June 3, 2009

Vietnam only earned US$6.44 billion from agro-forestry and seafood exports in the first five months of 2009, or a 1 percent rise from the same period last year, according to the Ministry of Agriculture and Rural Development.

While most exports saw an increase, their total revenues suffered losses due to falling prices caused by the current global financial crisis, MARD said.

The ministry's figures show that coffee exports rose by 37 percent in volume but declined by 0.4 percent in value, just reaching US$1 billion, while earnings from pepper exports dropped by more than 7 percent despite a 41-percent rise in volume.

Forestry and seafood product exports also went down during the same period, but turnovers hit US$1 billion and US$1.36 billion, up 17 percent and 10 percent respectively year on year.

Rice recorded the highest and steadiest growth, earning US$1.5 billion between January and May, an annualized increase of 17 percent.

The Philippines remains the largest importer of Vietnamese rice, accounting for 46.5 percent of the country's total revenues. It is followed by Malaysia (10 percent) and Iraq (6 percent).

Tea was also another bright spot in the nation's export picture as it earned US$50 million in revenue at a growth rate of 13.4 percent.

Taking these challenges into consideration, the ministry has adjusted its yearly target for agro-forestry and seafood exports to the level of US$12.5 billion, or US$3.7 billion lower than last year's figure.