August 19, 2005

Vietnamese shrimp exports face increased competition from Bangladesh

Vietnamese shrimp exports are facing greater competition from Bangladesh, a major shrimp competitor in the global market, according to analysts.

The US Agency for International Development (USAID) said it was granting support along with several American companies to Bangladesh, in a project to increase the country's shrimp exports five-fold to US$1.5 billion by 2010.

The US$3-million Shrimp Seal of Quality (SSOQ) project sought to raise volume and value of Bangladeshi shrimp exports, and assure consumers worldwide that the country has met international food safety standards.

Bangladesh's total shrimp exports now reach US$300 million annually, with up to 80 percent of the exports going to the US and EU, and 20 percent going to Japan.

The country is currently among the top 10 shrimp exporters in the global market, accounting for about 3 percent of global production.

Meanwhile, Vietnamese shrimp had been seriously hit by a US antidumping lawsuit last year, resulting in penalty tariffs ranging from 4.13 percent to 25.76 percent placed on them.