February 14, 2006

Seafood companies in Vietnam cheer even as shortages loom
 

Seafood exporters in Vietnam have reason to cheer as export volume is expected to rise 5.66 percent this year.

In the past few months, many US large seafood distributors have signed import deals with Vietnam and the US reiterated its stance that it considers Vietnam a major trading partner. This is a good sign for the seafood sector but safety standards must be maintained, said Ho Quoc Luc, Chairman of the Vietnam Association of Seafood Producers and Exporters.

Luc said seafood demand have been increasing 3 to 5 percent every year but this year may see a 10 percent increase. Anti-dumping duty and deposit payment pressure will be reduced thanks to recent changes in US regulations. Minister of Fisheries Ta Quang Ngoc said top priority is given to food safety and sanitary conditions in order to improve the prestige and competitiveness of Vietnamese seafood products in the global market. Additionally, export markets for Vietnam¡¯s seafood will be expanded to the Middle East, Africa, and Eastern Europe.

However, seafood processors, especially those dealing with fish and shrimp are beset with shortages of raw materials currently.

It is difficult for processors to purchase enough raw materials for production, said Luc, a director of a seafood company himself. During peak season, his plant would require 50 tonnes of raw fish everyday but now it has only 3 tonnes a day to process. Prices of raw prawns are up 40 percent along with prices of other fish used as raw materials.

Despite the shortage, seafood companies remain optimistic, saying that the shortage of raw materials is normal. Many enterprises believe there will be fewer difficulties this year than the last and have raised export targets.

The Ministry of Trade considers seafood an item with stable export growth with export revenues expected to reach US$2.8 billion this year.