September 19, 2012

Vietnam's shrimp export may not meet target this year

Shrimp exporters from Vietnam are having difficulties in meeting US$2.5 billion target this year.

According to the Vietnamese Ministry of Agriculture and Rural Development (MARD) on Tuesday (Sep 18), domestic shrimp exporters have been under pressure of tough rivalry from their foreign counterparts in gaining shares at overseas markets.

However, they still pocketed about US$690 million in the third quarter this year, an increase of 19% over the previous quarter, which accounted for 36.9% of the country's total sea food export value in third quarter, and bringing the nine-month shrimp export value to US$1.7 billion.

To reach the target of US$2.5 billion in 2012, they have to earn US$800 million during the last quarter of the year, a task hardly to be completed.

Japan, the US and the EU maintain Vietnam's three major shrimp importers, but due to increasing shrimp export prices, their demand for this product has declined. As of mid-August this year, the country earned only US$185 million from shrimp exports to the EU, a decrease of 23.1% on-year. Shrimp supply to the US and Japan from other countries is forecast to increase, which also affects Vietnam's shrimp export prices.

Besides, Japan's strict regulations regarding ethoxyquin level in shrimp is causing difficulties to domestic shrimp exporters.

In 2011, Vietnam earned nearly US$2.4 billion from shrimp exports, an on-year increase of 13.7%, according to the Vietnam Association of Seafood Exporters and Producers.