July 27, 2005

Vietnam lowers annual seafood export target
 

The Vietnamese government has lowered the country's annual seafood export target by US$100 million to US$2.5 billion for 2005, amid surging oil prices and declining key import markets worldwide.

Industry reports from Kien Giang province, a major seafood farming region, stated that due to declining seafood prices and rising fuel prices, fishing vessels might have to remain docked to avoid any losses.

From January to June this year, Vietnamese seafood exports totalled US$1.07 billion, accounting for 42.9 percent of the annual forecast.

However, the government was confident that this year's export target would still be achievable and would not lower it further.

Meanwhile, seafood exports to the US, one of the biggest markets, fell 16 percent and 23.2 percent year-on-year in volume and value respectively, for the first half this year.

This was mainly due to the US customs bond applied to Vietnamese shrimp exporters, according to the government.

In addition, some Vietnamese seafood containers exported to the EU were being returned after importers discovered the products contained chemicals.

Industry reports also stated that antibiotics abuse by seafood farmers had been polluting the water, contributing in part to escalating production costs.