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7M shrimp exports to US up 16.3%

Released at: 10:23, 11/09/2016

7M shrimp exports to US up 16.3%

Photo: Duc Anh

Value rising as Vietnam's competitors increase prices due to problems with inputs.

by Luong Nhi

Shrimp exports to the US in the first seven months of this year totaled $364.8 million, a 16.3 per cent increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Exports have risen steadily all year except for a minor fall in June, of 1.57 per cent year-on-year.

In February shrimp exports recorded the highest increase in quantity, of 52.3 per cent compared with February 2015. July saw the highest increase in value, rising 29.4 per cent year-on-year to $65.9 million.

Growth in the US’s shrimp imports from Vietnam continues to be high as those from India, Indonesia, Ecuador, and Thailand become more expensive as the countries face difficulties with input materials. US retailers are accelerating promotion campaigns to increase shrimp consumption.

In the first six months of the year Vietnam was the fourth-largest shrimp exporter to the US, accounting for 12.2 per cent of the total. Vietnam was the only exporter to see quantity and value increase, at 9 per cent and 1 per cent, respectively.

VASEP said that demand for shrimp at restaurants is increasing and will continue to do so towards the end of the year.

On March 10 the International Trade Administration (ITA) announced that the US had set higher anti-dumping duties on Vietnamese warm-water shrimp exports from February 1, 2014 to January 31, 2015. This tenth tariff was 1.78 per cent, or four times higher than the ninth tariff.

Vietnam’s shrimp exports are expected to be over $3 billion this year, up 1.4 per cent compared to 2015, which is positive given the fierce competition. World shrimp production is forecast to fall 10 to 15 per cent, providing even more opportunities to the country’s shrimp exporters. Its four largest shrimp markets, the US, Japan, China and South Korea, are all on the rise.

Vietnam and the US reached a bilateral solution in July to resolve the anti-dumping issue. The free trade agreement (FTA) between Vietnam and South Korea has also had a positive impact on shrimp exports. South Korea committed to importing 10,000 tonnes of shrimp in the first five years after the FTA comes into effect (December 2015). In the next five years it will import 15,000 tonnes at a 0 per cent tariff rate.

VASEP added that most Vietnamese seafood products are seeing good growth. In the first eight months the US, Japan, China and South Korea will also be the largest markets for Vietnamese seafood, accounting for 53.2 per cent of export value. Value has seen sharp increases in China (53.9 per cent) and also increased in the US (11.9 per cent), Thailand (9.9 per cent) and the Netherlands (8.4 per cent).

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