16 outstanding events of the seafood industry in 2016

Looking back at 2016, the Editorial Board would like to present 16 most prominent events of the industry.
1. Formosa environmental pollution incident affecting production and export: In early April 2016, along a strip of the central coast 200km, sea fish died en masse. The waste of Hung Nghiep Formosa Ha Tinh Iron and Steel Co., Ltd. has destroyed the ecosystem of a seabed area and caused heavy damage to all economic aspects of the four central provinces. Particularly for the seafood industry, this environmental incident has seriously affected seafood production of fishermen and businesses. The pressure of the import market on Vietnamese seafood enterprises is increasing. Faced with this difficulty, on August 23, 2016, VASEP sent Official Letter No. 132/2016/CV-VASEP to the Government, Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to support seafood processing and export enterprises and fishermen. Central province restored production.
2. The 11th anti-dumping tax (POR11) on pangasius is high: On March 29, 2016, the US Department of Commerce (DOC) announced the final decision on the administrative review of anti-dumping tax. 11th price (POR11) for the period from August 1, 2013 to July 31, 2014 for pangasius products imported from Vietnam. In the final conclusion, the DOC determines the final tax rate: The two defendants are required to be $0.41/kg, and $0.97/kg; The tax rate for 14 voluntary respondent enterprises is: 0.69 USD/kg and the national tax rate is still 2.39 USD/kg. Due to the high tax rate, only 2-3 large pangasius enterprises remained in the US market.
3. Drought and saltwater intrusion affect aquaculture: In the first half of 2016, the Mekong Delta is most affected by climate change. Saline inland: 90-93 km (Vam Co river); 45-65 km (Tien river) 55-60 km (Hau river) 60-65 km (Cai Lon river). The situation of drought, lack of fresh water and saltwater intrusion has taken a serious turn, greatly affecting aquatic production, especially freshwater cultured species. Fish mortality increased due to the influence of salt water. The area and density of fish farming decreased. Shrimp farmers also moderate or mainly focus on extensive farming and extensive improvement. According to the Ministry of Agriculture and Rural Development, it is estimated that the total damage of the whole industry due to natural disasters in the past year reached 37,650 billion VND (equivalent to 1.7 billion USD) – this is the highest number ever.
4. Pangasius price down to the lowest level in the last 5 years: In 2016, pangasius prices in the Mekong Delta fluctuated up and down, sometimes even fluctuated. Especially, in August-September 2016, the export market decreased, the consumption was difficult, the price of pangasius raw materials decreased, lower than the production cost, which are the difficulties that pangasius farmers are facing. The price of white fish (type 0.7 – 0.8 kg/fish) is 800 – 1,000 VND/kg lower than the same period in 2015 and 5,000 – 1,000 VND/kg lower than in the first months of 2016 . This is the lowest level in the past 5 years.
5. Anti-dumping tax for shrimp products in the US increased sharply: On September 7, 2016, the US Department of Commerce (DOC) issued the final conclusion of the administrative review of anti-dumping tax on shrimp. 10th (POR10) for the period from February 1, 2014 to January 31, 2015. Compared to the POR9 final tax rate announced earlier, the final tax rate of POR10 has been increased significantly, from 0.91% to 4.78% for both compulsory and voluntary respondent companies.
6.Shrimp exports in 2016 reversed up compared to 2015. From negative growth of 25.3% in 2015. Right from the beginning of 2016, shrimp exports reversed upward and maintained a positive growth rate throughout the whole year. in 2016 from 0.1 – 12.3% (except May 2016). It is estimated that in 2016, the total value of shrimp exports reached 3.15 billion USD, up 7% compared to last year. In which, whiteleg shrimp accounted for 61%, black tiger shrimp accounted for nearly 31%, other marine shrimp accounted for 8%.
7. China surpassed the EU to become the second largest pangasius export market: After 8 consecutive months, the value of pangasius exports to the Chinese market increased continuously, in August and September 2016, pangasius exports to the market. The Chinese market has peaked at $30.9 million and $30 million. By the end of September 2016, the total value of pangasius exports to China – Hong Kong market reached 201.9 million USD, up 75.6% over the same period last year. After months of continuous growth, China has surpassed the EU to become Vietnam’s second largest pangasius export market.
8. Enterprises are confused when implementing the catfish inspection program: At the end of 2015, the US Department of Agriculture announced the implementation of the imported catfish inspection program. From March 2016, this program officially took effect. On May 25, 2016, the US Senate voted to remove the catfish inspection program of the US Department of Agriculture (USDA). With 55 votes in favor and 43 votes against, the US Senate unanimously passed a resolution (Res SJ. 28), canceling the US Department of Agriculture’s Catfish Monitoring Program. Not long after this, Vietnamese pangasius exporters received sad news: the inspection program continued and had no choice but to adapt. In the first stage, businesses could not help but be confused.
9.Increasing regional minimum wages, increasing the burden on businesses: On November 14, 2016, the Government issued Decree 153/2016/ND-CP stipulating the regional minimum wages for employees.

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