Assignment g4 thị trường Việt Nam

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION EXPORTING COUNTRY: VIETNAM IMPORTING COUNTRY: THE US PRODUCT: SEAFOOD Group Class: GMA05 Tran Thi My Hai Nguyen Ngoc Huyen Pham Kim Thuy Ngan Truong The Sang 61808 61817 61828 65951 ABTRACTS The report shows the status of seafood exportation from Vietnam to the US in the recent years Along with the legal barriers that Vietnam is facing as a result of exports as well as development opportunities in the US seafood market in recent years based on analyzes and demonstrations by charts and related data In this assignment, firstly we present an overview of the Vietnamese market as the quantity of domestic seafood as well as the potential and market of Vietnam when exporting seafood to the US Next, we present an overview of the US market as seafood consumption as well as imports from Vietnam and other countries in recent years, then compare the countries that the US imported to the Vietnam market Based on that, we will use international market assessment methods to assess issues related to export and consumption of seafood products and then will bring out the advantages and disadvantages that the Vietnamese market will face when exporting seafood products to the US Finally, based on what has been analyzed above, we will give Vietnam some value on fostering seafood exports to the US market TABLE OF CONTENT INTRODUCTION With a coastline of 3260 km, the territorial sea 12 nautical miles wide and exclusive economic zone of 200 nautical miles at sea with an area of about million square kilometers, Vietnam has a lot of potential to develop the seafood industry In addition, Vietnamese seafood is one of the key economic sectors of the country, with a rapidly growing export value and a large source of foreign currency The target that the seafood market in Vietnam is targeting now is the US Exporting seafood in Vietnam to the US has been growing more and more when the opportunities are favorable, but challenges and competition in the economic market are unavoidable when the major exporting countries are also increasingly strong competition such as China, Indonesia, Japan Therefore, the topic of exporting seafood from Vietnam to the US that we present will partly provide useful information for export in Vietnam and imported in the US market to importers have a more comprehensive view on the development potential as well as the value of products that Vietnamese seafood is available The report consists of three parts: Introduction Vietnam’s market Research and analysis US market Political, Trade Barriers and Recommendation PART 1: INTRODUCTION VIETNAM’S SEAFOOD MARKET 1.1 Potential of fisheries in Vietnam Vietnam has a large coastline with more than 3260 km, EEZ (Exclusive Economic Zone) of million km2, together with over 113 estuaries and a number of bays, fishing field were conducted by more than 4000 different sizes of islands With the potential of geography, Vietnam is assessed that a country has a great energy for development and growth of seafood industry Besides, thanks to the division across Vietnam from north to south which relies on climatic and geographic conditions, there are 2,038 marine species, up to 300 of mud crabs, 40 different kinds of shrimp, etc., reserving about million tons for annual (Vietnam Aquaculture Overview) Most of them have high value for commercial as well as are preferred in the international market (VASEP, 2016) Table 1: Aquaculture production by Region in 2015 (Source: http://www.aquafisheriesexpo.com/vietnam/en-us/news-updates/vietnamaquaculture-overview) There are the most prominent region: Red River Delta (Northern Vietnam) makes up for 583.377 tons of total, and Mekong River Delta (Southern Vietnam) accounts for nearly 2.5 million tons in 2015 (table 1) According to Trung Quang and Hilmar (2013), both regions have been exploited for catching wild fish and extending fish production It’s easy to see on table 1, Mekong River Delta is the most catching region with the total of more than 2.4 million tons, thanks to geographical advantage – cover of over 40,500 km2 depending on each season (Food processing in Vietnam, 2013) In addition, Vietnam has its advantage for fisheries development with the total of water surface of up to 1.7 million hectare, of with more than million hectare for exploitation (table 2), according to “Vietnam Aquaculture Overview” Water Surface Area Production