The US Department of Commerce (DOC) has announced a reduction in anti-dumping duties on tra fish (pangasius) products from Vietnam. The Trade Remedies Authorities of Vietnam under the Ministry of Trade and Industry confirmed that the final anti-dumping taxes on Vietnamese products have been set at US$0.15 per kilogramme, lower than the final results for the previous review period. This article discusses the impact of the DOC’s decision on Vietnamese exporters and the challenges facing the tra fish industry in Vietnam.
Anti-dumping Tariffs on Vietnamese Tra Fish Lowered
The US Department of Commerce (DOC) has lowered anti-dumping duties on tra fish (pangasius) products from Vietnam. The final anti-dumping taxes on Vietnamese products have been set at US$0.15 per kilogramme, equivalent to 3.8 per cent of the export price. This is a significant reduction from the final results of the previous review period, which saw anti-dumping tariffs set at $1.37 per kilogramme.
Vietnamese exporters who were not examined by the DOC will be subject to a tariff of $2.39 per kilogramme, the same as the rate for the previous review period. However, big Vietnamese exporters such as Vĩnh Hoàn JSC and Biển Đông Seafood Company will continue to enjoy a zero tariff rate.
Impact of the Decision on Vietnamese Exporters
The DOC’s decision to lower anti-dumping duties on Vietnamese tra fish products is a positive development for the industry. Vietnamese tra fish exporters have faced export restrictions imposed by numerous nations in recent years. However, they managed to ship over $2 billion worth of products in 2018 and 2019.
The Ministry of Trade and Industry has advised local exporters to continue cooperating with the DOC and providing accurate information to achieve positive final results. The ministry will continue to coordinate with other ministries, sectors, the Vietnam Association of Seafood Exporters and Producers (VASEP), and related export companies to take necessary actions to protect the rights and interests of domestic tra fish businesses.
Challenges Facing the Tra Fish Industry in Vietnam
The COVID-19 pandemic has had a significant impact on Vietnam’s tra fish exports to many markets. In the first three months of 2021, the export value fell 29.3 per cent year-on-year to $334 million. However, positive signs returned in March from China and the US.
During the first quarter, tra fish exports to China reached $63.2 million, accounting for 18.9 per cent of export value of this goods and passing the US market to become the largest market for Vietnamese tra fish. Export value was still 36.4 per cent down compared to the same period last year.
Export value to the EU was nearly $36.5 million in Q1, down 36.5 per cent compared to the same period last year. Meanwhile, Vietnam saw a strong drop in tra fish export value to other major markets, such as ASEAN, Brazil, Mexico, Colombia, and Australia.
Despite the challenges, tra fish exporters in Vietnam remain optimistic about the industry’s future. The export value is expected to recover in the second quarter with growth of 30-40 per cent year-on-year, according to the association.