December 22, 2006

 

Vietnam's seafood export prospects looking bright for 2007

 

 

Although Vietnamese seafood exports to the US looks good in 2007, the fluctuations of the greenback are making export turnover predictions impossible.

 

According to the Vietnam Association of Seafood Exporters and Processors (VASEP), Vietnam had exported 739,000 tonnes by the end of November, valued at US$3 billion, an increase of 29.2 percent in quantity and 23.4 percent in value over the same period last year.

 

Frozen product exports, tra and basa in particular, had been the main driver of the increase in export turnover.

 

The leading market for Vietnamese seafood is Japan, which imported US$75 million worth of products so far this year, a growth rate of 2.8 percent .

 

Exports to the EU grew 66.6 percent, surpassing the US to become the second -biggest importer of Vietnamese seafood products.

 

Exports to Russia increased even more sharply, by 274.6 percent , mostly of frozen fish. Eastern European markets are expected to become big consumers of Vietnam's freshwater fish.

 

Experts have forecast a good year ahead for seafood processors due to increasing prices and a preference for seafood over other meats.

 

However, the increases were forecasted for the retail market only- in the services, distribution and processing chains. Meanwhile, the seafood material market, where supplies are forecast to be abundant and prices cheap, is not expected to witness major changes. 

 

Experts said that the devaluation of the dollar would make the value of seafood products decrease accordingly, especially in the US market. However, this should be seen as a factor that can help stimulate short-term demand.

 

Vietnamese analysts believe the US Federal Reserves (FED) would keep the dollar weak in order to improve the current trade balance and overcome recession.

 

The US dollar has lost 30 percent of its value against the euro in the last five years.