EXPORT TO THE US - A BIG DOOR FOR VIETNAMESE PANGASIUS

After more than a year of inspection and supervision of Vietnam pangasius production process by the Food Safety and Inspection Service (FSIS), the US Department of Agriculture (USDA) has officially announced the decision to recognize equivalent system control food safety of Vietnamese catfish exports to America on October 31, 2019.

This is good news for businesses processing and exporting pangasius to bring Vietnamese pangasius to the world. This also gives pangasius farmers in the Mekong Delta the motivation to improve the quality of ponds and expand production.

Vietnam's pangasius processing and export industry has been in difficulty since the USDA's "Farm Bill" Act in 2014.

According to this law, Vietnamese businesses that want to export processed pangasius to the US market must ensure 3 criteria including: having a legal system to control quality, food safety, authority; law enforcement capacity; In the entire process of the production chain from breeding animals, ponds, transportation, preliminary processing, processing and exporting, it must ensure the hygienic and food safety conditions required by the US Department of Agriculture.

According to Mr. Nguyen Nhu Tiep, Director of the Department of Agro-forestry and Fisheries Quality Management, since the Farm Bill was introduced, most Vietnamese pangasius processing and exporting enterprises were worried about the cost incurred when approaching the US market.

Out of 13 enterprises processing and exporting pangasius to the US market, only two enterprises, Vinh Hoan Corporation (Dong Thap) and Bien Dong Company (Can Tho), can meet Farm Bill 2014. As a result, these two enterprises brought Vietnam pangasius overcome to the US market with 0% anti-dumping tax. And 11 other businesses must always submit to the US Department of Agriculture for consideration with the lowest tax rate when entering this market.

Access and circulation of goods in the US market has always been the goal of many businesses. Here, the goods are affirmed, enhanced image and quality of Pangasius is increasingly improved through the requirements of consumers.

Ms. Nguyen Ngo Vi Tam, General Director of Vinh Hoan Group shared that the US market now accounts for 60% of the export structure of Vinh Hoan. The import tax of 0% in the past few years is a favorable factor to help Vinh Hoan record the growth.

Raw materials supplied to Vinh Hoan are made to order from the US market with 100% origin in Vietnam. Vinh Hoan has an advantage in bringing pangasius into this market because it meets rightfully and enough all criteria of Farm Bill 2014.

When USDA recognizes that Vietnam's pangasius production process is equivalent to production process of US catfish, Vinh Hoan pangasius in particular, Vietnam pangasius in general will be "easier to breathe" when approaching this market.

Businesses also reduce the human resources for the record preparation process that provides USDA with a review of the terms implemented by Farm Bill. Pangasius industry will gain more prestige in the world market.

Overcoming difficulties to receive the decision to recognize the equivalent food safety control system of the US is the time to open a big door for businesses to bring Vietnam pangasius back to its golden age as before.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), also during the time of announcing this decision to recognize the equivalent of the US food safety system, the US Department of Commerce (DOC) considered further for two pangasius exporters to the US are NTSF Seafood Joint Stock Company and Can Tho Seafood Import Export Joint Stock Company (CASEAMEX) with anti-dumping tax of 0%.

Thus, in the 15th anti-dumping tax review, Vietnam had 4 enterprises that passed the US Department of Commerce's food safety control criteria.

However, the whole industry still needs to make more efforts to reach the world market in the near future. Specifically, this recognition decision takes effect from November 1, 2019, which means that the whole Vietnamese Pangasius industry in general and Pangasius export enterprises in the US still face a consideration of the 16th anti-dumping tax . This is also the last for the period from August 1, 2018 to July 31, 2019.

In the next review, Vietnam has 9 enterprises processing and exporting pangasius still have many stages to prepare to reduce production costs, as well as trade in Vietnam Pangasius products, to be able to compete when subject to US anti-dumping tax.

Along with the preparation for the final anti-dumping review, enterprises processing and exporting pangasius to the US market must prepare more to fully enter the US market strongly, confidently; taking the US market as a springboard to reach out the world market.

The by-products such as collagen, surimi of Nam Viet also have outputs, but the input materials need to be more carefully prepared. At the same time, instead of being autonomous in producing and processing by-products, Nam Viet has a direction to link with international businesses to create quality products, according to USDA food safety criteria and the requirements of American consumers.

As one of the enterprises exporting Vietnam pangasius products to the US, accounting for the largest market share of Pangasius exporting enterprises of Vietnam, Ms. Truong Thi Le Khanh, Chairman of the Board of Directors Vinh Hoan delegation shared that whether in the period of struggling with anti-dumping tax of the US or by the time of being recognized by USDA as equivalent to the food safety and hygiene control system as at present, enterprises not only open expanding farming areas and enhancing quality, added value for products but also aims to bring Vietnamese pangasius products to sell directly at supermarkets in many countries; including the US market. By doing these things, the Vietnamese pangasius industry has the prospect of reaching far in the world market.

(According to Vietnam News Agency)

Source: http://seafood.vasep.com.vn/