On 21st August, the US Department of Commerce (DOC) removed the antidumping duty imposed on about 31 Vietnamese warmwater prawn exporters. Those companies had previously been subjected to a 4.58% duty – to account for what US prawn producers believed to be under disadvantage with. This is likely to be beneficial for Vietnamese prawn producers and exporters as it would increase the favourable conditions for Vietnam’s products. In addition, Vietnam is likely to have a higher competitive advantage compared to other markets such as China, which has been hit by the amount of protectionism put in place by the US market.
Vietnamese exports of prawns to the US increased by 5% y-o-y between January and July 2019, despite the antidumping tariffs being in place. The growth in exports is mainly driven by a reduction in US prawn inventories and reduced exports from India, Thailand, and primarily China (due to the ongoing trade tensions with the US).
Mintec prices for Vietnamese prawn (blacktiger) are down 2% y-o-y between January and August 2019. However, prices should start to recover slightly over the next few months, as there are signs of improvement in demand according to the Vietnam Association of Seafood Exporters and Producers (VASEP).