System Marine Aquaculture + Fish + Shrimp + Mixed & Other Aqua ('000ha) production Others Total 252.7 0.7 218 % of Total 23.90% 0.10% 20.60% 34 585.9 1,057.30 3.20% 76.10% 100% Table 2: Water Surface Area for Aquaculture in 2015 (‘000ha) Source: http://www.aquafisheriesexpo.com/vietnam/en-us/newsupdates/vietnam-aquaculture-overview FAO found that the potential of marine fish has been estimated at 4.2 million tones, annually catchable each year is 1.7 million tones Vietnam has exploited marine area for fisheries of 252.7 thousand hectares, occupied 23.9% of total (Table 2) Offshore and inshore fishing has increased by an average of 5% with millions of fishing ship Total fishery exploitation has reached over 3.1 million tons in 2016 By 2016, Vietnam has nearly 110 hundred fishing vessels, including more than 2,800 ships of logistic services and over 31 hundred fishing exploiting ship with large capacity (vietnamplus 2017) Thanks to long experience of fishermen in catching and exploiting fishery sector, Vietnam has made proud achievement in fishing production as well as has footprint in exporting foreign market Figure 1: Total fisheries production (metric tons) from 2000 to 2015 Source:https://data.worldbank.org/indicator/ER.FSH.PROD.MT? end=2015&locations=VN&start=2001&view=chart There was an extreme upsurge in the number of fisheries production from 2000 to 2015 in both capture and aquaculture, and continuing increase in the next years In 2007, the production of fisheries rose dramatically at 4,174,900 tons, increased nearly million ton, comparing to 2006 It reached more than million tons in 2015 Minh Duyen found via statistic that seafood account for 65% total of fish product in Vietnam, of which 82% are fish, the rest are shrimp, crab, and other seafood (Potential of fisheries in Vietnam, 2017) 1.2 Vietnamese seafood export situation in the recent years Fisheries are main exporting products and it plays important role in contributing to the economy of Vietnam, occupying 55.3 % of total export value of the country and accounting for about 4-5% of GDP (VASEP) There are main export markets for product of Vietnamese seafood, including the US (main products are shrimp and pangasius), EU (shrimp and pangasius), Japan (shrimp) and China (Sector analysis, 2015) Figure 2: Fisheries export in Vietnam (2013 – 2017) Source: VASEP In 2014, the total export was USD 7.828 billion, increasing 16.5% compared with 2013 (USD 6.69 billion) Because of some difficult condition in 2015, fisheries export reduced more than 1.1 compared to 2014 But the light point is in 2017 with the total export of USD 8.4 Billion, increasing nearly 18% over the same period in 2016 (VASEP) At that point, Vietnam reaches its highest ever seafood export value, according to the Ministry of Agriculture (2017) This figure is higher than the result of USD 7.1 billion in 2016 VASEP also anticipate that seafood export in 2018 will reach over USD 8.5 billion, raising about % compare to 2017 Vietnam seafood has strong growth step thanks to shrimp export Shrimp export nearly 50% of total national export value earnings in 2016 (VASEP 2016) According to Hoe T.D (VASEP General Secretary), export markets believe in Vietnamese shrimp product, for that reason, the growth of shrimp export increase sharply in the recent years Besides, Vietnam export some other seafood species such as pangasius (accounted for nearly USD 1.8 billion in 2017, up 4%), tuna (increase of 16%), crab, etc., recorded by VASEP (2017) PART 2: RESEARCH AND ANALYSIS THE US MARKET General information of US market 2.1 In fact, the US is one of the major seafood importers of Vietnam and numerous countries such as Thailand, Indonesia, and so on US is a developed country with a large population in the world In addition, the US is a multi-ethnic country, mostly white - accounted for 69.1% of the population, blacks with 12.1%, Hispanic got 12.5%, Asia origin reached 3.6% and Native Americans represent 0.8% Therefore, lifestyle, culture and cuisine are different Seafood is one of the favorite foods in the US market According to the latest figures from the Food and Agriculture Organization (FAO), now, the US is the second largest consumer of seafood in the world, after Japan The US market has also imported seafood from Vietnam such as shrimp, octopus, squid, pangasius, tuna, etc 2.2 2.2.1 US imports seafood from Vietnam market Shrimp US is the largest shrimp import market of