(seafood.vasep.com.vn) Through Sep 2016, Vietnam’s shrimp exports reported a positive growth compared to the same period of last year.
The growth was thanks to higher demand from main markets (the U.S., the EU, China, South Korea) in the context of decline in raw shrimp supply. Shrimp demand, especially black tiger shrimp from the U.S. and China is rising while the production of black tiger shrimp India, Bangladesh, Indonesia may fall due to white spot disease and effect from climate change. Besides, global shrimp price tend to rise due to decline in global shrimp supply. These factors help to boost Vietnam’s shrimp exports in the first 9 months of this year.
Thanks to short culture period, high productivity, stable price; many households have shifted to rearing whiteleg shrimp. The area of farming whiteleg shrimp reported a better growth than that of farming black tiger shrimp. In Jan-Sep 2016, throughout the country, the farming area of whiteleg shrimp estimated at 80 thousand ha; increased by 6.3% and the yield of the species estimated at 200 thousand MT; up 4.2% from the same period last year. The area of rearing black tiger shrimp in Vietnam in Jan-Sep 2016 estimated at 594 thousand ha; up 0.5%, and output estimated at 160 thousand MT; up 0.6%.
In the first 9 months of this year, among Vietnam’ total shrimp products for exports, whiteleg shrimp still dominated with the proportion of 61.3%; black tiger ranked the second with 30.6% and 8.1% for marine shrimp. The proportion of whiteleg shrimp were up 3%, while those of black tiger shrimp and marine shrimp fell by 3% and 0.3%, respectively from the same period of last year. Live/fresh/frozen whiteleg shrimp (HS code 03) brought to the highest export value of US$731 million.
In the period, sales of whiteleg shrimp products increased by 11% to reach US$1.4 billion; Exports of black tiger shrimp products brought US$689 million, down 3%. The decline in black tiger shrimp exports may be due to shortage of raw black tiger supply.
Among total shrimp products for exports, the highest growth of 13% was seen in sales of processed whiteleg shrimp (HS 16). In contrast, exports of canned other shrimp (HS code 16) saw the deepest dive of 63% with a small value of US$2.1 million.
Vietnam shrimp exports in QIII/2016 reached US$898.4 million, up 22.7% from QII/2016 and increased by 45% from QI/2016. Remaining the growth in the first 2 quarters of this year, shrimp exports in QIII/2016 increased by 6.8% compared to the same period of 2015.
Compared to the same month in 2015, shrimp exports in only May 2016 decreased 0.4% year on year; exports in the remaining months reported the positive growth in which exports in Aug 2016 showed the best growth of 12.3%.
From Apr to Sep 2016, shrimp exports increased continuously. Exports in Sep 2016 touched the highest value of US$318.3 million, up 4.4% from Sep 2015. The cumulative figure in Jan-Sep 2016 was US$2.2 billion; up 5.6% from the same period last year.
Top 5 largest markets included the U.S. (making up the share of 23.1%), EU with the share of 19.2%, Japan (18.1%), China (14.4%), South Korea (9%). Out of top 5 largest markets, only exports to Japan fell 4.2%; exports to the others rose. Of which exports to China showed the largest increase of 30.3%; then to the U.S, the EU and South Korea rose 15.2%; 6.9% and 12.3%, respectively. Exports to markets with lower sales in top 10 markets (Canada, Australia, ASEAN, Taiwan and Switzerland) reported the year-on-year slump of 0.5% - 27.6%.
The US
In the first 9 months of 2016, Vietnam’s shrimp exports to the U.S. decreased by 1.5% only in June; exports in the remaining months reported positive growth compared to the same period in 2015. Since Apr 2016, shrimp exports to the U.S. increased continuously. Sales in Sep 2016 reached the highest level of nearly US$85 million, up 9.4% compared to Sep 2015. The cumulative figure until Sep 2016 reached US$520.2 million; up 15.2% over the same period in 2016.
The DOC has recently announced the final result on antidumping duty on shrimp imported from Vietnam in the 10th period of administrative review (POR 10) from Feb 1st 2014 to Jan 31st 2015. The duty rate of POR10 was 4.78% for the voluntary and mandatory respondents, higher than the final result of POR9 (0.91%) and higher than preliminary result of 3.56% announced by the DOC in Mar 2016. The nation-wide rate in the period was 25.76%.
The higher duty rate in POR10 was owing to the fact that the DOC applies zeroing method for the calculation of dumping margins. The calculation method applied by the U.S. is not in line with regulations in WTO.
Vietnamese enterprises are preparing the complete data and documents to continue pursuing the sunset review by the DOC and the United States Court of International Trade (CIT). Besides, Vietnam and other countries will continue using the arguments to confirm that Vietnam doesn’t harm the US domestic producers. The period from now to Jul 2017 will be an important period for Vietnam shrimp businesses to fully participate in the sunset review and take advantage of the opportunity to withdraw from the case.
The EU
As of September this year, Vietnam shrimp exports to the EU fell in Jan and May, exports in the remaining months reported the positive growth compared to the same month last year. Exports to this market in QIII/2016 reached US$168.7 million USD; up 7.5% from the same period last year. In the first 9 months of this year, sales to the market reached US$431 million; up 6.9% compared to the same period of 2015.
The U.K, the Netherlands and Germany were 3 main importing markets of Vietnamese shrimp in the block. Exports to the U.K and the Netherlands increased by 8.2% and 31%, while exports to Germany fell 3%.
Despite the growth, Vietnam shrimp exports still face challenges like higher antidumping duty and increasingly strict requirements from importers. It is expected that Vietnam shrimp exports in 2016 reached US$3.1 billion; up 3.3% compared to 2015.
By Kim Thu