Group 8 catfish vietnam us

quy trình xuất khẩu cá basa, từ việt nam sang USA, từ quy trình đàm phán cho đến tính toán chi phí, bao gồm hợp đồng xuẩt khẩu và các khâu đàm phán

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION

GROUP PROJECT

TOPIC: PLANNING TO EXPORT CATFISH FROM

VIETNAM TO US

COURSE: INTERNATIONAL BUSINESS II

INSTRUCTOR: MSc LUONG THI KIM OANH

TABLE OF CONTENTS PART 1 POTENTIALS OF EXPORTING AND IMPORTING

MARKET 3

1.1 Exporting catfish market in Vietnam 3

1.1.1 General situation 3

1.1.2 Export volume 4

1.2 Importing catfish market of the US 5

1.2.1 Consumption situations 5

1.2.2 Incomes 6

1.2.3 Demand volume/value 7

1.2.4 Imports markets 7

1.2.5 Competition 8

1.2.6 Legal regulations 8

PART 2 TRADE BARRIERS 10

2.1 Tariff barrier 10

2.1.1 Tax barriers for exporting Vietnamese catfish to the US 10

2.1.2 Tariff barrier on importing Vietnamese’s catfish of the US 10

2.2 Non-tariff barrier 10

2.2.1 Export turnovers of Vietnamese catfish products 11

2.2.2 Current situation of US non-tariff measures 12

PART 3 INTERNATIONL SALES CONTRACT 14

PART 4 RESPONSIBILITIES OF SELLER/BUYER 17

4.1 Responsibilities of Seller 17

4.2 Responsibilities of Buyer 17

PART 5: PRICING STRATEGY 18

5.1 Pricing factors 18

5.2 Pricing strategy 18

PART 6: TRANSACTION RESULTS 20

REFERENCE 21

PART 1 POTENTIALS OF EXPORTING AND IMPORTING

MARKET1.1 Exporting catfish market in Vietnam

1.1.1 General situation

With more than 1.6 million tons exported each year, Vietnam is the biggest catfish exporter in the world Catfish exports from the nation are valued at more than $2.4 billion

With almost 35 percent of all Vietnamese catfish exports going to the US, this country is the main market for the fish China (20%), the European Union (18%), and Mexico (10%) are the other three important markets

Because of the ideal climate and water conditions for catfish farming, the Mekong Delta region of Vietnam is home to a highly concentrated catfish industry Furthermore, there

is strong industry cooperation with the processing and export sectors

Ten Mekong Delta provinces in Vietnam—An Giang, Dong Thap, Tien Giang, Can Tho,Vinh Long, Ben Tre, Hau Giang, Soc Trang, Tra Vinh, Kien Giang, Tay Ninh, and Quang Nam—are home to the majority of catfish cultivation and development The Mekong Delta's major catfish farming regions are the provinces of Can Tho, An Giang, and Dong Thap, which produce more than 75% of the nation's catfish The catfish

business has good control over the sources of its raw materials, ensuring chain-wide sustainable manufacturing

Catfish farming in the Mekong Delta is expected to occupy 5,700 hectares overall and yield 1.56 million tons of fish, according to a study from the Directorate of Fisheries.Localities in the Mekong Delta area are producing constant amounts of catfish seed in

2020 Over 120 catfish breeding establishments (facilities that maintain catfish parents) and nearly 4,000 hectares of fingerling catfish have been produced in the Mekong Delta region This production of fingerlings has produced about 2 billion fish (100 percent more than in 2019) and has replaced 60,000 thousand selected parent fish, resulting in a gradual improvement in the quality of catfish seeds

GlobalGAP, ASC, and BAP, among other stringent international quality management and food safety standards, are adhered to in the production of catfish products Because catfish is so nutritious, it is becoming more and more popular worldwide Vietnam supplied catfish to 138 markets worldwide in 2020 With 80.4% of the overall export value, the top 8 key markets are China-Hong Kong, the US, ASEAN, the EU, the UK, Mexico, Brazil, and Colombia

Vietnam is home to about 100 catfish industries, the most of which are found in the Mekong Delta The majority of these facilities are outfitted with cutting-edge machinery and technology that enable the manufacturing of value-added goods and the automation

of certain production line steps

The Vietnamese government has provided financial assistance to farmers as well as investments in research and development to boost the catfish industry The government has also attempted to export Vietnamese catfish overseas

In the upcoming years, it is anticipated that the Vietnamese catfish export industry wouldcontinue to expand Several reasons contribute to this, including:

