Vietnam shrimp exports to US face fresh challenges

Red Sea tensions and a U.S. request to impose anti-dumping and anti-subsidy duties on frozen shrimp imports from Vietnam will create obstacles for the industry in 2024.

Vietnam’s shrimp exports to the U.S. totaled $682 million in 2023, a 15% decrease from 2022. Shrimp exports to the U.S. decreased by 47% in the first quarter of 2023 year-on-year; however, in Q2, the level of decline narrowed.

Shrimp shipments to the U.S. rebounded and increased by 15% and 23% in Q3 and Q4, respectively.

The U.S. wild shrimp fishing and shrimp processing industries are represented by the American Shrimp Processing Association (ASPA), which recently submitted a request to impose anti-dumping and anti-subsidy duties on frozen shrimp imports from Ecuador, Indonesia, and Vietnam, as well as on fresh shrimp imports from India, Ecuador, and Vietnam.

It is unclear what the outcome will be, but Vietnamese shrimp exports to the U.S. will be affected in the first half of 2024.

In addition, Red Sea tensions in early 2024 have caused shipping rates to the U.S. to increase, another obstacle facing businesses in 2024.

The Vietnam Association of Seafood Exporters and Processors (VASEP) recently sent a proposal to Vietnam’s Prime Minister Pham Minh Chinh, the Ministry of Industry and Trade, and the Ministry of Agriculture and Rural Development, demanding active cooperation in the inquiry to prevent U.S. subsidies on the Vietnamese shrimp industry so it can overcome the investigation stages in the near future.

In order to evaluate and decide whether to employ legal consulting services to defend and assist the Vietnamese government in the U.S. probe case, Deputy Prime Minister Le Minh Khai instructed the trade ministry to work with pertinent institutions to study frozen warm-water shrimp’s anti-subsidy practices.

Businesses must actively comply with U.S. dossier requirements and prepare before the U.S. anti-subsidy inquiry against Vietnamese shrimp. This includes doing proactive research and comprehending rules and anti-subsidy investigation protocols, U.S. subsidies, closely observing the case’s progress, and closely collaborating with the Trade Defense Agency during the entire proceedings.

In a market as big as the U.S., obstacles are unavoidable. Shrimp and other seafood enterprises must constantly be adaptive and agile, and they must have contingencies for a wide range of eventualities.

(Source: https://theinvestor.vn/)