February 16, 2007

EU becomes second biggest buyer of Vietnamese seafood

The European Union already outpaced the United States to become the second biggest importer of Vietnamese seafood last year, behind only Japan, largely due to the market¡¯s stronger demand for local catfish products.

The EU market last year accounted for 21.6 percent of Vietnam's total seafood export of US$3.31 billion, or US$715 million, Deputy Minister of Fisheries Nguyen Ngoc Hong said.

Japan still took the lead, but its share in importing seafood products from Vietnam already fell to 25.3 percent from 30 percent in the previous year, while the US consumption also fell from 23 percent in 2005 to 19.9 percent last year.

Hong pointed to a surge in shipments of catfish products to Europe as the key reason behind the change of position.

Local processors last year exported 250,000 tonnes of tra and basa products worth US$750 million worldwide and the EU market made up for half of this volume, Hong said.

Years earlier, the EU market accounted for a fraction of Vietnam's total seafood export earnings, at some 10 percent in 2004 only, the deputy minister stressed.

Hong also hailed efforts by local processors in diversifying products, which was a strong push behind the country's high growth of seafood exports. Last year's seafood exports earning showed an on-year rise of 25 percent.

In 2005, shrimp products accounted for 51 percent of Vietnam's seafood exports, but this proportion dropped to 44.3 percent in 2006, while fish shipments by contrast surged to 22.8 percent last year from 24 percent in the previous year.

The ministry targets total seafood export revenue of US$3.6 billion this year.