• Rising catfish demand in major countries like China and the United States

Competitive costs for catfish from Vietnam

• Assistance from the government to the catfish business

Nevertheless, there are a number of obstacles facing the Vietnamese catfish export industry, such as:

· Competition from other nations that produce catfish, such Thailand and Indonesia

· Environmental issues

· Food safety concerns

By investing in new technology, collaborating with foreign organizations, and

implementing better management techniques, the Vietnamese catfish sector is attempting

to overcome these obstacles

The Vietnamese catfish export market has the following potential in particular:

· Growing into new markets, such Southeast Asia, and the Middle East

· Creating new goods, such value-added items and catfish fillets;

· Investing in branding and marketing to introduce Vietnamese catfish to customers worldwide

The export of Vietnamese catfish is a vibrant and expanding industry The sector is positioned to benefit from the rising global demand for catfish products

1.1.2 Export volume

CPTPP purchased 158 million USD worth of catfish from Vietnam in the first eight months of 2023, a 3% decrease from the same time in 2022, according to the Vietnam Association of Seafood Exporters and Producers Exports of Catfish to this market were

23 million USD in August 2023 alone, an 11% decrease from the same month the

previous year The decline is less pronounced than it was in earlier months

With 7 million USD, down 4% over the same time, Mexico is the top market in the CPTPP bloc for the import of Vietnamese catfish With 4 million USD, 3 million USD, and 2.8 million USD, respectively, down 4%, 24%, and 14%, came Canada, Japan, and Singapore in second place

Vietnamese catfish exports to the CPTPP market were valued at 167 million USD as of September 15, 2023, a 32% decrease from the same period the previous year

Comparing the first half of September 2022 to the first half of September 2023, catfish exports to markets within the CPTPP bloc primarily showed positive growth

In the first half of September of this year, CPTPP imported Vietnamese catfish worth approximately 9 million USD, a 17% increase over the same period the previous year Compared to the same period in 2022, certain markets have experienced double-digit positive growth Japan, Mexico, and Canada have seen increases of 75% and 59%, respectively, to 1.3 million USD and 2.4 million USD and 16% to 3 million USD,

respectively

1.2 Importing catfish market of the US.

1.2.1 Consumption situations

The US National Marine Fisheries Service (NMFS) reported to the Vietnam Association

of Seafood Exporters and Producers (VASEP) that during the first eight months of this year, the US imported over 83 thousand tons of fish and catfish from 25 different

countries, valued at 235.5 million USD

The US domestic fish market share has been threatened by imported catfish since 2000, according to Chad Causey, a representative of the American Catfish Farmers

Association Domestic catfish continued to rule the market prior to that However, as imported fish overflowed the market, domestic catfish's market share dropped from 80%

in 2002 to 24% in 2019, while imports of catfish from Vietnam increased fivefold

Even though the 2018 fingerlings were twice as large as the 2006 ones, the average cost

of catfish, the total farming area, and fish estimates all dropped after control was

transferred to the USUA in 2016 US critics of catfish remained firm in their positions Regarding the glut of Vietnamese catfish on the market, nothing is said In the meantime,the COVID-19 pandemic is causing greater concern for the US catfish Farming

Association, an organization that has long opposed fish imports Causey stated that the

US seafood and fisheries industries are looking for workers to fulfill the growing demandfor food products, regardless of whether imports rise or not at this time USA

Vietnam is the EU's biggest source of catfish, making up 98% of the total value and 97.7% of the volume of EU catfish imports from outside the bloc, according to Eurostat

data Vietnamese catfish products, however, face fierce competition from other suppliers

to the EU

This is making it extremely difficult for Vietnam to export catfish to the EU Vietnam's competitive advantage over other suppliers when the EVFTA goes into effect is in the category of other white meat fish products imported into the EU, when the country supplies 97% of the catfish used in EU markets

Many companies are currently shifting or prioritizing exporting catfish to other more convenient and suitable markets, like China and ASEAN, because the EU is a market with very high requirements In comparison to the same period in 2020, it is anticipated that there won't be many changes in Vietnam's catfish exports to the EU in the second half of 2021

1.2.2 Incomes

Income, including catfish imports from Vietnam, does not significantly affect catfish demand in the EU market as mentioned earlier However, it is important to remember that people with different income levels may have different preferences and buying habits for catfish

A report published by the Economic Research Service indicates that American

households earning $25,000 or less are more likely than higher-income households to purchase larger amounts of catfish The study also reveals that low- to moderate-income households in the US consume the majority of catfish

However, consumers with higher incomes might be willing to pay more for seafood, particularly catfish in Vietnam This is due to the fact that when choosing food,

consumers with higher incomes typically give greater weight to factors like taste, quality,and health benefits

