August 28, 2006

Vietnam likely to draw greater interest from the US

Vietnam is set to draw greater attention from the US as retail giants Wal-Mart and Safeway said they have identified the country as a vital base for their overseas production, according to the US-based Vietnamese Commercial Affairs.

Furthermore, the current interest would likely be fueled by Vietnam's entry into the World Trade Organization (WTO) later this year.

The greater interest is tempered by moderation however. To ensure quality and more leverage in price negotiations, US importers generally concentrate on a limited number of Vietnamese exporters only.

Still, the expanded trade would most likely work out to be a two-way street as Vietnam's textile and garment industry would gain greater access to the US clothing market.

Since the US is a voracious consumer, demand problems are not expected. Rather, it is whether Vietnamese can cope with greater production, the group said.

As for aquaculture, Vietnamese companies should strictly monitor antibiotic use and implement international standards of seafood safety while diversifying their product range, the group added.

US import demand on shrimp and tra and basa catfish is expected to continue to remain strong this year as its fishing industry in the south has not recovered fully from the devastating Hurricane Katrina last year.