December 24, 2013
 
Vietnam expects US$3 billion worth of shrimp exports for 2013 (Week ended Dec 12, 2013)
                                         
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Price summary
 
Prices of all types of tiger giant prawns rose simultaneously last week, posting an increase of VND10,000/kg (US$0.47/kg).
 
Price of giant tiger prawn in Ca Mau  (Expressed in VND1,000/kg*)
Category (pcs/ kg)
Dec 5
Dec 12
20
300
310
30
235
245
40
205
215
*VND1, 000 = US$0.0474 as of Dec 12, 2013
Source: Casep (Ca Mau Association of Seafood Exporter & Producer) 
 
 
Prices of white leg shrimps were up slightly, except for the price of type 90 pcs/kg, which increased VND16,000/kg (US$0.76/kg).
 
Price of giant tiger prawn in Ca Mau  (Expressed in VND1,000/kg*)
Category (pcs/ kg)
Dec 5
Dec 12
60
160
161
70
159
160
80
150
151
90
121
137
100
121
124
*VND1, 000 = US$0.0474 as of Dec 12, 2013
Source: Casep (Ca Mau Association of Seafood Exporter & Producer) 
 
     
      
Market Analysis
 
Shrimp prices increased sharply due to rising demand from domestic enterprises and Chinese traders.
 
Nguyen Van Kich - General Director of Seafood Corporation Cafatex (Hau Giang) said this situation caused a shortage of raw material for all enterprises, although shrimp production has increased this year. "We also accept high prices but we still cannot compete with Chinese traders as they always purchase shrimp at higher prices, up to 10-15%, and do not care about the size or the quality of shrimps," he commented.
 
According to some experts, shrimp price is currently profitable for farmers but it is also the reason for disturbing the shrimp market in the country. As many poor households have taken loans from banks in hundred millions of Vietnamese Dong for building shrimp farms, related authorities are calling for a tighter control. Otherwise, the shrimp sector will lose reputation and have a hard time to cope with diseases. 
 
Other experts argue that not only shrimp but many other types of seafood are appealing to Chinese traders. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), China is the strongest growing market for Vietnam's seafood, and the country's import continued to increase at a two-digit rate in the past two to three years.
 
Truong Dinh Hoe , VASEP General Secretary, said that average Vietnam seafood exports to China reached nearly US$45 million for each month in 2013, up by 32% over the same period of last year. The shrimp export value is estimated at nearly US$28 million per month, accounting for 68% of total export value of Vietnam's fisheries. In the third quarter, seafood exports value to China reached nearly US$160 million, an increase of 40% compared to the third quarter of 2012, including US$109 million of shrimp export value. China has become the fourth largest export market of Vietnam's fisheries with an estimated value of at least US$500 million this year.
 
These statistics came from the declared consignments. If the small and undeclared shipments are included, the figure will be much higher. This proves that the Chinese market has a real need for seafood imports to meet its growing demand. According to VASEP, if Vietnam can widen the road to the Chinese market, the seafood exports to China will be able to reach US$1 billion in future.
 
 
Market Forecast
 
Vietnam saw a remarkable growth rate of seafood export in November, particularly in shrimp sector, which is predicted to reach $3 billion for the first time in 2013.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood exports to China are still restricted by quota. The success of shrimp sector is mainly due to the price increase when resources were in shortage, as Thailand battled the fatal shrimp disease.

According to VASEP, the related authorities of Japan increased the Ethoxyquin level in Vietnam shrimp up to 0.2ppm from 0.01ppm. The official announcement will be issued in January 2014, which will pave the way for Vietnam shrimp export to the country next year.
 


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