Early warning helps seafood businesses overcome difficulties

Early warnings about the risk of trade defense investigations will help Vietnamese seafood businesses prepare well to overcome lawsuits.

Active support from the Ministry of Industry and Trade

The United States is the largest market for Vietnamese seafood exports, accounting for nearly 20% of the industry’s total export turnover, especially shrimp and pangasius. However, over the past 20 years, Vietnamese shrimp and pangasius exporters have had to constantly face anti-dumping and anti-subsidy lawsuits in this market.

Successfully responding to trade defense investigations requires business consensus

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam's pangasius products have been investigated and subject to anti-dumping duties by the United States since 2003 and shrimp products since 2004. Up to now, Vietnam has undergone 21 annual administrative reviews, the results of which also change annually and depend largely on the calculation method, the selection of mandatory defendants, and the decision on alternative countries by the US Department of Commerce (DOC).

In addition, because the United States has not recognized Vietnam as a market economy , the US Department of Commerce has chosen a country with an equivalent economy, a significant number of manufacturers and similar to Vietnam to decide to be the replacement country to calculate the anti-dumping tax rate for Vietnam. In fact, the US Department of Commerce does not choose a fixed country but changes it according to each review period, which makes businesses always passive.

It can be said that facing trade defense investigations, along with technical barriers and regulations of origin under the US Seafood Import Monitoring Program (SIMP), according to the Vietnam Association of Seafood Exporters and Producers, will be difficulties and obstacles for businesses to promote seafood exports to the US, as well as reduce the competitiveness of Vietnamese seafood compared to other countries.

In recent times, according to Mr. Nguyen Hoai Nam - Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), the Ministry of Industry and Trade, specifically the Department of Trade Defense, has accompanied and supported the Association and seafood enterprises a lot. Accordingly, the Association and enterprises have always received the attention and active support of the Department of Trade Defense in the process of participating in anti-dumping and anti-subsidy lawsuits. Through that, it has contributed to helping seafood enterprises improve their competitiveness in export and maintain their market share.

At the same time, in the anti-dumping lawsuits against shrimp and pangasius, the Vietnam Association of Seafood Exporters and Producers is always the focal point to organize regular meetings with businesses to discuss appropriate participation strategies for each review period, collect monthly sales data of businesses participating in the lawsuit, and compile sales statistics. Through the data, assessments are made of the participation situation in each review period and timely preparation is made.

Thus, with the support of the Ministry of Industry and Trade, the Department of Trade Defense, and the proactiveness of the Vietnam Association of Seafood Exporters and Producers, seafood enterprises have been supported to respond and be more resilient to trade defense investigations in the US market as well as other export markets.

Businesses must proactively pursue lawsuits.

In the coming time, to continue maintaining export activities to the US market, improving the capacity to respond to trade defense investigations of seafood enterprises needs to be promoted, according to the Deputy Secretary General of the Vietnam Association of Seafood Processors and Exporters.

Mr. Nguyen Hoai Nam - Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP). Photo: VNA

In particular, Mr. Nguyen Hoai Nam said that there must be consensus and a meeting of businesses in the industry when an incident occurs. This is evident from the results of the lawsuits against Vietnamese shrimp, which have achieved relatively positive results as they are now thanks to the consensus of businesses.

In addition, the leaders of the Vietnam Association of Seafood Exporters and Producers recommend that businesses need to be proactive in their export plans to the US market in terms of output, product types, and selling prices, etc. They also need to carefully prepare technical and accounting documents of the business. Business information needs to be systematized from the stages of ponds, harvesting, input materials, production costs, preservation, depreciation rates, labor, other additional costs, etc. During the process of providing investigation information, businesses must participate in answering questions from the US Department of Commerce on time, and have funds ready to hire legal counsel when participating in lawsuits.

In the coming time, from the industry perspective, Mr. Nguyen Hoai Nam said that the Trade Defense Department will continue to be the main force in responding to trade defense. Therefore, the Vietnam Association of Seafood Exporters and Producers hopes to continue receiving the attention of the Ministry of Industry and Trade and the Trade Defense Department in updating information and developments of anti-dumping lawsuits in the United States and other markets.

In particular, according to Mr. Nguyen Hoai Nam, the Department of Trade Defense needs to continue to increase early warnings about the risk of investigation for Vietnamese enterprises, which will help enterprises prepare well to overcome lawsuits and achieve the best results.

At the same time, it is necessary to coordinate research and have a full assessment of the benefits brought by the US recognizing Vietnam as a market economy for each separate export sector. "We will always accompany to recognize Vietnam as a market economy. Although it may take a lot of time and resources, this is a very important issue, " Mr. Nam emphasized.

Mr. Nguyen Hoai Nam - Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP): The Ministry of Industry and Trade, specifically the Department of Trade Defense, has always accompanied and supported the Association and seafood enterprises in the process of participating in anti-dumping and anti-subsidy lawsuits. Through that, it has contributed to helping seafood enterprises improve their competitiveness in export and maintain their market share.

Source: https://congthuong.vn/canh-bao-som-giup-doanh-nghiep-thuy-san-vuot-qua-kho-khan-368959.html