A "golden" window for enterprises to adjust strategies

Cà Mau is one of Vietnam’s leading provinces in shrimp farming, consistently ranking first nationwide in terms of farming area, output, and export turnover. The province currently has approximately 303,264 hectares of aquaculture, with a wide variety of production models generating significant economic value.

Cà Mau’s annual export turnover reaches approximately USD 1.2 billion. Specifically, in 2023, seafood export turnover to the U.S. market amounted to USD 70.98 million, accounting for 5.91% of the province’s total export turnover. In 2024, it is estimated to reach USD 76.78 million, representing 6.07% of the total. In the first three months of this year alone, seafood export turnover is estimated at USD 236 million, up 9% year-on-year, with exports to the U.S. estimated at USD 12.86 million, accounting for 5.42%.

Following the price rebound, shrimp farmers have been eager to invest in stocking for the new season.

Mr. Trần Tấn Tài, a raw shrimp trader in Cái Nước District, stated, "Immediately after the U.S. announced the suspension of the countervailing tariff, raw shrimp prices have stabilized and edged up. Specifically, whiteleg shrimp (Litopenaeus vannamei) sized 20 count/kg are priced at VND 200,000/kg, up VND 10,000; 30 count/kg at VND 146,000/kg, up VND 7,000; and 40 count/kg at VND 127,000/kg, up VND 5,000 compared to the period when the tariff imposition was announced. With current stable prices, after deducting production costs, shrimp farmers are earning significantly higher profits than before."

According to Mr. Tài, when the U.S. announced a 46% countervailing duty on April 2, raw shrimp prices in the Mekong Delta, including Cà Mau, dropped by VND 10,000–20,000 per kilogram depending on shrimp size and segment.

The decision to temporarily suspend the countervailing tariff by U.S. President Donald Trump has indeed been a relief, offering businesses and shrimp farmers new opportunities and restoring their confidence in this shrimp season. This optimism is reflected in the recent rebound in shrimp prices, smoother consumption, and increased stocking activities.

Currently, the area under integrated extensive shrimp farming stands at 81,325.28 hectares, with 99% already stocked; improved extensive shrimp farming covers 190,805 hectares, fully stocked; while intensive and super-intensive farming areas cover 6,484.72 hectares across 7,272 farming households, reaching 95.4% of the planned area and 97.4% compared to the same period last year.

Mr. Huỳnh Xuân Diện, Director of Tân Hưng Cooperative in Tân Hưng Commune, Cái Nước District, shared: "At this juncture, shrimp farmers must invest in scientific and technological solutions to reduce production costs, enhance productivity, and ensure quality, thereby improving product competitiveness amid current challenges. The cooperative has successfully researched and piloted oxygen generators, paddlewheel aerators, and osmotic water treatment systems for industrial ponds. These initiatives are operational and have reduced investment costs, notably by constructing settling ponds at elevated positions to allow overflow discharge, thus minimizing energy consumption for unnecessary water pumping."

At present, seafood exporters are capitalizing on this "golden" 90-day window to intensify investment in deep processing, enhance product value, build brand recognition, and expand into new markets.

Mr. Phan Văn Tâm, Director of Human Resources at Minh Phu Seafood Corporation, commented, "The decision by President Donald Trump to suspend the application of countervailing duties grants enterprises additional time to strategize their next steps. There is no alternative but for each enterprise to create its own competitive arena, address bottlenecks, and build even stronger linkages across the value chain, learning from previous experiences with tariffs and new environmental regulations."

According to Mr. Tâm, in the long term, the shrimp industry must implement specific strategies, diversify customer bases and product lines, master technology, enhance adaptive capacity, and proactively address trade barriers imposed by importing countries.

The Vietnam Association of Seafood Exporters and Producers (VASEP) also noted that while the suspension of the countervailing duties offers exporters some breathing space and facilitates the finalization of orders with partners, risks remain, and the potential for further trade defense measures persists.

To overcome these challenges, seafood exporters are leveraging this "golden" window to recalibrate production and business strategies, with a focus on investing in deep processing and building the "Vietnamese Shrimp" brand, anchored in quality, sustainability, and transparency.

In addition, enterprises are actively tapping into free trade agreements (FTAs) such as the EVFTA, CPTPP, and RCEP to expand into major shrimp-consuming markets such as Japan, South Korea, Canada, Europe, and the promising Halal market. These efforts aim to offset potential order losses in the U.S. market should the countervailing duty not be adjusted in favor of enterprises after the 90-day suspension period.

Source: baocamau.vn