July 7, 2010

 

Vietnam unlikely to meet US$4.5-billion seafood export target

Vietnam's domestic firms are unlikely to fulfil export revenue target of US$4.5 billion for 2010, said the Vietnam Association of Seafood Exporters and Producers (VASEP), with input material shortage as the main cause.

 

The targeted figure is hard to be reached as first-six-month revenues remained modest at US$1.6 billion, Truong Dinh Hoe, general secretary of VASEP said.

 

Weak supply of raw materials, including prawn and catfish which are two major export items, have caused local export processing plants to operate at nearly 50% of their designed capacity.

 

"The shortage came after aquatic raisers have so far given up aquaculture, turning into vegetable farming, due to price volatility. Prawn prices have escalated to a record high at VND200,000 (US$10.48) a kilo to date, but farmers have not enough shrimp for sales," Hoe said.

 

"Euro's strong depreciation has also made bad impacts on Vietnamese exporters to the EU bloc, which has been the largest market for Vietnamese seafood," he added.

 

The secretary also said that high import tariff set by Japan, one of the three biggest importers of Vietnamese seafood has also hindered the exports. He said many Vietnamese firms have reduced exports to Japan as they must still pay an import tariff of 7.2% on tuna, 40% higher than that paid by Thai and Filipino.

 

VASEP said that Vietnam exported US$1.6 billion worth of seafood products in H1 2010, up 17.3% on year.