August 13, 2004

Vietnam Shrimp Industry Faces Challenge
 

After the US Department of Commerce (DOC) announced the preliminary rulings applied to Vietnam and China, Vietnam's offer price of shrimp exports has surged with many more potential customers. Yet, partners have not yet inked contracts at this time, says Mr. Le Van Quang, Director of Minh Phu Aquaculture Import-Export Company

Thai shrimp has lured a considerable amount of orders as the product is 10% cheaper than Vietnam's shrimp due to low tariffs, explains Quang.

Minh Phu has received no contracts from its traditional partners since late July, says Quang who has felt burdened with pressure of the shrimp anti-dumping case.

Minh Phu and other aquaculture businesses could have been hurriedly prepared to fulfill orders for Noel and festivals.

In fact, turning to other markets in this period is not easy as Vietnam shrimp will face price pressure. Unlike tra and basa catfish, shrimp can hardly look to domestic market as the latter is rather costly and not yet a common dish.

Thus, the most feasible solution, according to many processing enterprises, is to promote large-sized processed shrimp which is to Vietnam's advantage. Sao Ta Province, which has specialized in this item, can hardly fill orders. Apart from Japan, Sao Ta can also win contracts for US-bound shipment.

Moreover, price of input material is still set high while output has not gone smoothly.

According to Chairman of the Vietnam Association of Seafood Exporters and Processors Ho Quoc Luc, to ease hardship, farmers should regulate harvesting shrimp in a bid to avoid price pressure.

Thanks to its low tariffs, Thailand has boosted US-bound consignment. The country plans to raise shrimp exports from current 230,000 tons to 350,000 tons. Thai exporters see this as a great opportunity to win market share from China and Brazil.