Vietnam's exports to US face tough time ahead

VOV.VN - Prime Minister Nguyen Xuan Phuc has asked the Ministry of Industry and Trade to double check goods exported to the US to ensure the credibility and reputation for Vietnamese products as well as exporters’ interests in the Southeast Asian nation's largest export market.

vietnam's exports to us face tough time ahead hinh 0
The PM emphasized that special attention should be paid to products using materials and components imported from China in order to give timely warnings to businesses when the US imposes anti-dumping duties.

According to the General Department of Vietnam Customs, in 2017 Vietnam’s exports to the US increased by 8.2% to US$41.61 billion compared to the previous year, including US$3.58 billion in December.

Last year, Vietnam exported a wide range of products to the US. Garment ranked first with an export value of US$12.28 billion (accounting for 29.5%), trailed by footwear with US$5.11 billion (making up 12.3% and up 14.1%), telephones and components with US$3.7 billion (down 14%), computers and electronics with US$3.44 billion (up 18.7%) and wood and timber products with US$3.17 billion (up 15.7%).

Besides, products which earned an export value of more than US$1 billion each included machines, equipment and tools (US$2.43 billion), seafood (US$1.41 billion), bags, wallets, suitcases, hats and umbrellas (US$1.34 billion), cashew nuts (US$1.22 billion) and means of transport and spare parts (US$1.18 billion).

It’s noteworthy that the growth rate seems to slowdown in recent years, evidenced by the growth rate dropping from 15% in 2016 to 8.2% in 2017 due to anti-dumping and anti-subsidy measures as well as new policies hindering Vietnamese exporters from entering the market.

Typically, the US has constantly imposed anti-dumping and anti-subsidy duties on Vietnam seafood. In September 2017, the US Department of Commerce announced the preliminary decision of anti-dumping duty in the 13th administrative review (POR13) on Vietnam’s frozen pangasius fillets with the tax rate of US$2.39 per kg, which was three times higher than the individual tax rate in the 12th administrative review period. 

Seafood exports to the market are forecast to face more difficulties as the origin of exported products have been strictly monitored due to the implementation of the Seafood Import Monitoring Program (SIMP) to prevent illegal, unreported and unregulated (IUU)-caught and/or misrepresented seafood from entering US commerce since early this year.

Related news