GOOD NEWS: I.D.I HAS LOW TARIFF WHEN EXPORTING PANGASIUS FISH TO THE US

The United States Department of Commerce and Labor (DOC) has just announced the final results for the 19th anti-dumping tax review (POR19) on Vietnamese frozen pangasius fillets exported to the US during the period from August 1, 2021 to July 31, 2022.

Specifically, according to the final results of the POR19 review, I.D.I Corporation (HoSE: IDI) was imposed an anti-dumping tax of 0.18 USD/kg. This will increase the competitive advantage for the company's exported pangasius products.

Compared to the preliminary review results of POR 19 announced in September 2023, the final tax rate of POR19 is 0.04 USD/kg higher. However, in general, the POR19 anti-dumping tax rate has been significantly reduced compared to the final results of the previous POR18 review. This is a quite positive sign for Vietnamese pangasius exporting enterprises in the near future. Currently, DOC is considering the next round of administrative review - POR20.

This year, IDI plans to complete pangasius fillet processing plant No. 3 in the third quarter of 2024, helping to increase the total pangasius fillet processing capacity by 400 tons of raw materials/12 hours/day.

VCBS forecasts that IDI's total export output is expected to reach about 64 thousand tons (up 42% yoy), export revenue will reach about 3,263 billion VND (up 13% yoy) in 2024.

VASEP believes that demand for seafood in general and pangasius in particular is warming up. With pangasius, the results after the US inspection will help create positive psychology for export businesses in the coming time.

According to the Vietnam Association of Seafood Exporters and Producers, seafood exports in the first 2 months of the year reached over 1.3 billion USD, up 23% over the same period in 2023. Particularly, pangasius exports in the first 2 months of the year reached nearly 300 million USD, an increase of 15% over the same period. Pangasius exports to some main markets such as the US and EU have recovered and have promising prospects.

Anti-dumping tax is a major trade barrier when exporting pangasius to the US. However, the US is still the top market for Vietnamese pangasius in particular and seafood in general.