10 remarkable highlights of Vietnam fishery in 2013

1. Seafood exports hit US$6.23 billion

Through November 2013, total seafood exports gained US$6.23 billion, up 10.5 percent over 2012. The outcome was attributable to great efforts by Vietnam seafood exporters, particularly shrimp exporters amid a lot of disadvantages such as shorter supply by disease and more barriers set by importer markets.

2. Vannamei surpassed black tiger shrimp in sales for the first time

Through November 2013, shrimp exports reported a year-on-year increase of 36 percent to touch US$2.8 billion including US$1.39 billion from vannamei sales (up 106.6 percent) and US$1.22 billion from black tiger shrimp sales (up 5.7 percent). For the first time, exports of whiteleg shrimp outstripped black tiger shrimp in bringing revenues for the country. Whiteleg shrimp is favored by global consumers amid global economic crisis. Until November 2013, among total shrimp exports to Japan, whiteleg shrimp sales made up 44.2 percent from 30 percent of the same time of 2012. The proportion of whiteleg shrimp exports to the U.S. increased to 69.7 percent from 40.5 percent and the proportion of exported whiteleg shrimp to EU rose to 52.5 percent from 45.3 percent.

3. Rise in shrimp exports owing to soaring price of global shrimp 

In 2013, Vietnam shrimp sales saw a sharp surge thanks to soaring shrimp price caused by shortage of global shrimp supply. This year, Thailand’s shrimp production that made up 12.5 percent of total global shrimp supply downed 50 percent from 2012 (500,000 MT) due to EMS. This led to soaring in global shrimp price.

4. Vietnam shrimp was exempted from antidumping duty and CVD by the U.S.

On September 10th 2013, the US Department of Commerce (DOC) issued the final results on the antidumping duty on imported frozen warmwater shrimp from Vietnam for the period of February 1, 2011, through January 31, 2012. Accordingly, in the seventh administrative review (POR7) by DOC, sales by 33 Vietnam shrimp exporters to the U.S. market got zero average dumping margin. In the month, the United States International Trade Commission (USITC) denied countervailing duty (CVD) of 4.52 percent levied by DOC on shrimp from Vietnam and six other nations in lawsuits initiated by the U.S. Coalition of Gulf Shrimp Industries in late 2012.

5. Fall in marine product exports

In 2012, increase in marine product exports (especially tuna and other marine finfish) compensated for fall in exports of shrimp and pangasius. The situation reversed in 2013: Shipment of marine products edged down over 2012. Through November 2013, the year-on-year reduction was reported in sales of all marine products: tuna with 6.7 percent; other marine finfish with 4.7 percent, mollusk 11.8 percent; crab, swimming crab and other crustaceans 7.9 percent. Cephalopod exports witnessed the deepest dive in the past 5 years with 13 percent.

6. Vietnam pangasius subjected to higher antidumping duty

On 4th September, 2013, the U.S. Department of Commerce (DOC) issued the preliminary results of the ninth antidumping duty administrative reviews (POR9) on certain frozen pangasius fillets imported from Vietnam. The period of review is August 1, 2011 through July 31, 2012. Accordingly, DOC imposed an antidumping duty of US$0.42 per kilogram and US$2.15 per kilogram to two mandatory respondents. Other separate rate respondents have to pay US$0.99 per kilogram. The unfair decision was attributable to selecting Indonesia as the primary surrogate country for its calculations of Vietnamese pangasius inputs, leading to unreasonably high levels of the antidumping duty on fish exporters.

7. China-large and potential market

Through November 2013, China-Hong Kong was the fourth largest importer of Vietnam seafood after the U.S., EU, Japan. Seafood export value to China increased by 39 percent year-on-year – the highest growth among Vietnam’s 4 largest importers. In QIII/2013, Vietnam’s seafood exports to China hit US$159 million, up 40 percent year-on-year. Shrimp sales to the market reached US$109 million. The market will post lots of potentiality to Vietnam seafood exporters in 2014.

8. Circular No.48 facilitates seafood exports

On November 2013, Ministry of Agriculture and Rural Development issued the circular No.48 on regulating inspection and certification of food safety for exporting. The circular that took effect on December 26th 2013 helps facilitate seafood exporters to export their products.

9. Preferential interest rate of foreign currency for seafood exporters

The State Bank of Viet Nam (SBV) issued Circular No 29/2013/TT-NHNN of December 06, 2013 on provision of foreign currency loans of the credit institutions and foreign banks’ branches with customers being residents. This new provision applies until 31st December 2014. The Circular helps exporters receive foreign currency loans with reasonable interest rate. Accordingly, they can lower input costs and raise their competitiveness with other rivals in the world.

10. Restructuring fishery sector

In November 2013, Ministry of Agriculture and Rural Development (MARD) has ratified the project “Fishery restructure in direction of value added improvement and sustainable development”. The project focuses on developing seafood quality by 2020 and with a vision to 2030.

By 2020, the seafood sector sets the target of reaching annually average growth in fish value of 6 percent. The sector eyes the growth of 3 percent and 8 percent in the value of caught fish and cultivated fish, respectively. The sector strives for the annual average growth of 6 percent in the export turnover.