September 14, 2006

Vietnamese seafood exports to reach US$3 billion this year

A US$3 billion export value for seafood products for 2006 is within reach as Vietnam's Ministry of trade revealed that the country earned US$2 billion from seafood for the first eight months of the year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

After missing the projected targets for 2003 and 2004, the industry did better than expected last year and hopes are rising that it would exceed targets again this year.

Growth this year is attributed partly to the sharp increase in frozen fish exports to new markets, especially the EU, a result of promotional and marketing activities held there, VASEP said.

Meanwhile, shrimp exports have maintained stable growth as it has been doing for the last 10 years, despite a review of anti-dumping duties currently underway in the US. Still, it was no deterrent for the country's shrimp industry as it sought growth in newer markets such as Japan. 

Shrimp exports would account for almost half the Vietnamese seafood exports this year.

Vietnam has also expanded its market towards Eastern Europe. Fish exports to Poland and Russia have increased 20 times.

Despite the stellar performance, problems are emerging in Vietnam's seafood industry. Vietnam's increased international involvement is chipping away traditional advantages like low wages and large-scale production. The attractive profits have also attracted emerging competitors, making it a more crowded market.