Shrimp exports seem unlikely to reach the target of 2.5 billion USDthis year after falling for two successive months due to risingcompetition from other countries and increasing costs.
TheVietnam Association of Seafood Exporters and Producers (VASEP) reportedthat July shipments were down 6.8 percent year-on-year after a 4percent fall the previous month.
VASEP now predictsthird-quarter exports to be no more than 690 million USD, or 4 percentlower than in the same period last year. It will take exports in thefirst three quarters to 1.7 billion USD.
VASEP blamed thesluggish exports on pressure caused by competition from other countriesand higher input costs together with modest demand in importingcountries.
Global shrimp prices are falling but demand in majormarkets like the US, Japan, and the EU is not expected torecover soon due to the tough economic conditions.
Deputychairman of VASEP Tran Nan Linh told the Vietnam Economic Times thatVietnam is losing its competitiveness despite selling shrimp at verylow prices, sometimes as low as the cost of raw shrimp.
After the same time major foreign feed companies which dominate the domestic market, have been hiking prices, he said.
VASEP said the situation will improve if the Government, in Q3 andsubsequently, provides support by cutting interest rates and increasinglending to the industry.
Only a third of seafood producers havebeen able to keep production unchanged, it said, while the othersface a cash crunch and cannot resume exports without financial support.
Vietnamese shrimp is exported to 62 markets around the world.
Japan is the biggest, followed by the US, the EU, and the UK .
Exports to most of these markets have been declining. In the US, Vietnam shrimp exporters have to compete with those from Thailand,Indonesia, Ecuador, and mainland China-VNA
TheVietnam Association of Seafood Exporters and Producers (VASEP) reportedthat July shipments were down 6.8 percent year-on-year after a 4percent fall the previous month.
VASEP now predictsthird-quarter exports to be no more than 690 million USD, or 4 percentlower than in the same period last year. It will take exports in thefirst three quarters to 1.7 billion USD.
VASEP blamed thesluggish exports on pressure caused by competition from other countriesand higher input costs together with modest demand in importingcountries.
Global shrimp prices are falling but demand in majormarkets like the US, Japan, and the EU is not expected torecover soon due to the tough economic conditions.
Deputychairman of VASEP Tran Nan Linh told the Vietnam Economic Times thatVietnam is losing its competitiveness despite selling shrimp at verylow prices, sometimes as low as the cost of raw shrimp.
After the same time major foreign feed companies which dominate the domestic market, have been hiking prices, he said.
VASEP said the situation will improve if the Government, in Q3 andsubsequently, provides support by cutting interest rates and increasinglending to the industry.
Only a third of seafood producers havebeen able to keep production unchanged, it said, while the othersface a cash crunch and cannot resume exports without financial support.
Vietnamese shrimp is exported to 62 markets around the world.
Japan is the biggest, followed by the US, the EU, and the UK .
Exports to most of these markets have been declining. In the US, Vietnam shrimp exporters have to compete with those from Thailand,Indonesia, Ecuador, and mainland China-VNA
