Vietnam’s largest shrimp exporter, Minh Phu Seafood, saw its value of exports to the United States rise in June despite a recent allegation of tax evasion.
Minh Phu exported shrimp products worth USD 27.71 million (EUR 24.6 million) to the U.S. in June, up 10.1 percent year-on year, and accounting for 45.3 percent of the total export value in the month, the company said Monday, 15 July.
U.S. congressman Darin LaHood in a letter on 17 May called for an investigation into allegations that Minh Phu is possibly evading U.S. anti-dumping duties on shrimp from India. The letter alleges that Minh Phu purchased a large amount of frozen shrimp from India, processed them at a “minimum" level in Vietnam, and then went on to sell them through a subsidiary to the U.S. as a Vietnamese product.
In early June, Minh Phu said LaHood’s request was based on a one-sided allegation with no evidence and that its exports to the U.S. continued as usual.
In the first half of 2019, Minh Phu gained USD 110.85 million (EUR 98.4 million) from shipments to the U.S., surging 12 percent from the same period last year.
The company’s export value in June was at USD 61.1 million (EUR 54.3 million), up 6 percent from a year earlier. Japan was the second biggest buyer, after the U.S., with a sales value of USD 13.92 million (EUR 12.4 million) in June, up 5.2 percent year-on year. This was followed by Europe, with USD 6.19 million (EUR 5.5 million), 42.6 percent higher year-on year, and South Korea, with USD 1.95 million (EUR 1.73 million), down 42.8 percent, according to the company’s data.
Minh Phu gained a total USD 286.1 million (EUR 254.1 million) of export value between January and June, slightly up 0.9 percent year-on year. Japan remained the second biggest buyer in the period, after the U.S., with USD 55 million (EUR 48.8 million), down 15 percent; followed by Europe with USD 38.5 million (EUR 34.2 million), up 23.4 percent; and South Korea with USD 18.4 million (EUR 16.3 million), falling 18.6 percent year-on year.
Minh Phu said it already signed contracts to sell 38,404 metric tons (MT) of shrimp as of 30 June worth USD 425.8 million (EUR 378.1 million). In June alone, the company signed deals to export 13,403 MT of shrimp with the value of USD 141.2 million (EUR 125.4 million).
Minh Phu has set a goal to export 77,400 MT of shrimp, gaining value of USD 850 million (EUR 754.8 million), this year.
