Some highlights of Vietnam’s fishery in 2016

Some of the most prominent events of the industry are as follows:

1. The anti-dumping duty of the POR11 for pangasius was high. On 29^th Mar 2016, the US’ Department of Commerce (DOC) announced the final decision on its 11th administrative review (POR 11) of anti-dumping duties for the period from 1^st Aug 2013 to 31^st Jul 2014 for pangasius imported from Vietnam. In the final result, DOC determined the final tax rates, in which, the duties for 2 mandatory respondents were US$0.41/kg and US$0.97/kg; that for 14 voluntary defendants was US$0.69/kg and Vietnam-wide rate was US$2.39/kg. Due to the high tax rate, there were 2-3 large pangasius companies continuing to export to the US.

2. Drought and salinity intrusion affected on the aquaculture. In the first half of 2016, the Mekong Delta provinces were heavily influenced by climate change. Droughts, freshwater shortages and salinity intrusion impacted on seafood production especially freshwater species. Farming areas and stocking density decreased. Shrimp farmers shifted to extensive farming and innovated extensive farming.

3. Pangasius prices quoted at the lowest levels in the last 5 years.

4. The anti-dumping duty for Vietnamese shrimp exported to the US increased. On 7^th Sep 2016, the US Department of Commerce (DOC) has issued the final conclusion in the 10th administrative review (POR10) of anti-dumping duties on shrimp for the period from 1^st Feb 2014 to 31^st Jan 2015. Compared to the tariffs in POR9, those in POR10 were much higher, from 0.91% to 4.78% for the mandatory respondents and voluntary defendants.

5. In 2016, Vietnam’s shrimp exports rebounded from the negative growth of 25.3% in 2015. At the beginning of 2016, exports of shrimp recovered and maintained the positive growth throughout the year with 0.1 - 12.3% (except for May 2016). Total shrimp exports in 2016 estimated at US$3.15 billion, up 6.7% over last year. In particular, shipments of whiteleg shrimp accounted for 61%, those of black tiger shrimp took up nearly 31%, and those of other marine shrimp made up 8%.

6. China overtook the EU to become the 2^nd largest importer of Vietnam’s pangasius. In Jan-Aug 2016, exports to China recorded the continuous growth and peaked at US$30.9 million and US$30 million in Aug and Sep 2016, respectively. As of Sep 2016, Vietnam’s pangasius exports to the China - Hong Kong reached US$201.9 million, up 75.6% over the same period last year. After months of relentless growth, China outstripped the EU to rank the 2^nd leading buyer of Vietnam’s pangasius.

7. Enterprises had difficulties in implementing the Catfish inspection program. In late 2015, USDA announced the deployment of the inspection program for catfish imports. The program officially started to take effect in Mar 2016. On 25^th May 2016, the Senate voted to reverse a controversial change to USDA’s catfish inspections. In an 55-43 vote, the Senate passed a resolution (S.J. Res. 28), which would undo the program. However, the program expected to continue which will be difficulties for enterprises in the coming time.

8. There was a new US’ regulation, which if companies want to export tuna, they have to protect dolphins. In early 2016, the National Marine Fisheries Service (NMFS) has issued a new rule, companies are eligible to label tuna products with “Dolphin Safe”, they will have to have a written report of masters of fishing vessels confirming that there’re no purse seine nets or other fishing gears intentionally deployed on or used to encircle during their tuna fishing trips and there’re no dolphins killed or seriously injured in the sets or other gear deployments in which tuna were caught. Besides, captains of fishing vessels have to complete of the NMFS TTVP dolphin-safe captain's training course.

9. Vietnam’s tuna exports recovered after drops in the last 3 years, with sharp rise from the end of QII/2016. In 2016, total tuna exports estimated at US$500 million, up 9% compared to 2015. Companies boosted exports of frozen tuna loins (HS code 0304) and steamed tuna loins (HS code 16), while exports of fresh/live/frozen tuna and canned tuna continued to decline. Sales of frozen tuna loins represented the highest proportion of 47%, those of canned tuna accounted for 30%, and other products made up 23%.

Written by Ta Ha

Compiled by Dieu Thuy