Vietnam warns of $500 million seafood losses as US ban takes effect

Vietnam has raised alarm over a new US ruling that could strip the country’s seafood industry of $500 million in annual revenue, threatening thousands of jobs and disrupting bilateral trade.

The ban, which takes effect on 1 January, follows a decision by the US National Oceanic and Atmospheric Administration (NOAA) to block imports from 12 Vietnamese fisheries for failing to meet requirements under the Marine Mammal Protection Act.

The ruling casts uncertainty over Vietnam’s exports of tuna, swordfish, grouper, mackerel, and crab, while also complicating broader trade relations between Hanoi and Washington.

US ban on Vietnamese seafood exports from January 2025

NOAA confirmed in August that 12 fisheries in Vietnam had not complied with US marine mammal protection standards. This automatically disqualifies them from exporting to the US market starting from 1 January 2025.

The fisheries include exporters of high-demand species such as tuna and swordfish, which contribute significantly to Vietnam’s seafood trade balance.

The Vietnam Association of Seafood Exporters and Producers has said the ban could severely damage the country’s reputation in global markets. It warned that the decision risks undermining years of efforts to brand Vietnam as a sustainable fishing nation.

In a letter to members, the association noted that the move “will negatively affect the entire seafood supply chain,” from fishermen to processing plants, and impact Vietnam’s image in marine conservation.

Vietnam appeals to Washington amid trade tensions

Industry and Trade Minister Nguyen Hong Dien wrote to US Commerce Secretary Howard Lutnick, urging reconsideration of the ban.

His letter, published on the government’s official website, highlighted the livelihoods of thousands of Vietnamese fishermen and processing workers at stake.

He also stressed that the ruling would affect US importers and consumers, potentially raising seafood prices.

The appeal comes at a sensitive time in Vietnam-US trade relations. In July, President Donald Trump announced a new trade deal that imposes a 20% tariff on Vietnamese exports to the US and a 40% levy on goods deemed to be transshipped.

The tariff regime came into effect last month, forcing Vietnamese businesses to adjust while awaiting clarity on how enforcement will be carried out.

Partial clearance but compliance gaps remain

NOAA did approve 11 other Vietnamese fisheries, recognising that the country prohibits the intentional killing of marine mammals during commercial fishing. However, the agency’s comparability report found gaps in monitoring.

It stated that “not all vessel size classes are monitored and not all are required to report marine mammal bycatch.” This gap was a key reason behind the restrictions on the remaining 12 fisheries.

For Vietnam, the outcome signals that compliance remains inconsistent across the sector. The government now faces pressure to step up surveillance and introduce stricter reporting systems if it wants to protect its share of the lucrative US seafood market.

Shrimp exports also face scrutiny

Alongside the NOAA ruling, Vietnam is dealing with another trade challenge in the form of an ongoing US administrative review of anti-dumping taxes on shrimp imports.

Minister Nguyen Hong Dien has called for a fair outcome for Vietnamese shrimp exporters, who have been hit by tariffs in previous reviews.

A negative decision could add further strain on the seafood industry, which is already dealing with tariffs, compliance disputes, and shifting market dynamics.

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