May 14, 2010

 

Vietnam seafood export earnings rise by 20% on-year

Vietnam earned US$1.3 billion from seafood exports in the first four months of this year, attributing to higher shrimp prices, the Ministry of Industry and Trade said.

 

Last year, sugpo prawn exports were the only item which saw a 3% increase while other seafood products fell 6% in the context of the global economic recession. The item accounted for over 40% of the sector's total export turnover, thus preventing the industry from a slump.

 

The Vietnam Association of Seafood Exporters and Processor's (VASEP) General Secretary Truong Dinh Hoe said shrimp prices and productivity would be decisive factors of the sector's export turnover this year.

 

Japan and the US have been Vietnam's biggest importers of shrimp, accounting for 33% of the country's total shrimp exports, followed by South Korea.

 

However, the ministry said export turnover would face difficulties due to shortage of materials.

 

It added that current domestic shrimp productivity is able to meet 30-50% of material demand at seafood processing enterprises pushing its price up 30-40% higher than last year.

 

The raising area last year was sharply reduced from 660,000 hectares to 548,000 hectares. They added that export turnover has doubled while the amount of areas devoted to raising prawns had seen slow development.

 

In the first quarter this year, export turnover surged considerably. However, productivity increased by just 6.1%.

 

Processing companies said that they were unable to be active in managing raw material. Some factories complained of only being able to buy 5-10 tonnes of shrimp a day despite needing around 60 tonnes per day.

 

Businesses said lack of large-scale investment, high costs and regular epidemics had contributed to the decrease in raising areas.

 

In an effort to improve exports of other seafood products, many businesses have begun seeking new markets including Brazil, Canada, the Philippines, Uruguay, Algeria and Ukraine.