The US Census Bureau reports that in 2019, the median household income in the US was

$68,703 Despite the fact that income level does not significantly influence the demand for fish products overall, this data might indicate that households with higher incomes have a higher likelihood of being interested in fish products Purchasing premium fish, like catfish products, from Vietnam is more probable

1.2.3 Demand volume/value

The US Department of Fisheries (NMFS) reported that in the first 2 months of 2019, US imports of Vietnamese seafood reached 41.4 thousand tons, worth 263.27 million USD,

an increase of 32,000 tons Compared to the same period in 2018, an increase of 29.3%

in value and an increase of 9% in volume Vietnam's seafood market share in total US imports increased from 6.43% in the first two months of 2018 to 9.28% in the first two months of 2019 Seafood exports reached 303.8 million USD in the first 15 days of April

2019, down 5.1% over the same period last year same period in 2018 Seafood exports reached 2.09 billion USD from the beginning of the year to April 15, 2019, an increase

of 0.5% over the same period in 2018 According to the Ministry of Industry and Trade, Vietnam is a market for seafood sources provide seafood is the second largest seafood product in the US in the first 2 months of 2019 Vietnam's seafood exports to the US increased suddenly due to a sharp increase in catfish imports This amount represents the amount of money that US importers have spent to supply the domestic seafood market Italso highlights the financial prospects for catfish exporting countries, such as Vietnam, toincrease their share of the US market Demand for imported catfish may also be affected

by changes in trade patterns and shifts in world catfish supplies For example, changes inweather and natural disasters can impact catfish production and exploitation in key exporting countries, leading to short-term fluctuations in fish supply and prices

However, farmed catfish in the US continues to be a significant source of fish

consumption

1.2.4 Imports markets

In recent years, Vietnam has emerged as a major supplier of catfish to the US market, accounting for 89.5% of all imports Vietnam produces and exports catfish to satisfy the demands of the US restaurant and seafood processing industries However, Vietnamese exporters must abide by US laws and requirements regarding food safety and quality in order to import catfish into the US To guarantee the safety and caliber of imported goods, the US has stringent laws governing food safety and high standards for quality Another significant element in the catfish import market is competition Catfish is also imported into the US from Mexico, China, Indonesia, Chile, and other nations For instance, China and Vietnam are the two main suppliers of catfish to the US Vietnam saw a 12% increase in frozen catfish imports during the same period in 2020, whereas China saw a sharp 41% decrease in imports Therefore, in order to preserve and increase their market share in the US market, Vietnamese catfish exporters must compete with other businesses on the basis of price, quality, and service

Numerous variables, including the availability and quality of catfish in each nation, tradeagreements between the US and the exporting nation, the cost of shipping, and

commodity prices, affect the choice of market for catfish imports into the US In an effort to safeguard domestic producers and maintain security, the U.S government may also impose trade restrictions, such as tariffs or quotas, on catfish imports from specific nations

1.2.5 Competition

The largest sources of catfish supply to the US market are China, India, and Vietnam, according to the latest statistics of the International Trade Center Among them, China maintains a larger market share in the US thanks to its strength in catfish products, accounting for 33–48% of total whitefish imports Nearly 90% of the total amount of catfish imported into the US is from Vietnam In addition, frozen fish products from

Brazil, El Salvador, Norway, Korea, Guinea, Sierra Leone, Nigeria, Burma and Ghana are also imported by the US.

Overall, among the most commonly consumed seafood products in the US are imported fish products such as catfish from China and catfish from Vietnam However, depending

on consumer preferences, there are also many other seafood options on the market such

as frozen catfish from Korea, Guinea, Sierra Leone, Nigeria, Burma and Ghana, as well

as catfish , eel, snakehead fish and frozen catfish from Brazil, El Salvador, Norway and Korea

Several factors promote competition among imported catfish producers Fish quality can

be affected by various processes such as harvesting, processing and packaging, as catfishbuyers in the United States are often particularly concerned about the quality of the products they purchase Fish importers that can reliably supply high-quality fish can often command premium prices

1.2.6 Legal regulations

"Foods imported into the US must not only be subject to income but also apply standards

of quality and grade to ensure safe food supply" is the key legal regulation governing the import of catfish into the country

Exporters must be aware of and abide by a number of legal requirements when importingcatfish into the United States Some significant laws pertaining to the importation of US catfish:

1 FDA (Food and Drug Administration of the United States): FDA is the US agency responsible for managing food and drug safety Exporters must abide by all FDA

regulations pertaining to food safety, including those governing the manufacture,

packing, and delivery of goods Products made from catfish must adhere to food safety regulations and not include any prohibited ingredients or impurities

