozen shrimp and the signing of the Trans-Pacific Partnership (TPP). The VASEP predicts that the total Vietnamese shirmp exports will reach 3.3 billion USD in 2016, up 12 percent from 2015.

The average anti-dumping tariff rate levied on most Vietnamese frozen shrimp sold in the US market sharply decreased to 0.91 percent in POR9 from 6.37 percent in the POR8. This has eased the tax burden on Vietnamese shrimp exporters.

The U.S growing demand for Vietnamese shrimp, spurred by the rising dollar, will also increase shipments. Rising demand has also resulted in vibrant shrimp retail promotions in the U.S creating opportunities for Vietnamese shrimp suppliers to boost exports to the country.

In addition, the Ministry of Industry and Trade of Vietnam with the U.S. Department of Commerce (DOC) and the U.S. Trade Representative (USTR) signed an agreement related to antidumping duty over imported Vietnamese shrimp on July 18, 2016. This agreement provided bilateral solutions to settle the two long-lasting World Trade Organisation (WTO) disputes over imports of Vietnamese shrimp to the US, in which Vietnam sues the U.S for violating WTO regulations when imposing antidumping duty on Vietnamese shrimp.

Earlier on May 20, the DOC began administrative procedures to carry out the WTO dispute findings according to Vietnam’s request. As a result, the DOC will reduce anti-dumping tax for leading Vietnamese exporter of frozen warmwater shrimp, Minh Phu Seafood Corporation. The DOC also proposed removing the antidumping duty order for Minh Phu Seafood Corporation.

Vietnamese shrimp was sold in 92 markets in 2015, down from 150 markets in the previous year. Key markets included the US, Japan, the European Union and China, besides the Republic of Korea, Canada, Australia and ASEAN, as well as Switzerland.