July 9, 2007

Vietnam's seafood to earn US$4.5 billion from Indian FTA

Following a proposal to hold free trade agreements between India and Vietnam, the Vietnamese seafood sector has also urged Indian government to allow them to fish in the Bay of Bengal and expressed interest to invest in the Indian seafood industry.

Vietnam¡¯s Prime Minister, Nguyen Tan Dung and his 80-strong business delegates has proposed to India to discuss possible investments and increased aquaculture trade between two countries.

Vietnam strong edge in global seafood market and a likely growth target annually of 9 percent in seafood exports could result of more than 9 lakh tonne seafood worth US$4.5 billion in trade with India.

Big markets Japan, the US and the EU are major destinations for Vietnamese seafood and market analyst Truong Tri Vinh has foreseen this year's Vietnam shrimp exports to grow by 6 to 7 percent and reach US$1.65 billion. The worldwide concern of avian flu in poultry may switch global consumers' preference to seafood.

The director-general of Saigon Trading group, Huynh Van Minh said India is also topping the seafood exports and both countries can work together to get better results.

The two-way trade between India and Vietnam touched over US$1 billion in 2006. The trade balance is in favour of India as its exports were worth US$880.28 million and imports were to the tune of only US$137.84 million.

Vietnam is interested in increasing the bilateral trade to US$2 billion by 2010.