2 The Food Safety Modernization Act (FSMA) is a US law that aims to modernize food safety According to this law, exporters must provide proof that they follow food safety laws when producing, processing, and shipping goods Exporters must abide by the rules regarding risk management, risk analysis, and risk control

3 The US Department of Fisheries and Oceans houses the National Marine Fisheries Service (NMFS) Regulations and guidelines about the importation of fishery products, including catfish, are provided by NMFS When it comes to the origin, tracking, and reporting of catfish origin, exporters must abide by NMFS regulations

4 Customs and Border Protection (CBP): The US government agency responsible for managing customs CBP establishes the rules and specifications for importing goods and clearing customs Exporters must abide by CBP rules regarding the declaration,

packaging, labeling, and customs requirements of their goods

Catfish products imported into the US must comply with food safety regulations in addition to labeling requirements Information such as product weight, nutritional data, and the manufacturer's name and address must be listed on the label Labeling

requirements ensure that Americans are fully informed about the type of catfish they purchase Regulations relating to media and advertising as well as freight forwarding andtransportation add to the concerns

Lastly, trade agreements like US-Korea (KORUS), US-North America (NAFTA), Pacific(TPP), and US-European Union (TTIP) These agreements stipulate the need to

safeguard markets for catfish and other fisheries products amongst members, enforcing origin regulations and tariffs, and facilitating trade among members that may have an impact on the import of catfish into the US from TPP member nations

PART 2 TRADE BARRIERS 2.1 Tariff barrier

2.1.1 Tax barriers for exporting Vietnamese catfish to the US

There are certain tax barriers affecting trade in the context of Vietnam's export of catfish

to the United States The anti-dumping tax on imported catfish from Vietnam is one significant tax barrier Anti-dumping tax: In 2003, certain frozen fish fillets from

Vietnam, including catfish, were subject to an anti-dumping tax enforced by the US Department of Commerce (DOC) Allegations of "dumping," or the sale of goods on the American market for less than their fair value, led to the imposition of the tariffs The goal of anti-dumping duties is to shield the US domestic catfish market from unfair competition Certain tax rates are subject to review and adjustment over time According

to the Association of Seafood Exporters and Producers (VASEP), preliminary findings from the 19th administrative review of the dumping tax on frozen US catfish fillets are available in the US Federal Register The US will welcome Vietnam between August 1,

2021, and July 31, 2022 According to VASEP, the US is consistently Vietnam's top import partner for seafood Vietnam will export a record amount of seafood to the US in 2022—2.15 billion USD—an increase of 80% over the previous ten years, prior to the establishment of the Comprehensive Partnership between Vietnam and the US in 2013 Just the catfish segment saw a 50% increase in export turnover, going from 359 million USD to 537 million USD To avoid potential fines or trade restrictions, Vietnamese exporters of catfish should update their anti-dumping tariffs and adhere to US

Department of Commerce regulations It's also important to note that trade agreements and tax laws are subject to change

2.1.2 Tariff barrier on importing Vietnamese’s catfish of the US.

Freight costs

The total cost of importing catfish into the US also includes freight charges Vietnam's freight rates have risen dramatically since the start of 2022 One of the reasons for high freight rates in Asia is the result of extended supply chain disruptions that have reduced the availability of cargo containers Nonetheless, the most current data from June 2022 indicates that freight rates in Vietnam are marginally declining

2.2 Non-tariff barrier

Seafood is always regulated by the government using technical and sanitary measures because it is a highly sensitive product that directly affects human health, safety, animal and plant life, and the environment food security For instance, non-tariff measures are applied to agricultural products 100% of the time in the US, which means that tariffs on non-tariff measures apply to 100% of seafood imported into these markets

The primary export from the Mekong Delta is catfish, but in recent years, importers haveplaced numerous restrictions on this product due to concerns about food safety and hygiene, particularly in the US Furthermore, as of March 1, 2016, all products imported

into the United States that are made from catfish (Siluriform) will be subject to a more rigorous inspection program by the US Department of Agriculture.

