Signs good for seafood exports

Viet Nam earned US$1.3 billion from seafood exports in the first four months of this year, a rise of 20.3 per cent compared with the same period last year, said the Ministry of Industry and Trade.

Increased earnings have been attributed to a higher shrimp prices.

Last year, sugpo prawn exports were the only item which saw a 3 per cent increase while other seafood products fell 6 per cent in the context of the global economic recession. The item accounted for over 40 per cent of the sector’s total export turnover, thus preventing the industry from a slump.

The Viet Nam Association of Seafood Exporters and Processor’s general secretary Truong Dinh Hoe said shrimp prices and productivity would be decisive factors of the sector’s export turnover this year, adding that the market would see promising signals.

Japan and the US have been Viet Nam’s biggest importers of shrimp, accounting for 33 per cent of the country’s total shrimp exports, followed by South Korea.

However, the ministry said export turnover would face difficulties due to a shortage of materials.

It added that current domestic shrimp productivity is able to meet 30 to 50 per cent of material demand at seafood processing enterprises pushing its price up 30 to 40 per cent higher than last year.

Experts said shrimp-raising lagged behind its export potential for the first time in years.

The raising area last year was sharply reduced from 660,000ha to 548,000ha.

They added that export turnover has doubled while the amount of areas devoted to raising had seen slow development.

In the first quarter this year, export turnover surged considerably. However, productivity increased by just 6.1 per cent.

Processing companies said that they were unable to be active in managing raw material. Some factories complained of only being able to buy 5 to 10 tonnes of shrimp a day despite needing around 60 tonnes per day.

Businesses said lack of large-scale investment, high costs and regular epidemics had contributed to the decrease in raising areas.

In an effort to improve exports of other seafood products, many businesses have begun seeking new markets including Brazil, Canada, the Philippines, Uruguay, Algeria and Ukraine.

The South Vina Company in the first four months this year exported 3,000 tonnes of tra (catfish) with turnover of $7 million. Its biggest importer was Brazil, followed by the Netherlands, the US and Germany.

Sao Ta Foodstuffs Company (Fimex Viet Nam)’s export turnover also increased 25 per cent over the same period last year due to its expansion into new markets.

Ho Quoc Luc, chairman and general director of the company said it exported over 1,000 tonnes of shrimp with a turnover of $10 million.

Some companies have carried out a self-contained model of raising and processing which ensure hygienic products and environmental protection.

The industry also showed positive signs as the Ministry of Agriculture and Rural Development (MARD) prepares for catfish exports to Russia next month.

Exports of catfish were interrupted at the end of the first quarter.

MARD’s deputy minister Le Luong Phuong said catfish exports to the market would give priority to prestigious importers. Importers would be given preferential prices and delivery times.

He said the classification would help Vietnamese businesses control their supply and quality of exported products to Russia. — VNS

Tags: Vietnam Seafood, Vietnam seafood exports