Vietnam, ranked first in 2016 However, in 2017, shrimp consumption in the US market decreased and the US market had fell to the fourth in the major export markets of Vietnam According to a report by Vietnam Association of Seafood Exporters and Producers (VASEP) (2017), the EU is the largest shrimp import market, followed by Japan and China There are three main types of shrimp consumed in the US market, namely, black tiger shrimp, whiteleg shrimp and sea shrimp 10 In the recent years, Vietnam has become a major supplier to the US market and amount of octopus and squid increased quickly However, in fact, the Vietnam market share of octopus and squid in the US still accounts for a small proportion compared to other supplier in Asia China is the biggest exporter to US market which was 20 times compared with Vietnam This shows that Vietnam's exports of squid and octopus are an opportunity and also a challenge for Vietnam to compete with other exporters 2.3.3 Pangasius After increasing, exports of pangasius from Vietnam to US market decreased in 2017, however, Vietnam is still the largest supplier in the US market and accounted for 90% Therefore, export of pangasius is a strength of Vietnam market 2.3.4 Tuna VASEP (2017) find that US is one of the largest tuna consumption markets in the world Thailand, Indonesia and Vietnam are the three largest export markets for tuna products for US market US market consumes tuna products from 13,000 to 20,000 tons per month To sum up, US is a potential export market of Vietnam because the US has a high demand for a variety of seafood Currently, the US is importing seafood from 138 countries and top suppliers are China, Thailand, Indonesia, Vietnam In addition, Vietnam market is one of the main seafood suppliers, so this is a good opportunity and strengths to develop Vietnam's export markets Moreover, Vietnam's products are sufficient quality to compete with other firms in US markets 14 15 PART 3: POLITICAL, TRADE BARRIERS AND RECOMMENDATION 3.1 Political, trade barriers Although the value of fisheries from exporting to US is very huge, Vietnam government has faced a lot of “steel walls” of the US policy and government These are noticeable difficulties which Vietnam government and businesses has struggled against The Farm bill 2014 According to the 2014 Farm Bill, on the 30th April,2014, the Food Safety and Inspection Service (FSIS) which is belong to the US Department of Agriculture (USDA) signed the memorandum of understanding (MOU) number 225-14-0009 In this MOU, to be highlighted that FSIS would carry out the main management of Siluriforms fish products (The Vietnam catfish is one of the Siluriform fish) The FDA would no longer inspect these fish of this species in the US and foreign establishment involved in raising, slaughtering and processing unless required by FSIS “USDA Releases Final Rule Establishing Inspection Program for Siluriformes Fish, Including Catfish” find that on November 25 2015, after a long-waiting time the USDA released new rules for catfish suppliers, requiring onsite inspections of farms 16 and business for both domestic and foreign producers, mostly from Vietnam, to ensure they meet the same standards The rules were expected to be affected in March 2016 and would be phased for 18 months so that foreign suppliers could have enough time to change what the USDA needed Vietnamese suppliers and trade negotiators were concerned that they would not change in 18 months and catfish export would be banned until they could fulfill the new USDA requirements Fortunately, there are some US lawmakers objected to these new rules and to be specific here was the US Senator John McCain said that “We are proud to continue the fight to repeal the USDA catfish inspection office, which is an egregious waste of taxpayer dollars and a classic example of anti-free market protectionism” But in the end, the FSIS’s new rules were still executed and it even effected on August 2017 The suppliers got more and more difficult in carrying out USDA requirements (Letter to Importer/Customs Broker, 2017) The IUU The IUU or illegal, unreported and unregulated fishing is a global issue which many countries are collaborating together to help the aqua system On October 11 2017, the National Oceanic and Atmospheric Administration (NOAA) of the US and the Vietnam Association of Seafood Exporters and Producers (VASEP) discussed about requirements to prevent IUU fishing (illegal, unreported and unregulated fishing) and the US seafood import monitoring program (SIMP) 17 But regarding Illegal fishing: Commission warns VN over insufficient action (Vietnamnet,2017) on October 23 2017, Vietnam received a “yellow card” penalty by EU after failing to confirm complete improvement in the combat with the IUU fishing The consequence of this penalty is entirely enormous, not only with the economic side but also with the reputation of Vietnam seafood worldwide IUU problem is the seeking of the seafood origin which is increasing the concern of many Vietnam seafood import in the world such as the EU, the US, Vietnam still has not noticed This leads to the problem of the origin, safety products and document fraud of Vietnam seafood exports in the international market Furthermore, the US – the became the second seafood importer released a same program in fighting IUU fishing on January 2018.The SIMP is one of the force Anti-dumping duty Back in 2001, the Catfish war started between Vietnam and US The Catfish Farmers of America (CFA) concerned about the huge losses in profit of domestic producers The CFA supposed Vietnam catfish was being sold less than fair value so they entered a lawsuit to the US Department of Commerce and worked with the International Trade Commission (ITC) In 2002 the DOC begun and anti-dumping investigation of imports of Vietnamese catfish Then in 2003 the CFA won the case and the tax was up to 64% on Vietnamese catfish (Catfish Dispute, 2017) After many efforts of VASEP and Vietnamese producers to fight against DOC’s decision Since after that, US has raised anti-dumping duties which caused the 18 suppliers and VASEP not only to struggle to maintain the profits of their products but also took a lot of fee in the catfish market In the lastest POR13, in September 2017, The DOC once again imposed anti-dumping duty of 2.39 USD per kilogram of frozen catfish fillet.(US raises anti-dumping duties on Vietnam’s frozen catfish fillets, 2017) To find a new solution, Vietnam has registered complaint letter to the World Trade Organization (WTO) on anti-dumping duties (Vietnam files complaint to WTO about US anti-dumping duties on fish, 2018) 3.2 Recommendation According to BaoMoi.com, The US is a potential market for Vietnam’s seafood So, in order to promote export of seafood products, Vietnam needs to perform some basic solutions to promote Vietnam 's seafood exports next time: For the seafood business, focused on cultivating equipment, exploiting and processing using advanced technologies and moderns An important criterion for exporting seafood is to comply with regulations on technical standards, hygiene and food safety Therefore, when they want to penetrate into the US market, seafood processing and exporting enterprises must actively build the quality management system HACCP (Hazard Analysis and Critical Control Points) Along with that is focused on the problem of antibiotic residue chemicals according to the standards of the US market Step by step to diversify aquaculture products, increase the export proportion from exploited seafood such as marine fish, lobster, octopus, squid to avoid over dependence on one commodity In addition, step up trade promotion 19 activities and helping enterprises take the initiative in integrating, developing and enhancing information, marketing and market expansion activities Improve competitiveness and integration of products, businesses as well as the economy This is a decisive issue, it is necessary to strengthen economic and technical cooperation, product diversification and trading method According to Vietnam's Ministry of Aquatic Resources, "there are over 300 seafood processing enterprises in the country." Therefore, in order to sustainably and stably produce and export seafood in important export markets, especially the US, Vietnam must maintain and strengthen the measures to improve competitiveness Because the US is a large market and demand for seafood is diverse and always requires a certain amount of goods to ensure safety and quality Therefore, Vietnam should implement well the following policies: a Policy to create a source of raw materials for export processing Vietnam's coastal resources are being depleted by over-fishing and only the potential for offshore fishing, deep-sea fishing and aquaculture According to the Ministry of Fisheries: "Vietnam has only exploited 13% of fish stocks and 25-26% of exploited