Vietnam Expects US$3Bln from Seafood Exports in 2006

Vietnam is now hopeful of total US$3 billion revenues from seafood exports in 2006 since the seafood industry has witnessed dynamic growth and quick expansion in export markets so far this year, according to the Ministry of Trade.

 

The ministry reported that domestic enterprises earned $2.008 billion from seafood shipments in the first eight months of this year, up 20.8 per cent on-year. This figure is already near the target of $2.6 billion by the Vietnam Association of Seafood Exporters and Producers (VASEP).

 

In 2003 and 2004, the industry failed to obtain its export goals but last year, it did better than targeted. The performance will be even better this year.

 

Seafood export growth is partly resulted from so quick increase in export volume of frozen seafood to new markets, especially in the Europe Union. This indicates success in export promotion activities and potentials for development of the seafood sector of Vietnam.

 

Despite difficulties, shrimp exports have maintained stable growth for the last 10 years. Though the anti-dumping case led to smaller share in the US market, Vietnamese shrimp exporters have quickly gained higher shares in other markets.

 

Vietnam has also surpassed Indonesia to become the largest shrimp supplier for Japan.

 

As estimated, Vietnam’s shrimp exports will total around $1.4-1.5 billion this year.

 

The EU’s eastward expansion has brought Vietnam a larger market for frozen seafood. In the first half of this year, fresh-water fish exports to Poland and Russia increased over 20 times in terms of value. Experts forecast full-year frozen fish exports will amount around $1.1 billion.

 

In the last decade, low labour wage and suitable production size were advantages that helped Vietnam penetrate into the global seafood market. However, such advantages are being eroded during the country’s international integration and Vietnam is now facing a fiercer competition with countries with similar conditions. This requires application of suitable development patterns to improve competitiveness.