In the first five months of 2024, Vietnam’s shrimp export industry has seen remarkable growth, with export revenue to the US market increasing by 17% compared to the same period in 2023. This promising development highlights the resilience and competitiveness of Vietnamese shrimp in the global marketplace.
Despite these positive trends, the Vietnamese shrimp industry faces significant challenges, particularly high transportation costs and steep import taxes.
One major issue is the high transportation costs, which greatly affect the profitability of shrimp export businesses. Since the COVID-19 pandemic, the global shipping industry has experienced numerous difficulties, including port congestion, container shortages, and a sharp rise in fuel prices. These factors have led to increased shipping costs, which directly impact the price of shrimp products for consumers. Vietnamese shrimp exporters must re-evaluate their costs and seek ways to optimize their production and transportation processes to mitigate the impact of these rising costs.
Furthermore, import taxes present a substantial hurdle for the Vietnamese shrimp industry. Currently, Vietnamese shrimp exported to the US faces relatively high import taxes, reducing its competitiveness against shrimp from other countries like India, Thailand, and Ecuador. To maintain and expand their market share in the US, Vietnamese businesses must enhance product quality, adopt advanced production technologies, and develop effective marketing strategies.
Another critical factor is the ongoing anti-dumping investigation by the US Department of Commerce (DOC). This investigation has been prolonged and is now nearing its conclusion. The DOC’s final decision, scheduled for August 5, 2024, is a pivotal event that could significantly influence the future of the Vietnamese shrimp industry. If the DOC determines that Vietnamese shrimp has been dumped in the US market, shrimp exporters will face high anti-dumping duties, diminishing their competitiveness.
Conversely, if the DOC finds no evidence of dumping, Vietnamese businesses can continue exporting shrimp to the US without additional anti-dumping duties, providing a significant opportunity to solidify their position and expand their market share in the US.
To prepare for the DOC’s final decision, Vietnamese shrimp exporters need to implement comprehensive measures. Strengthening cooperation with authorities and industry associations to receive necessary support during the anti-dumping investigation is crucial. Additionally, investing in research and development to improve product quality, reduce production costs, and enhance management processes is essential.
Exploring new markets is also a vital strategy. Amid difficulties in the US market, Vietnamese businesses should boost exports to other potential markets such as Europe, Japan, South Korea, and China. This approach not only reduces dependence on the US market but also creates opportunities for sustainable growth in the long term.
In the long run, the Vietnamese shrimp industry must develop a comprehensive growth strategy, including improving broodstock quality, innovating farming and processing methods, and building strong brands to enhance the added value of shrimp products. Strengthening cooperation with international partners to learn from their experiences and advanced technologies will further increase the competitiveness of the Vietnamese shrimp industry globally.
In summary, while the Vietnamese shrimp industry faces many challenges, with determination and effort, shrimp exporters can overcome these difficulties and continue to thrive. The DOC’s final decision on August 5, 2024, will be a significant milestone, presenting new opportunities and challenges for the Vietnamese shrimp industry. We await and hope for positive outcomes that will help the Vietnamese shrimp industry achieve greater success in the international market.
VFM
