Shrimp exports to the US market only account for about 19% of Vietnam's shrimp export turnover (in Ca Mau alone, the US market only accounts for about 6% of the province's export turnover). Photo: LE TUAN

According to a report from the Provincial People's Committee, right after US President Donald Trump announced a 46% tax on imported goods from Vietnam, in recent days, the price of intensive and super-intensive farmed white-leg shrimp has decreased from VND4,000 to VND15,000/kg.

The reason started when shrimp farmers listened to the tax rate situation from the US, fearing that shrimp prices would drop, so many people decided to harvest; because many people harvested, it led to a lot of raw materials entering the factory, businesses were overloaded in production and storage; to regulate the amount of imported goods, businesses reduced their purchase prices, and when businesses reduced their purchase prices, people became more worried and harvested massively, leading to a rapid price drop.

From the above causes and solutions, it can be seen that if there are no timely measures, the shrimp industry chain of the province will be broken, and the damage to people and businesses will be very large.

According to the assessment of enterprises, the amount of goods produced under contracts and the output signed contracts but not yet produced for American customers is still very large. If the announced tax rate of the United States does not change, it is forecasted that the export situation to the US market will face difficulties, even be impossible. The sharp decrease in export turnover to the US market will affect the overall export turnover of the province.

However, according to data published in the media, Vietnam's shrimp exports to the US market only account for about 19% of Vietnam's shrimp export turnover (in Ca Mau alone, the US market only accounts for about 6% of the province's export turnover).

Although the United States has announced a 46% tax rate on Vietnamese goods, however, through monitoring information, before the effective date, the United States is still negotiating with related countries (including Vietnam) on the tax rate. The Vietnamese government has been actively negotiating with the United States to reduce the tax rate; Vietnam's goal is to bring the tax rate of goods between the two sides to 0%.

From the above situation and figures, it can be seen that if the worst case scenario of stopping shrimp exports to the US market occurs, the shrimp output of Ca Mau enterprises will be affected and will need to find new markets by about 6%. If enterprises actively seek and open new markets, and at the same time, negotiations between the Vietnamese and US governments can change the tax rate to a lower level, the impact on shrimp production will not be large. Therefore, people and enterprises should not panic and worry unnecessarily.

Authorities recommend that shrimp farmers should not panic and worry too much, but should continue to produce according to the seasonal schedule, implement measures to reduce production costs, and improve the competitiveness of their products in the market.

Faced with the above situation, the Provincial People's Committee has directed the Department of Industry and Trade, the Department of Agriculture and Environment, and the Provincial Association of Seafood Processing and Exporters to continuously update the situation, closely monitor new developments in taxes and related policies to promptly report to the Provincial People's Committee; at the same time, monitor and grasp the difficulties and problems of enterprises and people in production to promptly consider, remove or propose to competent authorities to take timely guidance measures.

In particular, the Provincial People's Committee directed relevant agencies and local authorities to urgently provide updated information to advise people not to panic and worry too much, but to continue production according to the seasonal schedule, at the same time implement measures to reduce production costs, promote the application of science and technology to improve productivity, product quality, and enhance product competitiveness in the market.

The Chairman of the Provincial People's Committee requested the province's seafood processing and exporting enterprises to ensure the purchase of raw shrimp for the people, to stabilize production; not to let the people be too worried due to the decrease in shrimp prices leading to massive harvesting, stopping production, causing a break in the shrimp industry chain of the province. At the same time, proactively remove difficulties and obstacles of the units, promptly report and propose to the authorities and functional agencies to support the removal to ensure production and business plans; raise the sense of responsibility to accompany the local authorities to overcome current difficulties and challenges.

Relevant departments, branches, provincial media agencies, and local authorities at all levels should step up propaganda and timely information to the people to stabilize production. The Department of Agriculture and Environment continues to direct, guide, and implement plans and programs to develop production most effectively, without affecting the province's target of 8% or more in terms of GRDP./.

Middle Peak

Source: https://baocamau.vn/khong-de-dut-gay-chuoi-san-xuat-tom-khi-my-ap-thue-doi-ung-a38237.html