Vietnam: Increased anti-dumping tax a blessing in disguise

20/03/2013 12:00 - 437 Views

Though some Vietnamese catfish exporters may be affected by new anti-dumping taxes in the US, there is good news following the incident, Duong Ngoc Minh, deputy chairman of the Vietnam Association of Seafood Exporters and Producers (VASEP), said on Sunday.

Last weekend the country’s catfish export sector was shocked to learn of the new ruling of the U.S. Department of Commerce’s 8th preliminary results of administrative review (POR8), which hiked the anti-dumping tariff more than 25-fold for several Vietnamese exporters.

With many Vietnamese firms used to enjoying nearly zero duty according to the DOC's preliminary decision announced six months ago, the new tariff was a real shock.

“The exorbitant anti-dumping tax rates have severely affected several local exporters, but it also creates a chance for the country to hike its catfish exporting prices,” Minh asserted.

While many firms have had to recall their exports following the implementation of higher taxes, other companies are being contacted by US importers, he said.

“With several Vietnamese firms ceasing exports, the US importers have to look for alternative exporters to maintain their stock, thus creating a chance for other exporters,” he explained.

Chances amid challenges

Nguyen Van Ky, CEO of Agifish, said he is flying to the US to negotiate a new export contract.

“Since the DOC announced the POR8, US customers have repeatedly contacted me for catfish orders,” Ky said.

Ky has been invited to the US by the country’s four leading catfish importers, he said.

“Agifish is expected to ship some US$65 million worth of catfish to the US this year, up by $20 million compared to 2012,” he added.

Ky said his company is able to grab this chance because it is not subject to the increased anti-dumping tax.

“Agifish did not ship any products to the US between August 1, 2010 and July 31, 2011, the period which the POR8 looked into,” he explained.

The tariff applied to Agifish’s exports thus remains at only $0.02 a kg, he said, adding that seven other companies are also in the same situation.

“The US importers have to switch to these companies to make up for the orders they have signed with the exporters that have to bear heavy taxes,” Minh, of VASEP, explained.

Minh said the eight exempt companies are completely capable of meeting US demand, even if 20 other firms have to stop exporting.

“This is an opportunity to rearrange the market and set a new price level,” he said.

“But what matters is how the exporters cooperate with each other to grab this chance.”

Mon, March 18, 2013,11:24 AM (GMT+0700)

Source: tuoitrenews.vn