August 12, 2010

Vietnam's July shrimp exports surge 22%

Vietnamese shrimp exports fetched US$717 million in the January-July period, or a 22% growth rate year-on-year, and is poised to continue the strong growth in the rest of the year, according to the agriculture ministry.

The ministry said shrimp accounts for over one-third of fishery export value in the seven months.

Meanwhile, the Vietnam Association of Seafood Exporters and Producers (VASEP) predicts shrimp export will continue to go strong until the end of the year owing to stable export markets.

Exports to the US will continue increasing in the remaining months as supply from the Gulf of Mexico, which meets 8% of the market demand stateside has yet to recover following the historic oil spill.

Japan currently as Vietnam's biggest shrimp importer will keep steady, according to VASEP. However, demand from European countries, the third largest market for Vietnam's shrimp, is forecast to run low due to the impact of financial crisis.

Several shrimp exporters have also reported high export revenues in the year-to-date, but showed concerns that a lack of materials is still looming large although the Mekong Delta has entered into the harvest season.

In seven months, Minh Phu Corp, the biggest shrimp exporter in the southernmost province of Ca Mau, posted its record high exports and gained an increase of 36% both in volume and value from the same period last year. In July alone, the corporation earned over US$23 million, the highest ever.

Phu Cuong Jostoco as another shrimp exporter in Ca Mau also posted high revenue growth rate of over 22% year-on-year.

Ly Phuoc An, who owns a factory turning out an average 4,500 tonnes per year, said he was going to increase the production to meet the rising demand from the US Months after the oil spill in the Gulf of Mexico, demand is still on the upward trend, he said.

However, large-sized shrimp, which is most favoured in the US, is in short supply. This shortage is partly blamed on the widespread disease that caused massive death on shrimp farms in Soc Trang Province, a major supplier for shrimp factories in neighbouring provinces in the delta.