Vietnamese pangasius exports to the US are expected to accelerate

The US Department of Commerce (DOC) recently announced the final results of the 19th anti-dumping tax review (POR19) on frozen pangasius fillets in the United States. Vietnam exports to the United States in the period from August 1, 2021, to July 31, 2022; accordingly, six Vietnamese pangasius export enterprises enjoy low anti-dumping tax rates.

According to the final results of the POR19 review, Vinh Hoan Joint Stock Company is entitled to a tax rate of 0.00 USD/kg. The other 5 enterprises are: CASEAMEX, LOC KIM CHI SEAFOOD JSC, I.D.I INTERNATIONAL DEVELOPMENT AND INVESTMENT CORPORATION, HUNG VUONG PANGA and CAFATEX are subject to an anti-dumping tax of 0.18 USD/kg.

The general anti-dumping tax rate that DOC imposed on Vietnamese pangasius export enterprises during this review is 2.39 USD/kg.

Compared to the preliminary review results of POR 19, announced in September 2023, the final tax rate of POR 19 is 0.04 USD/kg higher. However, in general, the POR19 anti-dumping tax rate has been significantly reduced compared to the final results of the previous POR18 review. This is a quite positive signal for Vietnamese pangasius export enterprises in the near future.

In February 2024, Vietnamese pangasius exports to the US reached a value of nearly 16 million USD, down 8% compared to February 2023. Cumulative pangasius exports in the first 2 months of the year to this market reached 34 million USD, up 25% over the same period last year, mainly thanks to the strong growth of export turnover in the first month of this year. In January 2024, the US increased the value of pangasius imports from Vietnam by 83%.

In March 2023, the US Government announced Executive Order 14068 (EO 14068) to ban the import of aquatic products originating from Russia and tighten the ban on importing Russian pollock. However, this decree did not prohibit the import of products from third countries that use Russian seafood as raw materials for processing. Many forecasts say that this decree significantly affect the world seafood market, possibly re-establishing a new order for the global seafood industry. The suspension of imports of aquatic products from Russia creates a large gap, and this will be an opportunity for Vietnamese pangasius to replace two key products, pollock and cod.

In February 2024, Vinh Hoan continued to be the largest pangasius export enterprise to the US, accounting for 58% of the total export value of Vietnamese pangasius to the US. Followed by Van Duc Tien Giang Company, accounting for 22%; Bien Dong Seafood Company, accounting for 10%; Can Tho Seafood Import-Export Company, and Nam Viet Company, accounting for 5% and 2%, respectively, of the total value of Vietnamese pangasius exports.

In February 2024, pangasius export turnover to the US decreased, partly due to the Lunar New Year holiday. However, with positive information from the US market, Vietnamese pangasius is expected to grow well in the US market this year.

(Source: https://seafood.vasep.com.vn/)