While shrimp exports rose significantly in the first quarter of 2010, the total shrimp output in Vietnam increased by only 6.1%, pushing prices up.

 

The Ministry of Industry and Trade warns that it will be difficult to increase seafood export revenue in time to come, as domestic processing factories lack materials and can meet only 30-50% of the demand from processing companies.

 

Due to the shortage, the shrimp price has been escalating, now selling at prices higher by 30-40% than late last year.

 

Last year, shrimp farming area decreased by 66,000 hectares to 548,000 hectares. In the Mekong Delta during the first quarter of 2010, only three provinces saw shrimp farming area increase, including Bac Lieu, Kien Giang and Ca Mau. Other coastal provinces reduced farming area and output.

 

Truong Dinh Hoe, Secretary General of the Vietnam Seafood Exporters and Producers (VASEP), examined shrimp export prospects in 2010 and cited that production costs of farming and domestic shrimp output, not export markets, will decide the turnover.

 

Farming shrimp requires big capital but production costs in Vietnam are higher than other countries in the region. Failure to make good profits prompted many farmers to give up on shrimp and shift to other kinds of businesses, Truong said.