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Status and Constraints of Costly Port Rejection: A Case from the Vietnamese Frozen Seafood Export Industry

Discussion Papers

No.395

by Aya Suzuki and Vu Hoang Nam
March 2013

ABSTRACT

While the rising exports have been the source of growth for many developing countries in recent years, the rate of commodities rejected at the ports of developed countries has also been high. Yet why it has remained so despite the costs involved is mostly unknown. This paper takes a case of the frozen seafood export industry in Vietnam and examines the current status of port rejection, roles played by various stakeholders along the value chains, and the constraints faced by the Vietnamese producers and exporters. It concludes with some policy implications, including strengthening the enforcement mechanism of standards compliance particularly at the upstream of the value chain and providing public testing labs for small-scale producers.



Keywords: Port rejection, quality standards, Vietnam, export
JEL classification: F63, L15, O19

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