Seafood exports likely to fall short of 10 billion USD target

ABO/VNA – Vietnamese seafood companies need to work harder to realise the export target of 10 billion USD set by the Ministry of Agriculture and Rural Development (MARD) when oversea shipments in during January-July were estimated at only 4.66 billion USD.

Seafood exports likely to fall short of 10-billion USD target (Photo: VNA).

The yearly growth rate of seafood export in the period this year, at 6.4 percent, was much lower than the same time last year, with 19.3 percent.

According to Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), instability in the world market and oversupply of shrimp worldwide are the main causes of the dwindling growth.

“Exports of seafood products are likely to fetch 9 billion USD, but 10 billion USD is a far cry. However, we are trying our best,” Hoe said.

He noted that revenue from seafood exports in July was less than 700 million USD, adding that however, the season for export are in the last months of the year, and if export value can maintain an increase of 100 million USD each month, Vietnam will pocket 9 billion USD from seafood exports by the end of this year.

As shrimp, tra fish, and tuna are the largest contributors to the nation’s export revenue, a fall in shipment of one of the three products will affect results of the whole sector.
Statistics from VASEP showed that shrimp exports in the second quarter of the year fell 4.9 percent to 893 million USD due to fluctuations in both domestic and foreign shrimp prices. However, thanks to a robust growth of 20 percent in the first quarter, total export for the first half of the year still showed a slight increase of 5.1 percent to 1.6 billion USD.

With shrimp demand expected to rise in the second half, Vietnamese shrimp exports are forecast to reach some 4 billion USD.

In contrast to the rough seas faced by shrimps, tra fish export revenue grew nearly 20 percent from the same time last year to over 1 billion USD in the first six months. Strongest growth was seen in the Chinese market (46.7 percent with more than 251 million USD), followed by the EU (16.2 percent, 117 million USD), and the US (11.6 percent, 197 million USD).

Tuna exports during January-June also picked up 12 percent to nearly 303 million USD. Shipments to Israel are expected to increase while those to the EU will have favourable conditions as both sides are concluding the negotiations of free trade agreement.

However, exports to the US will face challenges due to fierce competition, and falling demands.

(Source: VNA)