capacity" The condition of our country is very favorable for aquaculture, especially tiger shrimp, blue shrimp have very high export value However, financial and technical support from the government is needed to ensure that sufficient supply of high quality raw materials for export seafood processing can be provided to meet the quality requirements of the US importers b Market policy 20 Focusing on promotion of trade, trademark registration on foreign markets, good market research, product promotion, customer contact and customer service In the competitive strategy, attention should be paid to the price and quality of goods because of the barriers that the US uses to have antidumping laws The Association of Seafood Exporters and Producers (VASEP) should take the initiative in better coordinating with the Association of Exporting Countries to fight the imposition of trade barriers by importing countries Strengthening the link between processing enterprises exporting pangasius, shrimp, etc., only so can increase the competitiveness of enterprises and Vietnamese aquatic products on the US market c Technology policy The technology policy for aquaculture in Vietnam is a combination of different technological levels, focusing on the type of technology that creates jobs that use less capital To attach importance to the study of information technology and biotechnology in fishing, raising and processing of key products in order to create technological and economic breakthroughs The government should encourage enterprises to invest in the import of modern technological equipment, hire foreign experts, increase investment in research and application of new technologies, and develop new products Encourage the development of ISO 9000 and ISO 14000 quality management system standards because the requirements of this market also include requirements for aesthetics, usability, safety, customer service and also because of these standards that Vietnam can be more active in the production and consumption of products On the other hand, there must be a team of experts 21 proficient enough to deal with commercial disputes, early catch up information to advise businesses, help businesses can adjust in time before fluctuations of the market Note: Catfish = Pangasius In some website and article, author used catfish and pangasius show the same type of fish So in this assignment use the word based on different author 22 CONCLUSION Vietnam is a country with great potential in fishing and aquaculture With the economy growing, seafood exports play an important role in boosting economic growth and the US is a very important trading partner for the seafood market of Vietnam In this article, we have clarified why Vietnamese seafood is attractive to the US market With diversified products, and increasingly improved in terms of quality and quantity, Vietnamese seafood is gradually entering the US market, gradually meet the needs and high demands of the importers in the US With barriers to trade and tariffs, Vietnam is gradually improving to better fit the standards of the US market in general and the world market in particular To ensure the prestige of the brand and quality of food hygiene and safety according to the set standards Finally, we hope that our paper will provide useful and important information for seafood exporters in Vietnam who have been exporting to the US as well as US importers can understand more about the seafood industry that Vietnam is increasingly eager to assert itself on the international market 23 REFERENCES 1.Trung Quang & Hilmar (2013), Food processing in Vietnam: where is the potential for high value export?, Market potential and challenges for the fisheries sector (pp 66-68) 2.Vietnam shrimp exports to US projected to rise in H2 (n.d.) Retrieved Feb 3, 2018, from Vietnam Association of Seafood Exporters and Producers: http://seafood.vasep.com.vn/seafood/50_12325/vietnam-shrimp-exports-to-usprojected-to-rise-in-h2.htm 3.Vietnam tuna exports to US rose by 16% (n.d.) Retrieved Feb 3, 2018, from Vietnam Association of Seafood Exporters and Producers: http://seafood.vasep.com.vn/seafood/378_12323/vietnam-tuna-exports-to-us-rose-by16.htm 4.Embassy of Denmark in Vietnam (2015) Sector Analysis: Vietnam Fishery 5.FAO (2005) Fishery sector structure: Catch profile Retrieved on January26th , 2018 from http://www.fao.org/fi/oldsite/FCP/en/vnm/profile.htm 6.The World Bank (2017) Total fisheries production (metric tons) Retrieved February 6th, 2018 from https://data.worldbank.org/indicator/ER.FSH.PROD.MT? end=2015&locations=VN&start=2001&view=chart 24 7.Vietnam Aquaculture overview (n.d.) Retrieved February 2st, 2018, from http://www.aquafisheriesexpo.com/vietnam/en-us/news-updates/vietnam-aquacultureoverview 8.Nguyen, T (2018, Jan 18), Cuối năm Mỹ tăng mạnh nhập Việt Nam, [End of the year, the US import from Vietnam increased] Retrieved Feb 3, 2018, from Vietnam Association of Seafood Exporters and Producers: http://vasep.com.vn/TinTuc/751_50636/Cuoi-nam-My-tang-manh-nhap-khau-bach-tuoc-Viet-Nam.htm 9.Minh Duyen (December 11st, 2017) Khai thác chế biến thủy sản, phát huy tiềm biển đảo Việt Nam [Potential of fisheries in Vietnam] Retrieved February 2st, 2018, from https://www.vietnamplus.vn/khai-thac-va-che-bien-thuy-san-phat-huytiem-nang-bien-dao-viet-nam/479134.vnp 10.Vietnam gains record in seafood export value in 2017 (January 3rd 2018) Retrieved February 2st, 2018 from http://english.vov.vn/economy/vietnam-gainsrecord-in-seafood-export-value-in-2017-365930.vov 11.Nhận diện thách thức với hàng thủy sản xuất Vietnam vào Mỹ [Some challenges of Vietnam’s seafood export to the US] (2018) Retrieved February 8th , 2018, from http://vasep.com.vn/Tin-Tuc/751_50877/Nhan-dien-thach-thuc-voi-hangthuy-san-xuat-khau-cua-Viet-Nam-vao-My.htm 12.Mike Urch (August 22, 2016) Vietnamese seafood export to top billion US dollars in 2016 Retrieved February 6th , 2018, from 25 https://www.seafoodsource.com/news/supply-trade/vietnamese-seafood-exports-totop-7-billion-us-dollars-in-2016 13.Thủy Sản Vietnam đạt kỷ lục xuất [Vietnam’s fisheries export hit new record] (January 5th, 2018) Retrieved February 2st , 2018, from http://vasep.com.vn/Tin-Tuc/1218_50604/Thuy-san-dat-ky-luc-xuat-khau-moi.htm 14 MOU 225-14-0009 Retrieved Jan 25 2018 From : https://www.fda.gov/aboutfda/partnershipscollaborations/memorandaofunderstanding mous/domesticmous/ucm396294.htm 15 USDA releases final rule establishing insection program for Siluriforms fish, including catfish Retrievec Jan 25 2018 From : https://www.fsis.usda.gov/wps/portal/fsis/newsroom/news-releases-statementstranscripts/news-release-archives-by-year/archive/2015/nr-112515-01 16.Senators Mccain & Ayotte disapproving of catfish rules from USDA Retrieved Jan 25 2018 From : http://seafood.vasep.com.vn/seafood/51_10945/senators-mccain-ayotte-disapprovingof-catfish-rules-from-usda.htm 17.Letter to Importer/Customs Broker: Import Reinspection of Fish of the Order Siluriformes Retrieved Jan 25 2018 From : 26 https://www.fsis.usda.gov/wps/wcm/connect/b7f4e073-fcb6-4f3d-a62d7a681cd24a80/Importer-Customs-Broker-Letter-Import-ReinspectionSiluriformes.pdf?MOD=AJPERES 18 Illegal, Unreported, and Unregulated (IUU) Fishing Retrieved Feb 2018 From : http://www.nmfs.noaa.gov/ia/iuu/iuu_overview.html 19 Confernce on IUU and US seafood import monitoring program in Vietnam Retrieved Feb 2018 From : http://seafood.vasep.com.vn/whybuy/747_12253/conference-on-iuu-and-us-seafoodimport-monitoring-program-in-vietnam.htm 20 Illegal fishing: Commission warns VN over insufficient action Retrieved Feb 2018 From : http://english.vietnamnet.vn/fms/business/188976/illegal-fishing commission-warnsvn-over-insufficient-action.html 21.Catfish dispute Retrieved Jan 29 2018 From : https://en.wikipedia.org/wiki/Catfish_Dispute 22 Vietnam files complaint to WTO about US anti-dumping duties on fish Retrieved Jan 29 2018 From : 27 http://english.vietnamnet.vn/fms/business/193978/vietnam-files-complaint-to-wtoabout-us-anti-dumping-duties-on-fish.html 23 US raises anti-dumping duties on Vietnam’s frozen catfish fillets Retrieved Jan 29 2018 From : http://english.vietnamnet.vn/fms/business/186346/us-raises-anti-dumping-duties-onvietnam-s-frozen-catfish-fillets.html%20 28 ... http://vasep.com.vn/TinTuc/751_50636/Cuoi -nam- My-tang-manh-nhap-khau-bach-tuoc-Viet -Nam. htm 9.Minh Duyen (December 11st, 2017) Khai thác chế biến thủy sản, phát huy tiềm biển đảo Việt Nam [Potential of fisheries in Vietnam] Retrieved... 8.Nguyen, T (2018, Jan 18), Cuối năm Mỹ tăng mạnh nhập Việt Nam, [End of the year, the US import from Vietnam increased] Retrieved Feb 3, 2018, from Vietnam Association of Seafood Exporters and Producers:... http://www.aquafisheriesexpo.com/vietnam/en-us/news-updates/vietnamaquaculture-overview) There are the most prominent region: Red River Delta (Northern Vietnam) makes up for 583.377 tons of total,