(seafood.vasep.com.vn) The US remained to be the largest importer of Vietnam shrimp, accounting for 24.5% of total exports. After 38.3% decline in 2015, in QI/2016, shrimp exports to the market reported positive growth. Exports in Jan, Feb, Mar reported the growth of 22-52% compared with the same month of 2015. Vietnam shrimp exports to the U.S. in the first 4 months of this year reached US$199,8 million; up 21.8% over the same period in 2015.
The increase in shrimp exports to the market in the first 3 months of the year was thanks to shrimp exporters to the US still benefited from the lower duty rate in POR9. The average duty rate of 0.91% was lower than preliminary result (0.93%) announced in Mar 2015 and much lower than the duty rate of 6.37% issued in the previous review (POR8).
Besides, demand for shrimp from the US in 2016 inched up thanks to the decrease in average import prices. In March 2016, average import price into the market reached US$9.39/kg compared to US$9.94/kg of the same period of 2015 and US$$9.6/kg in 2015. Shrimp prices on the US market in the first months of 2016 also decreased compared to the same period of 2 years ago. Surge in shrimp sales by the foodservice and retailers also was one of the factors boosting the US’s demand for imported shrimp in the first quarter of the year.
In the US market, Vietnam's black tiger shrimp price is more competitive than those of rivals in the region (India, Thailand, Indonesia, Malaysia). According to the website “Aquafind.com”, as of Apr 22th 2016, the price of Vietnamese frozen black tiger shrimp with shell on count 21/25 was offered at US$4.85/pound (1pao ~ 454g) while the shrimp price with the same type offered by India and Malaysia were US$5.10/pound, the price of Indonesia and Thailand was US$4.95/pound. Vietnamese shrimp (U-15) was priced at US$8.30/pound while the price of both India and Malaysia were US$8.50/pound.
DOC has issued the preliminary result of antidumping duty on Vietnam shrimp imported into the US in the tenth administrative review (POR10) in the period from Feb 1st 2014 to Jan 31st 2015.
Accordingly, DOC imposed the duty rate of 2.86% and 4.78%, respectively for two mandatory respondents of Minh Phu Corp and Stapimex. The preliminary duty rate imposed on voluntary respondents was 3.56%, 4 times higher than the final duty rate of POR9 (0.91%), especially the competitors of Vietnam shrimp like Thailand, India were subjected to a lower tax rate.
However, this is the preliminary result. DOC will announce final result of POR10 in July 2016. In the previous administrative reviews, the final duty rate was often lower than the duty rate announced in the preliminary result. However, Vietnam shrimp exports to the US will be affected by the final result of POR10.
After strength in 2015, USD is poised to go down in 2016 which helps to ease competitive pressures on Vietnam suppliers to the US. With expected benefits from TPP signed in Feb 2016, Vietnam shrimp exports to the US are hoped to rise in QII/2016.
By Kim Thu