Vietnamese shrimp exporters enjoy zero taxes to the US

Friday, Aug 23, 2019 16:17

The zero per cent tax is great news for the Vietnamese shrimp sector. — Photo

The US Department of Commerce (DOC) on Wednesday released the final results of the 13th period of review (POR 13), officially imposing zero per cent tariffs on 31 Vietnamese shrimp exporters.

The DOC announced that the zero per cent tariff will be applied to the two mandatory respondents in the review, Sao Ta Foods JSC and Nha Trang Seaproduct Company. The other 31 enterprises shipping shrimp to the US will be subject to the same rate at zero per cent.

Earlier, the DOC in a preliminary finding concluded that the two mandatory respondents did not dump their shrimp products on the US market, making them exempt from anti-dumping tariffs when exporting shrimp to the country between February 1, 2017, and January 31, 2018.

Ho Quoc Luc, general director of the Sao Ta Food JSC, said this is good news for the Vietnamese shrimp sector and a momentum for exporters to continue their businesses. It would also be an opportunity for the country to improve the structure of its export markets. The shrimp exports to the US would surely resume growth.

Luc said the DOC’s decision showed that Vietnamese shrimp producers and exporters have been honest in declaring their business figures to DOC on time.

Minh Hung, a shrimp trader in Khanh Hoa Province, said the shrimp export amount and prices would be increased thanks to the tax. In the past two years, the shrimp sector has been stagnant due to low output and selling prices.

In this case, the role of Viet Nam Association of Seafood Exporters and Producers (VASEP) was also highly valued thanks to its action programme to respond to lawsuits, thus improving trust for local businesses.

In the first seven months of the year, Viet Nam’s shrimp export revenue reached US$1.8 billion, reducing 8 per cent from the same period last year, according to VASEP.

However, the reduction has slowed down due to positive export growth in July. In July, for the first time so far this year, the country’s shrimp export reached more than $334 million, posting 13.4 per cent year-on-year increase. The shrimp export prices have been on an upward trend.

Viet Nam shrimp exports are expected to achieve more positive results towards the end of the year.

The US is among the largest importers of Vietnamese shrimp. Last year, shipments were worth $3.55 billion, a year-on-year decline of 7.8 per cent, according to VASEP. The other largest importers include the EU, Japan, China, South Korea, Canada, Australia and Taiwan.

In 2017, Viet Nam targeted a shrimp export revenue of $10 billion by 2025 and becoming a leading sector in the country’s agriculture.

Shrimp stocks surge

Share prices of shrimp exporters on the stock exchanges surged on Thursday after receiving the good news.

Share price of Sao Ta Food JSC (FMC) sharply increased by 6.64 per cent to VND32,100 per share, Canimex Group up 3.6 per cent to VND30,000 per share, Seaprimexco rose 1.11 per cent to VND9.100 per share.

The share price of Minh Phu Seafood Group (MPC) increased by 8.3 per cent to VND30,000 per share despite a sharp reduction before due to negative business results. — VNS

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