Vietnam's Aquatic Exports Shifting to EU and China
In the first 5 months of 2005, aquaculture has attained some progress. However, according to the Ministry of Fisheries, the growth rate was not high enough : the output was 630,000 tonnes, 40.65 per cent of the plan and 9 per cent more than the same period last year; the export value was US$842 million, 32.38 of the plan and only 4.37 per cent more than the corresponding period of 2004.
Sharp fall
According to the Ministry of Fisheries, due to the low price of shrimp, farmers dare not making new investments. After the law suit on shrimp dumping in the United States, the shrimp price fell to a record low. With the main crop in June and July, the price will be even much lower than last year. In Ca Mau, Soc Trang, Can Tho, the price of Su shrimp (30-32 shrimps per kg) is VND60,000-65,000 a kg, or VND35,000-40,000 less than the price at the time US Customs imposed bond on Vietnamese import in March 2005.
The prices of Tra and Basa catfish is also down to VND9,000 a kg of Grade 2 and VND10,500-11,000 a kg of Grade 1. In the meantime, supply has exceeded demand, the export to the US is in difficulty and EU market requires high quality. Yellow Tra faced some difficulties in the export and the price fell. To prevent the price fall, the Ministry of Fisheries on May 18, 2005 decided to establish a steering committee on the production and consumption of Tra and Basa and on May 22, 2005 convened a meeting of associations in the Mekong Delta to find solutions to the issues.
In the coming months, the ministry will follow more closely the development of aquaculture, supplying high quality species and improving the raising of Tra and Basa.
Export to EU and China
Although the domestic market has expanded, processing and distribution remain limited, local clients prefer fresh fish, and marketing of frozen products is still inadequate. The bond imposed by the US government makes it worse. In such conditions, China and EU are regarded as main markets for Vietnamese aquatic products. The export to China can increase by 10-15 per cent, while EU markets can increase sharply in Tra, Basa and tuna, especially in UK, Germany, France, Belgium and Italy. The UK and Belgium are two main markets for Vietnamese shrimp, making up 40 per cent of the export value to the EU. The Eastward expansion of the EU has increased not only Vietnamese export value but also low priced aquatic products. It is also a potential market for fresh water aquatic products though with low imported prices.
To increase the export value, the ministry will assist the enterprises in processing industry and developing trademarks on frozen fish in accordance with Directive 04/CT-BTS of April 4, 2005 of the Minister of Fisheries.
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