April 23, 2012

Vietnam's Q1 shrimp exports up slowly

In the first quarter of this year, Vietnam's shrimp exports posted a modest growth rate of 4.5%, much lower than the growth rates of other key seafood items, said the Vietnam Association of Seafood Exporters and Producers (VASEP).

VASEP said tuna and pangasius fish exports surged by 23.1% and 15.2% on year respectively between January-March. Meanwhile, shrimp exports as the key item in Vietnam's fisheries lagged behind, contracting a 2.4% fall in the first half of March.

The association attributed the shrimp export slowdown to a drop in consumption demand for shrimp in big markets. Shrimp exports to EU dropped by 21%, while exports to Canada went down 6.1% and the US fell 1%.

Low purchasing power in major markets such as the EU and the US has dragged down export prices. By end-March, the export prices of white-legged shrimp and tiger shrimp fell to US$3.92 and US$7.22 a pound from US$4.4 and US$7.4 a year ago, respectively.

Vietnam will encounter difficulties in exporting shrimp to the EU, which is struggling with the economic downturn, said Truong Dinh Hoe, general secretary of VASEP. Meanwhile, Asia has emerged as a potential market for Vietnam-grown shrimp.

The country earned US$38.82 million in shrimp exports to China and Hong Kong, up 45.4%. It increased by 11.4% its shrimp exports to South Korea with the revenue of US$26.11 million while ASEAN brought US$6.73 million, or a 14.9% increase.