Vietnam's shrimp export industry is facing fresh challenges in the US market following the latest anti-dumping duty decision by the US Department of Commerce (DOC). The revised rates have raised concerns among seafood companies about export competitiveness, production costs and the potential impact on shrimp farmers.
The decision forms part of the DOC's 20th administrative review of frozen warmwater shrimp imported from Vietnam. The review covers shipments made between February 1, 2024, and January 31, 2025.
Different Duty Rates for Vietnamese Companies
The final determination has resulted in changes to the anti-dumping duty rates applicable to several Vietnamese shrimp exporters.
Sao Ta Foods JSC received a revised rate of 10.71%, slightly lower than its earlier rate of 10.76%. In contrast, Soc Trang Seafood JSC saw its rate increase from 6.30% to 6.36%.
Other exporters eligible for a separate rate were assigned a duty of 7.59%. These differences mean that Vietnamese companies will face varying levels of trade costs when exporting shrimp to the US.
Despite the small reduction in its rate, Sao Ta Foods expressed dissatisfaction with the outcome and questioned the methodology used in the investigation.
Dispute Over Production Cost Calculations
The main disagreement centres on how US authorities calculated the production costs of Vietnamese shrimp exporters.
Sao Ta Foods chairman Ho Quoc Luc argued that certain input prices used by the DOC did not reflect the actual costs incurred by Vietnamese businesses. He pointed to shrimp feed valuations, stating that the surrogate price used in the calculation was more than ten times the actual cost.
Vo Van Phuc, chairman and general director of Vietnam Clean Seafood Corporation, also raised concerns about the calculation process. His company received a final duty rate of 7.59%, compared with the previous rate of 4.84%.
Phuc questioned the use of juvenile shrimp feed prices in calculations covering the entire production cycle. He said feed for juvenile shrimp represents only around 6% of total feed consumption, but the pricing was applied more broadly to shrimp farming operations.
This approach, he argued, could put vertically integrated companies involved in both farming and processing at a disadvantage.
Export Competitiveness and Farmer Concerns
Higher anti-dumping duties can increase the cost of supplying Vietnamese shrimp to the US market. If exporters struggle to absorb these additional costs, they may face pressure on pricing, margins and their ability to compete with suppliers from other countries.
The consequences could extend beyond processing companies. Changes in export demand and purchasing strategies may also affect shrimp procurement and the prices received by farmers.
However, Sao Ta Foods has indicated that it intends to continue serving the US market rather than withdraw. The company considers the market important because of its established customers and long-standing commercial relationships.
Exporters Consider Legal Challenges
The affected companies are considering further action against the determination. Sao Ta Foods is exploring the possibility of consulting legal advisers and challenging the decision through the relevant US authorities.
Vietnam Clean Seafood Corporation is also planning to coordinate with other businesses to contest the outcome before the US Court of International Trade.
The case highlights the growing importance of trade investigations for seafood exporters. For Vietnam's shrimp industry, the final impact will depend not only on the duty rates but also on how companies respond to the decision and manage their competitiveness in the US market.
