"02 packages" of necessary support for Vietnamese seafood businesses...

Concerns about pressure to reduce seafood imports from Vietnam

According to VASEP, the United States is one of the two largest seafood import markets of Vietnam, along with China, with an export turnover of 1.8-2.1 billion USD/year in the past three years, accounting for about 20% of the total seafood export turnover of the country. This is a large, important and directional market for Vietnam's seafood exports, especially the number 1 import market for shrimp and tuna, and the second largest for pangasius. After more than 20 years of expansion and development, Vietnamese seafood has become a familiar brand to American consumers, putting Vietnam in the top list of seafood suppliers to the United States.

However, since April 9, 2025, the United States has begun to apply a reciprocal tax rate of up to 46% on goods from Vietnam. This will greatly impact the Vietnamese seafood industry, causing the risk of losing the most important market and reducing competitiveness in the US market due to the tax rate being too high compared to competitors such as Ecuador, India, Thailand, Indonesia ....

In the worst case scenario, if the high 46% tax rate is not adjusted, exports to the US are at risk of stagnation, leading to a series of difficulties for businesses such as large inventories, disrupted cash flow, heavy bank interest burden, stagnant raw material production, affecting the jobs and livelihoods of farmers, fishermen and workers, as well as increasing international competitive pressure in other markets.

In the latest development in the early morning of April 10, 2025, the United States announced a 90-day postponement of reciprocal tariffs on Vietnam and 74 other countries, while applying a 10% tariff during this period. China alone will be subject to a 125% tariff. This scenario will help businesses "breathe easier" and maintain their export capacity to the United States in the next 90 days, while expecting good negotiation results for a more competitive tariff after the above deadline ends....

The United States is one of the two largest seafood import markets of Vietnam.

However, the Association is also concerned about the pressure to reduce seafood imports from Vietnam and increase exports to other Chinese markets, causing more competition. To proactively deal with the uncertainties and negative impacts of the US tax policy, VASEP has compiled opinions from businesses and proposed to the Government and Ministries "02 packages" of necessary support to maintain production, strengthen competitiveness and expand markets....

"02 packages" of support needed to maintain production and strengthen competitiveness

For the first support package, VASEP recommends that the Government and ministries consider clearing production and consumption related to technology, IUU, food safety and quarantine.

In particular, the Ministry of Agriculture and Environment is requested to complete the draft decree amending and supplementing a number of decrees in the field of fisheries (based on the appraisal of the Ministry of Justice ) and submit it to the Government for signing and promulgation before April 15, 2025 to help businesses have valid raw material documents for export to the EU and markets with FTAs....

Representatives of the seafood business sector also proposed that the Government allow the establishment of a "Fisheries Technology Development Fund" following the successful model in a number of countries, with a percentage of export volume allocated, to support technology, innovation and investment connection.

At the same time, it is proposed to add regulations on "minimum detection threshold of equipment - MRPL" related to testing for banned antibiotics to the legal framework of the Draft Decree amending Decree 15/2018 chaired by the Ministry of Health, and assign the Ministry of Agriculture and Environment to provide detailed instructions in the circular, in order to open up the domestic market for seafood products that meet EU export standards but cannot yet enter domestic supermarkets...

VASEP also proposed that the Ministry of Health add regulations on specialized food safety inspection for aquatic products that have changed their intended use to domestic consumption and originated from imports for export production or export processing to the draft decree amending Decree 15/2018....

Along with that, it is necessary to consider the characteristics of the raw material of shrimp caught near the shore to have a letter requesting the EU to exempt IUU regulations when exporting shrimp products to the EU; review the regulation on testing the DNA of sheep, goats and horses in fishmeal produced in Vietnam, propose to reduce this criterion if it is not a general regulation of the importing country, or amend the regulation if the importing country does not require it.

Regarding proposals on taxes, fees, credit, customs and electricity, VASEP proposed that the Government and the Ministry of Finance continue to have policies to exempt and reduce land rent for enterprises until at least the end of 2025; the Ministry of Finance direct local tax authorities to speed up VAT refunds for enterprises; continue to have policies to reduce VAT to stimulate domestic consumption, at least until the end of 2026.

Representatives of seafood enterprises also proposed that the Government and the State Bank continue to maintain the credit package for the forestry and seafood sectors at VND100 trillion or more according to demand until the end of 2026; have policies to reduce loan interest rates, allow businesses to restructure debt repayment terms, and maintain the debt group for debts for inventories purchased for export production to the US.

In addition, VASEP also requested the Ministry of Industry and Trade and the Ministry of Construction to direct the reduction of electricity prices for refrigerated containers at ports for inventory that cannot be exported to the US; the Ministry of Industry and Trade to direct the policy of allowing businesses to invest in rooftop solar power up to 2MW (currently only 1MW) and the Electricity Department to have a temporary policy of accepting to buy electricity exceeding the threshold by 30% to reduce costs of inventory storage and production.

Regarding proposals on labor, market and FTA, VASEP recommends that the Social Insurance allow businesses to extend the time for paying social insurance and support unemployment benefits for workers due to reduced production and finding new markets.

Relevant ministries provide unified guidance on labeling of exported aquatic products processed from imported raw materials as "Made in Vietnam" or "Product of Vietnam" and release shipments that are suspended due to regulations in Decree 111; The Government directs inspection and examination agencies (under ministries and provinces) not to organize periodic inspections in 2025-2026 for enterprises showing no signs of violations.

For the second support package, to partly balance the deficit from the US market, VASEP proposed maintaining and enhancing trade promotion activities in other markets.

Specifically, for the North American Seafood Expo (Boston), VASEP proposed that the Ministry of Industry and Trade continue to support all costs of space and setting up Vietnamese booths in case businesses cannot contribute enough costs.

For the Global Seafood Exhibition in Barcelona, ​​Spain, VASEP proposed that the Ministry of Industry and Trade and the Ministry of Agriculture and Environment continue to provide financial support for businesses and associations to carry out sideline activities of the exhibition such as a reception to introduce pangasius, cooking shows, and networking.

Asian Seafood Expo (Singapore), VASEP requests support from the State Budget for VASEP booth because most of the participating enterprises are small and medium-sized. China Seafood and Fisheries Expo (Qingdao), proposes State budget to sponsor activities to promote national booths and "Vietnam Seafood Reception & Networking"

Korea Fisheries and Seafood Fair (Busan), VASEP proposed that the representative of the Ministry of Foreign Affairs/Ministry of Industry and Trade connect the Organizing Committee to donate booths according to diplomatic regulations and support funding for organizing B2B connections.

For new fairs and exhibitions proposed for the national trade promotion program, VASEP hopes that the State budget will support 100% of booth costs (premises, design, equipment) in the initial period to attract businesses to participate in new markets.

VASEP requests the Deputy Prime Minister and Ministers to consider and direct timely support for seafood production and export enterprises to maintain the production and export chain and continue to create livelihoods for farmers, fishermen and workers. The Association believes that timely and effective support from the Government will help the Vietnamese seafood industry overcome this difficult period and continue to develop sustainably.

Source: https://baodaknong.vn/02-goi-ho-tro-can-thiet-cho-doanh-nghiep-thuy-san-viet-nam-sau-don-thue-tu-my-250198.html