July 27, 2010

Vietnamese companies yet to fully exploit US seafood market

Following the BP oil spill in the Gulf of Mexico, seafood producers have more opportunities to boost exports to the US, but Vietnamese companies have not taken full advantage of the situation.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the US is importing catfish from 11 countries, but the import volume from Vietnam is the largest.

There are 10 leading companies who are exporting tra fish to the US. The biggest is Vinh Hoan Company, but they reported that, after the oil spill disaster, the export volume has increased slightly, but the price has not increased even slightly.

Viet An Company has also reported a 20% increase in tra fish exports to the US, with no increase in price.

Binh An Seafood Company has the highest export price at US$3.493 per kilo through export contracts signed earlier. Company officials are still not sure about export prices for new contracts. One representative remarked that it is difficult to raise export prices, because it must compete fiercely with other Vietnamese catfish exporters.

Vietnamese enterprises, instead of cooperating to set high export prices, are competing to gather export contracts.

VASEP plans to hold talks with the 10 leading export companies to discuss floor prices and to propose that the government halt extremely low-priced exports.

After the oil spill, Thai shrimp exports to the US increased by 16.4%, while Vietnam's export volume to the US has dropped by 3.3%. Minh Phu Seafood Group said that the number of US orders is big, but Vietnamese firms dare not accept because they lack enough materials for processing.