July 3, 2008

 

CP Vietnam to focus on seafood export markets
  
  

CP Group is confident that Vietnamese economy will recover soon but they are now focusing on their seafood export markets to avoid currency fluctuations, according to Sooksunt Jiumjaiswanglerg, executive vice president for agro-industry and food business in Vietnam.

 

Vietnam has recently devalued its currency due to a trade deficit of US$14.4 billion in the first five months. Brokerages expect the currency to weaken by 40 percent in the near future.

 

CP Group is confident that Vietnam would see an improvement on inflation and currency value in the last quarter of 2008 therefore it has retained its sales target this year at US$778.5 million.

 

The Group expect sales to climb over 25 percent this year as despite the high inflation rate, sales during the first half jumped 35 percent. The result was due to the adjustment of agricultural prices by 40 percent according to the cost increase in raw materials, Sooksunt said.

 

Sooksunt also expects seafood exports to grow 10 percent in four years' time. The group has increased exports of seafood, especially processed shrimp, from 2,000 tonnes per year on average to 3,500 tonnes this year. Exports are expected to rise to 5,000 tonnes next year.

 

CP's business in Vietnam is the second largest among all CP operations worldwide. Its investment budget for Vietnam's operation this year will include the building of shrimp-breeding and corn-roasting facilities as well as to set up food production businesses.

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