Seafood News:
The US and EU markets have eased the social distance, reopened and the vaccine is widely injected. The long social distancing period also help shifting consumers habit toward frozen shrimp. The demand for shrimp imports from these markets is very high from now until November to serve Christmas. Mr. Le Van Quang, Chairman of Minh Phu Seafood Group said that the market demand for large shrimps is very good with high export prices. In order to increase capacity in the current shortage of workers, the factories should increase production of large sizes to maximize production capacity (up to 3 times compare to smaller sizes), and to earn higher value. Farmers should focus on farming large size shrimp, especially size from 10 to 40 pieces/kg.
Currently, it is estimated that only 30-40% of seafood manufacturers in the Mekong Delta are assessed to be able to restore production after the Covid-19 epidemic. Soc Trang province, one of the largest raw material source, has carefully prepared steps to restore the shrimp production chain, but farmers are worry about the low prices of raw materials, especially size from 70 to 100 pieces/kg, could lead to shortage of raw materials by year-end time.
The EU is Vietnam’s third largest shrimp import market, after the US and Japan, accounting for 14.6% of the total value of Vietnam’s shrimp exports to markets. The shrimp supplies in Asia for the EU market include India, Vietnam, Indonesia… in which, Ecuador is emerging as a strong competitor with shrimp supplies from Asia. Ecuador has the advantage of low shrimp prices and easy transportation, and they are making plans to position high-quality, sustainable shrimp products in the European market.
Prime Minister Pham Minh Chinh set a deadline for coastline provinces to stop illegal fishing by the end of 2021, to avoid the risk of EU fines “red card” if there is no improvement. Vietnam was issued a “yellow card” by the European Commission in October 2017 and warned that it may ban seafood imports from Vietnam. Vietnam is currently facing a loss of up to US$ 480 million per year in seafood exports to the EU market if it is penalized with a “red card”.
The US Department of Commerce (DOC) has announced the preliminary results of the 17th period of review (POR17) for the period from August 1, 2019 to July 31, 2020, regarding Vietnam’s tra and basa fish (pangasius) exported to the US. Nha Trang Seafood Joint Stock Company (NTSF) and Bien Dong (East Sea) Seafood Joint Stock Company (ESS) are requested to answer the survey questionnaire. The tax rate on Bien Dong’s products is set at 3.87 USD per kg. The remaining reviewed companies continue to be taxed at 2.39 USD per kg as in the previous years. Big Vietnamese exporters, including Vinh Hoan JSC and Nam Viet Joint Stock Company and NTSF, are not subject to the anti-dumping tariff.
Covid-19 situation:
Vietnam Nationwide
Ho Chi Minh City
Hanoi
Khanh Hoa (Nha Trang)
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