October 22, 2010

High supply costs hurt Vietnam's seafood exports

Vietnamese enterprises that produce goods for export such as seafood are grappling with the rising prices of raw materials as they enter Q4, with many firms braced for higher production costs.

Rising materials and input prices have hit enterprises in the seafood, garments and wooden products sectors. Firms in these sectors are also trying to overcome a lack of capital for production and electricity.

A shortage of seafood will also continue until the end of 2010, especially catfish and shrimp, due to over demand, said the Vietnam Association of Seafood Exporters and Producers (VASEP).

October is a busy month for seafood processors as many try to fulfil export contracts. Demand for catfish in particular has pushed the price of processed products up to US$4 per kilo.

Despite these difficulties, the seafood industry still expect to hit its export target of US$10.5 billion this year.