The latest announcement about anti-dumping duty on shrimp and Pangasius export says Vietnamese enterprises will be offered a tax reduction to nearly 0%. “This gives good opportunities for Vietnamese enterprises to expand their shrimp and Pangasius export into such a demanding market as the US”, said Mr Truong Dinh Hoe – VASEP General Secretary. “It will be much easier for them to find new and big contracts”, he added.
This announcement has brought happiness to all the enterprises, including those who have not been required the tax exemption. “I am so happy to hear that the US Department of Commerce (DOC) announced its final decision on the 7th Antidumping Duty Administrative Review (POR7) on frozen Pangasius fillets imported from Viet Nam,” said Mr Nguyen Van Dao, General Director of Go Dang Seafood Joint-stock company - “This is also a stepping stone for other enterprises to enjoy good results of next reviews”.
Dao told if his enterprise gets the tax reduction, he will open another processing factory so as to increase the export value. According to Mr Truong Dinh Hoe, the above mentioned results bring better opportunities for Vietnamese Pangasius in both the US and EU markets. Before the final decision of DOC, EU enterprises tried to delay the contract signing with Vietnamese partners, waiting for the tax increase but now they can no longer keep the price low.
Mr Hoe also felt sorry for Vinh Hoan Corporation. If the Corp. had applied for the tax withdrawal, it would have enjoyed the permanent zero tax rate from now on. However, they didn’t send their application form, so they will still be subject for the next POR8.
Unlike Pangasius enterprises, shrimp exporters felt nothing special about the preliminary results of the 6th Antidumping Duty Administrative Review (POR6) on shrimps imported from Viet Nam into the US from February 1, 2010 to January 31, 2011.
“Minh Phu enjoyed the zero tax rates three consecutive times. If we enjoy it 4 or 5 consecutive times, we will get the complete tax exemption”, said Mr Chu Van An, Vice General Director of Minh Phu Seafood Corporation. Shrimp farmers and exporters are facing a lot of difficulties. A number of shrimps die of epidemics, putting both farmers and enterprises in great trouble.
The demand has decreased in both the US and EU markets while Chinese partners try all sorts of ways to keep the price low. According to Ca Mau Association of Seafood Exporters and Processors, over 30% of the enterprises are on the verge of bankruptcy.
In Mr An’s view, it’s undeniable that the review results help Vietnamese enterprises have higher competitiveness over foreign partners. However, shrimp exporters generally dare not increase their productivity. They buy only a moderate quantity and check the antibiotic residues in these shrimps carefully before exporting them. According to Ut Xi Aquatic Products Processing Corporation, which is granted a tax reduction to 1.03%, only importers will benefit from the results if Vietnamese exporters sell FOB. Meanwhile those who ship CIF benefit more in the price competition with other countries.
Generally, Vietnamese shrimp enterprises will find it more difficult to expand their production or increase their export volume due to many factors such as lack of capital, high interest rate, higher price of local shrimps, epidemics and price competition with the neighbouring exporters.
Four Pangasius processing factories in Viet Nam have been given BAP (Best Agricultural Practice) certificate. Four other factories are expected to receive this certificate in the mid year.
A Pangasius exporter said his enterprise only exports its products into EU and Russian markets because of the complicated administrative procedures and especially the anti-dumping duties on Pangasius in the US market. “We can’t afford to hire a foreign lawyer or cover other legal expenses to sue for a tax exemption,” he said.
Compiled by BICH DAO