When it comes to Vietnam's export turnover of agricultural and aquatic products, the US has consistently ranked third in recent years In 2020, Vietnamese seafood exports to the

US reached a value of over 26 billion USD Seafood exports to the US are expected to hit a record 2.15 billion USD in 2022, up 80% from 2012—the year the US and Vietnam established the Comprehensive Partnership (2013) Vietnam's principal seafood exports

to the United States comprise of various marine and freshwater fish species, crabs, clams,and catfish But the US market also has a lot of stringent rules about methods,

cleanliness, and quarantine for imported seafood The US International Trade

Commission (ITC) and Food and Drug Administration (FDA) state that the following actions are specifically targeted at Vietnam: The US Seafood Safety Program (Seafood Import Monitoring Program) has stringent guidelines regarding the safety of imported seafood products, as well as the evaluation and granting of export certificates Seafood Anti-Dumping and Countervailing Duties regulations, which govern the evaluation and issuance of export certificates as well as trade fraud prevention, are mandatory for

seafood export enterprises operating in the United States If the exporting nation is found

to be engaging in dumping or subsidizing activities, the US may impose anti-dumping and anti-subsidy duties on imported seafood products

Thus, in order to understand how US non-tariff measures effect exports, research on the effects of these policies on Vietnam's seafood exports is both important and required By using a gravity model on data pertaining to the seafood trade between Vietnam and the United States, Vietnamese exporters are competing with other seafood exporters

2.2.1 Export turnovers of Vietnamese catfish products

According to VASEP, catfish is becoming more and more popular among consumers worldwide due to its flavor and neutral structure, ease of preparation, and affordable price that makes it suitable for all consumption categories Vietnamese catfish is

available in more than 140 markets worldwide, including the US, EU, and even

unregulated capital markets These traditional markets have stringent food safety and technical regulations favor Japanese farmed fish According to VASEP statistics, catfish alone accounts for 16–26% of Vietnam's total seafood export value, with an annual turnover of 1.5–2.4 billion USD

The COVID-19 pandemic's effects caused catfish exports to fall to a record low of

almost 1.5 billion USD in 2020, a 26% decrease from 2019 Less demand and, more critically, the current circumstances are the cause The global trade logistics chain has been disrupted, and the sharp rise in shipping costs has made it impossible for catfish businesses to thrive in far-off markets like America and Europe While the consumption market starts to stabilize in 2021, the entire seafood commercial production chain is disrupted as waves of the COVID-19 epidemic continue to break out in Vietnam,

peaking in the third quarter of the same year catfish, which is situated in the epicenter of

the epidemic and is stagnant at a time when export production needs to be accelerated, is the most severe example of disruption As a result, even with an 8% recovery, catfish exports are still only worth over 1.6 billion USD Vietnam's catfish exports, which reached a record of USD 2.4 billion in 2022, represented a significant breakthrough Demand rose across all markets following the epidemic's peak, and there was still a significant amount of inventory Production and processing also recovered Prices for catfish exports to markets rose by 20–55%, particularly in the US market.

2.2.2 Current situation of US non-tariff measures

The US government's increasing implementation of non-tariff barriers, the most common

of which are sanitary and epidemiological measures (SPS), technical barriers (TBT), anti-dumping (ADP), export subsidies (XS), special safeguard measures (SSG), and tariffquotas (TRQ), is posing a serious challenge to Vietnamese exporters, even in spite of the remarkable growth in seafood exports to the US As of June 30, 2020, the United States had implemented 3,178 sanitary measures and 1,829 technical barrier measures (TBT), a very significant number of non-tariff measures

The food safety standards in the US market are extremely stringent and include controls over growth hormone and antibiotic residues as well as hygiene laws In order to

guarantee that their products can be imported into the United States, Vietnamese

exporters must fully comply with these requirements Vietnam's main export product to the US market is catfish, which is one of the world's largest markets for seafood imports However, US non-tariff measures pose serious challenges for Vietnamese seafood

exporters The US market has very strict regulations governing food safety, including limits on growth hormone and antibiotic residues as well as laws pertaining to hygiene Technical specifications, including restrictions on weight, size, and packaging, are also

in place for seafood imports into the US market Import license applications, tax

payments, and quality inspections are just a few of the time-consuming and expensive processes involved in importing seafood into the United States In order to guarantee thattheir products can be imported into the United States, Vietnamese exporters must fully comply with these requirements The United States has imposed anti-dumping duties on Vietnamese fish imports of catfish and Basa since 2003 This has resulted in substantial losses for seafood exporters from Vietnam The Ministry of Agriculture and Rural

Development estimates that Vietnam will export 387 million USD worth of catfish seafood to the US in 2023—a 11% decrease from 2022 The US's non-tariff measures arethe primary cause of this decline

In order to boost seafood exports of catfish to the United States and get past non-tariff barriers, Vietnamese exporters must take the following actions:

To meet US market standards, improve the quality of your products and services

Thoroughly familiarize yourself with US import laws and procedures